So What Does a Interest Rate Cut Mean to You?

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We now know now due the recent report released by Fed Chairman Powell, the Federal Reserve intends to drop the Federal Fund rate which will lower commercial lending rates (ie: the prime rate) in September if the economy continues to slow.
 
This will stimulate the economy by lowering the cost of commercial lending that businesses use to acquire property and pay for good and services.
 
This rate drop will take some time to trickle down to consumer rates that consist of mortgage and auto loans but knowing the Federal Reserve is pretty committed to doing a rate cut, is great news for consumers!

Consumers that will Benefit from the Rate Cut include:

1) Anyone Purchasing a Home.
2) Anyone looking to Refi property to Lower Payments & Consolidate Debt.
3) Anyone purchasing an Investment Property.
4) Anyone in need of Reverse Mortgage Financing.
5) Anyone in need of Construction Financing (Owner or Spec)

Some clients are not waiting to refi (if they can save money now) as they realize, the Federal Reserve Rate cut, could take several months to eventually affect consumer rates.

Currently Residential Rates are as Follows:

  • 6.375% at 0 Points – 30yr Fixed Jumbo loan at $1.150M & above at 75% ltv (APR – 6.560%)
  • 6.125% at 0 Points – 30yr Fixed Conforming loan at $766.1k > $1,149M at 75%ltv (APR – 6.319%)
  • 6.000% at 0 Points – 30yr Fixed Conforming loan at $300k > $766k at 75% ltv (APR – 6.194%)

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.  Above rates are for owner occupied property within the Bay Area.

For a customized quote or for anything financing related, please contact me.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  hello@101loan.com 

CA DRE #01205444  NMLS #326829

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 and Linkedin.
  5. Over 30 years of lending experience with over $2b in closed loan volume.

Seminars at 101 Loan…

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The following is a list of seminars we teach to Consumers and Business Professionals that include Realtors, Financial Planners, Tax Planners and Estate Planners…

If your interested in any of these, please let us know.

Seminars for Consumers…

  • The Path to Successful Home Ownership (Great for 1st Time Home Buyers)
  • Creating Passive Income Through Investment Property (Great for Diversification and Tax Benefits)
  • Age in Place or Right Sizing? (Help’s Seniors and Empty Nesters Review Financial Options in Owning Real Estate)
  • How to Help Your Kids Buy in Today’s Market – “Give a Hand-Up vs a Hand-Out”! (Provides Options to Help Your Kids buy Locally)

Seminars for Business Professionals:

  • Build a Better Business with Your “Sphere of Influence” (Building a Solid Business Platform)
  • Stocks, Real Estate and Lending (Keeping Informed About Your Local Market)
  • The Power of Follow-Up – (Improving Ones Sales and Annual Closings)
  • Building Your Social Media Platform to Generate More Business.

Any questions or to discuss the above further, please let us know.  Thanks.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  408-377-4123 o

CA DRE #01205444  NMLS #326829

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 50 banks with over 300 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Eight Myths About Estate Planning

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One of the Most Important Things Every Family Should Have…

As your wealth increases or your family expands, its so important to have an estate plan also known as a living trust that not only reduces your tax liability as life events occur but also dictates what is to occur when a life event happens.  For more info on estate plans, please see below or contact me for a referral in your area or based on what you are looking to do.

 

All the Best,

101 Loan

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 #01205444  NMLS #326829

 

Eight Myths About Estate Planning

Somita Basu – Partner-Norton Basu LLP 

www.nortonbasu.com 408.850.7250 sbasu@nortonbasu.com

Myth 1: Everyone knows they need an estate plan.

This may seem like common sense, but as we know, common sense isn’t so common. The
majority of all Americans will die without an estate plan of any kind in place. Many people don’t
want to think about their eventual death or leaving their loved ones behind. But less than half
of all Americans have an updated estate plan that accurately reflects their wishes. The lack of
an updated estate plan results in the inefficient transfer of assets and incurs legal costs, trauma
for the beneficiaries, and expensive delays.

Myth 2: I don’t have an estate!

The word ‘estate’ can conjure up visions of castles, mansions, and the American version of
Downton Abbey. But in the context of estate planning, your ‘estate’ consists of everything you
won, no matter how little or how much. Anything you own in your name as an individual (or
jointly with a spouse or partner) is part of your estate. So, yes, you do have an estate. The
question is who decides what happens to your estate? You or the state of California?

Myth 3: I only need to worry about who gets my house.

Given Bay Area real estate prices, it’s natural to focus on what will happen to your house when
you die. Which child should get the house? Who should be able to live in it? Should rent be
paid? But you need to worry about more than just your house or rental properties. You also
have to consider your bank accounts, investment accounts, and even sentimental pieces of
property – maybe a book passed down for generations, wedding jewelry, or even photographs.

Myth 4: I’m not old enough to need an estate plan.

As soon as you turned 18, you needed an estate plan. At that age, an Advanced Health Care
Directive and Power of Attorney should be completed. When you become a legal adult, your
parents no longer have automatic access to your medical information or your assets. They will
need validly executed and notarized legal documents to help you should the need arise.
Remember, the components of an estate plan will vary with each individual’s need. It’s never a
one-size-fits-all option.

Myth 5: A will and a trust are similar.

A will and trust are only similar in that they both direct the disposition of your assets after your
death. But a will MUST go through the probate process in California while a properly funded
trust avoids court supervision in the vast majority of cases.

Myth 6: My will is a private document.

A will is a private document while you’re alive. But once you die, the original Will must be
lodged with the probate court. This Will then becomes a public document. Anyone can access
this document and your beneficiaries can definitely expect multiple calls from realtors,
investigators, and others. A Trust by comparison is a private document available to only your
beneficiaries and direct relatives. The only time a Trust becomes public is if litigation is
involved.

Myth 7: My agent can use my Power of Attorney after I die.

So many people seem to believe the Power of Attorney document allows access to their bank
accounts even after they die. This is simply not true. The agent acting under your Power of
Attorney only has access to your bank accounts and financial information while you are alive.
Once you pass away, anyone who requires access to your accounts will need court approval or
must be acting as Trustee of your trust. Either way, legal documentation will be required.

Myth 8: I can do my estate plan online with no problem.

Online estate planning packages have serious deficiencies. The legal language is faulty and
multiple legal issues are not addressed properly. But those are technical issues. The question is,
do you want your assets to pass to your beneficiaries as smoothly as possible or do you want a
one-size-fits-all option you can complete online without the advice of an experienced attorney?
Ask yourself, if you found a lump in your lymph node, would you Google the treatment or go to
a specialist and get tested and follow a prescribed treatment plan? Don’t leave something as
important as your legacy to an algorithm. Talk to an experienced estate planning attorney.

What Your Financial Planner May Not Be Telling You

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Financial Planning can be a complicated equation with several moving parts that are constantly changing.  I recently heard that, a house with a crumbling foundation is worthless.  A house, like a financial plan, must have a solid foundation or eventually it can be weakened or even worthless!

This made me wonder why I rarely hear about insurance products as a foundational tool for a properly designed financial plan.  Insurance to some may seem expensive, yet what’s the true cost of NOT having insurance?   I have heard the term “Self-Insuring” or handling the potential risk on your own, seems to be a risky approach to protecting one’s current estate, future retirement lifestyle and legacy for their loved one’s.

We recently learned that there are three primary risks in retirement that jeopardize a retiree of achieving their dream retirement: (1) Market Volatility Risk; (2) Tax Risk; and (3) Longevity Risk.  In other words, losing money in the stock market, while taxes increase and living a long time, could have high risks once retired.

Life Insurance comes in various forms, based upon one’s protection needs:

  • Term life insurance is known as temporary life insurance.  It covers you for a specific period of time.
  • Permanent life insurance is known as cash value life insurance.  It’s used to address permanent concerns and typically covers one until death.
  • Life Insurance provides benefits that can strengthen your overall financial plan.

Long-Term Care (LTC) insurance is a “safety net” for an extended period of time:

  • The need for care may be due to cognitive or physical impairment.
  • LTC can be paid monthly, annually or in a single premium.
  • A 65-year old couple has a 70% chance of one of them needing LTC in their lifetime.

Disability Insurance (DI) is income protection that we can rely on while we are working:

  • If unable to perform one’s job duties, DI will replace a portion of their income, tax-free.
  • DI allows for the continued funding of lifestyle and retirement plans.
  • Severance disability insurance plans can be included in severance packages.

For a recent presentation on the above, please see: 

Finding a Life Insurance, Long Term Insurance or Disability Insurance Advisor that understands how to stabilize the foundation that your financial plan sits on, is key to a successful plan.

For advice on any of the above. please contact:

Nico Wiborg – (650) 465-8957  nwiborg@ft.newyorklife.com

Todd Wellnitz – (415) 846-1521  todd@wellguardfinancial.com

(The above information is for educational purposes only.  For more information on the above, please contact your financial planner, tax planner, estate planner or attorney)

Any questions on the above or lending, please contact me at:

101 Loan

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 #01205444  NMLS #326829

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.

Insurance Update – Fire Season is Upon Us

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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,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

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

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

101 Loan LLC – CA DRE #01205444  NMLS #326829

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:

101 Loan
Senior Mortgage Advisor

www.101Loan.com

650-465-8957  Cell

hello@101loan.com

CA DRE Lic 01205444
NMLS #326829

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 # 01205444 NMLS #326829. 101 Loan LLC is licensed by the CA Department of Real Estate. Equal Opportunity Lender.

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

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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,

101 Loan

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 #01205444  NMLS #326829

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

How Credit Really Works…

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Has This Ever Happened to You?

You’re buying a car at a dealership.  They tell you that your Fico score is 800+ and you will get the lowest rate possible.  You order your credit report on Credit Karma and your Fico Score is 820.  Then its time to apply for a home loan and after running the credit the lender tells you, your Fico score is 720.   Why is it lower?

Do you Know Why?

Not all credit reports are created equal!  There are over 70 different credit reports that have different underwriting criteria.  This helps banks, creditors and in some cases employer make credit decisions about someone.  Better yet, they help the creditor determine someone’s financial means and their ability to pay debt on a monthly basis and/or pay debt off over time.

You Fico Scores Tell Creditors about You…

  • Do you pay your bills on time?
  • Can you afford the loan you are trying to get?
  • Do you miss payments?
  • Will you make your payments on time, every 1st of the month?
  • Can I trust you?
  • Hold a credit card balance?
  • Have established credit or not enough?
  • Any credit or mechanics liens?
  • Do you have tax liens?
  • Can you afford a credit card with a $50,000 credit limit? A 100k limit? $1m limit?
  • Will you pay me back?
  • Should I charge you a higher rate for having a lower credit score?
  • Do you qualify for the loan program?

These are just some of the questions, credit scores answer for lenders trying to make a decision to loan to you or not.

Why are They different?  

Is it being used to obtain a credit card with a credit limit of $5000 or a home loan in the amount of $2 million?  The risk associated with having a larger loan is greater.  The underwriting and qualifications are stricter and more conservative and one’s Fico scores tend to be lower.  This is the reason for the disparity of  FICO scores, from one credit report to another report.

In Summary…

If you are finding your scores are low and your looking for ways to improve them, we are experts in not only lending, but experts in credit!  We have helped 100’s of clients that got turned down by banks with poor credit and have helped them clean up their credit and obtain financing to buy or refinance property.  In addition, if you want the help of a credit professional, Money Magazine wrote a great article on credit repair and what a consumer can do.  For more info, please go to https://money.com/best-credit-repair-companies/

For more info on the above, please contact us.  Were not only specialists with credit but specialist with Residential, Commercial and Reverse Mortgage Financing.

Best Regards,

101 Loan

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 #01205444  NMLS #326829

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.

Tax Assessment of Property Value…

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Just had an interesting question from a client…

Does a refi and the appraisal required to do a refi, trigger a re-assessment. It does not. See below for more info. Read more