For the first time, Congress has failed to kick the can down the road before a fiscal deadline hit. We are now fully sequestered. What does that mean? On one hand, we can say that it does not mean much if you look at the stock market. Most of us would have thought that the stock market would take a hit as the deadline expired. Yet, stocks were up solidly this week and for the month of February. Are the markets thinking that Congress will take action after March 1st, but before the cuts really have a chance to hurt the economy? Or are the markets perhaps thinking that the cuts will not affect the economy that much? You could make a case for either argument at this time.

On the other hand -- if we look closer stocks were not fazed by the cuts -- but oil prices and interest rates did fall this week. Both rates and oil prices trended higher earlier this year as stocks rallied and the fallback came despite positive economic news released in the past few days. This positive news included continued upbeat news from the real estate sector. Usually when the stock market is strong, oil prices and interest rates are rising. If this trend holds, lower rates and oil prices in the face of positive economic news could actually give the economy a boost to offset the dampening effect government cuts might have on the economy. To make matters more complex, we have the all-important employment reports released this week. Our first week under sequestration could be an interesting one, indeed.

Merry Christmas from all of us at Purpose Funding

We also invite you to view our compiled video on YouTube.

So, here you are searching for the right loan  - as well as the right loan company. Some people are not really sure what is the right loan. That is a 30 year fixed? a 10 year Interest Only? A 7/1 ARM? I have found that to even the most savvy homeowners the answers to these questions can be diffucult, if not down right daunting. How long do you plan to stay in the home? Are you really sure about that time frame? What if circumstances change? Then what? Many people have difficulty differintiating between getting the lowest monthly payment and the lowest interest rate: Yes, there can be a differance. Would'nt it be nice to know before you start the process? Purpose Funding can help you!

I have found a good starting point is to have a deep and meaniingful conversation with a seasoned mortgage professional. Asking you the right questions. Digging into the DNA of your personal profile and goals. A single good telephone conversation can go a long way to helping you reach your goals and getting the answers that make the most sense for you. Once you have detemined your "real" goals it will be much easier to find the right company to help you achieve them. But, first things first. Purpose Funding is staffed with the right kind of agents. Agents who know what to ask you. They say experience is the best teacher, but I say experience is the ONLY teacher. Our agents have practiced the fine craft of mortage consultation for decades. Over time a quality loan agent will learn to read-in-bewtween-the-lines and draw out of you the information you'll need to make the best choice. When you find this person, you've also found the right company. Right answers = Right Solutions = Right Company. Call or email Purpose Funding today. We know just what to do.

We've all heard it over and over. . . . " Interest rates are at all time lows": Almost been beat into our subconscious minds. The truth is, THEY ARE! Can remember when people would pay super premium fees to get a 6.50% 30 year fixed. And oh my gosh....to get a 5.75% rate? Perish the thought! Today, you can get a 30 year fixed at 3.75% and pay NOTHING. No closing costs period. This is not nickels and dimes. This is big money. Big money in monthly payments and even bigger money is interest saved over time. But, for untold unnamed reasons I fear some people are waiting. Waiting for "rates to go down lower" - waiting "to see what happens". Waiting - waiting - waiting. But deep down that quiet little voice inside is saying. . . .Hey, maybe I need to get this done while I still can. They have a name for this voice. Common-Sense.

 Is this another " But you must act now " blog? Not exactly. The real heart of the matter is this: In all fairness I have found many people postpone & procrastinate over refinancing (despite the obvious & substantial benefit) for a pretty good reason. They simply HATE the process. Dealing with loan agents and the like. They've been mistreated in so many differant ways. Fact is, in the hands of a seasoned & capable professional the process can be swift, pleasant, and maybe even a little fun. A phone call lasting under 5 minutes can reveal exactly how much money you'll save. Confirm your ability to qualify. All this will cost exactly ZERO. 

Finally, during this 5 minute call you'll have a chance to "bond-up" with a professional. You know, someone who actually cares more about YOUR goals and best interest than thiers? And, I can tell you  Purpose Funding staff are the best of the best. Second to none.

We don't want you to wait until the SS LOW-RATES sails away into the sunset of history. Don't put yourself in that Coulda Should Woulda mire of regret. Call or email Purpose Funding. Answers to your questions await you! Why pay more than you have to?  

No Appraisal Required? Yeah, that’s right! No Appraisal!

Over the years I have seen many remarkable features offered in mortgage finance. But, no appraisal requirement? Just to explain and give it scale, let’s answer: Why is an appraisal required? Simply put, it is the single greatest protection against loss to a financial institution. That is, in the event of default, the bank looks first and foremost to the equity in the home. More important than fico scores, income documentation and the like. Yup, it’s E.Q.U.I.T.Y. – let’s say it another way…..It’s a very big deal!

And now, the door which has been locked shut for so long is now open. The pain and suffering of a high interest rate can now be overcome. Today’s mortgage environment has added a stunning new feature. Under new guidelines covered by HARP I, HARP II, and FHA Streamline I have found one recurring feature. FannieMae, FreddieMac, and FHA guidelines are increasingly offering “appraisal waivers”. With so many good borrowers “upside down” in their equity positions needing help, they are now receiving this help by not needing an appraisal.

If you’re suffering with a rate higher than 4.50% it might be a great time to see if you can refinance without an appraisal. What this means is, even if you owe more than your homes value, you may STILL move forward.

We strongly recommend you get in touch with your mortgage professional and find out. This may very well be the magic bullet you’ve been searching for. Appraisal Waiver!

The mortgage market remains in Red-Hot condition. The ongoing problems in Greece and the " Euro-Zone " continue to keep downward pressure on capital markets. Homeowners (whether they are aware of it or not) are currently being offered a veritable smorgasbord of loan products. And, at all time low interest rates. This is not sales "schmooze" but fact. Think about it, a 30 year fixed rate in the 3's?

Regretfully, I suppose some otherwise perfectly good and qualified homeowners may be suffering needlessly by virtue of "self-diagnosis" of thier financial profile. What exactly does this mean? I have found some people hesitate to contact a lender based upon old issues of income qualifying, old credit scores (long since healed) or any number of "other issues" which, in their mind disqualifies them. They somehow beat themselves down and try to "figure it out on thier own" when, in reality they actually DO qualify for a home purchase or a refinance. Medicine, law and mortgage finance are three areas to which it is truly well advised....." Leave it to the professionals ". An experienced mortgage professional can evaluate your profile and generally tell you within minutes where you really stand. If your current interest rate is 4.50% or higher, or you have an exploding ARM coming due, or you need cash out of your home, it is wise to contact a professional for the right answer.

Cinco De Mayo Celebration!

When: May 4th, 2012

Where: Northwest corner parking lot (Processing side)

Time: 12:00 noon

As reported by CNBC.com this morning, funds are betting on big gains in mortgage-related investments, which are being projected as the hot ticket item this year.

 Apparently a number of hedge funds, asset mangers and investments have launched vehicles dedicated to investing in the mortgage sector, with many securities backed by those loans. Some are focusing on scooping up bargain-priced mortgages themselves.

The near zero interest rate environment has created investors starving for yield and mortgage related investments again, which have become more interesting as the upside potential of the housing market picks up, which also means that these investors believe that we have reached the bottom of the housing market.

Another criteria, which makes these mortgage backed more attractive is just the fact that even if home sales and prices do not recover, they still provide for higher yields relative to Treasury investments and appealing against a stable rate policy.

News on a possible HARP 3.0? A company owner from California wrote, saying, "I received an email from one of our wholesale sources saying their owner was in Washington DC and met with senior HUD official(s) and member(s) of Senate Finance Committee who indicated a HARP III program by end of June. It will allow conforming loans to be refi'd through FHA regardless of LTV or note holder. There was no word on when a loan had to have funded to be eligible for refinancing under this rumored program. The timing is same time as FHA MI increases for high balance loans so perhaps this is a way to obtain upside-down notes of Fannie/Freddie and bank balance sheets, and increase capitalization for the FHA?" Source: Mortgage News Daily

Really? With HARP2 not even fully in place and constant changes being announced, now we are looking at HARP3? As good as this would sound the uproar can already be heard at the horizon!

Is the Government taking on more than they can handle?

Yesterday the so-called "Homeowner Bill of Rights" was intorduced the California State Assembly in the form of seven bills, primarily centered on the impacts of foreclosure. In a statement, California Attorney General Kamala D. Harris's office stated that the proposed legislation seeks to protect homeowners from unfair banking practices related to foreclosures and provide remedies for communities threatened by blight from foreclosed properties.

Two of the bills would provide local communities with the ability to bring increased penalties against the owners of blighted properties, even taking control of the properties if necessary. Another bill would provide tenants the same protections against evictions hat they currently have under federal law. Purchasers of foreclosed properties would have to honor the terms of existing leases and allow tenants at least 90 days before commencing eviction proceedings.

There are two bills which would provide additional tools for the Attorney General to investigate and prosecute mortgage frauds and crimes. One extends the statute of limitations on mortgage related crimes and provides funding to investigate such crimes through a $25 fee to be levied on servicers when they record a notice of default. The final two bills in the clutch of legislation would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes when the victims are in multiple jurisdictions.

All seven of the bills have passed out of the appropriate legislative review committees and are heading toward a vote of the whole assembly.