A Borrower’s Guide to Locking In Your Interest Rate

Are you in the process of getting a home loan for a home purchase you are planning to make here in Southern Oregon? Or, maybe you heard about the incredibly low interest rates we've been seeing for qualified homeowners looking to get a lower interest rate than they have presently? Want to grab this opportunity before it gets away from you? Confused about the way the pricing can move in this extremely volatile market we've been experiencing in the mortgage industry? You need:

A Borrower’s Guide to Locking In Your Interest Rate

When you “lock in”, you are requesting the lender guarantee the interest rate on your loan and the lock period is for a specific length of time – e.g. 15 days if your loan is approved and ready to have final loan documents drawn so you may close your transaction within this period of time, 30 days which covers the processing time for most conventional refinance times, 45 or 60 days for many purchase transactions which often are scheduled to close within that period of time, longer periods for loans on newly constructed housing. The longer you request the interest rate be guaranteed/locked-in, the more it costs. Say you are approved on a program that offers a 4.75% interest rate, and you are considering a 15 day lock that would have a cost of 1 point (one percentage of the loan amount) or a 30 day lock that would have a cost of 1.25 point. The longer the lock you choose is for, the higher your points may be. Depending on the loan program you are on, you may also buy the interest rate up to have lower points, or down by paying more points.

To know what the true cost of the money you are borrowing is, you will look to the APR – the annual percentage rate – which takes an average of certain closing costs and the interest rate you pay, including mortgage insurance, and average them out over the term of your loan giving you a percentage. The higher the APR percentage, the higher the costs associated with your loan. It is important you check the APR because sometimes a loan quote you have received that sounds good because it's "note rate" - the rate quoted to you - is lower than other quotes, but due to higher fees, mortgage insurance, etc., its APR works out to be higher, making it not the best deal for your long term plans.

With the closing of so many banks and lending companies over the past several months and the laying off of staff due to the market downturn, the remaining lenders sometimes have longer processing times, and this would also need to be considered when choosing the lock period. It is always good to leave a few extra days on the lock period in case there are unforeseeable delays, especially on purchase transactions. Even when you are working with the best of the best professionals on your transaction, with so many factors associated in transactions, things can happen to delay a closing. The stories I could tell after 25 years! Couriers in auto accidents on the way to the recorder’s office with documents to be recorded, sellers who pass away, closing funds that were stolen by a teller from a buyer’s bank account… situations that simply could not be controlled by the parties to the transaction.

These cases have been extreme cases, and the large majority of transactions I’ve been involved in closed on time. Careful attention, to the process and experienced professionals working together, eliminates most delays. Want more information or a free consultation about your individual goals and objectives? Call (541)608-6003 or go to http://www.quality4loans.com/ .

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Southern Oregon ABC’s of Homebuying Class this Saturday December 13th at Rogue Community College

The next "ABC's of Homebuying" HUD approved course for first time homebuyers is coming up this Saturday December 13, 2008 from 9 a.m. - 4 p.m. at Rogue Community College in Downtown Medford. Not only is this is the required course for several first time homebuyer programs, but it is a great source of information for the first time homebuyer AND buyers who are re-entering the market after being on the sidelines of the real estate market for several years.

For information on registration and directions, follow this link, or contact the Southern Oregon Housing Resource Center at ACCESS, Inc. (541)774-4329.

If you are planning to attend and saw this notification here, look for me as your Instructor for Section 2 on Financial Preparation and possibly Section 3 on Mortgages.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Investors May Finance Up To 12 Properties

Here in Southern Oregon where we haven’t experienced the same level of real estate market devastation as California, Florida, Nevada and Arizona there is still a silver lining to be found in our beautiful puffy cloud skies.

With market values in Jackson County Oregon roughly 8% lower in our year over year statistics, we’ve also seen a steady contraction in the inventory of available homes for sale – also 8% lower year over year.

As is customary when the general populace begins to think we are seeing some great values, there are buyers coming out of the wood work…450 of them, to be exact, from August 1st through October 31, 2008 in the Rogue Valley.

Many of these buyers are investors, savvy, experienced, and taking advantage of some great bargains. Until recently, these investors might be able to take out purchase money financing with no limitation on the number of financed properties they owned. This has just changed:

Guideline changes EFFECTIVE IMMEDIATELY!

• 
  
  Max LTV for investment properties is now 65%.
  


• 
  
  Cash-out on 3-4 unit investment properties is limited to 60% max LTV.
  


• 
  
  The number of financed investment properties owned by one borrower is limited to 10 (this does not include their financed owner-occupied and/or second homes).
  


• 
  
  Out-of-State investors are strictly case-by-case, and limited to 60% max LTV.
  


• 
  
  At this time, there are still no exceptions allowed under the Non-Owner Occupied program.
  

For Investors meeting Fannie Mae Underwriting criteria (680+ credit score) may put as little as 15% down, but cannot have more than 10 financed properties INCLUDING THEIR PRINCIPAL RESIDENCE AND SECOND HOME.

Still not bad, all things considered. So, Southern Oregon investors, call today for your free consultation, or go online at http://www.quality4loans.com/ .

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

5% 30 Year Fixed Rate, But My Value Is Too Low?

With the recent major improvement in the Bond Market Yields finally translating to improved interest rates on long term fixed rate conventional financing, there has been a bit of a flurry of activity here at Quality Home Loans in Southern Oregon, trying to help clients take advantage of this boon.

Keeping track of the homeowners who may benefit from refinancing as opportunities present themselves is a part of any professional, experienced mortgage consultant’s duties. Since the public doesn’t catch wind of market moves until the media reports come out days/weeks later, the average person often misses the boat by the time they pick up the phone to call to see about getting a lower interest rate on their home loan. Maybe your profession has nothing to do with the finance/mortgage industry, so you go to the professionals who do follow this.

Seeing the lower trend in some mortgage programs’ interest rates, the past several days have been spent checking on value ranges for homeowners who would save enough to warrant the expense associated with refinancing. Then, it’s time to prepare a Good Faith Estimate and Truth-In-Lending Disclosures on the proposed programs for those homeowners and investors who could gain enough interest savings to offset their closing costs.

Unfortunately, many property owners’ values have descended. Those that have tapped in to their equity before may find themselves “underwater” – owing more on their mortgage(s) than their property is worth in today’s market. Others may have purchased their home within the past 1-5 years, and although they haven’t touched their equity by refinancing or taking out a 2nd loan/line of credit, they may be located in areas where foreclosures are prevalent causing the market values to be set by these distressed sales.

I am working with two such homeowners who purchased their homes a year ago and want to get a lower interest rate and eliminate mortgage insurance. Even though the mortgage insurance may be tax deductible for them (this ruling is subject to change), and they got good deals at the time they purchased their homes, the values have either decreased slightly or stayed the same. Having the required mortgage insurance in the equation makes refinancing too costly.

So, the one gentleman who wanted 5% with no mortgage insurance would have to be quoted 5.25% (apr 5.412%) on his conforming 30 year fixed rate $227,000 mortgage – and he may or may not get the appraised value needed to even do this, since his appraisal would need to come in at the high end of the range of sales comparables available today.

But, another family who has owned their home since 2001, has 35%+ equity even after taking out a 2nd to consolidate student loans a year ago WILL be able to take advantage of the really low interest rates we’re seeing right now. Yet another, who has owned their rental since 2003 is sitting right on the edge of whether the numbers “pencil out” or not, so they’ll have to decide if anteing up the appraisal fee to find out is worth while.

If you are wondering if it makes sense for you to refinance your home/property in Oregon or California, call or contact us online for a free consultation.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Top Five Reasons to Pull Your Credit Annually

Have you heard about www.annualcreditreport.com? This is the website you may go to where you may pull your credit report from each of the three main credit bureaus, Experian, Trans Union and Equifax. This is a simple process, and you may pull your credit report from each bureau for free once a year. This will not include your credit scores, but for a small charge for each bureau, you may order that too if you are getting ready to make a major purchase that will involve financing, and you need to see where you are at.

Why should you pull your credit report each year?

-To check for any errors in reporting the information on your accounts, such as incorrect high credit limits, or erroneously reported late payments
-To check for cross over information to your report for someone who has the same or similar name
-To check for identity theft
-To make sure old information is dropped off, such as closed accounts more than 7 years old or accounts that were discharged through bankruptcy are not still being reported past due
-To make sure accounts you have paid off are reported with zero balance

Why should you do this yourself instead of letting a lender do it for you?

When you exercise this annual right you have, it will not result in an Inquiry that is reported on your credit profile. Although many sources say a mortgage inquiry will not affect your credit scores, I’ve seen time and time again that this is wrong. If you have several inquiries, but no new mortgage is reported as a result of them, your credit scores may drop.

If you make this a regular process each year, you’ll head off what could be a stressful nightmare if you wait until you are in the middle of qualifying for financing to find out there is a problem you need to take care of. Pull your own credit, and the report contains all the necessary instructions and contact information should you find it is necessary to dispute information reported in your credit profile.

If you need to call the bureaus, prepare to be patient as it will take time to work through their systems. But, you can do it yourself, and you do not need to pay anyone to do it for you. Once you get through to the credit bureaus, most minor errors can be resolved easily. Some errors will need to be disputed with you providing the supporting documentation to prove your case in order to have changes made. These are usually handled by mail.

If you have not seen your credit in over a year, go to http://www.annualcreditreport.com/ and see what information is being reported about you.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

Distressed Homeowners, More Help Is On The Way

Do you own a home, one you have been struggling with making the payments on? Have you given up hope of keeping your home, and stopped making your mortgage payments? Is it your wish to be able to stay in your home, if only the payments on it were more affordable?

Homeowners there are rays of sunshine in all the gloom in the housing market. A streamlined approach is being rolled out to help distressed homeowners wanting to stay in their homes. By December 15, 2008, servicers of loans sold to Fannie Mae and Freddie Mac - this is roughly 58% of ALL the outstanding mortgages in the housing market, Folks! - will be working harder than ever to help struggling homeowners most at risk of losing their homes through foreclosure. These are the homeowners who have missed 3 or more consecutive monthly mortgage payments. If this is you, call your lender and find out if a Note Modification is available to you - even if you have tried this before.

Citi announced they have a separate program in place to aid their own struggling homeowners, a program that is at least as aggressive as the one Fannie Mae and Freddie Mac will be following. So, if you are making your mortgage payments to Citi, and are falling behind, call them to see if a Note Modification is available to you - even if you have this tried before.

These Note Modification plans are designed to quickly find a solution to get your mortgage payments to roughly 38% of your gross monthly income (before taxes; after business expenses if you are self-employed). You do not need to pay anyone to do this for you. You can and should do it yourself. Banks and Mortgage Companies are looking at several reasonable avenues to help accomplish stemming the foreclosures by making mortgage payments affordable for those who qualify.

This does not mean qualifying by traditional means! It means reducing interest rates, fixing interest rates, lengthening loan terms, forgiving principal and/or interest. They are looking for ways that you may sustainably continue to live in your home by making the payments affordable. They expect you to have low credit scores with the financial hardship you are experiencing.

Folks - are you picking up on the common threads here? There may be several options available to help you and Stay in touch with your lender, no matter what your circumstances are - struggling, starting to fall behind or way behind. If you don't contact them, you may miss out on an opportunity that would help you to stay in your home. Isn't that the best solution for everyone?

Have questions? Go to Frequently Asked Questions on this topic.



See you out there!



Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Distressed Homeowners Frequently Asked Questions

In conjunction with the Blog Post "Distressed Homeowners, More Help Is On The Way", here are some questions and answers:

Q. Can I apply even if I'm not 3 months or more behind on my mortgage payments?
A. Not for this program, but there may be other options available to you. Call your lender to see what options are available to you.

Q. Should I stop making my payments so I'll be approved for a Note Modification?
A. If you intentionally default on your mortgage, the lenders will not approve your request for assistance.

Q. What is a Note Modification?
A. A Note Modification is a change of the original terms of your mortgage loan. It could be a change from adjustable rate to fixed rate, a change in the length of your home loan, a change of the interest rate, a reduction in the amount owed on your mortgage loan, etc. with the intent to make your loan more affordable.

Q. I've already contacted my lender for help, and was turned down. Why should I try again?
A. Things have been pretty chaotic in the mortgage industry with the quickly escalating rate of foreclosures, closures and mergers of banks/lenders, changes to regulations, etc. It has taken some of the banks/lenders some time to figure out what works and what doesn't, what is required and what isn't. Make the assumption there may be a new alternative available to you, and call your lender to find out if you qualify for this new Note Modification program, or any other alternative they may now have for you.

Q. Will someone call or write me to let me know I will qualify for these Note Modification programs?
A. Some Banks/Lenders are trying to be proactive, but it will take some time to contact all the borrowers at risk of foreclosure. Be proactive, and call your lender - don't wait for them to call or write to you.

Q. I lost my job, and I earn less than I did before. Will I still qualify? What if I am still out of work?
A. Banks/lenders are working with current incomes and the current home values when considering Note Modifications. If your income is less than it was before, your mortgage payments have increased beyond what you can afford, you need to call your lender to see what options they have for you. If you cannot prove you have steady income to pay the mortgage, chances are your request may be denied, but if you have the means to pay something with reasonable modifications based on income you can prove you make, there may be help available. Even if you aren't yet 3+ months behind on your mortgage, call your lender.

Folks - are you picking up on the common threads here? There are options available for many struggling homeowners and Stay in touch with your lender, no matter what your circumstances are - struggling, starting to fall behind, or way behind. If you don't contact them, you may miss out on an opportunity that would help you to stay in your home. Isn't that the best solution for everyone?

See you out there!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

To Be Or Not To Be...Higher USDA Incomes for Jackson County Oregon?

It looks like the proposed revisions for the USDA Guaranteed Rural Housing program may go in to effect January 20, 2009 for their programs. If so, Southern Oregon home buyers looking to purchase a qualified property outside of the Medford and Central Point city limits will fall in to only two income categories vs. the many we have been using.

For example, presently the income limits for qualifying USDA Guaranteed Rural Housing Home Buyers in Ashland, Talent, Phoenix, Jacksonville, White City, Eagle Point, Shady Cove, Trail, Gold Hill and the surrounding rural areas would be qualified using the following income chart:

Medford, OR MSA GUARANTEED HOUSING PROGRAM INCOME LIMITS
STATE: OREGON ------------------- A D J U S T E D I N C O M E L I M I T S -----
1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON*

MOD.INC-GUAR.LOAN

49550 56600 63700 70750 76400 82050 87750 93400

Come January 20, 2009, if no changes are made to the proposed policy, any qualified borrower(s) with 1-4 person household will be qualified up to $70,750 annual income. Familes of 5+ will be qualified using $93,400 annual income.

This will help a LOT more Southern Oregon home buyers to buy a home on this great 30 year fixed rate mortgage program! Plus, it is a much needed solution to offset the loss of the CashAdvantage Oregon Bond program as well as the loss of most down payment assistance sources in our area here in Jackson County, Oregon.

If you wish to find out if you are qualified for this great program so you may BUY instead of RENT your home, contact us today at (541)608-6003 or go online at Quality4Loans .

See you at the closing table!

Karen Cooper - Mortgage Consultant - Southern Oregon Housing Resources

In order to help stimulate sluggishness in the high cost real estate markets, Fannie Mae and Freddie Mac had increased their loan limits for the second ½ of 2007 and for 2008 to $729,750. Based on declining values, they are adjusting these limits downward accordingly.

The new maximum conforming loan limit for the continental U.S. will be $625,500 for 2009

Here in Southern Oregon, this loan limit will cover most of our properties, as our medians are well below this limit. But, our neighbors to the South in the high-cost markets of California may still find these loan limits restrictive.

With the relocation of these California folks to the Rogue Valley, their buyers may find their financing choices will be a bit more expensive and can be pretty limited with the mass exodus of investors from the Jumbo Loan market.

Options are still available to you. For more information on financing alternatives for your Oregon/California purchase, like a great portfolio fixed program for Oregon buyers/ homeowners in need of a loan up to $600,000 that is usually priced only 1/2 % higher than conforming loans to $417,000 AND has options available that may take you up to 90% (with self-insured mortgage insurance!) or to higher loan amounts, contact us at (541)608-6003 (Oregon) or (661)478-7564 (California).

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

To Be Or Not To Be...Higher USDA Income Limits for Jackson County Oregon?

It looks like the proposed revisions for the USDA Guaranteed Rural Housing program may go in to effect January 20, 2009 for their programs. If so, Southern Oregon home buyers looking to purchase a qualified property outside of the Medford and Central Point city limits will fall in to only two income categories vs. the many we have been using.

For example, presently the income limits for qualifying USDA Guaranteed Rural Housing Home Buyers in Ashland, Talent, Phoenix, Jacksonville, White City, Eagle Point, Shady Cove, Trail, Gold Hill and the surrounding rural areas would be qualified using the following income chart:

Medford, OR MSA GUARANTEED HOUSING PROGRAM INCOME LIMITS
STATE: OREGON ------------------- A D J U S T E D I N C O M E L I M I T S -----
1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON*

MOD.INC-GUAR.LOAN 49550 56600 63700 70750 76400 82050 87750 93400

Come January 20, 2009, if no changes are made to the proposed policy, any qualified borrower(s) with 1-4 person household will be qualified up to $70,750 annual income. Familes of 5+ will be qualified using $93,400 annual income.

This will help a LOT more Southern Oregon home buyers to buy a home on this great 30 year fixed rate mortgage program that doesn't have PMI! Plus, it is a much needed solution to offset the loss of the CashAdvantage Oregon Bond program, as well as the loss of most down payment assistance sources in our area here in Jackson County, Oregon.

If you wish to find out if you are qualified for this great program so you may BUY instead of RENT your home, contact us today at (541)608-6003 or go online at Quality4Loans .

See you at the closing table!

Karen Cooper - Mortgage Consultant - Southern Oregon Housing Resources

Home Buyers - Forget Wall Street and Main Street, How About Opportunity Street?

This week has made me feel a bit like this hamster. Running, running, running…but still in basically the same place. Trying to re-boot this mentality, I thought I’d do some market research for this gorgeous area I live and work in, Southern Oregon.

Just out of curiosity, I thought I would go explore how many homes are on the market in the Rogue Valley that might suit the entry-level buyer. Imagine my surprise when I had to cut the criteria back over and over again after finding 700+ homes for sale under $200,000! Narrowing in to categories, I found:

75 homes on the market priced from $ 90,000-135,000
73 homes on the market priced from $135,000-155,000
118 homes on the market priced from $155.000-170,000
302 homes on the market priced from $170,000-200,000

When was the last time Southern Oregon buyers have had the opportunity to find homes - this many homes! - available in these price ranges? My criteria stipulated 2+ bedrooms and residential, so this includes houses, townhomes/condominiums, and manufactured homes on land. It also includes a home for $154,900 in Ashland Oregon! And 8 homes built in 2003 or later in Medford Oregon priced from $170,000-200,000!

I saw so many potential buyers miss the boat in Southern California after the market picked up again after the Northridge Earthquake in 1994 and again after the 2001-2002 market slow down. I sure hope home buyers looking to purchase in our many fine Southern Oregon Cities – Ashland, Talent, Phoenix, Jacksonville, Medford, Central Point, White City, Eagle Point, Shady Cove, Gold Hill, Rogue River, Grants Pass, Merlin, Cave Junction, and Applegate/Ruch – don’t miss the boat this time around, while sidelined by the often times inaccurate portrayals they are reading/hearing/seeing in the news!

Tools are available, like Oregon Bond Loan and USDA Guaranteed Rural Housing Loan. Financing IS available.

http://activerain.com/blogsview/746737/Can-Ashland-Oregon-Buyers-Still-Get-100-Financing-in-October-2008
http://activerain.com/blogsview/726683/Oregon-Jumbo-Real-Estate-Loans-Still-Available
http://activerain.com/blogsview/635993/Seventy-Five-Hundred-Reasons-for-First-Time-Home-Buyers-to-Buy-NOW
http://activerain.com/blogsview/208966/Oregon-Bond-Loan-Still-the-Best-Deal-In-Town


See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Is It Time For Your Senior Parents/Grandparents to Simplify Their Home Life?

Do you have a parent or grandparent who is one of the 65,000+ Jackson County Oregon residents aged 50+? Population Growth for the Rogue Valley has averaged over 1.5% per year. One segment is the 50+ age group, a group which represents roughly 33% of the residents of Jackson County’s estimated 199,295 residents in 2007.

Age Characteristics (from City of Medford Comprehensive Plan)
"In 2000, the majority of cities in Jackson County had a greater percentage of residents under age 18 than over age 65, including Medford. However, Jackson County had a lower percentage of residents under age 39 (51%) than Oregon (56%), but a higher percentage of residents over age 50 (33%) than Oregon (29%). This suggests that Jackson County, including Medford, is attracting people who have retired or are soon to retire. Baby boomers (aged 45 to 64) were the fastest growing age group in all of the cities in Jackson County in the 1990s, except for Medford, Talent, and White City. Medford, Talent, and Central Point had the greatest increase in younger residents - under age 44. Medford experienced the highest growth in the County in the 5 to 17 age group, which grew by 3,627 - a 44% increase."
Information Source: 2000 Federal Census via Jackson County Comprehensive Plan, 2007Population Element

With the phenomenal Quality of Life we have here in Southern Oregon, our net migration numbers are some of the highest in the State of Oregon. Many of the 50+ group migrating to the Rogue Valley are active residents still part of the workforce drawn here for the many options available to them to fulfill outdoor interests while having their economic and health care needs met. Some of these folks are focused on the future, knowing when they reach the stage of their lives where they no longer will be living independently there are a multitude of options available to them in Southern Oregon.

There are a large variety of facilities available for those looking to move from their current home in to a home where they will receive the care they may need – from regularly housekeeping to meals to full medical care. Tools are available to help you research the quality of care in these facilities, such as Medicare’s facility inspection results and additional reports/information you may obtain by contacting the DHS or Area Agency on Aging local office and the Long-Term Care Ombudsman program at (800) 522-2602.

If part of the process associated with moving your loved one out of their home includes exploring financing options or the sale of the home, it is critical you look for professionals familiar with these transactions. For the sale of the home, you should work with a real estate broker with the Senior Real Estate Specialist designation who not only has made the effort to obtain the specific training and information for these special types of transactions, but comes highly recommended by other families they have worked with on these types of transactions.

As with all real estate transactions, surrounding yourself with the right team will make what can be a complex process a smooth one.

http://activerain.com/blogsview/553000/Living-Longer-And-Lifelong-Learning-Programs-in-Southern-Oregon

http://activerain.com/blogsview/511319/California-50-Somethings-Ready-to-Begin-Their-Steps-to-Retire

http://activerain.com/blogsview/410880/Rogue-Valley-Manors-Contribution-to-Southern-Oregon

http://localism.com/blog/or/posts/359902/Southern-Oregon-More-Than

See you out there!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Can Ashland Oregon Buyers Still Get 100% Financing in October 2008?

Can a home buyer looking to purchase a home in Ashland Oregon still find 100% financing? You bet! The variety of program options we have had available to us in the past are not as prevalent, but there are options available, such as the Federal VA home loan program and the USDA Guaranteed Rural Housing program.

Let's take a look at how a buyer looking to purchase a home in Ashland Oregon who meets the current income criteria shown below may successfully become a homeowner using the USDA Guaranteed Rural Housing program, using this 30 year fixed rate loan that does not require mortgage insurance.


Medford, OR MSA GUARANTEED HOUSING PROGRAM INCOME LIMITS
STATE: OREGON ------------------- A D J U S T E D I N C O M E L I M I T S --------------------
1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON*

MOD.INC-GUAR.LOAN 49550 56600 63700 70750 76400 82050 87750 93400

Say, this buyer is a family of 4 persons and is looking at an Ashland home that is selling for $280,000. This home cannot be a condominium, townhome or existing manufactured home (even if it is on land) - it needs to be a detached, single-family residence. If today's 30 year fixed interest rate on the USDA Guaranteed Rural Housing program is at 6.50%, the monthly payment would be roughly $2,070 including principal and interest and estimated homeowners insurance and property tax payments.

Not too many homes available that meet this criteria in Ashland Oregon who is struggling with a lack of affordable housing options for its citizens, but there are several available right now, like an Oak Knoll home built in 1996 near the Oak Knoll Golf course!

Since this program works outside of Medford and Central Point (doesn't work in these city limits since they are not rural), there are many more options available for the serious buyer willing to expand the area they wish to buy in.

Are you a serious buyer? Do you want to take advantage of the $7,500 tax credit you may be eligible for before it expires in July 2009? Do you want to take advantage of historically low interest rates before we all end up having to pay for the costs associated with the bailouts that I believe will eventually carry over to us all and raise interest rates? What are you waiting for!? Shut off the TV and Radio, get preapproved today, and go get your home!

See you at the closing table!


Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Documentary Transfer Tax To Help Fund Affordable Housing – Aye or Nay?

It appears that in our area, our citizens may shortly be finding it necessary to address yet another attempt at getting a Documentary Transfer Tax through to help fund affordable housing. This is not the first attempt for us, and if it isn’t passed, will likely not be the last attempt. Housing prices exceed sustainable levels based on area incomes in many areas, with market forces driving out the lower income range families - and often times the working families. Having experienced both sides of this coin, both the strong needs communities have for affordable housing for their citizens and the increasing burden being passed along to the “have mores”, I must say I’m very torn over the issue

One of the cities I have lived and worked in during the past is Redondo Beach, California. This high housing cost area in Los Angeles County had a $1.10 County documentary transfer tax AND a $2.20 City documentary transfer tax. With a current median priced home of $695,000 as of August 2008, this would add $2,293.50 to a seller’s closing costs, since they are the one who typically pays this charge. Take this one step further, and if Redondo Beach had 80 homes change hands in August 2008 for a total of $55,600,000 in sales that generated $183,480 in city and county documentary transfer taxes for that month (August 2007, that number would have been 13-23% higher depending on the data source, but that’s a different topic!). That should help create a fair amount of affordable housing to help support lower income families, including senior citizens, don’t you think? I was 22 years old when I lived in Redondo Beach, and I remember afforbale housing being an issue even back then. And that was when the median priced home was a third of what it is today! I couldn’t find the current number of available homes on the City Housing Agency’s website and haven’t heard back from them yet after e-mailing the question, but if they have 1,100 families on their waiting list, however many units they have is not enough.

But, $2,293.50 is a pretty stiff bill to add to a transaction that already has several other necessary charges associated with it – escrow, title, recording, inspections, etc. – other closing costs that are already in excess of around $5,000 BEFORE this tax or commissions get added, and not including the sellers’ recurring charges.

- Does ALL the revenue from these taxes go to affordable housing?
- If $695,000 is the median, what the heck is deemed affordable?
- Is this tax waived when affordable housing is no longer able to be provided? (yeah right, but thought I’d throw the thought out there)

What say you? Which side do you weigh in on – for or against? Do you have better solutions than this funding source for affordable housing?

Oregon citizens have shown again and again they do not want this tax here. We could use some alternative ideas.

See you out there!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Rogue Valley For Sale By Owners, Want Some Free Marketing?

Okay, Rogue Valley homeowners, have you decided to put your home on the market “For Sale By Owner”? There are many reasons home sellers choose to go this route when selling their home. Today, often times, the decision to go “FSBO” is made due to current market values in relation to the amount of your loan balance.

If you would like some free home seller tips and tools I’ve gathered in my 25 years in the real estate/finance industry, please contact me.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Is it just me, or are you also getting drawn in to the panic in the masses? Part of my day now is dedicated to actively tuning out the negativity and keeping my eye on the ball. Most days, this requires minimal effort, and I just keep on running this race I'm in. Once in a while, I find that effort is so great it has me feeling tired and drained before I even step out my front door. Yesterday was one of those days.

Friday, while spending time on learning new techniques to broaden my horizons, I slipped and clicked on the DJIA report I caught out of the corner of my eye while reading another article. As with mortgage and real estate "news", to date I've had a very careful sifting process in place. Out of necessity I've developed a pretty good suit of armor to wear these past 18 months. But yesterday, drawn in to this "impossibility" of a further 10% drop in the stocks in a single day, heart dropping to my toes, before completing reading the associated article, I found myself dialing our financial advisor's phone number for the first time in a long time.

-Have we sunk our heads too far in the sand?
-Should we be joining the stampede racing to cash positions?
-Will we have time to replenish these disappearing funds before we retire and still send our child to college?
-Should we fire our financial advisor because they didn't call us in advance to recommend other strategies/positions for us?

With visions of sugar plums no longer dancing in my head, setting aside my embarrassment that I may have slipped in to an irrational moment of panic, I spent 40 minutes on the phone with our financial advisor. Mind you, Warren Buffett we are not and we don't have tremendous amounts in these accounts, but they are our retirement funds! With my husband on the backside of his 5th decade, and me watching this impending decade race up on me, we're paying much closer attention to this stuff than we have in previous recessionary periods.

The analogy our financial advisor used - over and over again - to settle me down was making our decisions whether or not to liquidate in to cash positions while "flying at an altitude of 10,000 feet". Pull ourselves up and look down on what's happening below. Do we still believe in a capitalistic system? Do we believe the companies we own shares of still have the fundamentals we seek and will at the end of the day continue to be profitable?

Like my crystal ball, our financial advisor's is just as foggy. But, they still have some skin in the game, too.

I say thank God for antibacterial ointment and Band-Aids, because I still want to play, both in the mortgage/real estate industry and in the stock market. I've always loved a good roller coaster ride!

See you at the closing table!

Karen Cooper-OR/CA Mortgage Consultant-www.Quality4Loans.com

Bailout or Toilet Plunger? What Does the Passing of L.P.T.A.P.M.A.* Mean to Us Soccer Moms and Joe Six Pack?

Do you think “Bailout” is a good term to describe L.P.T.A.P.M.A.*? This very painful pill we all get to swallow seems rather enormous, even bigger than my Flaxseed Oil and Fish Oil dietary supplements. But like the reasons for taking my dietary supplements, is it necessary to keep our economy healthy?

Having grown from 4 pages to 451 pages, maybe the proposal is now powerful enough to act as a toilet plunger to help unclog our national credit toilet. Depending on which economist you check with, the US economy may or may not be in a recession. My guess is when the latest data available is reflected, the decision will become unanimous – we are in a recession.

As difficult as this pill is to swallow, and I must admit my first instinct was to say “let it ride” and see where the cards may fall, I think the “Credit Market Restructuring Plan” (much better than “Bailout”, don’t you think?) will aid the major block we’re facing in the credit markets.
-Have you noticed the zero percent balance transfer offers are drying up?
-Tried to get a no cost home equity line of credit lately?
-How about short term business financing?
The rules in the credit game have changed dramatically, and although we could debate the pros and cons of this to eternity, overall I think this correction has swung too far the other direction. Now, creditworthy solid borrowers are finding it difficult to get the funding they want.

Although the best laid plans do sometimes go awry, maybe this restructuring plan will thaw out the frozen credit markets, speeding up the necessary recovery process. Here in Southern Oregon, homes are moving again, albeit it at a snails pace. Our illustrious US representatives got our Timber Funding extended for 4 years and tax credits for the manufacturer of children’s wooden arrows, so we’re set now, right (tongue in cheek just got bitten)? Let’s get the Master Plunger and blast this clog through, and see a reasonable flow in the markets again!

*LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Oregon Jumbo Real Estate Loans Still Available

Here it is September 29, 2008, and did you know you can still get a 30 year fixed rate Jumbo loan up to $600,000 (fully qualifying) up to 80% loan-to-value with an interest rate of 6.125% (6.253% a.p.r.)? Or, how about up to 90% loan-to-value, self-insured (lender pays for the private mortgage insurance), with an interest rate of 6.50% (6.631% a.p.r.)? For buyers purchasing or refinancing in Ashland, Jacksonville, Southwest and East Medford, and purchasing or refinancing waterfront or “gentleman farm”/mini ranch property, these higher loan amounts can come in handy.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Snapshot of the Real Estate Market in Southern Oregon in September 2008

• With a market that is somewhat driven by what’s happening with our neighbors to the South of us in California, we have definitely seen the numbers slowing here in the Rogue Valley. When a percentage of our buyers can’t sell their property in California, it slows things down for us here in Jackson County and Josephine County Oregon.
  
  But, guess what? It appears we may be reaching a turning point here. “Yeah, right!” you might be saying, based on all the doom and gloom reporting we are seeing in the news. Here’s why I think this:
  
  
• Inventory is contracting - Inventory of Homes for sale in Jackson County Oregon, the “hub” of Southern Oregon, has contracted three consecutive months in our year over year numbers posted at www.jacstats.com - by 16% September 1st, by 14% August 1st, and 16% July 1st. Based on the number of “Sold” signs I’m seeing as I drive around town, I’m guessing there will be a further contraction for October 1st.
  

• Sales in California Up - California Buyers, including first time buyers, are taking advantage of low prices and low interest rates there, freeing up those Sellers to make their moves. Sales overall were up July 2008 for the first time in three years. Some of those Sellers will likely be moving here to Southern Oregon, the early wave of migrant homeowners to make up the 1.7 million anticipated by Oregon’s Big Look Task Force.

• Buy while we can still get a loan – This seems to be an attitude many fence sitters have adopted, prompting them to say “good enough” to one of the criteria they have that has had them adopting their wait and see stance… wait for the price bottom, wait for the lower interest. There is no doubt we’re in a Buyer’s Market here in Southern Oregon, with motivated sellers willing to make concessions for ready, willing and able buyers. There is no doubt that underwriting guidelines for home loans are getting tougher. There is no doubt that with the failure of so many banks and mortgage companies, competition is not as prevalent as it was, which Econ 101 tells me will lead to higher pricing.
  
  Is it still tough out there? You bet! Are we still likely to face a few more bumps in the road? I think there will still be some hurdles to face in most real estate transactions that take place over the next year, especially with appraisals, tightening guidelines, and program eliminations. In my 25 years in this business, I've never seen buyers and property owners have to work so hard to obtain their financing, and that's saying a lot since I've been through 2 other major market cycles that had big dips. Is it a good time to buy? I’d get my checkbook out for the right deal, and put my money where my mouth is.
  
  See you at the closing table!
  
  Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com