Weekly Review 5-13-2011

1. JUMBO RATES = PHENOMENAL --I don’t talk about it much but rates are phenomenal on JUMBO Loans. Here is a mini breakdown:

• 5/1 ARM at 3.125% - $600,000 mortgage is $2,570.26/mo (25% down payment)
• 5/1 ARM at 3.50% Interest Only - $600K mortgage = $1,750/mo (30% down payment)

You can also do 7/1 ARMS and there are even 20% down programs available. These are really great rates. To make it even better…an Interest Only loan on $600,000 at 5.250% = $2,625 per month. That’s a savings of $875 per month.

2. How bad is my Credit hurt if I…? – It is a question that many realtors face on a day to day basis because of the high amount of short sale and foreclosures that are still taking place in the market. On my ipad and through an APP called Flipboard – I found a blog site that talks about mortgage happenings. If you go to www.bargaineering.com you can find the article that discusses what the above situations can do to a person’s credit score and how long it takes to recover. You can find the actual article…here. Things to consider: Short sale will cause a point hit of 160 to a person in the 780+ range. Bankruptcy occurs and bam – mid 500’s and it takes anywhere from 7-10 years to recover your score.

3. Pumping Tires – Every now and again, I like to remind you of the great service that I am able to provide through working with 1st Advantage Mortgage. On 4/21/2011, a client called because they needed me to close a loan for them prior to the foreclosure auction date of 5/6/2011. It gave us 11 business days to get the transaction done…I can say without hesitation, we closed on 5/5/2011…the minimum amount of time to close after an application is started per federal regulations. Do I do these all the time? NO. Do I recommend that one try to close a deal this quickly? NO. But if the need is there, I will work diligently to ensure the successful closing…just saying.