Realtors Are Under Attack…Is It Fair? Read Below and you Tell Me

In recent news, Realtors are under attack, on who will pay their commissions and for how much will they receive, per this article published by CNN.  If they are the listing agent of a property, the agreed commission is listed on this listing agreement and future purchase agreement with the seller but if the realtor is representing the buyer, the buyer’s agent may not be getting paid by the seller as this has been the case for many decades.  As a consumer this could be interpreted many ways but what’s most important is for consumers buying real estate,  to fully understand what Realtors bring to the table.  Note:  I did not write the following.  I am only sharing it as instructed.

Below sheds light on this subject and something that should be shared with buyers and sellers:

There is a lot of talk in the news about real estate agent commissions. They LOVE what they do and they do it because they LOVE helping people but there is a misconception on what they do and how they get paid. It’s not a secret… so here you go!

The average FULL TIME REALTOR’s earnings last year was $31,900 @ 40+ hours a week. (Notice I wrote full time 40+ hours not 0-20 hours a week) which is well below the living wage. As a REALTOR they do not get paid an hourly wage or salary and they only get paid if they sell a home and it closes. They can only get paid by broker to broker. As an agent you could work with someone days, weeks, months, or years with no guarantee of a sale ever.

Essentially, they wake up each day unemployed going on Job Interviews and they deal with constant rejection. They dedicate time away from family, use their time, gas, pay for babysitters, miss dinner and weekend’s and rarely take vacations. They are on 24/7.

They constantly need to be on or could miss an opportunity. Once they do close a home, half goes to the other persons agent from the remaining half. They have lots of upfront expenses that must be paid out before they even get paid:

  • Broker Splits and Fees
  • Office rent and utilities
  • MLS Fees
  • NAR Fees
  • Local Association Fees
  • E&O Business Insurance
  • Extended Auto Insurance
  • Self-Employment Tax
  • State Licensing Fees
  • Advertising Fees
  • Showing Service Fees
  • Website Fees
  • Assistant’s Salaries
  • Showing partners
  • Transaction coordinator
  • Yard Signs
  • Photographers
  • Videographers
  • Office Supplies
  • Business Cards
  • Property Flyers
  • Electronic Lockboxes
  • Continued RE Education
  • Legal Fees
  • Gas
  • Income taxes

As a Listing Agent they have lots of tasks far more than just selling a home:

  1. Prepare Listing Presentation for Sellers
  2. Research Sellers Property Tax Info
  3. Research Comparable Sold Properties for Sellers
  4. Determine Average Days on Market
  5. Gather Info From Sellers About Their Home
  6. Meet With Sellers at Their Home
  7. Get To Know Their Home
  8. Present Listing Presentation
  9. Advise on Repairs and/or Upgrades
  10. Provide Home Seller To-Do Checklist
  11. Explain Current Market Conditions
  12. Discuss Seller’s Goals
  13. Share Your Value Proposition
  14. Explain Benefits of Your Brokerage
  15. Present Your Marketing Options
  16. Explain Video Marketing Strategies
  17. Demonstrate 3D Tour Marketing
  18. Explain Buyer & Seller Agency Relationships
  19. Describe the Buyer Pre-Screening Process
  20. Create Internal File for Transaction
  21. Get Listing Agreement & Disclosures Signed
  22. Provide Sellers Disclosure Form to Sellers
  23. Verify Interior Room Sizes
  24. Obtain Current Mortgage Loan Info
  25. Confirm Lot Size from County Tax Records
  26. Investigate Any Unrecorded Property Easements
  27. Establish Showing Instructions for Buyers
  28. Agree on Showing Times with Sellers
  29. Discuss Different Types of Buyer Financing
  30. Explain Appraisal Process and Pitfalls
  31. Verify Homeowners Association Fees
  32. Obtain a Copy of HOA Bylaws
  33. Gather Transferable Warranties
  34. Determine Need for Lead-Based Paint Disclosure
  35. Verify Security System Ownership
  36. Discuss Video Recording Devices & Showings
  37. Determine Property Inclusions & Exclusions
  38. Agree on Repairs to Made Before Listing
  39. Schedule Staging Consultation
  40. Schedule House Cleaners
  41. Install Electronic Lockbox & Yard Sign
  42. Set-Up Photo/Video Shoot
  43. Meet Photographer at Property
  44. Prepare Home For Photographer
  45. Schedule Drone & 3D Tour Shoot
  46. Get Seller’s Approval of All Marketing Materials
  47. Input Property Listing Into The MLS
  48. Create Virtual Tour Page
  49. Verify Listing Data on 3rd Party Websites
  50. Have Listing Proofread
  51. Create Property Flyer
  52. Have Extra Keys Made for Lockbox
  53. Set-Up Showing Services
  54. Help Owners Coordinate Showings
  55. Gather Feedback After Each Showing
  56. Keep track of Showing Activity
  57. Update MLS Listing as Needed
  58. Schedule Weekly Update Calls with Seller
  59. Prepare “Net Sheet” For All Offers
  60. Present All Offers to Seller
  61. Obtain Pre-Approval Letter from Buyer’s Agent
  62. Examine & Verify Buyer’s Qualifications
  63. Examine & Verify Buyer’s Lender
  64. Negotiate All Offers
  65. Once Under Contract, Send to Title Company
  66. Check Buyer’s Agent Has Received Copies
  67. Change Property Status in MLS
  68. Deliver Copies of Contact/Addendum to Seller
  69. Keep Track of Copies for Office File
  70. Coordinate Inspections with Sellers
  71. Explain Buyer’s Inspection Objections to Sellers
  72. Determine Seller’s Inspection Resolution
  73. Get All Repair Agreements in Writing
  74. Refer Trustworthy Contractors to Sellers
  75. Meet Appraiser at the Property
  76. Negotiate Any Unsatisfactory Appraisals
  77. Confirm Clear-to-Close
  78. Coordinate Closing Times & Location
  79. Verify Title Company Has All Docs
  80. Remind Sellers to Transfer Utilities
  81. Make Sure All Parties Are Notified of Closing Time
  82. Resolve Any Title Issues Before Closing
  83. Receive and Carefully Review Closing Docs
  84. Review Closing Figures With Seller
  85. Confirm Repairs Have Been Made
  86. Resolve Any Last Minute Issues
  87. Attend Seller’s Closing
  88. Pick Up Sign & Lock Box
  89. Change Status in MLS to “Sold.”
  90. Close Out Seller’s File With Brokerage

As a Buyer’s Agent they also have many tasks:

  1. Schedule Time To Meet Buyers
  2. Prepare Buyers Guide & Presentation
  3. Meet Buyers and Discuss Their Goals
  4. Explain Buyer & Seller Agency Relationships
  5. Discuss Different Types of Financing Options
  6. Help Buyers Find a Mortgage Lender
  7. Obtain Pre-Approval Letter from Their Lender
  8. Explain What You Do For Buyers As A Realtor
  9. Provide Overview of Current Market Conditions
  10. Explain Your Company’s Value to Buyers
  11. Discuss Earnest Money Deposits
  12. Explain Home Inspection Process
  13. Educate Buyers About Local Neighborhoods
  14. Discuss Foreclosures & Short Sales
  15. Gather Needs & Wants Of Their Next Home
  16. Explain School Districts Effect on Home Values
  17. Explain Recording Devices During Showings
  18. Learn All Buyer Goals & Make A Plan
  19. Create Internal File for Buyers Records
  20. Send Buyers Homes Within Their Criteria
  21. Start Showing Buyers Home That They Request
  22. Schedule & Organize All Showings
  23. Gather Showing Instructions for Each Listing
  24. Send Showing Schedule to Buyers
  25. Show Up Early and Prepare First Showing
  26. Look For Possible Repair Issues While Showing
  27. Gather Buyer Feedback After Each Showing
  28. Update Buyers When New Homes Hit the Market
  29. Share Knowledge & Insight About Homes
  30. Guide Buyers Through Their Emotional Journey
  31. Listen & Learn From Buyers At Each Showing
  32. Keep Records of All Showings
  33. Update Listing Agents with Buyer’s Feedback
  34. Discuss Homeowner’s Associations
  35. Estimate Expected Utility Usage Costs
  36. Confirm Water Source and Status
  37. Discuss Transferable Warranties
  38. Explain Property Appraisal Process
  39. Discuss Multiple Offer Situations
  40. Create Practice Offer To Help Buyers Prepare
  41. Provide Updated Housing Market Data to Buyers
  42. Inform Buyers of Their Showing Activity Weekly
  43. Update Buyers On Any Price Drops
  44. Discuss MLS Data With Buyers At Showings
  45. Find the Right Home for Buyers
  46. Determine Property Inclusions & Exclusions
  47. Prepare Sales Contract When Buyers are Ready
  48. Educate Buyer’s On Sales Contract Options
  49. Determine Need for Lead-Based Paint Disclosure
  50. Explain Home Warranty Options
  51. Update Buyer’s Pre-Approval Letter
  52. Discuss Loan Objection Deadlines
  53. Choose a Closing Date
  54. Verify Listing Data Is Correct
  55. Review Comps With Buyers To Determine Value
  56. Prepare & Submit Buyer’s Offer to Listing Agent
  57. Negotiate Buyers Offer With Listing Agent
  58. Execute A Sales Contract & Disclosures
  59. Once Under Contract, Send to Title Company
  60. Coordinate Earnest Money Drop Off
  61. Deliver Copies to Mortgage Lender
  62. Obtain Copy of Sellers Disclosure for Buyers
  63. Deliver Copies of Contract/Addendum to Buyers
  64. Obtain A Copy of HOA Bylaws
  65. Keep Track of Copies for Office File
  66. Coordinate Inspections with Buyers
  67. Meet Inspector At The Property
  68. Review Home Inspection with Buyers
  69. Negotiate Inspection Objections
  70. Get All Agreed Upon Repair Items in Writing
  71. Verify any Existing Lease Agreements
  72. Check In With Lender To Verify Loan Status
  73. Check on the Appraisal Date
  74. Negotiate Any Unsatisfactory Appraisals
  75. Coordinate Closing Times & Location
  76. Make Sure All Documents Are Fully Signed
  77. Verify Title Company Has Everything Needed
  78. Remind Buyers to Schedule Utilities
  79. Make Sure All Parties Are Notified of Closing Time
  80. Solve Any Title Problems Before Closing
  81. Receive and Review Closing Documents
  82. Review Closing Figures With Buyers
  83. Confirm Repairs Have Been Made By Sellers
  84. Perform Final Walk-Through with Buyers
  85. Resolve Any Last Minute Issues
  86. Get CDA Signed By Brokerage
  87. Attend Closing with Buyers
  88. Provide Home Warranty Paperwork
  89. Give Keys and Accessories to Buyers
  90. Close Out Buyer’s File Brokerage

In Closing…

You don’t need to buy or sell a home to support your agents real estate business – here are just a few simple ways to show your support!

By sharing one of their listings, sending a friend or family member their way, letting them connect you with agents outside their area for a broker to broker referral, or leaving them a positive comment or review, this helps them feel seen and supported😊

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  408-377-4123 o  408-608-1921 f

CA DRE #01165697  NMLS #121019

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 60 banks with over 300 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

What’s New in Real Estate?

It’s been an interesting last few weeks with Real Estate, the Stock Market and Interest Rates!

First…

With the debt ceiling deal in place (thank god), what’s in store for us a country?  See what AP News wrote.  Glad this got put into place as interest rates in just 2 weeks rose .5% and since last month Monday have dropped .25%.  Hope this continues, as interest rates; since December 2021, have climbed 3% and have crippled the real estate and mortgage industry as whole.

Next…

Check out the Case Schiller Report.  It shows that in the last 2 months, the home value index rose.  Selma Hepp, the chief economist at CoreLogic, stated that the CoreLogic Case-Shiller Home Price Index reveals unexpected resilience through notable growth in home prices. The spring home buying season has witnessed a stronger influx of buyers compared to sellers, leading to a highly competitive market scenario. The scarcity of available existing homes is compelling buyers to pay more than the listed price, resulting in substantial price increases during the early spring period, surpassing the customary patterns observed during this time.

Lastly…

We’re teaching 3 Seminars at the Capitola Library in June (please invite your clients):

The Path to Successful Home Ownership – (On June 3rd at 1pm First Time Buyers looking to buy locally will learn valuable information about the process of buying in today’s real estate market.  Learn from a top Realtor and us, as they provide important info on how to buy, where to buy and why to buy in today’s fast-moving market.  For more info, go to https://santacruzpl.libcal.com/event/10719528)

Age in Place or Right Size – (On June 17th at 1pm, Seniors, Empty Nesters and Son’s and Daughter of Retired Parents are invited to learn about their options in “Right Sizing and or Aging in Place”. Learn about your options in Staying in Your Current Home or Selling and Moving locally or elsewhere. Also, learn about the pro’s and con’s of reverse mortgages and how they can help or how they can hinder home owners. A top realtor and top mortgage broker with over 30 years of experience with over 200 “5 Star” reviews, will be presenting.  For more info, go to https://santacruzpl.libcal.com/event/10719529)

How to Help Your Kids Buy in Today’s Market – (On June 24th at 1pm Learn How to Help Your Kids buy in Today’s Local Market through several real estate and loan options allowing your kids and yourself to create financial stability. There are several financing options available and Rob McCarthy at 101 Loan will teach you them with the help of one of his Top Local Realtors. Help Your Kids Make Home Ownership not just a Dream, but a Reality.  For more info, go to https://santacruzpl.libcal.com/event/10719532)

Any questions, please contact us.  Thanks.

 

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  408-377-4123 o  408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01165697  NMLS #121019

101 Loan is an Associate of General Mortgage Capital Corporation

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1-4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 300 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

 

The New Jumbo 2 to 1 Buydown…

I have a new loan product that helps developers sell more property in today’s high-rate market.  It’s called 2 to 1 Jumbo Loan and no retail bank offers it.

The concept of this program works like this… Current jumbo rates are approximately 6%.  The buydown (which is priced a tad higher than current market), allows the borrower or seller (builder or developer) to buy down the rate by 2% year 1 so instead of the borrower paying 6.5%, they pay 4.5% for the first 12 months.  Year 2, the borrower pay’s 5.5%, then year 3, 6.5% for the remainder of the loan but will most likely refi in 1 to 2 years when rates go lower.

The cost of the buy down averages between $35k to $40k and put into an escrow account to cover the buydown over the life of the loan but is usually paid by the developer, builder or seller as a way to incent the buyer to purchase and close on the unit.  In return, they get the following:

  • On the price of $2m at 25% down, the P&I payment on the mortgage of $1.5m at 6.5% would be $9481/month.  At 4.5%, the payment would be $7600/month saving the buyer/borrower $1881/month year 1 for 12 months.
  • Year 2, the payment would be $8517/month saving $964/month over month 13 to month 24.
  • Over 2 years, that’s a saving of $34,140 over 2 years.

Note:  Payment above is P&I only and does not include property taxes and property insurance paid monthly.  Above based on a purchase with borrowers having a 780 mid fico and above.  Apr on 6.5% is 6.879.

This program will help more property be sold and we are the only lender in the US currently offering this program.  Let me know if you’d like to discuss this further.

Thanks.

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  408-377-4123 o  408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01165697  NMLS #121019

101 Loan is an Associate of General Mortgage Capital Corporation

 

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 300 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Making a Strong Offer in Today’s Real Estate Market

This is something I shared with another client making offers.  Just some advice to share with you?

With listing inventory this low in the bay area, you should ask your agent/Realtor what they think the property/listing will sell for vs what its worth.  Many agents list property below market to get multiple offers and higher prices.  Rarely do we run numbers based on list price, we tend to go a good $100k over the value to give a more realistic payment breakdown and sometimes that may still be too low.

For each offer you plan on making, asking your agent what they think the true value of the home is (also known as a CMA) and then how many offers will be made, is crucial to a successful offer in today’s real estate market.  Once you determine the true value, then add 1% to 2% for each offer.  Again, this may not result in the winning offer but it will get you close or at least afford the opportunity where the listing agent counters your offer, meaning your still in the running vs dead last on the offer.

For more info, contact us, your Real Estate agent and be sure to read the article below to see what’s happens when your not successful in ratifying the purchase contract.

See below:

https://101loan.com/blog/chasing-the-2021-housing-market/

Any questions, please contact me.  Thanks.

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Rob’s Market Report…The Good, the Bad, and the Ugly

Hope the week is treating you well! 

For us in lending, it’s a world wind!  Never in 30 years have I worked so many hours per week with such concentration for so long since going Shelter In Place on March 17.  We had a short stay on SIP but that didn’t last long with SIP Chapter 2 commencing, where COVID numbers rapidly increased as the state of California and other states throughout the US lifted social distancing rules.

While COVID has impacted un-employment its done little to nothing in the near term to the Dow Jones which closed at 26,828 today and interest rates have gone lower.  Definitely the lowest I have ever seen them in 30+ years of doing lending.

If you, your friends or family haven’t refinanced and have loans below $765k, have them contact us and we will happily quote them.  Most retail banks are taking 90+ days to close a refi while were still at 45 to 50 days from start to finish.  In addition, if your clients just want an idea of what’s available we can usually respond with a rate update within 24 hours whereas retail banks based on what my clients are saying, can sometimes take, weeks for a response.

Its as simple as completing the following questionnaire and forwarding back to me to run a rate search…See below:

Please complete the following refinance questionnaire or go here to complete online https://101loan.com/refinancing-start/.  Once completed, I will research loan options out of 50 lenders and provide a rate comparison for your review based on the best available rates and loan options.  Any questions at all, please contact me.  Thanks.

1)  Provide your property/mailing address, day and evening numbers.

2)  What is the estimated value of your property and is your dwelling permitted with the city?  In addition, is this property your owner occupied or investment property?   Lastly, is the property a house, townhouse or condo?

3)  What are the balance of your 1st Mortgage-      2nd Mortgage-       3rd Mortgage-

4)  What are the rates on your 1st Mortgage-      2nd Mortgage-       3rd Mortgage-

5)  What are the payments on your 1st Mortgage-      2nd Mortgage-       3rd Mortgage-

6)  Do you want cash out?  If so how much?

7)  How long do you plan on owning the property?

8)  Does your loan have a prepayment penalty?  If so, when does it expire?

9)  When did you purchase your home and for how much?

10) What is your annual, verifiable income and what is your estimated FICO score?

11) Which loan programs are you considering?  Fixed and/or Hybrid?

In closing, if you need help with any type of financing, please contact me.  See current market report at http://www.mmgweekly.com/w/index.html?SID=86df7dcfd896fcaf2674f757a2463eba.

BTW…if you missed my last video on Home Insurance, make sure you watch this.  A client of ours out of the area was just quoted over $10,000 on a 3000 sq ft house as they let their home insurance lapse and unfortunately for them, they are in a risky area “burn wise”.  https://101loan.com/market-update-and-insurance-update-fire-season-is-upon-us/

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Insurance Update – Fire Season is Upon Us

Happy Friday,

Interesting week…

Things seemed to be improving financially, but then the Dow reacted with news of new Corona outbreaks (down by 5% yesterday but up today by 1.43% as of this morning).  Some good news, unemployment remains much lower here in the bay area compared to other places throughout the US and housing inventory remains low forcing home prices higher.  Great for home owners and investors but not so great for buyers.

Next, I met with my good friend, Bernard Lauper with Risk Strategies to learn what home owners should do if they own property in the suburbs or rural parts of California, as fire season is upon us, noted by the recent brush fires in San Jose and in Los Angeles.  See video at https://youtu.be/72lwrDcIN0o.

Lastly, below are our current rates.  What’s interesting is I shared this with a client, this week, and he conveyed that our 7/1 was super competitive compared with other retail banks and brokers for a few reasons.  Most retail bank are requiring 780+ fico to get the lowest rates, we don’t have that requirement.  Most retail banks require 24 months of liquid assets but don’t count retirement accounts.  We do count them.  Lastly, many retail banks are not doing cashout refi’s on jumbos, 80/10/10’s on purchases, or debt to income ratios over 38%, the list goes on, but we do.  If you want a flexible lender who is still closing purchases in 30 days or less and refi’s in 45 days or less, contact us.

Have a Great Weekend!

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   rob@101loan.com e

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

 

As requested, please see today’s best interest rates comprised of over 40 institutional and portfolio lenders throughout the United States.  For a customized quote based on your clients needs, please contact me.  Thanks.

BTW…We are still doing jumbo 80/10/10’s (10% down) and Jumbo Cashout Loans.  For more info, please contact me.  Thanks.

Have a Great Day!

 

1) 30yr Fixed Conforming ($250k – $765,600)
RateDisc. PointsAPR
2.6251.2782.759Details
2.7500.4972.823Details
2.8750.0002.899Details

 

2) 15yr Fixed Conforming ($250k – $765,600)
RateDisc. PointsAPR
2.2500.8132.429Details
2.3750.4052.496Details
2.5000.0002.522Details

 

3) 30 Year Fixed Jumbo ($765.7k and above)
RateDisc. PointsAPR
4.0000.1814.023Details
4.1250.0254.135Details
4.5000.0004.509Details

 

4) 10/1 ARM Jumbo ($765.7k and above)
RateDisc. PointsAPR
3.3752.2503.437Details
3.5001.1253.422Details
3.6250.0003.407Details

 

5) 7/1 ARM Jumbo ($765.7k and above)
RateDisc. PointsAPR
3.1252.2503.270Details
3.2501.1253.237Details
3.3750.0003.205Details

 

6) 5/1 ARM Jumbo ($765.7k and above)
RateDisc. PointsAPR
2.8752.2503.173Details
3.0001.1253.126Details
3.1250.0003.080Details

 

Specialists in Residential, Commercial and Reverse Mortgage Financing

For More Info, please
contact me at:

Rob McCarthy
Senior Mortgage Advisor

www.101Loan.com

650-465-8957  Cell

rob@101loan.com

CA DRE Lic 01165697
NMLS #121019

Over 200 “5 Star” Reviews
on Yelp at:


http://www.yelp.com/biz/101-loan-campbell-3

Recent Market News…

https://101loan.com/blog/

 

 

 

 

 

 

 

 

 

Disclaimer: The above rates are based on 75% ltv or less with a 43% debt to income ratio or less. On Jumbo products, some programs require 9 or more month of PITI reserves. For details, please contact me. For a custom quote, specific to your needs and current financial situation, please contact us. Rates and fees are subject to change without notice or until locked in and approved by lender. 101 Loan LLC – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014. CA DRE- License # 01165697 NMLS #121019. 101 Loan LLC is licensed by the CA Department of Real Estate. Equal Opportunity Lender.

Unemployment Down in Bay Area and Real Estate Staying Strong…

A Very Interesting Week for Real Estate, Unemployment and the Dow Jones!

This week, see why the economy is coming back strong. For more info, see https://youtu.be/7DaDcWhDUdg.

Home Values

Real Estate values continue to stay strong, with multiple offers as Shelter in Place has been modified.

Just this week, we pre-approved over twice as many borrowers as with previous weeks.  Many of my Realtors are reporting buyers coming off the fence and writing offers.  Housing inventory is finally up with Shelter in Place in Phase 2 allowing Realtors the ability to list property.  Inventory is now at 2.8 months but with over 7 Million people residing in the bay area, that isn’t much!  This is great news for sellers, but not so much for buyers where supply and demand are not equal.

Unemployment

Bay Area unemployment wasn’t as high, as some expected, compared to other areas throughout California.  Marin County came in at 11.1.  San Francisco County at 12.6, San Mateo County at 11.4 and Santa Clara County at 11.7.  What is also interesting is national unemployment dropped from 15.3 to 13.3%.  In just one month, over 2.5m people went back to work which is great news for the economy!

Local, National and Global Markets

The Dow closed today at 27,110 due to the following:

  1. Economic Optimism
  2. Overwhelming Policy Response
  3. Corona Virus Uncertainty Abating
  4. Global Yields Increasing

For more info on these, see my weekly report which can be found at www.101Loan.com under Rob’s Corner.

In Closing…Noah Manning with Perspective Realty in the North Bay and myself provided a summary on the above (and more) at https://youtu.be/7DaDcWhDUdg.   (I hope you enjoy it and if you like it, please leave your comments on the channel)

I hope you have a great weekend!

All the Best,

Rob McCarthy

Senior Mortgage Advisor

408-377-4123 o  650-465-8957 c   rob@101loan.com

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Market Report and What the Unemployment Numbers are Saying…

Please See this Weeks Market Update that will Discuss the following:

  1. Last Weeks Market Review
  2. A Look Ahead – What to Expect
  3. How Zoom has changed the way we do business!

(http://www.mmgweekly.com/w/index.html?SID=86df7dcfd896fcaf2674f757a2463eba)

Next and Most Important…please see April’s unemployment numbers that were just released at 10am this morning.  California’s unemployment rose from 2.9 in February to 5.3 in March to 15.5 in April (https://www.bls.gov/lau/).

Locally though, unemployment (still waiting for the numbers in the bay area), should be lower since we are a tech based economy with large cap companies with lots of  cash in reserves (Example: Apple has 116 Billion in Cash).  Once the bay area updates, I will send another report.

In Closing, the Basic Consensus is as follows:

If our (bay area) unemployment numbers are lower than the average of the state, coupled with low housing inventory and low rates, demand for housing should stay strong.  If unemployment numbers are high, then we could be going into a recession as predicted by analysts throughout the country.  Based on history though, we (bay area real estate) tends to outpace and outperform the rest of the country.   As mentioned, I will update you once I have more info.

BTW…for more news in the future, always go here: https://101loan.com/blog/

All the Best,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Cash Out Refi’s Might Go Away?

 First and Foremost…
I just read an interesting report on how lenders may eliminate cash out refinances on conforming and jumbo loans. We have seen the “add” for cash-out refinances get super expensive lately.  It appears the Federal Reserve doesn’t want borrowers pulling equity out of their homes.  They feel home values may go down due to the negative impact of Shelter in Place and Covid-19.
For more info, see quote and link below:
 
“Many lenders have eliminated or restricted cash-out refinances, financing for investment properties and some for second homes as well,” Cohn says. “Jumbo lenders have also tightened their guidelines.”
 
https://www.cnet.com/personal-finance/6-things-to-know-about-refinancing-right-now/ 
 
Next…
A listing agent in the east bay recently posted a great Yelp review on the service we provided her. I just love when we can help Realtors and their clients successfully & smoothly close on purchases. 
To view the review, click here: https://www.yelp.com/biz/101-loan-mortgage-san-jose-2  (See Testimonial from Bette dtd. 4/28/2020)
If you’d like the same care, please contact me.
 
Best Regards,
Rob McCarthy
Senior Mortgage Advisor
www.101Loan.com
408-377-4123 o 650-465-8957 c 408-608-1921 f
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070
101 Loan LLC – CA DRE #01165697  NMLS #121019
Products/Services/Accolades:
1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

“A Stock Market Loss is Only a Loss if You Sell”

A Stock Market Loss is Only a Loss if You Sell or so Financial Planners tell us!

For those in their 30’s, 40’s or 50’s, those age groups, should have time for the stock market to recover. However, for those much closer to retirement or retired, they may not be as fortunate!

As companies take huge losses with “Shelter in Place” and consumers are pulling back their purchases, analysts feel MORE stock losses are imminent.  The Federal Government stimulus will help in the short term, but longer-term, we are facing a new economic reality and one that we will not like.

If you’re in your 60’s, 70’s or 80’s, making back the market’s losses may only be a hope, and unfortunately not reality. The question to ask is…What are my options now that my fixed costs are the same, but my assets have taken a big hit?

We may have an answer for you. To learn more, please contact me or review the information on my site at https://101loan.com/reverse-mortgage-start/ .

Thank you.

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o 650-465-8957 c

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01165697  NMLS #121019

“Over 200 “5 Star Reviews on Yelp and Over 30 years of Experience in Lending”