Market Update and 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 – 6020 Hellyer Ave #150, San Jose, CA 95138

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)
Rate Disc. Points APR
2.625 1.278 2.759 Details
2.750 0.497 2.823 Details
2.875 0.000 2.899 Details

 

2) 15yr Fixed Conforming ($250k – $765,600)
Rate Disc. Points APR
2.250 0.813 2.429 Details
2.375 0.405 2.496 Details
2.500 0.000 2.522 Details

 

3) 30 Year Fixed Jumbo ($765.7k and above)
Rate Disc. Points APR
4.000 0.181 4.023 Details
4.125 0.025 4.135 Details
4.500 0.000 4.509 Details

 

4) 10/1 ARM Jumbo ($765.7k and above)
Rate Disc. Points APR
3.375 2.250 3.437 Details
3.500 1.125 3.422 Details
3.625 0.000 3.407 Details

 

5) 7/1 ARM Jumbo ($765.7k and above)
Rate Disc. Points APR
3.125 2.250 3.270 Details
3.250 1.125 3.237 Details
3.375 0.000 3.205 Details

 

6) 5/1 ARM Jumbo ($765.7k and above)
Rate Disc. Points APR
2.875 2.250 3.173 Details
3.000 1.125 3.126 Details
3.125 0.000 3.080 Details

 

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 – 6020 Hellyer Ave #150, San Jose, CA 95138. 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 – 6020 Hellyer Ave #150, San Jose, CA 95138

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 Update – Unemployment and Property Values

Good Afternoon,

I wanted to share with you a recent presentation I did, posted on You Tube, about the impact unemployment will have on local housing values compared to the rest of California with the big question in mind…

  • Are we headed towards a Recession?
  • Are we headed into a Real Estate Correction

Feel free to view and share with colleagues, friends and clients.

This Friday, I will be providing a new video and more unemployment numbers that have been recently released and what they mean.  If you need anything, please contact me.  Thanks.

https://www.youtube.com/watch?v=oFq0qqyxOb0

Have a great week and stay safe!

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

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

101 Loan – 6020 Hellyer Ave #150, San Jose, CA 95138 – 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.

BTW…Interested in learning more about how to Choose a Lender…

Obtaining a mortgage in today’s market for a future purchase or refinance can be a complex ordeal. A top financing professional can be critical in getting your offer excepted, or locking the lowest rates and fees with

the most favorable terms. Below are some questions you will want to ask, to make the best choice in choosing your residential or commercial lender or mortgage originator.

By asking the following questions, we can quickly help determine your goals and financing options…

  • How long will you live in the area?
  • How long will you keep the property?
  • Are you planning on doing any remodeling or adding on to the property in the future?
  • When would you like to retire?
  • Are you after cash flow or paying off the loan as quickly as possible?
  • Plus many more…

Once we have your answers, we will advise on what loan programs are best for you and what loan structure will meet your goals.  This is done at the pre-approval appointment and reviewed again once in contract or when we lock your loan.

How will you help me understand the tax benefits of home financing for the future purchase of a home?    

We will determine your approximate tax write offs, net tax benefit, and net effective payment based on your tax bracket. Then we will compare your current mortgage payment to rent and you the benefit on a monthly basis in real dollars.

What is your process in assisting me so I can get my offers accepted?

We do several things that include providing a pre-approval in ms-word, so then at moment’s notice the Realtor can modify the price of the pre-approval to match any offer if purchasing below or at the original pre-approved amount. We also call the listing agent on each offer to convey the buyers compensating factors and to differentiate the offer from everyone else’s.   Lastly, we will help coordinate short closings and “as is” offers with no contingencies.

For more info, go here, then click on Home Financing Brochure for more info.  Thanks.

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 – 6020 Hellyer Ave #150, San Jose, CA 95138

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 – 6020 Hellyer Ave #150, San Jose, CA 95138
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.

Opportunity May Be Knocking – 1st Time Buyers May Finally Have a Leg Up!

In the Bay Area, we have been in Shelter in Place for over 30 days. Unfortunately the flattening of the COVID 19 has not reduced the curve as much as officials have hoped.  Meanwhile consumers are wondering when they will be able to go back to some normalcy in life.

In terms of Real Estate… it continues to be in demand.  Predictions state that this may not be the case in the future, unless officials come up with a plan for consumers to stay healthy but still productive.  Real Estate continues to stay high in value since inventory is so low but with consumer confidence being low and because Shelter in Place is still in affect, properties may sit on the market for longer periods.

This is creating opportunities for first time home buyers.  Because of the stock market correction, 1st Time Buyers,  don’t have to compete with buyers that were using stocks to purchase a property or that had large down payments, putting 1st Time Home Buyers into competitive position.  In addition, sellers are getting antsy, wondering why their homes are not selling or when they may sell.

For more info on the above, about the Bay Area Real Estate Market and Current rates, please tune into my You Tube channel at 101 Loan or at https://youtu.be/-3DSUCsKQVg.

For more info on the above, about the Real Estate Market locally and about current interest rates, tune into my You Tube channel..  If you would like to get pre-approved, please contact us at www.101loan.com or complete the following questionnaire at https://101loan.com/purchasing-start/.

Any questions, please contact me at https://101loan.com/contact-us/.

All The Best,

Rob McCarthy

Owner and Senior Mortgage Planner

101 Loan LLC

Market Update and What Should Retired Homeowners Due in a Declining Stock Market…

As for Mortgage Rates and the Stock Market…The dust has not settled.  Analysts say this week or next may be similar to the last few weeks with volatility in the market. For now, only loans of $510k or less are low in rate. Loans above $510k are expensive, “rate wise” when looking at refi options. Purchase loans are still low in rate as banks subsidize them. In regards to market volatility for this week, please see the following at https://seekingalpha.com/article/4335928-markets-are-setting-up-for-another-move-down-technically-speaking-for-week-of-3-30minus-4-3.

In Addition…Wells Fargo has announced they will only do jumbo loans for clients with $250k deposited with them and will not be doing conforming loans or government type loans (such as FHA and VA) going forward. We are glad we have access to more than one jumbo lender and access to everything else! Being a broker in this type of market does have its perks with access to multiple lenders, many of which are portfolio lenders and lenders that sell to Fannie Mae and Freddie Mac, giving our clients more loan options!

In Closing…with market devaluations, many of your retired clients may be feeling the pain or fear of seeing their portfolio or monthly income from those assets go lower. As a solution, we have access to Reverse Mortgage Financing that can help them Age in Place and eliminate stress and anxiety with the changing times. For more info, please contact me.  Any questions, please contact us.

With the Federal Reserve Lowering Rates, Why Have Mortgage Rates Gone Higher?

As you know the Federal Reserve lowered rates, specifically the Fed Fund was lowered to 0.  This means the bank lending rate has dropped, lowering rates at the street level at tad, but no-where near where they were weeks ago when rates were lower.

Rates are still up because of the following…

  1. Lenders are slammed with so much business. Their turn times are much slower now.  This has caused them all to increase their rates to handle the volume they currently have locked.  By lenders increasing rates, their incoming business slows down allowing them to catch up.  Once they catch up, they typically will lower rates again.
  2. The Corona Virus has forced employees at banks to work from home, slowing down the virus.  Working remotely unless completely set up for this, has caused a slow down of work efficiency causing work delays.
  3. See my response from a few weeks ago below on what a Fed Drop really does*
  4. Lastly, unrelated to rates, County Offices have closed and many appraisers are staying home and not taking on new business.  This will cause further back-ups for lenders and consumers.  We know this is short term (hopefully only a week or so) but this will delay “most” refinances and purchases from closing in the near term.

Update on Rates from a Few Weeks Ago…

Clients are Asking…Why Have Rates Not Gone Down Today?

As you may know the Federal Reserve lowered the Fed Fund by .5% today.  You may be wondering how this will affect interest rates you are seeing for your home mortgage.

I hope the following sheds some light on the subject:

Typically, a Fed cut has no direct effect on mortgage rates.  The Fed Fund (which they lowered) is the overnight lending rate.  Banks charge this to each other when they have a surplus of reserves (deposits) required by the Federal Reserve.  Banks have to keep a certain amount of reserves in relation to their deposits and so when they get more than what they need, they lend out the surplus to other banks that are short in reserves using the Fed Fund Rate.  So what does this mean to you the home owner?

A fed cut like today’s, lowers rates on bank products like car loans, business loans, credit card rates, home equity rates.  Mortgage loans, however are influenced by Fannie Mae and Freddie Mac, Portfolio Lenders and of course Mortgage Backed Securities and Bonds.  In short, when the Dow or Nasdaq starts falling, investors put their money into MBS’s and Bonds causing mortgage rates to go lower.  When the stock market corrects and starts going back up, these investors quickly move their money back over to equities and mortgage rates we see, typically go up.

Now, the reason we have seen rates drop in the past week or so is due to market uncertainty.  The Corona Virus and its impacts local, national and international markets.  Example, if Apple can’t manufacture cell phones in China due to impact of the Corona Virus, their sales and revenue will significantly drop negatively.  This will affect their stock price and stock market as seen in the last week or so.  The Federal Reserve is worried that this will happen to other industries such as travel, manufacturing, tech, etc so they are being proactive in lowering the Federal Fund Rate.  Eventually this move will filter down to interest rates for home loans, but in the near term it will not as seen last year with 3 Fed Fund drops (last year) only resulting a slight reduction of mortgage rates.

Conclusion…

Rates will definitely go lower, but unfortunately it will take some time to do so based on the factors above.  When rates do drop, we will update you so you can take advantage of the rate and payment savings.  If you would like to get in ready position so you can act quickly when rates do drop, please contact us.

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

rob@101loan.com

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

101 Loan – 6020 Hellyer Ave #150, San Jose, CA 95138

CA DRE #01165697  NMLS #121019