Long Beach California Real Estate Loans

Long Beach, Ca.  On the Credit Front.   Credit scores and the system are being revised.  Fair Issac will start offering the revamped score, "FICO 08," to lenders. Fair Isaac believes that the new score will do a better job of predicting borrower defaults, be more forgiving of one-time slipups, take a harder line on repeat offenders, and in general will do a deeper analysis of borrowers with poor or thin credit histories. The score will still range from 300 to 850.

Hard to believe January 2009 is almost over.  This morning market is being driven by shrinking manufacturing numbers.  A government report today showed the U.S. economy shrank at the fastest pace since 1982 in the fourth quarter as consumer spending slid the most in the postwar era. Gross domestic product contracted at a 3.8 percent annual pace from October through December, the Commerce Department said in Washington. Prices also retreated. The Institute for Supply Management-Chicago said today its business barometer decreased to 33.3, the lowest reading since March 1982, from 35.1 the prior month. Readings below 50 signal a contraction. As a result, the Ginny Mae 4% mortgage backed bond pricing is up 6/32nds at present and 30 year mortgages should be better priced this AM to yesterday close.  Currently, the Ten Year yield is at 2.80% (2.68% yesterday).

On the news this morning are headlines about a proposal for lower mortgage rates.  Let us wait and see what develops, there, but don't expect to get a 4% 30 year fixed loan just yet.  Now the Republicans are pushing for a stimulus bill provision that would offer government-backed mortgages with interest rates of 4 percent, give home buyers a $15,000 tax credit and implement an assistance program for homeowners who are upside down in their mortgages. Here is the link for the full article. Remember it is just a proposal at this stage.

 http://www.lasvegassun.com/news/2009/jan/30/about-face-republicans-push-cut-rate-home-loans-st/ 

Look out for higher MIP funding fees on mortgages above $417,000.00. For example, your base loan amount is $415,000 and an MIP of 1.75% adds $7,262.  Some investors treat the loan as if it is $422,262 and price the loan with the higher jumbo price adjustment, and others do not.  Will talk more about this but this will only come into play when you have a FHA loan amount near the $417,000 conforming level.

Finally, we will try and balance the financial update with some nutrition and health tips to close out our Friday. Because a healthy loan originator is a productive loan originator.  So hear is the latest word from an exhaustive review of current health literature:

Kirk Mulhearn, a Long Beach Real Estate Broker and Mortgage Planner, can be reached at 562-989-4608 ext. 110.