PREVIEWING THE GOOD FAITH ESTIMATE

The new Good Faith Estimate makes its debut January 1, 2010.
Expanded from 1page to 3, the legislators responsible for the new Good Faith Estimate want it to be simpler for homeowners and home buyers to understand than the former version.
By most accounts, Congress will meet this goal.
The new Good Faith Estimate includes plain-English explanations of every fee, charge, and interest payment involved in a purchase or refinance. It also includes a section called "The Shopping Cart" in which applicants can compare lenders.
The new Good Faith Estimate is concise, too. Using a series of "Yes/No" checkboxes on Page 1, mortgage lenders specifically note:
The interest rate on the mortgage
Whether the interest rate can change over time
Whether the loan carries a prepayment penalty
The length of the rate lock
Currently, this information is spread across 3 separate forms.
Furthermore, the new Good Faith Estimate simplifies rate-and-fee comparisons, showing applicants how a lower rate can be available for a higher set of fees, and vice versa.
For all of its clarity, though, the new Good Faith Estimate still fails to address the issue of "suitability". As in, is this the right loan for the right borrower? That's something only a loan officer can do.
For suitable advice, talk with a loan officer who both listens to your needs and helps you plan for them. Great terms on an unsuitable loan are often worse than "good" terms on the right one

Inventory update in foreclosures, regular sales and short sales..

Here's a little status update on our Listings:

9151 Regal ave, Anaheim - accepting backup offers

4832 5th street, Santa ana- 199k accepting back up offers

5013 Kent ave, Santa ana- regulars sale , in escrow in 7 days $40,000 over asking!!

1106 Flintridge Santa ana- regular sale in escrow in 5 days $45k over asking.. Pool home

13022 Edwards , la mirada - Foreclosure that won't last the week..offers have been received, so there's no time to waste if you're interested in this one

4717 flight ave, santa ana- short sale approved, in escrow and axmceepting back ups . A steal at 270k!

15920 miller ave, Fontana - foreclosure - attention! Great opportunity ! Feel out of escrow ***Clean 1900 sq ft home $ 214k, was 232k
another one that will not last...

If u'd like more info on any of these, or any of our other listings, just contact me directly! 714-745-0896

The Fed Thinks The Economy Is Improving And What It Means For Home Affordability

Mortgage rates are higher after the Federal Reserve released the internal notes of its September 22-23, 2009 meeting.

Known as the "Fed Minutes", the report details the conversation and cross-currents that led to the Federal Reserve's decision to vote "unchanged" on the Fed Funds Rate after its last meeting.

The Fed Minutes are the lengthy companion to the more famous, succinct post-meeting press release.

As a comparison:

Press Release: 383 words
Minutes: 6934 words
The extra level of details is a big deal because Wall Street is perpetually in search of clues about what the Federal Reserve is going to do next.

In the past week, multiple Federal Reserve members hinted that the Fed Funds Rate may rise as early as April 2010. Fed Chairman Ben Bernanke even alluded to it, too.

The minutes revealed that the economy may improve even faster than was previously expected, too.

These acknowledgements are part of the reason why mortgage rates are up. Because the Fed Funds Rate rises to accommodate a growing economy, the prospect of economic recovery is drawing money into the stock market and away from mortgage-backed bonds.

Less demand for bonds means lower prices which, in turn, leads to higher rates.