D-Social Mortgage Blog

                                                                            Upside down on your loan?

                                                            Now you can refinance at 105% loan-to-value!

We are pleased to finally offer the much anticipated making home affordable program announced by President Obama in February. And the Freddie mac relief refinance mortgage & the fannie mae du refi plus - effective immediately!!

• Reduce interest rate on 1^st mortgage
• Replace arm, interest only, balloon/reset mortgage with a fix  rate
• 1-4 units primary & investments, condo's, pud's, 2^nd homes
• Stated income/stated assets may be allowed, otherwise full doc
• 105% loan-to-value
• Unlimited total-loan-to-value (tltv) / combined-loan-to-value (cltv)

Call us directly to determine your eligibility 800.810.2080 ext. 101 |  http://www.jfcapitalmortgage.com/

 Do to the "High Volume" of home owners refinancing, to have us respond to your needs faster and determine your eligibility, please complete the information at: http://www.jfcapitalmortgage.com/PreQualify.htm and we will contact you within 24 -48 hours.

Click Me to view the MSNBC news announcement or see http://www.msnbc.msn.com/id/29256639/

Have you heard? Freddie Mac said that the average 30-year fix rate mortgage fell to a new 37 year low as existing home sales continued to fall. Now is your time to refinance out of your ARM before it resets and/or secure a lower 30 year fix rate. Some points to consider as well, property values in certain counties may fall as well if home sales continue to fall, which will affect the loan-to-value and the ability to refinance in the future (call me directly for clarification).                                                              

Our goal and mission is to serve the hardworking class families of California. We thrive in improving our process utilizing technology to shop and negotiate the lowest interest rate on your behalf. As a result, many home owners are currently refinancing, to have us respond to your needs faster, please fill in the information at: http://www.jfcapitalmortgage.com/PreQualify.htm. Also, concerned about your value, we will request a FREE Comp Analysis.

               Invest ten minutes in your financial future. Call us today for a FREE consultation

                                                  800-810-2080 ext 101 or 415-407-6522                         

                                                           www.jfcapitalmortgage.com

                                                  Jeff De Loyola, Bay Area Mortgage Broker

The Temporary Loan limit limits Will be expiring soon. Your window of opportunity is near to take advantage of the New conforming / jumbo loan amounts and refinance.

                                              We can review your options with you.

                                             Call Us Today!! 800-810-2080 ext. 101

                                              Visit Us At:  www.jfcapitalmortgage.com

                              "Our goal is serving the hard working class Families of California"

Did you know that JFrank Capital Mortgage is still offering Stated Income / Verify Asset on Standard Conforming Loans!!   The question remains is for how long?? Fannie Mae has decided to eliminate their Stated Program earlier in the year.  

 Key Point's for this Stated Income / Verify Assets

• We are still offering Stated Programs, but we do not know how long this will be available to us
• Self-Employed Borrowers only. No W-2 exceptions!
• Available for Owner Occupied, Investment property(yes that's right!) and 2nd Home
• Maximum loan-to-value for owner occupied & 2nd home is 80% (or 20% down) with a 700 fico score, no exceptions!
• Maximum loan-to-value for Non Owner occupied is 75% (or 25% down) with a 720 fico score, no exceptions!
• Eligible properties are 1-4 units, owner occupied or non owner occupied. No Condo's for investment
• Cash out available for owner occupied 1-4 units up to 80% loan-to-value; non owner, 1-2 unit maximum loan-to-value 75%.
• Reserve requirements: 12 months PITI for investment, 6 months PITI for owner occupied. Cannot use 401k, IRA, Gift or Equity for reserves. However, there is No Seasoning!
• Seller concession and/or gift not allowed
• MUST 4506T at closing

Call Us Today to see how we can assist you in increasing your pipe line at 800-810-2080 ext. 101 or 415-407-6522.  

Additional note: we are within days of rolling out a VA Loan product. We've strategically aligned ourselves to assist the men & woman of the military in their American Dream of home ownership. Despite the negative press we've been hearing. Please take a moment to review this great article on VA loans from the Washington Journal: http://www.bizjournals.com/washington/prnewswire/press_releases/District_of_Columbia/2008/09/19/DC34086 

It has been weeks since my last blog. I don't know what happened. Perhaps laziness, lost of interest, trying to save & close deals, or just plain anxiety trying to come up with a topic that doesn't make you sound senseless.

On Friday, I committed to myself to an early Sunday morning start at Starbucks to begin my 4th blog. The ambiance was ideal because I did not have to fight or wait for my favorite table by the window to people watch. Cool tunes from the Bossa Nova era, to Salsa and acoustic rock were playing. A perfect Sunday to just hang out and chillax (one of my favorite words from the late Bernie Mac, may he rest in peace)

I typically like to read the paper to get the brain cells pumping and the ideas flowing. For some reason, and to no surprise, it wasn't happening. I just finished reading the paper and after 2.5 Grande size coffee, black, I felt the need for speed. Now I was contemplating many blog topics from the Fed's bail out - what a mess and we know who's going to suffer, the recent bombing in Pakistan, the recent decline in mortgage rates do to the Gov't action, the SF Giants & 49ers games at 1:00pm.

My entire body was juiced & pumping. And after several minutes, I did realize a few things: I was making excuses about trying to come up with a topic, I was using the current events not to write and I should never pump myself with caffeine when feeling the anxieties of writing a blog - especially as a newby blogger.

So, as the story of my life, I decided to just do it and write.... Trying to avoid sounding senseless. Will blogging get any easier?

When should your client pay a point?  Most recently, paying the point saved my deal.  Earlier this week, I had a client who was reluctant in paying a point.  They were adamant on receiving a "No Point/No Fee" deal with an exceptional LOW interest rate.  It was almost futile trying to reason with them. I attempted to explain that with a "No Point/No Fee" loan interest rates are generally higher when you don't pay points.  I also tried to explain the concept of recouping the cost if they planned on living at the property for the long term, which they had planned on doing so. They also acknowledged that they were well aware of the concept. However, my gut feeling told me otherwise. I believe his prior negative experience with his previous loan agent was a factor in his mind-set.

I realized that a visual explanation was key in communicating my point (no pun intended) across.  A visual also benefits the client(s) because they are able to take this information with them for reference and review should they need additional time to do so.

Quickly I drafted a scenario of the simplest loan situation for my client.  If your client borrows $300,000: 

1.      Basically 1 point is equivalent to 1 percent = $3,000

2.      If you decide to pay a point of $3,000, it will save you $100 a month

3.      This means it will take you 30 months (or 2.5 years) to recuperate the point paid

4.      If you refinance or sell your property prior to the specified duration of 30 months, it does not make sense for you to pay the point. 

5.      1^st compensating factor when deciding when you should pay a point is the length of time you plan on keeping the property.  Paying for a point will only benefit you if you intend on keeping the property long term. 

6.      It is important to be aware that interest rates run in cycles

7.      When rates are at historical lows, it is also a good idea to pay points.  Again, if you are keeping the property long-term, this will benefit you.

8.      When rates are high there is a probability that they will also drop soon thereafter.  This would not be a good time to pay points.

9.      Tax deductibility is another is factor to consider

10.  Overall, there are many factors to consider when choosing to pay points or not. 

I realize this scenario should be a trivia to many of us - the basics of our profession.  But what saved me in this deal was the fact that I went with my gut instinct and was adamant in showing the pros & cons of a point vs. no point loan.  My client was confident they knew everything so I returned stubbornness with perseverance and educated them with the facts.  During these challenging times, not only do we need to be on top of our game, we need to be able to listen and analyze the whole scenario.  Assuming could lose us the deal.

                                USDA 100% Guaranteed Housing Program with No MI.

JFrank Capital Mortgage is excited to share that we are now offering a very attractive 100% Financing Program which is offered by USDA Guaranteed Rural Housing Program. And unlike the other 100% programs available, one of the unique components is that there is No MI - that's right - No MI.

You may be asking what is considered Rural? Rural is defined as any town of 20,000 or less that is not adjacent to a large city or urban area.

We realize the recent challenges in getting borrowers and homeowners approved these days. Anywhere from downpayment issues, low credit scores, high loan-to-values, declining market, and stringent underwriting guidelines. If you've experienced all of the above, the USDA Guaranteed Home Program should help you and your clients.

This program is truly one of the more attractive 100% Loan Products available for the hard working class families of California. Whether they're purchasing and/or refinancing. We want to spread to word the old & new fashion way utlizing word-of-mouth and social networking contacts online.

Here's a brief snap shot of the requirements:

• Purchase or Refinance (rate & term only)
• Owner occupied, 1 unit
• Min fico 580
• MI not required, however, a RD guarantee fee is charged at closing
• No adjustment for declining area
• Property must be located in Rural Area (call or email me for list)

For more information, call me directly at  415-407-6522  /  800-810-2080  ext. 101 or email: jeffd@jfcapitalmortgage.com

Thanks for your time!

Jeff De Loyola

Today's mortgage industry is evolving daily. Mortgage brokers and loan originators are experiencing the daily grind of getting loans approved--in other words, the lenders are scrutinizing files and taking longer to getting loans approved. Todays industry is challenging and loan agents can't worry about the loan process because they need to concentrate on selling, selling and selling. As the cost of keeping good loan processors and underwriter rises, outsourcing loan processing and underwriting is becoming the way of the 21st century for mortgage brokers to stay competitive.Outsourcing Loan Processing companies are becoming the wave of the future and solution. There goal is to  assist the agents in getting their loans closed quickly while avoiding the cost of a full-time mortgage processor. This automation process should  definitely stream line  the efficiency and time management, but how will the seasoned veterans accept this new technology? Will they accept the automation process to succeed in this volatile market?          What was your worst & best experience in loan processing?    

 Prior to diving into the world of commission-based salaries, I was a recruiter for about 10 years during the 1990's. As a recruiter I recall a sizable portion of my time focused on networking, networking, networking which of course included countless calls.  I used to refer to my phone as an oxygen mask; I needed it to survive.  The internet was new and very slow.  I remember having to dial-up to access anything, and that in itself took forever.  Back then to develop a rapport with clients, joining Networking Groups was essential.  Much has not changed in this regard.  Networking continues to explode in the after-hours aspect of the day over appetizers, cocktails and the exchanging of business cards.   The next day was much like clock-work.  Enter the info into your rolodex, send out your "nice to meet you card" and schedule a follow-up meeting.  Those were the days.... Or were they?

As I gained more experience as a recruiter, I recall it being a hit-or-miss based on my actions or lack thereof.  If I didn't take the time to engage in conversation, if I were robotic in passing out my cards, and if I didn't take the time to make my follow-up calls, all my time was a waste of time.  Always the hard way, I learned and understood the value of connecting.  Being proactive yet realistic is also key, meaning not to expect a client in each person but to safely assume all new meets could be potential clients.  Now that I could do. Like dominoes, each person is a potential connection... the rewards of Networking.  

I left the world of recruiting for the life of Home Mortgage Loans and Real Estate. Quite frankly, I do not see any differences-in fact, I see similarities... assisting consumers, customer service, referral, rapport building, and back to networking, networking and networking. My forte I assumed. But I felt that I was missing something during this volatile mortgage and real estate market. I heard about the crave of networking sites, such as LinkedIn, Wanna Network Myspace, Facebook, etc. My former recruiter colleagues would share that this is the new way of recruiting and networking... so I signed up and thought I knew all about it. I got disappointed because I wasn't getting any responses. I thought to myself, "Whats the big deal?" This may work in recruiting/staffing, but not in the Home Mortgage Loan and Real Estate industry.... So I let my nice sites go untapped... Until.

One evening I was relaxing and received a call from my business partner who was raving about this book on Social Networking. He was excited about some of the tips. Well he got me all excited that I went to purchase the book.  I'm sure I don't need to tell you that remaining afloat with the latest innovative technology is always a challenge.  And then I read this book that left me inspired:  The Truth About Profiting From Social Networking by Patrice-Anne Rutledge. The moment I read the synopsis, I knew this is going to be the way we do things in the 21st century and it is applicable to the Home Mortgage Loan and Real Estate industry.  Amazingly, it is not that different from networking in the 90's.  The added touch is utilizing the network; a simple concept that could open the doors to endless possibilities in networking.  Most definitely the way to go. 

Has anyone ever felt the same or thought they knew everything about Social Networking?

The Federal Reserve, taking a break from its aggressive rate-cutting policy, chose not to alter key interest rates Wednesday, leaving the Fed Funds rate at 2.00% and everyone wondering where interest rates are headed next.

Since last September, the Fed has cut rates seven times for a total of 3.25%. However, many experts believe that the Fed's decision this Wednesday, along with comments from the meeting itself, indicate an increased concern over inflation.

This means the Fed could start increasing rates as early as its next meeting, which takes place in August.

The Fed is in a quandary. The economy has slowed, led by a decline in home sales and rising inflation, stemming primarily from increasing energy prices. The Fed's primary role in relation to the economy is to combat inflation and preserve economic growth. To combat inflation, the Fed will ultimately have to increase interest rates in coming months.

What Does This Mean to You?

If you're client base is looking to buy a house, consider these key points:

• Home prices in some areas are at five-year lows, while personal incomes in that same period have increased. Homes are more affordable for many right now, particularly first-time home buyers.
• Sellers are extremely motivated and many buyers in our area have benefited from the unbelievable deals that exist today.
• Experts foresee a strong rebound in home prices when the economy begins to recover, according to a new report from the Joint Center for Housing Studies. That means buyers today will be sitting on valuable properties tomorrow. Remember, annualized appreciation for homes exceeded 6.35% from 1940 to 2000.

Housing booms follow housing busts - and the savvy buyers aren't afraid to jump into a tough market. But these savvy buyers know that homeownership is a long-term investment. Ultimately, population growth and demographics point to a stronger housing market in coming years.

Even if you're client base is not looking to purchase a home, opportunities still exist. With the Fed taking a breather, this doesn't mean you should be taking a break. It's never been more important to create a financial plan that makes the most sense to your client databases long-term goals.