skip to main |
skip to sidebar
Buy a Home For Only 3% Down!Fannie Mae, the agency sponsored by the U.S. government to help make housing more affordable to all Americans, now offers HomePath, a special new home loan to finance the sale of its current real estate owned (REO) properties across the country.
We are among a select group of mortgage lenders nationwide who can offer the HomePath loan to get you into one of these homes!
Here are the key benefits of a HomePath Mortgage Loan:
- Only 3% down required on a primary residence property
- No mortgage insurance required
- No property appraisal required
- Only 10% down on 1-2 unit investment properties
- Get up to 6% in seller concessions on primary residence properties
In addition to being one of the few lenders approved to offer the HomePath loan, we’re experts with REO transactions. I have been specially trained to handle the specific requirements of an REO transaction. I’ll keep the process smooth and stress-free.
Search for Fannie Mae REO properties eligible for HomePath financing at: http://reosearch.fanniemae.com/reosearch/
Contact me today to learn more about the HomePath program!
Last Week in the News (January 26, 2009)On Wednesday, January 21, it was announced that the National Association of Home Builders/Wells Fargo housing market index fell one point to eight in January, the lowest level recorded since the index was created in 1985. The index held steady at nine for December and November and was 14 in October. An index reading higher than 50 indicates positive sentiment about the housing market. The index has been below 50 since May 2006, and below 20 since April 2008.
The Labor Department reported Thursday that new applications for jobless benefits increased by 62,000 to a seasonally adjusted 589,000 in the week ended January 17 from a revised 527,000 the prior week. Economists had expected a reading of 543,000. U.S. employers cut 2.6 million jobs last year. The total number of people collecting unemployment benefits increased to 4.607 million.
The Commerce Department reported that housing starts fell 16% in December to a seasonally adjusted annual rate of 550,000 units, the lowest on record. It was a much bigger decline than the 610,000 economists had expected. This follows an upwardly revised rate of 651,000 units in November and 791,000 units in October. Meanwhile, building permits fell 10.7% in December to 549,000 units, also a historic low, from 615,000 units in November.
In other news, the U.S. Treasury is now demanding monthly reports from the banks that received the most capital from the government’s $700 billion Troubled Asset Relief Program. Neel Kashkari, the program administrator, wrote to Citigroup, Bank of America, Wells Fargo and 17 other financial institutions on January 16 seeking figures on business and consumer loans.
Upcoming on the economic calendar are reports on existing home sales on January 26, new home sales on January 29 and gross domestic product on January 30.
In the News (January 20, 2009)
On Monday, The Mortgage Bankers Association reported its seasonally adjusted index of mortgage applications, for both purchase and refinance loans, on the week ending January 9, increased 15.8% to 1,324.8. That's the highest reading since the week ending July 11, 2003, when it reached 1,358.2. The refinance index increased 25.6% to 7414.1, the highest reading since the week ending June 27, 2003, when it reached 8,599.1.
The Commerce Department reported that retail sales dropped 2.7% in December compared to a revised 2.1% decrease in November. Economists had anticipated a 1.2% drop in December. The decline was the sixth straight monthly drop. For the year, retail sales fell 0.1%. It was the first time the annual retail sales figure has fallen on government records going back to 1992. Retail sales increased 4.1% in 2007.
The Commerce Department also reported that total business inventory decreased 0.7% in November. It was the largest decline in seven years and the third straight month companies sought to cut their inventory.
On Thursday, the Labor Department said new applications for unemployment insurance rose last week to a seasonally adjusted 524,000 from a revised figure of 470,000 the previous week. Economists had anticipated a reading of 500,000.
The Labor Department reported the producer price index, which tracks wholesale prices, fell 1.9% in December. That followed a drop of 2.2% in November and a record 2.8% drop in October. The decreases were largely attributed to falling energy costs. In December, energy prices dropped 9.3%, led by a record 25.7% decrease in the cost of gasoline. The government said wholesale prices fell by 0.9% in 2008 compared to a 6.2% increase in 2007.
Upcoming on the economic calendar are reports on the housing market index on January 21 and housing starts on January 22.
In celebration of the man, his courage and his dream.
"I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin, but by the content of their character."
Did you know:
- In 1964, at age 35, Martin Luther King, Jr., became the youngest person to receive the Nobel Peace Prize for having "contributed the most to the furtherance of peace among men." When he learned of the honor, he announced that he would donate the prize money, $54,123, to the civil rights movement.
- It took 15 years to create the federal Martin Luther King, Jr., holiday. Congressman John Conyers, a Democrat from Michigan, first introduced legislation for a commemorative holiday four days after King was assassinated April 4, 1968.
- Congress passed the holiday legislation in 1983, which was then signed into law by President Ronald Reagan.
- In 1994, Congress passed the King Holiday and Service Act, designating the King Holiday as a national day of volunteer service. Instead of a day off, you can make it a day on. If you would like to register your service project, find a volunteer opportunity, or create your own neighborhood, family or individual project, visit www.mlkday.gov.
Created in 2003, Health Savings Accounts (HSAs) help individuals save for future qualified medical and retiree health expenses on a tax-free basis.The biggest advantages of HSA accounts are the tax benefits: you put in pretax dollars, it compounds free of taxes, and withdrawals are tax free if they are used for qualified expenses. If the money is used for other than qualified medical expenses, the expenditure will be taxed and, for individuals who are not disabled or older than 65, subject to a 10% penalty.
Another advantage is any HSA money not spent by the end of the year rolls over to the next year, in contrast to Flexible Spending Accounts (FSA). Also, there are no income limits on who may contribute to an HSA.
To be eligible for an HSA you must be enrolled in, or covered under, an HSA-eligible health plan or what is called a High Deductible Health Plan (HDHP). The HDHP is an inexpensive plan that will cover you should your medical expenses exceed the funds you have in your HSA. The deductible in 2009 is at least $1,150 for an individual and $2,300 for family coverage.
Opening an HSA is a two-step process: you must have the HDHP, and then you can sign-up for an HSA. An HSA-eligible health plan does not have to be an employer-sponsored arrangement. Banks, credit unions and insurance companies also provide HSAs.
There are additional requirements for eligibility: you cannot be claimed as a dependent on anyone else’s tax return; you cannot be entitled to Medicare benefits; and you cannot be enrolled in an FSA or be covered under a spouse’s FSA. You are allowed to have automobile, dental, vision, disability and long-term care insurance at the same time as an HDHP.
Some additional things you need to know about HSAs:
- For 2009, the maximum HSA contribution is $3,000 for individual coverage and $5,950 for family coverage. Those who’ll be 55 or older as of December 31, 2009, can contribute an extra $1,000.
- Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.
- You can use your HSA to pay health insurance premiums if you are collecting Federal or State unemployment benefits, or have COBRA continuation coverage through a former employer
The content of this email is for informational purposes only. Be sure to speak to your financial or tax advisor before making important decisions about your personal finances.
Last Week in the News (January 12, 2009)
On Monday, January 5, the Commerce Department reported total construction spending fell 0.6% in the month of November. Economists had anticipated a much steeper drop of 1.3%. The primary cause for the drop was residential construction spending, which fell in November by 4.2% to a seasonally adjusted annual rate of $328.3 billion. Residential construction spending is down 23.4% from a year ago.
On Tuesday, the National Association of Realtors said pending sales for existing homes in November fell to the lowest level in the eight-year history of its index. The trade group said its seasonally adjusted index fell 4% to 82.3 in November from a revised 85.7 in October. Economists expected a reading of 88.
The Commerce Department reported factory orders declined by 4.6% in November, nearly double the 2.5% drop economists expected. Orders have been falling since August, with a 6% drop in October, the biggest decline in eight years. The report showed that demand for durable goods, items expected to last three or more years, fell a modest 1.5% in November. Durable goods dropped 8.5% in October. Demand for nondurable goods, items such as food, paper and petroleum products, dropped by 7.4% in November following a 3.8% decline in October.
The Labor Department said on Thursday the number of people continuing to claim jobless benefits rose by 101,000 to 4.61 million, above the 4.5 million economists expected.
On Friday, the Labor Department reported that the nation’s unemployment rate increased to 7.2% in December from 6.8% in November as businesses cut 524,000 jobs. Employers are also cutting workers’ hours. The average work week in December fell to 33.3 hours, the lowest level on record dating back to 1964.
In other news, the New York-based real estate data company Radar Logic Inc. reported that motivated sales, which include foreclosure auctions and banks selling homes taken over for non-payment, in the 25 largest U.S. metropolitan areas increased 193% between January 2008 to October 2008.
Upcoming on the economic calendar are reports on retail sales on January 14 and consumer inflation on January 16.
Super-Low Mortgage Rates and REO Properties Offer Great Opportunities
Although the United States is going through tough economic times, it’s important to remain aware of and act on opportunities that create value for your family.
One such opportunity happening right now is super-low mortgage rates. Various elements of the federal government’s rescue and stimulus legislation have resulted in mortgage rates that are lower than we’ve seen in decades. If you are looking to buy a home or refinance your current mortgage to permanently lower your monthly payment, NOW IS THE TIME TO ACT!
A massive inventory of foreclosed homes is the second major opportunity available now. These homes are also referred to as real estate owned (REO) property, the term that banks use for homes they had to take back.
Our company is the preferred lender for several national banks and other institutions that own tens of thousands of REO properties. Buying an REO property can be tricky if you are dealing with an inexperienced lender and real estate agent. However, we are one of the nation’s leading experts on REO properties, and we know how to manage a smooth REO transaction that will create maximum value for your family.
Low mortgage rates and a large selection of low-priced, quality homes don’t come around very often! The most important action that you can take is to CALL ME TODAY to get started. Along with low rates, we’ve also seen great volatility in the market, so these opportunities may not last. Let’s get you and your family going on the road to significant savings and wealth-building opportunity. Please contact me today!
Last Week in the News (January 5, 2009)The Labor Department said initial claims for state unemployment insurance benefits fell to a seasonally adjusted 492,000 in the week ending December 27 from 586,000 the prior week. It was the steepest decline since 1992. That decline, however, didn’t necessarily signal an improvement in labor conditions. Analysts said the drop — while bigger than economists had expected — reflects seasonal adjustments due to the holidays.
On Monday, December 28, the government reported that the interest rate yield on six-month U.S. Treasury bills at the weekly auction dropped to its lowest level on record. The Treasury Department said it auctioned $27 billion in six-month bills at a yield of 0.25%. Treasury rates have fallen to historic lows as the financial turmoil has triggered a rush by investors to the safety of government securities.
According to MasterCard Inc.’s SpendingPulse, total retail sales, excluding gasoline and autos, were down between 2.5% and 4% this holiday season. That would be the largest drop since 1969. Sales of electronics and appliances dropped 26% compared to last year. Retailers typically generate as much as 40% of their annual sales during the holiday season.
On Tuesday, the Conference Board reported that its consumer confidence index fell to 38 in December from 44.7 in November. Economists had expected the index to rise to 45.2.
The Standard & Poor’s/Case-Shiller 20-city housing index fell by 18% from October 2007 to October 2008, the largest drop on record. The 10-city index dropped 19.1%, its biggest decline in its 21-year history.
Upcoming on the economic calendar are reports on construction spending on January 5 and factory orders on January 6.
