Action Lending - Mortgage News

A Qualified Mortgage (QM) has been defined as a home loan that meets certain standards set forth by the federal government. Lenders that generate such loans will be presumed to have also met the Ability-to-Repay rule mandated by the Dodd-Frank Act. A Non-Qualified Mortgage(NON-QM) is one that falls outside of those regulations.
 
Are Non-Qualified Mortgage(NON-QM) sub-prime loans? No, they are not. A whole new group of lenders have materialized that use alternative methods to determine if a loan is a good risk. One of those methods is to use business and personal bank statements to determine a borrower’s income. This is particularly beneficial for many self-employed borrowers whose net income on their tax returns is not high enough to qualify for a qualified mortgage but whose credit score is strong and who has substantial net worth.

Are rates for Non-Qualified Mortgage(NON-QM) higher than for Qualified Mortgage (QM)? Generally yes but a borrower can also buy the rate down on a Non-Qualified Mortgage(NON-QM) so the rate differential is minimal.

IF YOU ARE SELF EMPLOYED OR HAVE AN OUT OF THE BOX LOAN SCENARIO PLEASE GIVE US A CALL. We have the resources to find you a lender.

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Posted in:General
Posted by Gene Tidgewell on June 15th, 2018 3:52 PM

Did you know there has been an increase in the number of loan products in the last year or so?

Besides conventional and FHA loans we now have Non QM products that will use bank statements, and investment assets to qualify you for a loan. These products are especially helpful for the self-employed borrower whose tax return may not show their true borrowing capacity. In addition our product line also includes hard money and bridge loans, reverse mortgages and loans on commercial properties as well as apartment buildings of 5 units or more.

Give us a call just to say Hi and we can provide you with additional information on these products.

With the turmoil in Europe we had some improvement in pricing early in the week. The 10 Year bond dropped as low as 2.82%. It had peaked at 3.06 %. Today it is trading in the 2.8558 % area.

The jobs report came out today and was better than expected. 223,000 new jobs were created. The unemployment rate dropped to 3.8 % the lowest in half a century & hourly wages have risen 2.7 % this year which is good.

The job participation rate dropped from 62.8 % to 62.7 %. That is just not improving very much. It is the same as it was a year ago.

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Posted in:General
Posted by Gene Tidgewell on June 1st, 2018 3:31 PM
Mortgage backed securities are moving sideways right now but there is no improvement seen on the horizon. Rates were relatively flat this week.

Ten year Treasury closed at 2.97 a slight change from last week’s 2.95.

Some interesting international news this week with North Korea and Iran and Israel but it did not affect the market very much. Stay Tuned.

Do you know you could purchase a home using a Reverse Mortgage ?

If you are over 62 and are looking at downsizing and do not want to have to make a monthly payment there is a way without paying all cash for the house. Call and ask us how !


Posted in:General
Posted by Gene Tidgewell on May 11th, 2018 4:35 PM

Mortgage backed securities are moving sideways right now but there is no improvement seen on the horizon. Rates were relatively flat this week.

Trade talks with China seem to be going well. So a flight to bonds is unlikely. Ten year treasury prices closed at 2.95 today.  Still below that magical 3.00. Y year ago it was 50 to 60 basis points lower.

Real estate inventory is still tight especially entry level housing.
 
We have a video today for you of Will Ferrell’s commencement address at the USC 2017 Graduation

Do you own a 5 unit or more apartment building?
If so and the fixed portion of your loan ends soon or has already ended please give us a call. Rates for over 5 unit properties are historically low. Now is the time to fix that rate for another 5 or 7 years before inflation kicks in and rates increase more.

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Posted in:General
Posted by Gene Tidgewell on May 4th, 2018 5:39 PM
Mortgage rates have been moving up as the ten year bond approached 3.00 % we have seen some leveling off in the last week and although I do not expect rates to go down we may see some stability for a short period. THE GDP reported today at 2.3 %.

The China trade war seems to have calmed down. The two Koreas are talking. Now it would be nice to see peace in the Middle East.  And the Angels are doing well so far this season.

Do you own a 5 unit or more apartment building?
If so and the fixed portion of your loan ends soon or has already ended please give us a call. Rates for over 5 unit properties are historically low. Now is the time to fix that rate for another 5 or 7 years before inflation kicks in and rates increase more.

Be sure to watch Notre Dame play Minnesota – Duluth in the Finals of the Frozen Four tomorrow.

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Posted in:General
Posted by Gene Tidgewell on April 27th, 2018 5:08 PM
There is tremendous volatility in the stock market with major concerns over a trade war with China. I think people need to keep in mind that there are ongoing discussions with the Chinese. As long as both sides are talking there is a reasonable chance of a negotiated deal.

If a trade war starts keep in mind China owns a tremendous supply of U.S. Treasuries. If they decide to reduce their purchases demand may go down and supply up. This would increase yields and move mortgage rates up as well.

Do you have a HELOC that is past its interest only period ?

If you have a home equity loan that is past its interest only period and has started to amortize you may want to look at consolidating it with your first mortgage to stabilize your payment and rate before mortgage rates increase much more. Have any questions give us a call.

Do you own a 5 unit or more apartment building?

If so and the fixed portion of your loan ends soon or has already ended please give us a call. Rates for over 5 unit properties are historically low. Now is the time to fix that rate for another 5 or 7 years before inflation kicks in and rates increase more.

Be sure to watch Notre Dame play Minnesota – Duluth in the Finals of the Frozen Four tomorrow.

FORWARD THIS TO YOUR FRIENDS, SUBSCRIBE FOR FREE DOWN BELOW AND IF YOU HAVE ANY MORTGAGE OR REAL ESTATE QUESTIONS GIVE ME A CALL OR SEND ME AN EMAIL, TAKE CARE.

Posted in:General
Posted by Gene Tidgewell on April 6th, 2018 3:59 PM
There are a number of items in the new Tax Law that affect real estate. One we will address today is the deductibility of interest on Home Equity Loans and Helocs (Home Equity Lines of Credit).

Under the old tax law a homeowner could borrow equity out of their house and deduct the interest.

Under the new law passed in December that interest is only deductible only if it is acquisition indebtedness. Otherwise it is not deductible on your tax return. There is no grandfather  clause so this affects existing home equity debt as well as new Home Equity debt going forward.

What is Acquisition Indebtedness?
Acquisition indebtedness is defined as “indebtedness that is secured by the residence and that is incurred in acquiring, constructing, or substantially improving any qualified residence of the taxpayer”.  It seems likely, under this definition, if you took out a home equity loan to build an addition on your house, that would be classified as a “substantial improvement” and you would be able to continue to deduct the interest on that home equity loan in 2018. Where we need help from the IRS is further clarification on the definition of “substantial improvement”.  Is it any project associated with the house that arguably increases the value of the property?

Please consult your Tax Professional for further clarification.

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Posted in:General
Posted by Gene Tidgewell on January 12th, 2018 4:18 PM
Gene Tidgewell from Action Lending and Moonstone Real Estate here.

The jobs report came out Friday and it was pretty good with 261,000 new jobs created. However wage rate inflation was 2 %. The Unemployment Rate dropped to 4.1 % but that was not due to job creation. It was due to the Job Participation Rate dropping from 63.1 % to 62.7 %.

Thursday the House Ways and Means Committee released the PROPOSED NEW TAX PLAN. We shall see how much it changes before it passes. There are several items that will affect homeowners:

  1. The property tax deduction is limited to $10,000 That will greatly affect people in high property tax states such as New Your, New Jersey and Illinois as well as homeowners in California
  2. The mortgage interest deduction on loans in place now will stay the same
  3. The mortgage interest deduction on new mortgages will be on mortgage debt up to $500,000. In states with high cost real estate such as areas of California that could have some effect on sales going forward. We shall see.
Enjoyed a big weekend in College Football and another one coming up

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Posted in:General
Posted by Gene Tidgewell on November 6th, 2017 4:32 PM
Gene Tidgewell from Action Lending and Moonstone Real Estate here.

Just a quick note to remind you that California’s gas tax goes up $0.12 a gallon Wednesday November 1, 2017 so fill up your gas tank before then. In addition on January 1, 2018 there is an additional vehicle fee added to registration that will range from $25.00 to $175.00 per vehicle depending on value of car. Also there will also be a $100.00 fee on all electric vehicles.

I DO NOT OWN STOCK IN ANY GAS OR OIL COMPANIES!

FORWARD THIS TO YOUR FRIENDS, SUBSCRIBE FOR FREE DOWN BELOW AND IF YOU HAVE ANY MORTGAGE OR REAL ESTATE QUESTIONS GIVE ME A CALL OR SEND ME AN EMAIL, TAKE CARE.

Posted in:General
Posted by Gene Tidgewell on October 30th, 2017 3:48 PM
Gene Tidgewell from Action Lending and Moonstone Real Estate, instead of a bunch of real estate & financial news today here are some funny college football quotes.


"Gentlemen, it is better to have died a small boy than to fumble the football" - John Heisman   
 
"I make my practices real hard because if a player is a quitter, I want him to quit in practice, not in a game." – Bear Bryant / Alabama 
 
"It isn't necessary to see a good tackle, you can hear it!" - Knute Rockne / Notre Dame   
 
"At Georgia Southern, we don't cheat. That costs money, and we don't have any." – Erik Russell / Georgia Southern 
 
"The man who complains about the way the ball bounces is likely to be the one who dropped it." -  Lou Holtz / Arkansas - Notre Dame 
 
"When you win, nothing hurts."  -  Joe Namath / Alabama 
 
"A school without football is in danger of deteriorating into a medieval study hall."  -  Frank Leahy / Notre Dame 
 
"There's nothing that cleanses your soul like getting the hell kicked out of you."  -  Woody Hayes / Ohio State 
 
"I don't expect to win enough games to be put on NCAA probation.  I just want to win enough to warrant an investigation." -  Bob Devaney / Nebraska   

"In Alabama , an atheist is someone who doesn't believe in Bear Bryant."  -  Wally Butts / Georgia
 
"I never graduated from Iowa.  But I was only there for two terms - Truman's and Eisenhower's."  –  Alex Karras / Iowa 
 
"My advice to defensive players is to take the shortest route to the ball, and arrive in a bad humor."  -  Bowden Wyatt / Tennessee 
 
"I could have been a Rhodes Scholar except for my grades."  - Duffy Daugherty / Michigan State
 
"Always remember Goliath was a 40 point favorite over David."  -  Shug Jordan / Auburn     
"I asked Darrell Royal, the coach of the Texas Longhorns, why he didn't recruit me ."   He said, "Well, Walt, we took a look at you, and you weren't any good."  -  Walt Garrison / Oklahoma State 

"Son, you've got a good engine, but your hands aren't on the steering wheel."  -  Bobby Bowden / Florida State 

"Football is NOT a contact sport, it is a collision sport.  Dancing IS a contact sport." -  Duffy Daugherty / Michigan State 
 
After USC lost 51-0 to Notre Dame, his post-game message to his team was, "All those who need showers, take them."  -  John McKay / USC 

"If lessons are learned in defeat, our team is getting a great education."  -  Murray Warmath / Minnesota 
 
"The only qualifications for a lineman are to be big and dumb.  To be a back, you only have to be dumb."   -  Knute Rockne / Notre Dame
 
"We live one day at a time and scratch where it itches."   -  Darrell Royal / Texas    
 
"We didn't tackle well today, but we made up for it by not  blocking." -  John McKay / USC 
 
"I've found that prayers work best when you have big players."   -  Knute Rockne / Notre Dame
 
Ohio State 's Urban Meyer on one of his players: "He doesn't know the meaning of the word fear. In fact, I just saw his grades and he doesn't know the meaning of a lot of words."

Why do Tennessee fans wear orange? So they can dress that way for the game on Saturday, go hunting on Sunday, and pick up trash on Monday.

What does the average Alabama player get on his SATs? Drool.

How many Michigan State freshmen football players does it take to change a light bulb? None. That's a sophomore course.

How did the Auburn football player die from drinking milk? The cow fell on him.

Two Texas A&M football players were walking in the woods. One of them said, "Look, a dead bird." The other looked up in the sky and said," Where?"

What do you say to a Florida State University football player dressed in a three-piece suit? "Will the defendant please rise."

If three Rutgers football players are in the same car, who is driving? The police officer.

How can you tell if a Clemson football player has a girlfriend? There's tobacco juice on both sides of the pickup truck.
 
What do you get when you put 32 Georgia cheerleaders in one room? A full set of teeth.

University of Michigan Coach Jim Harbaugh is only going to dress half of his players for the game this week; the other half will have to dress themselves.
 
How is the Kansas football team like an opossum? They play dead at home and get killed on the road.

Why did the Tennessee linebacker steal a police car? He saw "911" on the side and thought it was a Porsche.

How do you get a former Illinois football player off your porch? Pay him for the pizza.

Posted in:General
Posted by Gene Tidgewell on October 27th, 2017 4:57 PM

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