MORTGAGE NEWS

Say Hello to Our New and Already Misguided CFPB. – 07/21/11

2011-07-22T08:45:00.000-04:00

Say Hello to Our New and Already Misguided CFPB. – 07/21/11

Prepare for Another Stimulus!

2011-07-20T15:06:00.000-04:00

Market Update

2011-06-30T11:05:00.002-04:00

A big 7 year bond auction was rated a D today, dropping bonds and pushing rates a little higher. The $600 billion QE -2 comes to an end tomorrow but the FED will likely continue to purchase Treasuries with the proceeds from maturing debt. This could equate to $25B per month and could help keep interest rates near historic lows.
As the highest traffic weekend approaches you can count on me to pre-qualify you prospective buyers. I will be available throughout the holiday weekend. A few minutes on the phone an we will know if a buyer prequalifies. Save Time and Money - Pre-Qualify.

Any of you doing new homes? Our Construction/Perm loan is the best; lower credit scores to qualify and higher loan to values. We will even do a 100% USDA Construction/Permanent loan. Call me for details. Easy builder approval.

4 Financed Property Rule

2011-06-22T11:50:00.002-04:00

What's the 4 property rule? Currently if a borrower has 4 financed properties, they cannot get another loan. The number used to be 10, now it's 4! I had 3 customers call this week alone that were blocked out of doing something because of this Fannie Mae/Freddie Mac rule.

In this total of 4, lot loans and commercial loans do not count. A borrower may get a local community bank to ignore the rule but if they are Fannie/Freddie it won't work.

Construction/Perm Loans

2011-06-16T16:56:00.000-04:00

Union Mortgage has a strong construction/perm loan program. Use it to buy the lot or pay off a lot that you already own. Interest only during construction and lock in a great rate 60 days from getting the CO. Choose any program you like; 30, 20 or 15 yr fixed; 5 or 7 yr ARMS; VA, FHA or USDA. We are totally flexible.
Almost 100 builders approved in just North Carolina.
If your builder is not approved, our process is simple. Send me the contact information and I will get it done.

In House Loans-If It's Too Good To Be True.........

2011-06-15T21:14:00.001-04:00

Some local banks offer customers (buyers) in house mortgage loans...are they a good deal...MAYBE. Locally there are tons of people that received in house loans during the explosion of the Real Estate market. But when rates dropped and these borrowers tried to refinance in order to get a lower rate, these same banks refused to budge.
Loans that were Fannie Mae and Freddie Mac owned qualified for refis but the local banks and some credit unions told stressed out borrowers to take a hike.
So before you jump at that good deal, think again. If it sounds too good to be true, it probable is.

USDA Loans 100% for Primary Home Buyers

2011-06-14T11:11:00.001-04:00

http://myemail.constantcontact.com/USDA-works-for-Brunswick-Co.html?soid=1103933566854&aid=VBZM2vRGIVE

Coastal Hounds TV Interview

2010-09-22T10:20:00.002-04:00

Coastal Hounds Walk the Town - Charity Dog Walk - Saturday, October 9, 2010
Shallotte Rotary Club's Wounder Warrior Project
100% of the admission fee donated to Carolina Canines for Veterans
www.coastalhounds.com
or call (910) 842 1658 for more information

THERE IS HOPE!

2010-09-03T21:14:00.000-04:00

I was stopped dead in my tracks when I was alerted the article from TIME MAGAZINE linked in my blog on the right column, marked History Repeats Itself. Please make sure you check out the date of this article titled The Long Haul:the US Economy. All is not lost.
Call me today. Mortgage rates are the lowest in history.

Your Credit Report

2010-09-01T15:58:00.000-04:00

If you have not checked your credit report lately it is wise to do so. Skip all the ads for Free Credit reports…everyone will hook you one way or another. The government has actually told the three credit bureaus, Trans Union, Experian and Equifax, to allow 1 free credit report per year if ordered through Annual Credit Report. This credit report does not provide the score for free, just the report. You can actually order one bureau at a time and do it in intervals of every 4 months and essentially cover the year. One caution, not all lenders report to all bureaus. Go to my site MORTGAGE NEWS for an easy link to this site. It is in the right column near the bottom.

Additionally, do not be frightened off by the word that the banks are not lending. Yes, some people do not qualify but we are still helping tons of people save money at today’s reduced interest rates. It costs you nothing to have me run the numbers and have a good idea whether refinancing will work for you. Don’t wait any longer. It’s not likely to get any better.

My Theory of Relatitivity

2010-08-27T21:49:00.000-04:00

Customers asked me everyday “will rates get any lower”? My answer is “who knows!”. Financial people a lot smarter than I guaranteed that by now mortgage rates would be in the upper 5s or low 6s but for many people with really good credit, we’re still in the mid 4s.

Here’s my “Theory of Relativity”; a year or 2 down the road…or maybe even 6 months from now when rates are in the 6s or 7s and you look back at your wise decision to lock in a low rate in August of 2010, you will feel pretty good about getting fixed in the 4s. Plus or minus an eighth or a quarter will make little difference. Holding out to try and catch the bottom is very risky. In a flash we could loose what we feel is the bottom. It’s all relative.

Mortgage bonds are traded just like stocks and we want to get you the lowest rate possible….we want you bragging to your friends and relatives about how well we did for you. Stock traders always say “buy low..sell high”. If it was that easy, none of us would have to work for a living.

Don’t miss this opportunity. Lock in an unbelievable low rate today.

Everyone’s scenario is slightly different, based on many factors. Give me a call today and let’s see what we can do for you. I promise I will give you the best possible deal I can.

HARP can Help

2010-08-21T21:07:00.000-04:00

Thursday, August 20, the bond market finished strong and today we gave it all back. What does this mean to you…nothing. No change on the rate sheet. The stability in rates over the last month or so has been pretty amazing. We have seen no more than 1/8% to ¼% movement during this time. This seems like a real floor. Could rates dip lower? Who knows but if I was in the market for a low rate loan, I’d lock in now and move forward. What does Jim Cramer say….. “Pigs make money but hogs get slaughtered”. Don’t loose sleep thinking, “Maybe I should wait to try and save another 1/8%”.
The instability in the world economy and the 24 hour news cycle make me nervous. Something crazy could happen somewhere in the world and puff ….our 3s and 4s become 5s and 6s.
We even have some great mid 3s and 4s on Jumbo 5/1 and 7/1 ARMs, primary and second homes.
Wish you could get in to a lower rate? At NO COST to you, I can give you a pretty good idea if refinance will work. Even if you are underwater and the loan is $417,000 or less, we have the government HARP program that may work up to 105% LTV (loan to value).
HARP works on primary and second homes with rates almost as low as market rates and can even work on investment homes at a slightly higher rate.
Call me today. Don’t wait another day,

Defying the Laws of Gravity

2010-08-07T14:53:00.000-04:00

Defying the laws of gravity, mortgage bonds continue to rise, driven by weakness in the job market. Bonds have broken through new levels. Mortgage rates are the best we have ever seen them. How long can this last….who knows. Weakness in the economic reports, low inflation and a stable stock market is great for fixed rate mortgages.
We have had an incredible couple of weeks, locking customers in, at record lows. Every customer may qualify at a slightly different rate depending on many factors; credit score, property type and use, loan program, etc. Call me and I will get you the best possible deal I can. I try and do the majority of loans with no points.

What Do You Think?

2010-07-29T21:34:00.001-04:00

Bonds continue to test new highs keeping mortgage rates at record lows. I have locked plenty of people in, with no points, at 4.5% to 4.625% for weeks. This rate range has not fluctuated much over the short term, telling me we’re at the bottom of the scale. FED spokesman, Williams said that they see inflation staying moderate but will move quickly if they see a change. Again, that means we should take advantage of the low rates today as they can disappear quickly.
Waiting for the home prices to drop, a little more, is a dangerous game.
I’m betting there is a better chance of rates taking a jump then home prices falling any more. What do you think?

Mortgage Rates at the Bottom

2010-07-26T21:56:00.000-04:00

We believe mortgage rates have hit a “floor of resistance” as they have been +/- 1/8% for several weeks. Comments from Fed nominee Susan Raskins suggest the FED should hold off selling MBS (mortgage back securities) until the start raising the FED Funds rate and the housing market stabilizes. If you recall, the FED purchased $1.25 Trillion on MBS and that sent rates down to today’s levels. If they start selling off these “bonds” the market will flood and rates will rise.

What does all this “mumbo jumbo” mean to you the Realtor or homeowner……rates are truly at the bottom with nowhere to go but up. Whether you are buying a home or trying to save a few “bucks” with a lower rate, now is the time. Call today to check out what rate we can get for you. Every situation is different, based on credit scores, loan type and size, escrows and many other factors.

We can do financing in North Carolina, South Carolina, Georgia, Virginia, W VA, DC, Maryland, Delaware and Pennsylvania.

NOW a HOMEPATH Lender

2010-07-24T17:07:00.000-04:00

Mortgage bonds continue to swing up and down but over the last several weeks we have seen very little movement in fixed rates; maybe an 1/8 swing. Our monitoring service has warned us bonds are oversold and due for a correction. This week, I have locked in several high credit score customers at 4 ½% with no origination fee on 30 year fixed mortgages and in the 3s with 5 year ARMs. This is the best it’s EVER been, period.
Additionally we have been using the government program, “Making Homes Affordable”, to help people who owe more then the home is worth. We can currently do up to 105% of value, for a refi, not a purchase.
We just became authorized to do Fannie Mae HOMEPATH loans. These loans can be used in conjunction with many foreclosed homes owned by Fannie Mae. HOMEPATH works when the borrower is outside some of the normal finance program guidelines and can be used for primary, second homes and investment property purchases. There is no appraisal, so value becomes a non-issue. These loans have no MI but the rates are somewhat higher then standard financing. Of course, when there no other way to get the deal done, something is always better than nothing. Your Realtor can probably get Fannie Mae to pay some closing costs and “ease the pain” a little. Go to my MORTGAGE NEWS site for more information or call me at (910) 352 6562. Vince Bacchi, Senior loan officer Union Mortgage Group.

Oh No! Barney's Back in the News

2010-07-16T15:38:00.000-04:00

Almost anytime you see stocks take a dive, you can count on fixed rate mortgages moving lower, as seen today. But at the levels we’re at, today rates are just bouncing of a floor and there is almost no where to go but up.
The following information was reported to us by one of our marketing monitoring services:

“The Financial Regulation Bill passed the Senate by a 60/39 vote and is on its way to the President for signing. This 2000 + page bill does little to address the core reasons for the financial collapse. Fannie Mae and Freddie Mac are completely left out of this bill and the credit rating agencies, which played a major roll in the collapse, are never mentioned.
This bill has less to do with fixing the country’s financial woes and more to do with pushing the political agendas of its authors Chris Dodd and Barney Frank.
Alan Greenspan was recently quoted in a CNBC interview regarding the Financial Regulation Bill….. was that this was the first time the Fed was not asked to write this regulation, and that it was basically written by junior staffers that have no clue about the complexities of these financial entities that they are trying to regulate…Greenspan said there are unintended consequences in every page of this bill. He said that any banker dealing with Washington is very familiar with what is known as the 25 Cubed Rule….basically that the government is run by 25 year old staffers that are making $25,000 a year and work 25 hours a day…..and a majority of them have never even financed a car…let alone a home, yet we are handing our regulatory oversight to these 25 year old staffers.”

Doesn’t this make your head hurt!

On another note, I am hearing endless stories of lenders telling buyers and Real Estate brokers, “no problem”…they can do anything, even the impossible. Now more then ever, you need to work with experienced loan officers. A low ball rate does not certify experience. There are many desperate loan officers out there that will say anything and quote a give away rate just to get the deal. With this group of people, you could spend a month and have the deal “blow up” after 30 days.
I ask a lot of questions and investigate possible pitfalls. Sometimes borrowers leave out bits of information that could cause problems later on but we do our best to prevent failure. Of course, the final decision is up to the underwriter.
Call or e mail with questions.

25% of All Consumers are at 599 Credit score or Lower

2010-07-14T17:02:00.000-04:00

As the DOW headed back from the minor correction we saw rates worsen. The DOW leveled off over the last few days and rates improved. The pure truth is rates have never ever been this low.
For first time home buyers, we are still doing USDA loans; 100%, primary residence only, no MI and no mobile homes. Maximum income locally, in Brunswick County, NC, where all areas qualify is $73,600 for a family of 2. Please e mail me for information and availability in other locations.
Take advantage of the low rate even if you are a little upside down mortgage VS value. For example, you owe $210,000 with the home's value only now at $200,000, we may be able to get today's lower rates with no MI. We have done a ton of loans through the government Making Homes Affordable Program.
One bit of disturbing news reported this week is that 25% of all consumers in the US now have credit scores 599 or less. That is about 43+Million consumers that will not be able to purchase a home, car or almost anything else, on credit. We all know that a large portion of the 25%, are people that always paid their bills but have been caught up in this economic downturn. My bet is that creditors (banks) will figure out a way to lend these 43 Million consumers money. That’s way too big a piece of the population to be completely outside of “credit” access. Banks are greedy…they make money lending money. You heard it here first… in 6 months to a year we will see changes.

BUY NOW or WAIT! The Question Answered

2010-07-10T12:54:00.000-04:00

After a couple of tough days, mortgage bond are back in positive territory. Rates continue to be super attractive.

I know a lot of you are struggling with customers that cannot make up their minds or are waiting for prices to drop, a little more.

Let me provide you with a comparison you can use:

$999 P&I is the payment on a $200,000 loan at today’s 30 year fixed rate of 4.375%.

$999 P&I is the payment at 6% for a loan of $166,553.

That’s a difference of $33,447. You could say that if they missed today’s great rates, the house price would have to drop by $33,447, when (and it will happen) rates jump to the 6% range.

Here’s the big question? Is it worth waiting for the price of the home to come down a few thousand dollars and miss today’s extremely low rates? No. The answer is BUY NOW!

With today’s rates the consumer is catching the luckiest break ever. Every expert predicted rates being in the upper 5s or low 6s by now.

Do not wait another day. Buy or Refinance NOW. Call me at (910) 352 6562

SEIZE THE MOMENT

2010-07-07T15:51:00.000-04:00

Seize the Moment

“Mortgage rates have never been lower, ever!” You have seen this statement in the media over the last several weeks and it’s close to being correct. Unlike the period of low rates we experienced in 2009, today’s rates are almost totally market driven and unsupported by the FEDs. Thus we can expect extreme volatility. News on the world scene can send the market quickly in one direction or the other.
Many people have held off, hoping to “squeeze” another 1/8% or ¼% off the offered rate but we are right at the bottom. Rates could quickly loose ground and rise by 1% in a day. Truly, the market is that fragile. The Fed Chairman makes the wrong comment or some country in Europe gets a “junk” rating on their bonds….and the market goes haywire. It will not take much to push rates back into the 6s.
So here’s your opportunity of a lifetime:
1.Refinance now and take advantage of record low rates. A small rate change on a larger loan can generate a worthwhile savings.
2.We can do financing in North Carolina, South Carolina, Georgia, Virginia, W VA, DC, Delaware, Maryland and Pennsylvania.
3.Primary and Second home residences and investment homes are all eligible.
4.If you have an FHA loan, we can do a “Streamline Refinance” with no appraisal and no lender fees and very little money out of pocket.
5.If you owe a little more on your home then you think its worth, we still may be able to help you take advantage of today’s low rates. We support the government “HARP” program which allows people to refinance if they owe up to 105% of the value of their home, with No MI.
Your credit score, loan amount, property type, occupancy, collection of escrows and other factors will ultimately determine your interest rate.
Give me a call today and see if refinancing is right for you.

FHA STREAMLINE REFINANCE

2010-07-07T14:15:00.000-04:00

Mortgage bonds are trading near oversold levels. Fix and Adjustable rates are outstanding. Generally, we see some correction, a “bounce”, off a ceiling. The same thing occurs in the other direction, a “floor”. In the meantime, enjoy these great rates, which are at the lowest levels in about 40 years.
Understand that mortgage rates are unsupported at these levels and could change quickly and drastically at any moment. Unlike in early 2009, when the FED was buying MBS (mortgage backed securities), the market is totally reacting to influences in the world economy and here at home. Presently, we see more movement in 1 day then we used to see in several months. The market is extremely volatile and many borrowers are holding back to see if they can save another 1/8% could wake up and find rates have jumped a whole 1%.
Many people could save lots of money by refinancing. As little as ½% reduction in rate on a $300,000 loan would be worth considering. Payback would be very quick.
Also, we can assist with financing (and refinancing) in South Carolina, Virginia, Maryland, Delaware, DC, W VA, Georgia, Pennsylvania as well as North Carolina.
If a borrower has an FHA loan, we can do a “streamline re-finance”. No appraisal is required and there are no “lender” fees. For very little money out of pocket and in many cases, they will skip the next month’s payment and receive a check back in the mail for current escrow account.
Call today for information. See if you can save money. Don't wait call Vince at (910) 352 6562

News on Mortgage Rates

2010-07-02T14:18:00.001-04:00

Mortgage bonds are “flirting” with the highest prices in 40-50 years, pushing fixed mortgage rates down.
Things to remember:
1.Primary and Second Home rates are the same. We can do up to 90% second home financing.
2.Investment home rates with 25% down will only be slightly higher then Primary or Second home rates (with good credit of course). We can do up to 80% investment.
3.USDA loans are available to 100%, primary homes only with income restrictions.
4.FHA loans are available to 96 ½%, primary homes only.
5.Jumbo loans are available to $3 million. The larger the loan the larger the down payment required.
If you know someone whose home value has dropped and they do not think they can refinance and take advantage of today’s record low rates, have them call me. We have access to the governments’, “Making Homes Affordable” loan refinance program and have been able to help people up to a LTV of 105%. For example, if their home is now only worth $200,000 and the own $210,000 on a mortgage, we may be able to help.

MORTGAGE BONDS NEAR RECORD HIGHS

2010-06-29T21:59:00.002-04:00

June 29, 2010. Mortgage bonds close today at near the highest level ever recorded as world economic problems abound. As bonds push higher, fixed mortgage rates drop. With good credit we are at 4 3/8% with 1% origination point at close of business today. These low rates will not be around for ever. Call today and see what we can do for you. Do not miss out. If you recently refinanced it may be worth taking another look.

MAKING HOMES AFFORDABLE

2010-06-28T20:47:00.001-04:00

Despite weak appraised values you still may be able to take advantage to today’s “crazy” low mortgage rates. Using the “Making Homes Affordable” Freddie Mac Relief Refinance or Fannie Mae DU Refi Plus we can assist customers where the loan amount is up to 105% of the value on the home, with no mortgage insurance. There are a few restrictions with this program; the existing loan cannot presently have mortgage insurance; the new loan cannot absorb a second mortgage; and if there is currently a second mortgage on the property, the holder of the second must agree to subordinate (not always that easy!). Condos may be tough and investment homes may not realize a savings over existing rate.

Our 30 year fixed hit 4.375% and on a $200,000 loan the APR is 4.572%. With no origination the same loan is at 4.625% with an APR of 4.716%.

These rates are from close of business today and can change until locked in. We assume good credit and collection of tax and insurance escrows.

Think Big Work Small

2010-06-24T08:55:00.000-04:00

Click on the link "Think Big Work Small" at the lower right and watch Brian and Frank give you cutting edge incite on where your tax dollars are going.

Fed Votes to Hold Rate

2010-06-24T08:48:00.001-04:00

Much to the surprise of all, mortgage rates continue to drop. Inflation remains extremely low exerting downward pressure on rates. At the Fed’s meeting today, the vote was 9 to 1 not to raise the short interest rates. Despite some challenges due to low appraised values, we are closing plenty of loans, saving customers tons of money in their monthly mortgage payments. Not everyone will qualify for exactly the same interest rate. Don’t get “sucked in“ by the endless stream of ads on radio and TV. Your interest rate will depend on many factors including credit scores, collection of escrows for taxes and insurance, whether the loan is for a purchase, rate and term refinance or a “cash out” refinance, etc.

Here are several examples of rate quotes available at close of business today:

30 year fixed for $200,000 at 4.5% with 1 point origination, APR is 4.668%; with no origination points the rate is 4.75%, APR of 4.836%

5/1 ARM for $200,000 at 3.5% with 1 point origination, APR is 3.66%; with no origination the rate is 3.75%, APR of 3.828%.

Please remember, Mortgage Bonds are traded on the open market and the price moves everyday. We can only guarantee a rate when it is locked in.

The larger the loan, the less the difference needs to be to make this worth while VS your current rate.

Check out my Mortgage News site for a handy mortgage calculator.

Call me today and I will review your options. E mail me at union-mortgage@atmc.net

We are a Mortgage Banker and now do loans in North Carolina, South Carolina, Virginia, Maryland, Delaware, DC, Georgia, W VA and Pennsylvania.

Tax Credit Extension Stuck In House

2010-06-24T08:45:00.000-04:00

The June 30^th Tax Credit deadline is 6 days away and “Congress” has not yet scheduled a vote on the proposed extension to September 30. It’s safe to say that there will be many unhappy borrowers if the Tax Credit extension is not passed. Watch my Mortgage News site for more information.

Economist Suggest Delay in Rate Increase

2010-06-16T15:00:00.001-04:00

The market continues on its erratic path. With the agreement by BP to put $20 billion in escrow, stocks turned around into positive territory. Remember as stocks recover from the most recent correction, upward pressure will be applied to bonds. Mortgage rates are still incredibly low and there could never be a better time to buy a home then there is today.

This article (below) from our mortgage information service, discusses the Federal Funds rate (currently .25%) which affects the prime interest rate (currently 3.25%). Fixed rate mortgage are not tied to this rate and will continue to float based on the bond yield.

WASHINGTON (MarketWatch) – “Economists at 14 top U.S. banks have pushed back their estimate of the first Federal Reserve interest-rate increase until the middle of next year, according to their latest forecast released by the American Bankers Association on Wednesday.
The Fed can afford "a wait and see attitude" because inflation is not a threat, said Scott Brown, chief economist at Raymond James and Associates.
At the start of the year, the economists had generally expected the Fed to start tightening by December and saw a risk of higher inflation.
But this view has changed over the past six months. Now the greater risk is for deflation.”

Bernanke Says Inflation in Check

2010-06-10T15:16:00.000-04:00

This week Bernanke testified that inflation is in check and the economy has enough steam to prevent a double dip recession. That’s potentially is good news for mortgage rates. As our Real Estate market moves along, ever so slowly, low rates are very important to any recovery. We are lending money and usually know up front whether or not someone qualifies. Sometimes appraisals are a problem but with all the foreclosures, short sales and bank sales, we are not shocked by low values.

Warning, keep an eye on Congress’s reinstatement of the flood insurance program. As of this morning it has not been voted on. Not only are new policies unavailable but renewals will not happen until this is in place. This is a big problem for our “Beach” clients. If their anniversary date of the purchase of their home is in May, the renewal is due and they cannot get it. I strongly suggest you write all contracts during this period with some kind of phrase “subject to the availability of flood insurance if required”.

We have just been informed the some MI companies are relaxing their guidelines a little, allowing borrowers to go to 95% with mortgage insurance. Rates have also been reduced for higher credit scores.

Tax Credit Extended for Military Personal

2010-05-12T21:33:00.001-04:00

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

Call
Vince Bacchi
Your Personal Mortgage Banker
(910) 352 6562
union-mortgage@atmc.net

Great Deal On Construction-Perm Loans

2010-05-10T20:58:00.000-04:00

Mortgage bonds rebounded, a little, today after a wild ride. Make no mistake, the Fed will end the purchase of MBS on Wednesday, 3/31. Bernanke also indicated that the Fed would switch sides and become sellers of MBS VS the buying mode they have been in for over a year. This could have upward pressure on rates.

We have one of the best deals on construction-perm loans in the market. We will lend 80% on second and primary home construction and we lend our money up front. Neither the builder or the buyer has to put there money in the transaction, until the home is completed.

A buyer can also buy the lot with the construction loan as long as the entire process is completed in 1 year.

Quick builder approvals and great terms during construction. Call or e mail Vince Bacchi for details. 910 352 6562 or union-mortgage@atmc.net

Tax Credit Extended for Military and Others to April 30, 2011

2010-05-10T17:29:00.000-04:00

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
Call Vince Bacchi
(910) 352 6562

Now is the Time to Purchase an Investment Property

2010-05-07T22:40:00.001-04:00

This week’s wild ride on Wall Street has been great for something. Mortgage rates remain very low. Both long term fixed as well are ARMs are at very attractive prices. This cannot last. If stocks rebound we will see rates increase. But there are definitely some advantages.

Not only is it a great time to buy a primary or second home but pure investment properties are a wonderful deal.

A buyer may even get an investment property to cash flow…how novel. For example, if someone with good credit (+740) were to buy an investment home (rental) with 25% down, they could get into a 30 year fixed at 5.25% plus 1% origination fee. On a purchase price of $150,000 with 25% down and a loan of $112,500 at 5.25%, the P&I payment is $621. With taxes and insurance, the owner will make money on his (her) investment, immediately.

Our people are the best in the business and they help make closing loans very smooth. Please give me a call and find out what top notch service is all about.

Vince Bacchi

910 352 6562 cell

Attention Brunswick County Realtors

2010-04-29T17:41:00.000-04:00

If you don't believe what's going on in the world around us has a daily affect on everyday homeowners, just ponder this: This week, Standard and Poor's Bond rating agency, downgraded Greece's debt to "junk status". Investors jumped out of the market into the safe haven of US bonds and bonds jumped up and rates dropped. Today we are having small correction.

The market is so volatile, I do not feel comfortable allowing any customers to "float" the rate. I suggest that they lock in as soon as they have an address and we have pulled their credit. Yes...they may save an 1/8 if the market drops but the risk that rates may take a big jump up, in one day, far out weighs the possible savings. What does Jim Cramer say? "Bulls and Bears make money, pigs get slaughtered."

I love the deal on our 7/1ARM, a very conservative loan product. I locked a customer in today for 60 days at 4.375% with no points. On a 300K loan the 7/1 ARM would save a borrower about $2,200 per year over the equivalent 30 year fixed.

One more bit of advice, don't put anyone in your car to show home unless they have pre-qualified for the approximate loan amount they need to close the deal. I have seen people with a million dollars in the bank and not qualify for a loan. Today, a borrower needs and income stream. Many self employed customers will not qualify for a loan because they write everything off....a catch 22 for sure, but we do not set the rules. Someday, stated income loans will be back, for the self employed and things may get a little easier but for now these are the card we are dealt.

Please call me to quickly pre-qual your customers. Don't waste your time and gas money driving around someone who cannot qualify. Thanks.

Vince Bacchi

Union Mortgage Group

union-mortgage@atmc.net

910 352 6562 cell

Down Payment Assistance

2010-04-23T14:45:00.000-04:00

I am excited about our "Down Payment Assistance" program. For low income buyers we can get up to $7,500 in forgivable grant money. For every $1 the borrower contributes we can get $5. A minimum of $500 is required and that will get $2,500 in down payment assistance. That loan is totally forgiven if the borrower stays in the home 5 years. Call me for more details. 910 352 6562 or union-mortgage@atmc.net

Construction Loans on Second/Vacation Homes at 80% of Value

2010-03-27T20:48:00.000-04:00

For qualified borrows with at lease a 680 credit score we can lend 80% on a construction-perm loan. Unlike most other banks, we put our money in first. Easy interest only payments on only the money drawn during the construction period. Quick builder approval. Primary or second home construction permitted.
For more details call Vince at 910 352 6562,

2010-03-26T21:37:00.000-04:00

Mortgage bonds rebounded, a little, today after a wild ride. Make no mistake, the Fed will end the purchase of MBS on Wednesday, 3/31. Bernanke also indicated that the Fed would switch sides and become sellers of MBS VS the buying mode they have been in for over a year. This could have upward pressure on rates.

We have one of the best deals on construction-perm loans in the market. We will lend 80% on second and primary home construction and we lend our money up front. Neither the builder or the buyer has to put there money in the transaction, until the home is completed.

A buyer can also buy the lot with the construction loan as long as the entire process is completed in 1 year.

Quick builder approvals and great terms during construction. Call or e mail Vince Bacchi for details at 910 352 6562 or union-mortgage@atmc.net

Bond Market Hits Quicksand

2010-03-24T21:18:00.000-04:00

Wow! The bond investors are not reacting well to all the bad news on global debt. Bonds fell off a cliff with news that Portugal's bond rating went to AA-. Additionally, the official end of the FEDs purchase of MBS is next Wednesday. There is much speculation on whether Moodys will lower the credit rating of the US, as our ability to pay back this massive debt is in question.

So what does all this mumbo-jumbo mean to you the Real Estate Broker in Brunswick County.......the time could be drawing near for us to see a big jump in mortgage rates. We could see a 1/2 to 1% jump.

Make that phone call to all those potential customers that have been trying to chisel a few dollars off an already great price. A 1/2 to 1% bump could easily eat up any potential saving.

Maybe you can negotiate some seller concession, enough to buy the rate down a little to sweeten the deal.

What is a USDA Mortgage

2010-03-13T22:58:00.001-05:00

USDA loans are for lower income families (or singles) and not all areas of NC qualify. Good news is that they work anywhere in Brunswick County. Below are some key points.

Primary residences only
100% financing
Stick built and NEW doublewides (from dealer)
No reserves
No monthly MI (mortgage insurance)
No rate hits with scores above 620; lower scores work at slightly higher rates.
1-4 person family, income limit $73,600; 5+ members $88,600
OK to roll in funding fee.
Cannot own any other properties

Rate Update - Federal Funds Run Short for USDA Loans

2010-03-13T17:48:00.001-05:00

Bonds held strong this week again keeping rates low. During the trading day bonds show volatility and we could be in for a jump anytime soon. We are a little surprised that it has held this long.

USDA - It appears that the Feds have not approved additional funding for USDA loans. Warning signs went up all day, that funds were running out. We do not expect this to be long term but it is a little odd that funding is running out this early in the year.

Remember we can now do loans in North Carolina, South Carolina, Georgia, Virginia, West Virginia, Delaware, DC, Maryland and Pennsylvania.

If any of your customers are moving here from one of these states and needs to pull cash out of their primary residence to make the deal happen, we can help.

Also, we can do 80% on doublewides for primary residences only. Rates are decent. Look at the attached rate sheet.

We have one of the best deals on Construction-Perm loans, going to 80% for both primary and second homes. NO Money down....only at the end with an approved permanent take out loan. We can even do FHA, VA or USDA as a permanent take out, if the borrower qualifies and there can be only 0 to 3 1/2% of the buyers money in the whole transaction.
For more information call Vince Bacchi at 910 352 6562 or e mail at union-mortgage@atmc.net

2010-03-11T15:01:00.007-05:00

Welcome to Vince Bacchi's Mortgage News Blog contact me at
910 352 6562
or
Union-mortgage@atmc.net