Nhollenbeck's Blog

Rates Are Lower Than This Country Has Ever Seen!

Nathan Hollenbeck — Thu, 22 Jul 2010 17:01:59 +0000

It has been interesting watching rates over the past few months. I can remember back to March when everyone was terrified of what would happen when the Fed dropped out of their Mortgage Backed Securities purchase program. People were screaming to the heavens that rates would go up to 5%, 6%, 7% and so on. In point of fact rates did move upwards for the first week or so of April but then we were hit with a new economic dilemma, the European Debt Crisis. The issue caused a drop in value of the Euro, which in effect loosened up our fears of inflation. It also caused investors all over the world to flock towards US Treasuries and Mortgage Backed Securities as a safe haven from the stock market. As a result, mortgage rates are the lower than they have ever been before! If you have not had the opportunity to refinance your home or have been holding off for the right time, now is the time to get started! Rates are so low in fact, that if you have refinanced within the last year or so it may make sense to refinance again at today’s low rates. Please contact me to discuss.

Please contact me for a competitive rate quote if you are currently thinking of refinancing. I would love to discuss your current loan and compare it with today’s rates, as well as determine your long term and short term financial goals. Also, if you have any general questions about real estate or mortgage lending my door is always open. Thank you for taking the time to read my blog, I hope this information is useful and informative.

Nathan Hollenbeck
Loan Officer
DRE # 01874641

910 Campisi Way Suite 1D
Campbell, CA. 95008
408-361-8461 Direct
408-228-0539 Fax
Nathan@kalfinancial.com
http://www.kalfinancial.com
Real Estate Broker – CA Dept. of Real Estate – Silicon Valley Capital Funding – License # 01411900

Want your $8000 First-Time Homebuyer Tax Credit?

Nathan Hollenbeck — Wed, 20 Jan 2010 20:44:42 +0000

If you plan to claim your First-Time Homebuyer Tax Credit, you cannot send it in using efile. You have to go to the following IRS web page and fill out the 5405 form (http://www.irs.gov/pub/irs-pdf/f5405.pdf), then mail it in. You will also be required to include a Proof of Residency, a copy of your Driver’s License, and a signed copy of your mortgage statement. For those of you that do not know what a proof of residency is, it is typically a land line phone bill or PG&E bill that shows services are being provided at your place of residency. The bill must be sent to the address of the home that you are claiming and must show your name as the intended receipient.

Also, I’d like to take a moment to inform everyone that I no longer work with The Honte Group. I have joined forces with a great company called KAL Financial. If you would like to know where you stand with your current mortgage rate or would like to see what rates are available on a home purchase, you can go to our website (http://www.kalfinancial.com) and enter in your loan information WITHOUT including your personal info. Our software looks through the long list of lenders that we work with to find you the best rate available for your loan scenario! If you like the rate you see or would like to know more, feel free to enter in your contact information, or call us directly.

As always I hope this information is helpful. I’d also like to thank you for taking the time to read through my blog. If you have any questions or concerns, please feel free to contact me using any of the methods shown below.

Nathan Hollenbeck
Loan Coordinator

http://www.kalfinancial.com
560 S. Winchester Blvd., Suite 500
San Jose, CA. 95128
408-918-3017 Direct
408-242-7552 Cell
408-228-0539 pFax
nathan@kalfinancial.com
Real Estate Broker – CA Dept. of Real Estate – SiliconValley Capital Funding – License # 01763070

First Time Homebuyer Tax Credit Extension

Nathan Hollenbeck — Mon, 07 Dec 2009 18:52:20 +0000

There have been a lot of questions about the extension of the tax credit so I thought I would address them here in my blog. The credit will be extended through all of 2010; however, there will be a reduction of $2,000 every quarter until the credit depletes itself at the end of the year. So expect new home sales to continue to rise during the first quarter of next year. Most people speculate that after the first quarter that home sales will begin to decline, as most people who are able to tax advantage of this program will already have done so. I think this is a pretty good assumption, as 49% of all new home sales this past year have been first time home buyers!

Now, in addition to this extension there will also be a $6,500 tax credit for those that wish to “Trade Up” from their current home OR those that wish to relocate! To qualify for this program you have to have lived in your current home for at least 5 years. This is obviously to “weed out” those that have just recently purchased a home or used the first time home buyer tax credit already, which is probably a good idea. I’m hoping that this incentive, along with continuing record low rates will prove myself and others wrong about home sales dropping off after the first quarter of next year. As I’ve stated before in this blog, most people feel that the housing market is the first step to stable economic recovery.

I hope that this information is useful, and more people are able to take advantage of the extension for this program. As always, if you have any questions or concerns please feel free to contact me. I hope you all have a great week, and stay tuned for more info!

Nathan Hollenbeck
Loan Coordinator
The Honte Group
408-457-6068 Direct
408-242-7552 Cell
408-377-4104 Fax
nhollenbeck@thehontegroup.com
Real Estate Broker – CA Dept. of Real Estate – License # 01763070

A lot has happened!

Nathan Hollenbeck — Fri, 06 Nov 2009 22:02:14 +0000

The past week has been pretty amazing in the world of mortgage. The first time home buyer $8,000 tax credit has been extended another year, and also includes a $6,500 for those that have lived in their homes for at least 5 years and are looking to relocate. This is huge for the real estate industry, as it will keep people purchasing and investing in real estate. As I have mentioned before, the housing market is the first big step to economic recovery so we need all the help we can get right now.

High Balance conforming loan limits have been extended for another year! For those of you that don’t know, Fannie Mae has created a “Conforming Jumbo” loan for those between $417,001-$729,750. So you can still get a lower interest government backed mortgage for up to $729,750 in “High cost areas” (As determined by the Federal Housing Finance Agency). This makes owning a home even more affordable and creates even more incentive to purchase a new home.

The Fed has announced that they intend to keep the interest rates where they are for a “considerable” period. Rates have been sort of bouncing back and forth against gains and losses in the stock market. They will most likely continue to do so as long as The Fed keeps the standard rate at zero. The main thing to be wary of is inflation. We’re still looking for an exit strategy out of our current situation, and if we keep rates low too long that is when inflation rears its ugly head. Inflation is what causes a huge increase in mortgage rates. I mentioned once before that the interest rate on my father’s first mortgage was 12%. Yikes! While we still have a months ahead of us before we need to start worrying about this issue, it is still something that should not be overlooked for the future.

All-in-all, it is still a GREAT time to buy! There are plenty of incentives for people to buy while rates are still at historic lows. If you, your friends, family members, or co-workers are currently thinking about purchasing a new home or refinancing please have them contact me with any questions or concerns they may have. We can also help them determine their purchasing power and write out a pre-approval letter without running their credit.

Thank you very much for your time. Again, if you have any questions or concerns don’t hesitate to contact me. Have a wonderful weekend, and stay tuned for my next post!

Nathan Hollenbeck
Loan Coordinator
The Honte Group
408-457-6068 Direct
408-242-7552 Cell
408-377-4104 Fax
nhollenbeck@thehontegroup.com
Real Estate Broker – CA Dept. of Real Estate – License # 01763070

The best is behind us…

Nathan Hollenbeck — Mon, 26 Oct 2009 19:17:26 +0000

Rates have moved upwards and have been maintaining a 4.875% par rate. I fear for those that have held back on refinancing or purchasing to get a better interest rate. The Fed is getting ready to get out of the treasury market, and consumer confidence seems to be returning. As long as belief that the economy is improving, and stock market rallies continue (however short they are) there is really nothing left to push rates downward. No one should panic yet! If you look at the big picture, rates are still historicly low and will continue to be for a while longer. I’m simply stating that we have already seen the lowest points of the market and rates are not likely to move back towards the levels we saw before.

Housing values are steadying and those in large metropolitan areas are actually seeing gains. If you are looking to pick up a new home or investment property NOW IS THE TIME! First time home buyers should jump on the $8,000 tax benefit while they still can. Due to the new issue of fraud, we may not have an extension like previously thought. Like I mentioned before, rates (while rising) are still low and housing values are on the rise. The market is shifting out of the refi boom, and into a purchase market. Pick up a property now while it is still a buyers market!

As always, I hope that this information is helpful. Keep tuned for more information later in the week. Please feel free to send me an e-mail or give me a call if you have any questions or comments. Thanks.

Interest Rates Rising!

Nathan Hollenbeck — Fri, 23 Oct 2009 21:39:22 +0000

Mortgage rates lost the gains seen about 2 weeks ago where the PAR interest rate for a conforming loan was at 4.500%-4.625%. We have now moved back into the 4.75%-4.875% Range and floating rates should be done cautiously. While the fed contiues to pump money into Mortgage Backed Securities to hold interest rates at abnormally low rates, Good economic news continues to drive investors out of bonds and into stocks. The housing market is often convieved as the first big step towards economic recovery, so the Fed will try to keep rates low as long as possible. My concern is that we are running low on TARP funds that have been set asside to purchase MBS. So will the Fed try to bring more tax payer money into purchasing MBS or will they allow rates to move back up to a more natural level? Stay tuned, I will watch this issue closely.

In other market news, there have been a lot of talks about extending the $8,000 tax credit for first time home buyers. That is, until the amount of fraud that was discovered from people claiming the tax credits illegally. There have actually been over 500,000 fraudulent claims documented so far! It amazes me what people will do to try and work their way around the system. This unfortaunately may cause all talks to extending the credit to be put on hold. Leave it to others to mess everything up for the rest of us…

Several members of Congress submitted the petition against the Home Valuation Code of Conduct (HVCC) to the Financial Services Committee. The amendment passed the Financial Services Committee and will be forwarded to the House and Senate. This is a huge first step in our fight against this newly administered regulation. The HVCC has done nothing but cost borrowers more money (higher appraisal fees and lock fees) and delay close of escrow for loans (longer lock terms needed). Not only this, but it has been one of the main causes for the loss of home values (also the loss of home equity). As long as we continue to abide by this regulation home values will continue to be surpressed in our nation.

Thank you for reading, I hope this post was educational. I will continue to keep you updated on current events in our market place. Have a great weekend!

10/02/2009 – Happy Friday!

Nathan Hollenbeck — Fri, 02 Oct 2009 18:27:41 +0000

Rates continue to amaze me. The Fed has been purchasing a lot of Mortgage Backed Securities to compensate for the rise in stocks (which typically causes rates to go up as money moves from bonds into the stock market). As a result par rate has been staying between 4.500% – 4.625% range, and holding there. One thing that concerns me is that out of the $1.25 Trillion dollars that the fed has been authorized to use in purchasing these Mortgage Backed Securities, they have already used up $904 Billion. They plan to start slowly purchasing less and less securities with the last of the funds that are available so that rates rise gradually over the next 6 months rather than just jump immediately to the 6%+ range. One thing to keep in mind is that historically, 6% is still a low rate for a home mortgage. My father told me that the first home he bought was at a 12% interest rate so things could be far worse.

Home values are continuing to rise in large metropolitan areas. It is a slow and gradual process but this means that now is still a great time to purchase a new home. You can get historically low rates right now AND pick up a house for extremely low prices. If you have been waiting for the bottom of the housing market, now is the time to make an offer. Rates and home values have no where to go but up from here.

If you have any questions or concerns, please feel free to give me a call or send me an e-mail. Thank you for your time and have a wonderful weekend!

Rates are the lowest I have seen in months!!!

Nathan Hollenbeck — Tue, 29 Sep 2009 00:03:04 +0000

The par interest rate for a 30 Year Fixed conforming loan ($417,000) has been 4.750% for the past week. Some lenders have even provided a Premium Yield Return at that rate. Today I saw the par rate go down to 4.625% with some lenders even returning a small rebate. If you have been holding out on rates to drop NOW IS THE TIME! I do not foresee rates going much lower (if at all). Mortgage reps lock those loans! Borrowers, get your supporting documentation together and get your loan in ready position with your mortgage reps! For those looking to purchase a home, this might be your incentive to agree on a counter offer and have your purcahse agreement put together. Take advantage of low rates AND low home prices!

Market Update – 9/16/09

Nathan Hollenbeck — Wed, 16 Sep 2009 20:49:55 +0000

Bernanke stated today that “it is likely that the recession is over.” While many still may disagree with Bernanke, this caused the gains that were made this morning to plummet, as rates are currently down 22 basis points. Money moved out of bonds and into stocks, causing mortgage rates to rise. While we may see a few more drops here and there due to continuing poor economic factors, it is likely that rates will continue to rise throughout the rest of the year. Infact, it is predicted that mortgage rates will drop 50 basis point by the end of the year, and continue to drop an additional 50 basis points next year. So if you or anyone that you know has not yet refinanced their property, now is the time! If you have any questions regarding this matter please contact me. Thanks.

Rate Drop!

Nathan Hollenbeck — Thu, 03 Sep 2009 20:44:27 +0000

Rates are at summer lows right now. This is due to a lower than expected jobless claims number that come out for last month, as well as conituous poor news in the market. We have yet to see the effects of inflation but the cost of oil has started to increase which is typically a good indication that inflation is already in motion, and it’s only a matter of time before it rears it head. Inflation is horrible for mortgage rates so it is imperative that if you or someone you know plans to refinance or purchase a home that they act now. We have already seen home values stabilizing in large metropolitan areas with solid infrastructure. Infact, in July we saw our first rise in home values in the past 3 years. If you have any questions or concerns about any of these issues, please feel free to give me a call or send me an e-mail. Thank you for your time, I hope you have a wonderful day!