Friday, November 21, 2008

veteran loans



Enhancement of Regular Refinancing loans for veterans - Central Penn Business Journal
Enhancement of Regular Refinancing loans for veteransCentral Penn Business Journal,�PA�- 1 hour agoThis law addresses changes to the VA (veteran's Administration) Loan Guaranty Program of which MoneyLine Lending is a sponsored lender. ...

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VA Home Loans



Washington Post Real Estate editor and columnist - Washington Post
Washington Post Real Estate editor and columnistWashington Post,�United States�- 4 hours agoArlington, VA.: Hi! My husband and I are looking to buy our first Home. We found one that appears to be a steal, with a price drop by almost a third. ...

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military loan



Check Cashers, Redeemed - New York Times
Check Cashers, RedeemedNew York Times,�United States�- 5 hours agoCongress already passed legislation to protect military personnel from the payday-loan debt trap by prohibiting loans to active-duty service members and ...Predatory Lending Gets a Boost from the NYT Huffington Postall 2 news articles

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VA Purchase Loan



Wilshire Bancorp Receives Preliminary ApproVAl for $62 Million ... - MarketWatch
Wilshire Bancorp Receives Preliminary ApproVAl for $62 Million ...MarketWatch�- Nov 20, 2008In addition, the Treasury Department will receive warrants to Purchase shares of Wilshire common stock in an amount and price to be determined at closing. ...

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veteran loans



Enhancement of Regular Refinancing loans for veterans - Central Penn Business Journal
Enhancement of Regular Refinancing loans for veteransCentral Penn Business Journal,�PA�- 1 hour agoThis law addresses changes to the VA (veteran's Administration) Loan Guaranty Program of which MoneyLine Lending is a sponsored lender. ...

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refinance



AngloGold Borrows $1 Billion to refinance Its Bond (Update2) - Bloomberg
AngloGold Borrows $1 Billion to refinance Its Bond (Update2)Bloomberg�- 13 hours ago21 (Bloomberg) -- AngloGold Ashanti Ltd., Africa's largest gold producer, secured a $1 billion loan facility from Standard Chartered Plc to refinance a ...AngloGold agrees $1 bln loan to refinance bond Reuters South AfricaAngloGold gets $1bn loan to refinance convertible bond Creamer Media's Mining WeeklyAngloGold agrees $1bn loan to refinance bond MoneywebEasyBourse.com�- EasyBourse.comall 43 news articles

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military loans



Predatory Lending Gets a Boost from the NYT - Huffington Post
Predatory Lending Gets a Boost from the NYTHuffington Post,�NY�- 4 hours agoIn 2006, after the Pentagon documented the adverse impact of predatory lending on military personnel, Congress passed the Talent Nelson Act prohibiting ...Check Cashers, Redeemed New York Timesall 2 news articles

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va loans



Fitch Affirms Bear Stearns 2000-WF1: Assigns Outlooks - MarketWatch
Fitch Affirms Bear Stearns 2000-WF1: Assigns OutlooksMarketWatch�- 44 minutes agoThe largest Fitch Loan of Concern (2.6%) is secured by the 288562 square foot (sf) headquarters of Circuit City located in Richmond, va. ...

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mortgage refinance



Columbia Bank is an Approved FHA mortgage Lender - MarketWatch
The Free Lance-StarColumbia Bank is an Approved FHA mortgage LenderMarketWatch�- 2 hours agoExisting homeowners wanting to refinance their current mortgage having only limited home equity. -- Homebuyers who would benefit from allowable seller ...Once again, the subprime wolves are on the prowl KXXV News Channel 25FHA sets limits on home mortgages The Free Lance-Starall 20 news articles

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streamline



Board works to 'streamline' application process - Daily Press
Board works to 'streamline' application processDaily Press,�VA�- 13 hours agoBy VERONICA GORLEY CHUFO | 247-4741 The county Board of Supervisors on Thursday considered streamlining the planning department's application process. ...

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Wednesday, November 12, 2008

100% Cash Out VA Loans

The Department of Veterans Affairs recently released a new mortgagee letter in which it stated that the VA will now insure VA Loans up to 100% Loan to Value on all loan types including cash out refinances. We are still waiting for lenders to jump on this new bandwagon and begin offering the new 100% VA Loans. We anticipate that it will take about 4 more weeks before lenders start offering these loans so we don't know exactly when this will come into affect.

One issue with the VA's new 100% loan guarantee is that lenders don't have to go up to 100%. it is still in their discretion whether or not they actually do it. The VA basically just "allows" going up to 100% now.

So keep checking back as we will have more information as soon as it comes out!

military loan



Wartime economy boosts real estate near bases - San Francisco Chronicle
Wartime economy boosts real estate near basesSan Francisco Chronicle,� USA�- 9 hours agoWhile other markets tanked after homeowners took subprime loans that they couldn't afford, active and retired members of the military can use private loans ...

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va loan



Fitch Rates Florida Housing Finance Corp's $100MM Mortgage Revenue ... - MarketWatch
CTV.caFitch Rates Florida Housing Finance Corp's $100MM Mortgage Revenue ...MarketWatch�- 9 hours ago... of Veterans Affairs (va), 6% is guaranteed by the US Department of Agriculture, through its Rural Housing Service's (RHS) Guaranteed loan program, ...Mortgage Putbacks Are Back, With GSEs Doing the Putting Financial-Planning.comFederal Housing Finance Agency announces foreclosure initiative Bizjournals.comFannie loses $13 a share; GLG Partners' profit dips InvestmentNewsForbes�- Los Angeles Timesall 3,038 news articles

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refinance



General Growth Properties may seek bankruptcy protection - Bizjournals.com
NBC AugustaGeneral Growth Properties may seek bankruptcy protectionBizjournals.com,�NC�- 3 hours agoCiting weakness in the credit and retail markets, the company says it can't be sure it will be able to refinance or extend terms on the debt. ...Mall owner's shares sink on survival fears Chicago TribuneGeneral Growth Dives On Debt Concerns Washington PostLocal mall operator says it's at risk for default Boston GlobeExplore Howard County�- Bizjournals.comall 381 news articles

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veteran loans



New mortgage plan...Gasoline prices...Obama and veterans Day ... - KXMC
CTV.caNew mortgage plan...Gasoline prices...Obama and veterans Day ...KXMC,�ND�- Nov 11, 2008But critics say it doesn't go far enough since it only covers 20 percent of delinquent loans. UNDATED (AP) It appears many people laid off in recent months ...Stocks Drop After New Loan Aid Plan BusinessWeekAutomaker bailout?...Mortgage help...veterans Day | KXNet.com ... Reiten Television KXMB BismarckMortgage Rescue Infighting WHIO RadioStreetInsider.com (subscription)�- Lancaster Eagle Gazetteall 3,038 news articles

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Monday, November 10, 2008

streamline



Agencies work to streamline radio dispatch - Arizona Republic
Agencies work to streamline radio dispatchArizona Republic,�AZ�- 16 hours agoby Lily Leung - Nov. 10, 2008 12:00 AM A long-awaited regional partnership allowing Valley police, fire and municipal agencies to talk to one another on a ...

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Monday, September 8, 2008

Good News for Veterans!

The Federal Governement announcement yesterday that Fannie Mae and Freddie Mac will come under control of the government is good news for veterans. This announcement came as the government felt both these institutions will no longer be able to meet their mission statement which is to provide liquidity, stability and affordability in the housing markets.

The majority of VA and FHA homeloans are sold to these government sponsored agencies. So what does this mean to me as a veteran?

Fannie Mae and Freddie Mac both have issued many Bonds which over time mature, and Fannie and Freddie need to pay back the principal on the maturing Bonds. The way they raise capital to pay these maturing Bonds is to issue new Bonds. This happens every month. And as long as Fannie and Freddie can sell new Bonds this system works well. But the problems in the mortgage industry have reduced investor appetite to purchase these Bonds...and that's where the trouble begins. Without the ability to sell new Bonds, Fannie and Freddie are less able to meet the capital requirements to pay off the maturing Bonds. And that's the big fear. If Fannie and Freddie were to default and become insolvent, it would throw the beleaguered mortgage and housing markets even deeper into the abyss.

Additionally, the recent lack of appetite for Fannie Mae and Freddie Mac Bonds caused the two mortgage giants to have to do something to make their Bonds more attractive...so they offered their Bonds at higher yields to gain more investor interest. However, since they couldn't go back and raise rates on loans that had already been closed, it sucked even more profits out of Fannie and Freddie, reducing capital even further, and exacerbating the problem.

That's why the Treasury has stepped in and said that they will back the payments on these Bonds. This action has given investors a lot of confidence to step in and now buy Mortgage Bonds. Think about it. For a higher rate of return, investors can now buy Mortgage Bonds with the same guarantee as lower yielding Treasury Bonds. This is causing a nice rally in pricing this morning – which combined with the break above the 200-day Moving Average – leads to attractive rates and what could be the aforementioned refinance season ahead.

If you have been thinking about refinancing, this might be a good time to take advantage of your VA Streamline benefits.

Tuesday, August 5, 2008

Time to Make Your Move - Fed Stands Still

The Federal Reserve held the line on Tuesday–leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.

Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%–above the Fed’s desired range of 1-2%.

Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.

What Does This Mean to You?
Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.

If you've been weighing your options and waiting to see how things shake out, this is the ideal time to act–especially when you consider the new Housing and Economic Recovery Act benefits for home buyers:

Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven't owned a home in the last three years. The credit is actually a generous interest-free loan, so we’ll have to talk about some income parameters and payback terms. But if you're a new home buyer – or know someone who is renting or in the market to buy – this is a huge benefit that we should discuss.

Lower rates for larger loans. In the past, mortgages of $417,000 or more have been considered "jumbo" loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended–with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.

Down Payment Assistance...going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs later this year...but they are still available right now, and depending on your circumstances, we may be able to take advantage of them to double your benefit as a home buyer.

Bottom line...now may be the ideal time to put together a purchase strategy based on your unique situation.

Friday, July 18, 2008

Protect Yourself Against Higher Payments

According to CoreLogic, nearly 300,000 subprime adjustable-rate mortgages (ARMs) are scheduled to reset throughout the summer months of 2008. For many borrowers, this means higher monthly mortgage payments with a rate increase of 1 or 2 percentage points -- or more in some cases -- when their loan adjusts.

The peak month for the resetting of mortgages, however, will come this October when, according to Credit Suisse, more than $50 billion in mortgages are scheduled to adjust to a new rate for the first time. If you or someone you know has an ARM, be proactive. Find out how much your payments will increase before your loan adjusts this fall. Remember, while interest rate cuts from the Federal Reserve over the last year will definitely help some borrowers, many others could have trouble making increased monthly payments with food and fuel costs on the rise -- especially if the Fed begins increasing its key interest rates in order to fight inflation.

It's also important to note that credit guidelines have tightened dramatically in the last year or so, and it may be harder for you qualify for a fixed-rate product if we don't have enough time to address certain credit issues. So don't wait until October. Give us a call today. We'll review your adjustable-rate mortgage with you and see what's best for your individual goals and needs.

Wednesday, April 30, 2008

Feds Cut Again.

The Federal Reserve cut interest rates today for the seventh straight time since September of last year. Many experts believe that the Fed is done cutting interest rates and will begin a new watch-and-wait policy. This new policy is due – in part – to the fact that the first Stimulus Act rebate checks are hitting millions of mailboxes this week. The Fed hopes this money gives a boost in the arm to the economy.

If you've been taking a watch-and-wait approach with your own finances, now is the time to call and review your options.

Consider this: the Federal Reserve Board meets 11 times this year to review the health of the US economy and make adjustments if needed. Don't you think you owe it to yourself to take just a few minutes and do the same with your own financial goals?

We want to ensure that you're taking advantage of this unique market and not letting it pass you by. Here are just a few things to consider:

Today's tougher housing market means there are some great buys to be had if you're looking to purchase. This is an especially friendly market for first-time home buyers.


The government has temporarily increased FHA loan limits in many areas across the US. These government-insured loans are not FICO-score driven and require little to no down payment. Here's the catch: these new limits expire at the end of the year, so you must act now.


You really don't want to play the waiting game if you are holding an adjustable rate mortgage (ARM). That's because there is nowhere for the rates to go but up from here, if we are truly at the end of the Fed's cutting cycle.
Invest 10 minutes in your financial future. Call us today. Together we'll review your situation. While the Fed takes a quick break from cutting to plan its next move, take advantage of the opportunity to do the same for yourself. We look forward to hearing from you!

Tuesday, March 25, 2008

VA Regional Loan Centers

This is a list of VA Regional Loan Centers with contact information. These centers can help you obtain your certificate of eligibility or answer questions about va home loans. Each center has its own jurisdiction, mailing and website addresses, and telephone number.

Regional Loan Centers:

Jurisdiction:
Atlanta Georgia
North Carolina
South Carolina
Tennessee

Department of Veterans Affairs
VA Regional Loan Center
1700 Clairmont Rd.
Decatur, GA 30033-4032
(Mail: P.O. Box 100023, Decatur, GA 30031-7023)
http://www.vba.va.gov/ro/atlanta/rlc/index.htm
1-888-768-2132

Jurisdiction:
Cleveland Delaware
Indiana
Michigan
New Jersey
Ohio
Pennsylvania

Department of Veterans Affairs
VA Regional Loan Center
1240 East Ninth Street
Cleveland, OH 44199
http://www.vba.va.gov/ro/cleveland/index1.htm
1-800-729-5772

Jurisdiction:
Alaska
Colorado
Idaho
Montana
Oregon
Utah
Washington
Wyoming

Department of Veterans Affairs
VA Regional Loan Center
155 Van Gordon Street
Lakewood, CO 80228
(Mail: Box 25126, Denver, CO 80225)
http://www.vba.va.gov/ro/denver/loan/lgy.htm
1-888-349-7541

Jurisdiction:
Honolulu Hawaii
Guam
American Samoa
Commonwealth of the Northern Marianas

Department of Veterans Affairs
VA Regional Office
Loan Guaranty Division (26)
459 Patterson Rd.
Honolulu, HI 96819

*Although not an RLC, this office is a fully functioning Loan Guaranty operation for Hawaii. 1-808-433-0481

Jurisdiction:
Arkansas
Louisiana
Oklahoma
Texas

Department of Veterans Affairs
VA Regional Loan Center
6900 Almeda Road
Houston, TX 77030-4200
http://www.vba.va.gov/ro/houston/lgy/home.html
1-888-232-2571

Jurisdiction:
Connecticut
Massachusetts
Maine
New Hampshire
New York
Rhode Island
Vermont

Department of Veterans Affairs
VA Regional Loan Center
275 Chestnut Street
Manchester, NH 03101
http://ww.vba.va.gov/ro/manchester/lgymain/loans.html 1-800-827-6311
1-800-827-0336

Jurisdiction:
Arizona
California
New Mexico
Nevada

Department of Veterans Affairs
VA Regional Loan Center
3333 N. Central Avenue
Phoenix, AZ 85012-2402
http://www.vba.va.gov/ro/phoenixlgy/
1-888-869-0194

Jurisdiction:
District of Columbia
Kentucky
Maryland
Virginia
West Virginia Department of Veterans Affairs
VA Regional Loan Center
210 Franklin Road, SW
Roanoke, VA 24011
http://www.vba.va.gov/ro/roanoke/rlc 1-800-933-5499

Jurisdiction:
Illinois
Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
Wisconsin

Department of Veterans Affairs
VA Regional Loan Center
1 Federal Drive, Ft. Snelling
St. Paul, MN 55111-4050
http://www.vba.va.gov/ro/central/stpau/pages/homeloans.html
1-800-827-0611

Jurisdiction:
Alabama
Florida
Mississippi
Puerto Rico
U.S. Virgin Islands

Department of Veterans Affairs
VA Regional Loan Center
9500 Bay Pines Blvd.
St. Petersburg, FL 33708
(Mail: P.O. Box 1437, St. Petersburg, FL 33731)
http://www.vba.va.gov/ro/south/spete/rlc/index.htm
1-888-611-5916
(out of state)
1-800-827-1000
(in FL)
Winston/Salem Department of Veterans Affairs
Winston-Salem Eligibility Center
P.O. Box 20729
Winston-Salem, NC 27120 1-888-244-6711

Military Service Requirements for VA Loan Eligibility:

Note: Applications involving other than honorable discharges will usually require further development by the VA. This is necessary to determine if the service was under other than dishonorable conditions.

Wartime - Service During:

WWII: 9/16/1940 to 7/25/1947
Korean: 6/27/1950 to 1/31/1955
Vietnam: 8/5/1964 to 5/7/1975
You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.

Peacetime - Service during periods:

7/26/1947 to 6/26/1950
2/1/1955 to 8/4/1964
5/8/1975 to 9/7/1980 (Enlisted)
5/8/1975 to 10/16/1981 (Officer)
You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.

Service after 9/7/1980 (enlisted) or 10/16/1981 (officer)

If you were separated from service which began after these dates, you must have:

Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or
Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability;
Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.
Gulf War - Service during period 8/2/1990 to date yet to be determined

If you served on active duty during the Gulf War, you must have:

Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or
Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or
Been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.
Active Duty Service Personnel

If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.

Selected Reserves or National Guard

If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and

Were discharged with an honorable discharge, or
Were placed on the retired list, or
Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service, or
Continue to serve in the Selected Reserves
Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.

You May also be determined eligible if you:

Are an unremarried spouse of a veteran who died while in service or from a service connected disability, or
Are a spouse of a serviceperson missing in action or a prisoner of war
Note: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.

Eligibility may also be established for:

Certain United States citizens who served in the armed forces of a government allied with the United States in WW II.
Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.

Identity Theft

5 Tips to Protect Your Privacy

The Federal Trade Commission (FTC) estimates that as many as 9 million Americans have their identities stolen each year. This means that an identity is stolen every 3seconds, costing the average victim nearly $4,000 and nearly 175 hours to straighten out their problems and their credit. How can you protect yourself from the dangers of identity theft? Here are some suggestions.

Conduct a Credit Check-up – Visit www.annualcreditreport.com to obtain a free credit report every 12 months. Review all three of your credit reports and look for any suspicious activity, unusual or inaccurate names or addresses, or any inquiries that were done without your knowledge. In many states, you may place a 90-day "Fraud Alert" on your credit report, which further restricts access to your credit information. Simply call one of the three main credit bureaus to activate the alert. Here are the toll-free numbers: Equifax 1-800-525-6285; Experian® 1-888-397-3742; or TransUnion® 1-800-680-7289.

Don't Give It Up – Avoid falling prey to phishing scams, both over phone and through email. In a phishing scam, identity thieves pretend to be someone from your bank or a credit institution and simply ask you for your personal information. If someone contacts you and requests any personal information, don't give it to them. Verify who is requesting the data and why, and then call the institution yourself. One extra phone call could save you a lot of trouble and money.

Stay off the Pharm – While phishing enables thieves to pilfer information from you, pharming is another kind of scam that consists of hijacking your computer and stealing your personal information. A pharming site is designed to look just like the website you're trying to visit. However, enter your information on this fake site and not only can it track your moves within it, it may also direct your computer to give up other personal information at a later time. Be sure you are visiting the correct site, that the address in the navigation bar is correct before entering any information.

Return to Sender – Some scammers simply fill out a change of address form and divert your mail to another location. Others simply steal the mail they want right from your mailbox. The key to avoiding this scam is to know your statement delivery dates and pay close attention to any unusual delays in delivery. A lot of identity thieves do things the old-fashioned way: They rummage through your trash to collect your information that way. Be sure to shred any junk mail or other documents that may contain your personal information before you throw it away.

Opt-out of Special Offers – Visit www.optoutprescreen.com to cut down on the pre-approved offers from credit card and insurance companies. When people apply for a mortgage, they often become "trigger leads" to the credit bureau, who sell your information to any number of companies. It only takes a few minutes to opt out, but it could spare you a ton of junk mail and could possibly save you from identity theft.

Annual Percentage Rate

What is the Real Cost of Financing?

Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.

The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form of a yearly rate. APR factors in certain closing costs and fees associated with the loan, and spreads this total over the life of the loan along with the actual note rate. The objective is to give the consumer a clearer picture of what their actual costs are, and this inhibits lenders from hiding fees or upfront costs behind low interest rates in their advertising.

Fees that are generally included in the APR calculation are points, pre-paid interest, loan processing fees, underwriting fees, document preparation fees, and private mortgage insurance. On occasion, lenders will include a loan application fee and/or credit life insurance. Fees that are normally not included in the APR calculation are fees from Title, Escrow, attorney, notary, document preparation, home inspection, recording, transfer taxes, credit report and appraisal.

Remember, all lenders do not perform the calculation the same way. Moreover, APR does not consider the possibility of making pre-payments, moving or refinancing. Unless the interest rate is tied to a fixed instrument, APR is even more confusing. Calculating APRs on adjustable rate and balloon mortgages is more complex because we really have no way of knowing what future rates will be.

If all lenders calculated APR the same way, we could make easy comparisons when deciding on what loan program to go with. Since they don't, the consumer should know that APR is simply a starting point for comparison. They should rely on the skills of a well-versed loan professional to assist them in obtaining the loan that meets their specific needs. The more important things to consider are how long the loan is needed. What are the long-term goals of the borrower? If the homebuyer only expects to stay in the home for five years, there's not a lot of sense in looking exclusively at 30-Year Fixed rates because the APR seems more reasonable. If a young couple is buying a home, knowing they will refinance in eight years to pay for their son's college education, then once again, APR is not a realistic factor to take into consideration.

The Loan Specialist should be prepared to answer questions about APR once the lender provides the Truth-in-Lending Disclosure Statement (Reg Z), such as why the “amount financed” listed in Box C is not the same as the actual loan amount, and why the APR is higher than the interest rate on the loan in most cases. The consumer will get a clear definition about the fees associated with their loan in the good-faith estimate, but the Truth-in-Lending Disclosure is often an area that is confusing to the borrower. If you ever have questions about the interest rate or fees you are bieng charged, contact a VA Loan Specialist at 800-436-0445 and they will help you understand all of the fees associated with your loan and select the loan program that is in your best interest.

The Federal Reserve and Mortgage Rates

Consumers are often misled when it comes to the subject of the Federal Reserve and how it affects mortgage interest rates. Often the media is the culprit causing the confusion. In the last few years, the Fed has taken action that caused mortgage interest rates to move in a direction other than what consumers expected, because the media provided weak reporting on the subject.

The Federal Reserve affects short-term interest rate maturities, the Fed Funds rate, and the Overnight Lending rate. These factors have a direct impact on the Prime rate. If you took only this into consideration, you may mistakenly conclude that changes made by the Fed will cause a similar movement in mortgage interest rates. However, mortgage interest rates are dictated by the trading of mortgage-backed securities, which trade on a daily basis. The real dynamic at the heart of interest rate movement is the relationship between stocks and bonds.

Stocks and bonds compete for the same investment dollar on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally. When the market becomes bullish, the money to invest in stocks comes from the selling of mortgage-backed securities.

Unfortunately, selling mortgage-backed securities to fuel stock market rallies causes interest rates to go up, not down.

Historically, there have been many times when the Federal Reserve has increased interest rates. Stocks then sell off in fear that the increase will affect corporate profit margins, and the liquidated stock assets need a place to park until the next rally comes along. The safe haven is found in mortgage-backed securities which cause mortgage rates to drop.

The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. We make it a point to continuously monitor interest rates for our clients, and advise them of opportunities to manage their mortgage debt at a better rate. This is the foundation of VARefiCenter's business model as a Trusted Advisor.

Wednesday, March 19, 2008

FHA Loans Accelerate Home Ownership


The Federal Housing Administration (FHA) program first began in 1934 in an effort to encourage home ownership despite the difficult economic times of the era. The program enables consumers who may not qualify for a standard loan to obtain the financing they need to purchase a home without income limitations.

FHA loans differ from typical loans in that they are insured by the Federal Housing Administration, which is a part of the Department of Housing and Urban Development (HUD). Because this insurance reduces the lender's risk on the loan, lenders have greater flexibility with regard to approving loans. For example, FHA loans are not credit-score driven, so a client may be able to obtain a loan despite having had credit problems or even a bankruptcy in the past. Alternatively, if a consumer does not have a traditional credit history, it is still possible to obtain financing by documenting payment histories on items such as rent and utilities.

FHA loans also provide added flexibility when it comes to closing costs and the down payment. Many of the closing costs can be incorporated into the loan, and a down payment of less than 3% of the purchase price is required. The down payment may be obtained as a gift from a family member or through a down-payment assistance program. FHA loans are processed just like any other loan, and they provide a wonderful opportunity for consumers who are seeking to achieve home ownership!

Tuesday, March 18, 2008

Fed steps in and cuts again

-Bernanke pulls out all the stops to ailing economy-

The Federal Reserve significantly cut rates today for the sixth straight time since September. This follows a busy weekend where the Fed also extended its hand to Wall Street, bailing out Bear Stearns with JP Morgan Chase. While rate cuts look good at face value, you need to prepare for what's to come.

Why did they do this?
The Fed wants you to start spending money and wants to boost consumer and Wall Street confidence. Consumers are under stress with increasing consumer prices and a slowing housing market. Wall Street banks have been under stress from mortgage defaults and their impact on corporate balance sheets.

How does this impact you?
Fed rate cuts are inflationary. Since the Fed started cutting rates in September of last year, oil prices are up nearly 40%, gold prices are up over 25%. This is the direct result of a falling dollar which occurs from Fed rate cuts.

As a result, mortgage rates will ultimately rise from here. It is inevitable. Inflation is the arch enemy of fixed-income investments, long-term bonds and mortgage-backed securities, upon which mortgage rates are based.

Here's a look at the inflation picture: Gas prices last September, prior to the Fed's current cutting trend, were roughly $2.75 a gallon. Today, gasoline averages $3.25 a gallon nationally, up 18% before the first rate cut. This is a sign of inflation.

What should you do now?
If you are looking to refinance, don't wait. Act now to get a great interest rate. Home loan rates have come down over 1.00% in the last two weeks. But after each of the last five rate cuts, we have seen rates rise significantly in a short period of time. Don't get caught saying "I wish I had…"

If you are looking to purchase a home, I want to hear from you right away. Home prices have to fall over 10% to make back what you lose in monthly housing payments if rates increase 1.00%. There are some great buys out there today!

Next step
Pick up the phone and call us. You owe it to yourself. We will review your situation and let you know what I can do to put some money in your pocket. If you wait, it could cost you thousands of dollars. We look forward to hearing from you.

Friday, March 7, 2008

FHA Loan Limits have Been Raised! VA May Follow

PRESIDENT'S ECONOMIC GROWTH PACKAGE TO MAKE NEARLY A QUARTER OF A MILLION FAMILIES ELIGIBLE FOR FHA-INSURED MORTGAGES
FHA implements temporary higher loan limits to help families keep their homes

WASHINGTON - Nearly a quarter of a million more families could be eligible this year to purchase or refinance their homes using affordable, FHA-insured mortgages, thanks to the economic growth package signed into law by President Bush last month. The Economic Stimulus Act of 2008 will allow HUD's Federal Housing Administration (FHA) to temporarily increase its loan limits and insure larger mortgages at a more affordable price in high cost areas of the country.

"The stimulus is providing immediate relief to homeowners," said HUD Secretary Alphonso Jackson at a Greater Las Vegas Association of Realtors keynote speech. "It raises the Federal Housing Administration's loan limits, enabling more families to qualify for a safe, affordable FHA mortgage. This is important. Families in high-cost states have been priced out of FHA-backed loans. This has created a vacuum, filled by exotic subprime loans. Families with home loans up to $729,750 will now qualify for an FHA loan, depending on where they live."

Beginning today, HUD will offer temporary FHA loan limits that will range from $271,050 to $729,750. Overall, the change in loan limits will help provide economic stability to America's communities and give nearly 240,000 additional homeowners and homebuyers a safer, more affordable mortgage alternative. The maximum amount of $729,750 will only be applicable to extremely high-cost metropolitan areas such as: New York, Los Angeles, San Francisco and Washington, D.C. HUD also calculated new limits for loans to be purchased by Government-Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac.

"Many families all over the U.S. will benefit from this access to credit, and increasing these loan limits will inject much-needed liquidity into the housing market," said FHA Commissioner/Assistant Secretary for Housing Brian Montgomery. "Even moderate-cost areas like those in the South and Southwest such as Dallas, Houston, Augusta and Tallahassee will be helped, with most loan limits there rising to $271,050."

Wednesday, February 20, 2008

More Mortgage Forclosure News

Home foreclosure is a growing problem in Kansas and across the nation. Mortgage fraud and subprime lending have left many homeowners stuck with home loans they can no longer afford. We recently convened a task force to investigate this problem. Consumer advocates met with representatives from lending and real estate industries to determine ways we can stem the tide of home foreclosure in Kansas.

While we continues to investigate reports of mortgage fraud, there appears to be a great need for increased consumer awareness on this issue. When facing a lending crisis, homeowners can greatly reduce the number of pitfalls by following a few basic steps.

The most important advice for anyone facing foreclosure is to contact your lender or the company who sends you your bill as soon as possible. It may be possible to negotiate or re-structure the terms of your loan to make your payments more affordable.

Home foreclosure is a harsh legal process that moves quickly. Unfortunately, homeowners in this situation are often targeted by scams, including offers of assistance from “mortgage rescue” companies.
Consumers facing foreclosure should obtain legal advice immediately and never sign anything without having it reviewed by their attorney.

In addition to contacting an attorney, you may also seek advice from a housing counselor. Housing counseling agencies offer guidance on buying a home, renting, reverse mortgages and default and foreclosure prevention. The Department of Housing and Urban Development (HUD) maintains a list of approved agencies at http://www.hud.gov.

If you absolutely cannot afford to keep making your mortgage payments, check all your options before walking away from your home. You may be able to sell your home or negotiate with your lender to avoid losing any equity or tarnishing your credit record.

Home foreclosures occur for a variety of reasons. As your Attorney General, it is my duty to make sure that Kansas families are treated fairly in the home buying process. My office will continue to investigate this issue and do everything we can to safeguard homeowners.
For more information on this and other consumer issues, visit http://www.ksag.org.

Thursday, February 14, 2008



WASHINGTON- Federal Reserve Chairman Ben Bernanke on Thursday kept the door open to further interest rate reductions, saying downside risks to economic growth remain from housing, employment and credit markets.

But he appeared more upbeat on the economy's prospects for later this year and next year when the combination of fiscal and monetary stimulus kicks in.

"At present, my baseline outlook involves a period of sluggish growth, followed by a somewhat stronger pace of growth starting later this year as the effects of monetary and fiscal stimulus begin to be felt," Mr. Bernanke said in prepared testimony to the Senate Banking Committee.

But even though he envisions "an improving picture" on the economy, Mr. Bernanke cautioned that "downside risks to growth remain, including the possibilities that the housing market or the labor market may deteriorate to an extent beyond that currently anticipated, or that credit conditions may tighten substantially further."

The Federal Open Market Committee, he said, "will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks." He also signaled that policy moves in the future will depend on the Fed's medium-term forecast for growth and inflation "as well as the risks to that forecast," since policy works with a lag.

Economists expect more rate cuts in coming months as the economy hovers near recession. Recent reports including a drop in January payrolls and a contraction in the Institute for Supply Management's service-sector survey last month raised recession alarms. However, a better-than-expected retail sales report for January, released Wednesday, suggested the economy may be able to eke out some expansion this quarter.

The FOMC has lowered the fed funds rate at which banks lend to each other "aggressively," Mr. Bernanke said, by 2.25 percentage points to 3% since September, including 1.25 percentage points in reductions over an eight-day period in January.

Meanwhile, a surprising drop in the December trade deficit reported Thursday suggests fourth-quarter growth will be revised up from its initial estimate of 0.6%.

But Mr. Bernanke cautioned that consumers face headwinds in coming months. Labor markets have "softened," he said -- citing the decline in January payrolls. Plus, higher energy costs, lower equity prices and falling home values "seem likely to weigh on consumer spending in the near term," he said. More homebuilding cutbacks, meanwhile, "are likely," he added.

However, consumer and business spending should get some support in the second half of this year and into 2009 from the recently approved fiscal stimulus package, Mr. Bernanke said.

Turning to inflation, Mr. Bernanke said a "key development" in 2007 was the "steep" rise in oil prices. Food prices also increased "exceptionally rapidly" while "the foreign exchange value of the dollar weakened," Mr. Bernanke said.

Mr. Bernanke said he expects inflation to moderate, "and the public's longer-term inflation expectations should remain reasonably well anchored."

But he warned that "any tendency of inflation expectations to become unmoored or for the Fed's inflation-fighting credibility to be eroded could greatly complicate the task of sustaining price stability and reduce the central bank's policy flexibility to counter shortfalls in growth in the future."

by Brian Blackstone, Dow Jones Newswires

Monday, February 4, 2008

VA Requests $94 Billion for Veterans in FY ’09 Budget


Peake: VA Will Provide Timely, Accessible and High-Quality Care

WASHINGTON – Honoring the nation’s commitment to care for the newest generation of combat veterans and service members from other conflicts and eras, Secretary of Veterans Affairs Dr. James B. Peake announced today President Bush is seeking a budget of $93.7 billion in fiscal year 2009 for the Department of Veterans Affairs (VA), with health care and disability compensation receiving most of the funding.

If Congress accepts the White House’s budget request, VA’s budget would be $3.4 billion more than the current spending level and nearly double the budget in effect when President Bush took office seven years ago.

“This budget builds on VA’s past successes in providing veterans with timely, accessible delivery of high-quality benefits and services earned through their sacrifice and service in defense of freedom,” Peake said.

The FY ‘09 budget proposal calls for $47.2 billion in discretionary funding, mostly for health care. It also would provide $46.4 billion in mandatory funding for compensation, pension, educational assistance, home loan guaranties and other benefit programs.

Peake said the budget proposal will provide funding to ensure high-quality care to VA’s highest priority patients -- veterans of the Global War on Terror, those with service-connected disabilities, lower-income veterans, and veterans with special health care needs.

Under the new budget, VA will strengthen its collaboration with the Department of Defense (DoD) for world-class health care and benefits to veterans, service members and their families, including progress toward the development of secure electronic patient health care records that can be used by both departments.

This proposed budget will also allow VA to continue implementing the recommendations of the President’s Commission on Care for America’s Returning Wounded Warriors (Dole-Shalala Commission). Peake said the commission’s report provides “a powerful blueprint to move forward with ensuring that service men and women injured during the Global War on Terror receive the health care and benefits necessary to allow them to return to full and productive lives as quickly as possible.”

The budget request includes:

$1.3 billion to meet the health care needs of an estimated 330,000 veterans returned from service in Iraq and Afghanistan;

$3.9 billion for mental health services;

$762 million for non-institutional long-term care; and

$1.5 billion for prosthetics and sensory aids.
The President’s budget request contains $252 million devoted to research projects focused specifically on veterans returning from service in Iraq and Afghanistan. This includes research in traumatic brain injury, polytrauma, spinal cord injury, prosthetics, burn injury, pain, and post-deployment mental health.

A major challenge in improving the delivery of compensation and pension benefits is the steady and sizeable increase in workload. The volume of claims is projected to reach 872,000 in 2009 -- a 51 percent increase since 2000. VA will address its ever-growing workload challenges by acquiring greater access to DoD’s online medical information, by working to reduce the Department’s reliance upon paper-based claims folders and by aggressively hiring new staff. By the beginning of 2009, VA expects to complete a two-year effort to hire 3,100 new staff.

The President’s budget request includes $181 million in operations and maintenance for the National Cemetery Administration, a 71 percent increase from the resources available to the Department’s memorial program when the President took office. The budget request includes an additional $5 million to begin interment operations at six new national cemeteries -- Bakersfield, Calif.; Birmingham, Ala.; Columbia-Greenville, S.C.; Jacksonville, Fla.; Sarasota, Fla.; and southeastern Pennsylvania.

The President’s 2009 budget would provide more than $2.4 billion for the Department’s information technology (IT) program. This is $389 million, or 19 percent above VA’s 2008 budget, and reflects the realignment of all IT operations and functions under the control of the chief information officer. The proposal contains $93 million to uphold VA’s cyber-security program to support the commitment to make the Department the gold standard in data security within the federal government. VA continues to take aggressive steps to ensure the safety of veterans’ personal information, including training and educating employees on the critical responsibility they have to protect personal and health information.

Highlights of the VA budget are available on the Internet at: http://www.va.gov/opa/pressrel/pressrelease.cfm?id=1448

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People wishing to receive e-mail from VA with the latest news releases and updated fact sheets can subscribe to the VA Office of Public Affairs Distribution List.

Thursday, January 31, 2008

Long Time Trends Continue

Yesterday was an unbelievably active day for the bond markets. We saw wild swings in interest rates through out the day. When the day began the 10 Year Treasury Bond yield opened at 3.51 and almost immediately swung down to 3.33 and finished the day at 3.60. That meant that for a small window of time (about 3 hours) mortgage rates dropped to 5%. But that drop was short lived. As usually happens when the Feds lower rates, we see a short dip followed by a slow extended increase in long term interest rates. The 10 Year Treasury Bond is up .15 today which may be an indicator rates will be back up to 5.75 by tomorrow.

Time is always of the essence when it comes to locking in interest rates. Please contact a specialist at VARefiCenter.com for advice when it comes to interest rate lock timing; and if you are set on getting the lowest rates, be prepared to move quickly.

We should go through something very similar to this in a few weeks as the Feds have indicated they may cut another key interest rate soon. The overall forecast is for long term rates to inch upward over the next few months.

Sunday, January 27, 2008

Good News

Gen. George W. Casey Jr., the Army’s chief of staff, said yesterday he hopes to shorten the 15-month tours in Iraq and Afghanistan this summer. The move would end a policy, required by the buildup of nearly 30,000 U.S. troops in Iraq last year, that has placed significant stress on soldiers and their families.


Naturally, this decision is based on the assumption that progress will continue in the country.

Casey suggested that the withdrawal from Iraq of five U.S. Army combat brigades by July could allow soldiers once again to deploy for 12 months and then spend a year at home, although he cautioned that a decision will depend on conditions in Iraq.

So, this is where the naysayers in this country need to set aside their differences and jump on board the success train. By continuing to degrade and downplay the successes we’re achieving in Iraq, they only seek to prolong the very deployments they are trying to end. By jumping on board the terrorists will start to think that their pursuit is pointless now that the entire country is behind them (don’t worry, CF. I realize that you’re already too far gone and invested in defeat that this is too bitter a pill to swallow for you. After all, if the troops come home what will you have to complain about? I guess you always resort to your “Bush is evil” mantra.)

Casey’s remarks could reflect an optimism shared by other senior military officials that the U.S. troop withdrawals from Iraq announced last fall — with five Army combat brigades scheduled to leave by July — will continue apace after the summer. U.S. commanders in Iraq have begun planning for the possibility of a further reduction of another five brigades by the end of the year, with a recommendation on the drawdown expected this spring from Gen. David H. Petraeus, the top U.S. commander in Iraq.

Wednesday, January 16, 2008

Chad Childress Explains: The Advantages of VA Guaranteed Loans

There are many advantages and virtues to having your loan guaranteed by the Department of Veterans Affairs. The first and most simple fact involved is that quite frankly, as a veteran you've earned this benefit. So taking advantage of what you've earned should be an easy choice overall. But in order to de-bunk a few of the myths and rumors surrounding the VA loan program, I've compiled this list of associated benefits.

-First, there is NO down payment. This is because the VA will guarantee (In most cases) up to 100% of the established reasonable value of the property. The exception to this is that due to secondary market requirements, VA loans generally do not exceed the Freddie Mac conforming loan limit for a single family residence (usually circa 360,000, or 540,000 for Alaska, Hawaii, Guam, and the U.S. Virgin Islands).

-The VA also offers you the flexibility to negotiate your interest rate with the lender -- meaning that lenders will need to compete on rates and terms to get your business.

-Under the VA there is NO monthly mortgage insurance premium to pay.

-There are set limitations on the total closing costs to you.

-The appraisal is required to inform you of the home's value.

-You can get a thirty year loan with a choice of repayment plan, to include:

Traditional Fixed Payments - Constant principle and interest; increases or decreases may be expected in property taxes or homeowner's insurance coverage.

Graduated Payment Mortgage (GPM) - Consists of low initial payments that gradually rise to a level payment beginning in the sixth year.

Growing Equity Mortgages (Available in SOME areas) - Consist of gradually increasing payments with all of the increase applied to principal, resulting in an early payoff.

Hybrid Adjustable Rate Mortgage (HARM) - Effective until September 30, 2008.

Traditional Adjustable Rate Mortgage (ARM) - Effective until September 30, 2008.

-On most VA loans for proposed construction, construction is inspected at certain stages to ensure compliance with approved plans.

-VA mortgages are assumable, subject to lender or VA approval of the assumer's credit.

-You have a right to prepay the loan without paying a penalty.

-The VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial hardship.

To find out more specifics on VA guaranteed loans, visit VArefiCENTER.com

Tuesday, January 15, 2008

15.01.08 - Top Ranked Yahoo Site for VA REFI

VArefiCENTER.com has recently been ranked in the top position on the popular Yahoo! search engine. Users searching for the keywords "va refi" will now see VArefiCENTER.com's pages as the first and second search results. The site's overall relevance, intuitive layout, and informative qualities regarding VA mortgage and VA refinance processes have been credited for the change. Yahoo, much like its counterpart Google, uses a complex model of agorithms to determine websites that are best suited to handle a user's query. "It's a great recognition," says Brett Childress, VArefiCENTER.com's lead designer, "whenever a major entity like Yahoo tells you you're doing things right, it's easy to believe them."

VArefiCENTER's team of VA mortgage loan specialists, in business for over 20 years, have received numerous recognitions and praise from consumer advocacy agencies for their outstanding customer service, steadfast dedication to their clients, strong knowledge base, and wide variety of refinance and loan products.

Refinance at VArefiCENTER.com

Tuesday, January 8, 2008

01.12.07 - VArefiCENTER Salutes America's Veterans and Their Families

VArefiCENTER President Chad C. Childress announced today a special salute to our veterans and family members as the team opened for monday morning business. A special staff meeting was called to honor those veterans present on the team, and to raise awareness of veteran needs and goals in customer service practices. "I can't give enough thanks to all of our veterans for their service, hard work, and dedication," said Mr. Childress in a special interview with our news staff "I come from a long family history of military service, so I understand to some degree the sacrifices that go in to that way of life. These people are really a very special part of our society, and I hope we never forget that."

The company, which has a long standing record of taking special care of its veteran clients, also annouced several new programs in order to re-double its efforts in making the loan process smooth and comfortable for veterans. Among these are a special tracking system, where veterans can access their loan progress online, as well as new operating procedures designed to keep more of the workload at the mortgage office and leave fewer tasks for the individual borrower.

http://www.vareficenter.com/