Renee's Blog

Ready-Set-Go

Renee Dornhecker — Wed, 25 Mar 2009 17:06:29 +0000

Last week we saw 4.5% (4.637% APR) for a few short moments and then it shot up as a knee jerk reaction to the drop. The Fed will start to purchase long term Treasuries today aiming to bring down consumer loan rates once again. We’re preparing for the next drop by fine tuning numbers, ordering appraisals and getting our lender approvals so we can snag the rates when they fall.

Red Rover, Red Rover, send the 4.5% right over!

Home Affordability and Stability Plan

Renee Dornhecker — Wed, 04 Mar 2009 18:53:19 +0000

We’re still researching like crazy to find the details of what this plan will do for each of our families and in what way. I have some links to share in case you’d like to get an overview. Once we determine who will be eligible for which part of this plan, more information will be shared.

http://treasury.gov/news/index2.html

www.Financialstability.gov

http://www.cnbc.com/id/29508073/

I hope this information can help answer some questions for now and I will certainly post again once I have more information.

Have a great Wednesday!

Talk of 4.5%

Renee Dornhecker — Wed, 10 Dec 2008 17:55:00 +0000

I know it’s been several days since I’ve posted but we’ve been trying to ride the wave of the rates. Rates are amazing at 5% (5.189% APR) with 4.875% possibly in the very near future but the buzz has been about the 4.5% that may or may not be coming. To give a little back ground (because little is all anyone has at this time) about the story behind the 4.5% is this; the government is trying to figure out a way to move home sales. By creating a program for homebuyers to purchase a home at 4.5% they feel that this should revitalize the housing market by helping to move the foreclosures off the books of many banks and help Americans sell their home and move on. We have no details on who would qualify for such a program if it were to be implemented.

The next question that pops up is if they’re going to do it for home buyers why can’t they do it for people who need to refinance. There is no answer for this question as of yet but if we pull back to the big picture, the difference in payment between 4.5% and 5% (today’s rate, OAC) on a $200,000 loan amount is $60.00. And although $60.00 is $60.00, holding out for the day one can save an additional $60.00 may or may not come.

Just some food for thought and as soon as we hear any more news on the4.5% I will be sure to post again.

In the middle of a recession

Renee Dornhecker — Tue, 18 Nov 2008 18:36:20 +0000

We’re said to be in the worst financial crisis since The Great Depression but the good news is that we might have an end in sight! The Philadelphia Fed’s survey has said that it will last about 14 months and had a start date of Spring of ’08…this means we have an end date! By July of ’09 things should get better. I don’t know about you, but the hope of a possible end in ’09 makes me feel better already. Maybe this is what the Fed’s are hoping for. If we all start to feel warm and fuzzy inside maybe our spending habits will loosen up again helping us out of the recession on their predicted schedule. I’d like to think this isn’t the case so I will just bask in the warmth of the thought of July acting as a turning point in our economy, letting us all breathe a little easier.

Here’s to July of ’09! Cheers!

Salem ranked #2 in Nation

Renee Dornhecker — Tue, 18 Nov 2008 18:19:46 +0000

According to http://www.housingpredictor.com Salem is ranked #2 in the Top 25 Appreciating Cities in the Nation. Oregon at a glance looks like this according to housing predictor:

City	Forecast
Portland	− 8.9%
Eugene	− 8.0%
Salem	4.7%
Medford	− 11.5%
Corvallis	− 7.3%
Bend	− 7.9%

We all feel the recession that has been lurking for many months. In the midst of all the tightening and downturns, it’s nice to see Salem is still appreciating.

FHA Loan Limits DECREASING

Renee Dornhecker — Thu, 13 Nov 2008 17:51:41 +0000

As of January 1, 2009 FHA loan limits be decreasing. We’ve seen the benefits of having the $295,000 loan limit in Marion and Polk county but we’ll need to adjust to the drop to $271,050. Here are the changes:

The new FHA Loan limit for Oregon will be $271,050 with the following county exceptions:

					1 unit	2 unit	3 unit	4 unit
41	027	Hood River County	26220	OR	$371,450	$475,500	$574,800	$714,350
41	005	Clackamas County	38900	OR	$362,250	$463,750	$560,550	$696,650
41	009	Columbia County	38900	OR	$362,250	$463,750	$560,550	$696,650
41	051	Multnomah County	38900	OR	$362,250	$463,750	$560,550	$696,650
41	067	Washington County	38900	OR	$362,250	$463,750	$560,550	$696,650
41	071	Yamhill County	38900	OR	$362,250	$463,750	$560,550	$696,650
41	015	Curry County	15060	OR	$327,750	$419,550	$507,150	$630,300
41	017	Deschutes County	13460	OR	$305,900	$391,600	$473,350	$588,250
41	003	Benton County	18700	OR	$295,550	$378,350	$457,350	$568,350
41	057	Tillamook County	99999	OR	$287,500	$368,050	$444,900	$552,900
41	007	Clatsop County	11820	OR	$281,750	$360,700	$436,000	$541,800
41	029	Jackson County	32780	OR	$279,450	$357,750	$432,400	$537,400
41	041	Lincoln County	99999	OR	$276,000	$353,300	$427,100	$530,750

This will make a huge difference when your comparing homes in that price range. My only plea is to get in while you still can on one of the best programs with low down payment requirements. If you know someone who has been wondering if this is the right time to buy, have them call me. We can discuss their home buying options and how this change will effect their buying power. And remember buying a home by 12-31-08 allows first time home buyers to take advantage of the $7,500.00 tax credit on their ’08 taxes! If you haven’t owned a home in the last 3 years you are considered a first time home buyer!

Home prices are low!

Rates are great!

There’s a $7,500 tax credit

FHA Loan Limits are decreasing

There hasn’t been this many great reasons to buy a home in a long time! Take advantage of it! And spread the word! You may have someone in your office, your church, your child’s school or it may be one of your closest friends that has been on the fence. Let them know this may be the time to explore their options.

New Fannie Mae Guidelines

Renee Dornhecker — Wed, 12 Nov 2008 22:54:38 +0000

On October 16, 2008 we were informed that Fannie Mae guidelines are set to change on December 13th. But depending on the lender, we may be still have options to close under the old guidelines until March 31st, 2009 but as we’ve seen with other recent changes, lenders jump on board pretty quickly with changes.

Here’s a quick rundown of some of the changes:

Bankruptcy requirements – it’s now 4 years from file date formerly 2 years from discharge date
Investment properity purchases will need 15% down for 1-2 units formerly 10%
2nd home purchases will need 10% formerly 5%
Max loan to value for refinances have changed as well – call me for details
If you are only an authorized user on a credit account, you will still have to qualify with the payment before this change we could simply omit the debt from your ratios
Clients with more than 4 financed properties may have different lender options than those with less than 4

Keeping up with the changes is of course my job, but knowing the general guidelines may help you as you are making decisions about financing in the future. Always think of me as your Mortgage Adviser, here when you need me. I will explore all the ins and outs of our current guidelines to help offer you the best options available.

Have a great rest of the week.

What’s an APR?

Renee Dornhecker — Thu, 06 Nov 2008 19:26:37 +0000

I have this question several times a week. The concern is always that the APR listed on the Truth and Lending Statement is always higher than the quoted rate. With mortgage “unprofessionals” using the bait and switch gimmicks everyone is asking more questions and I’m here to answer them.

An APR (annual percentage rate) is a complex calculation that was originally designed to help consumers compare loan options to see the cost of each loan presented and ultimately help them decide which loan program would result in the best deal over time. Unfortunately there are many problems with using APR and APR only to make a decision. There are inexperienced or unethical loan officers that do not follow the steps correctly, therefore producing an inaccurate APR defeating the purpose of the APR. There are certain fees that must be used to calculate the APR and if a fee is charged but not used in the calculation, the APR quoted will be lower than it should be and most importantly will not allow you to compare programs accurately. What day of the month you close your loan and whether you have mortgage insurance on your loan are two factors that have nothing to do with closing costs and fees or the interest rate yet they do play a part in the calculation of the APR. With all that is involved, it may be tough to use the APR as a reliable source for comparing loan programs but it is something to look at. Always ask your mortgage specialist if you have questions or need more information.

Please keep the questions coming and have a great Thursday!

Rates below 6% and dropping?

Renee Dornhecker — Tue, 04 Nov 2008 21:03:20 +0000

Rates have come down about .25% today and if we receive news on Friday that the unemployment rates are higher than expected then we may see rates continue to drop to levels we’ve all been waiting to see.

I urge anyone you know that has been waiting for rates to drop in order to move forward on purchasing a home or to refinance their existing home in hopes of lowering their monthly payments, this is the time to be calling your mortgage consultant. What rate are you looking for? If your not sure call your mortgage consultant (hopefully that’s me) and we’ll put some numbers together showing the different payments at each rate drop so we know when the right rate becomes available I can lock it in for you. The only thing we are certain of is that rates will change so if you’ve been waiting for a rate, lock it in while it’s available.

Use me as your mortgage advisor and call, email or post with any questions you may have.

Have a great election day!

Fed Rate Cut – Prime expected to follow

Renee Dornhecker — Wed, 29 Oct 2008 23:49:19 +0000

The Fed’s cut the Federal Funds rate by .5% today bringing the new rate to 1.00%. Prime is expected to follow. The move was widely expected by market participants, but has still boosted stocks and hurt bonds increasing mortgage rates yet again today . Another consumer confidence report is scheduled for tomorrow.

In my opinion, rates should come down soon. How low and for how long we just don’t know. There have been several reports and comments released at one point or another that should have brought rates down but they have remained high or inched higher instead. Patience and the willingness to jump when the jumping is good is the key…kind of sounds like a game of Frogger!