USDA Home Loans - 100% Financing

Fannie Mae Loan Limits 2017

Opportunities are Short Lived

On Wednesday, September 21, 2016 “The Fed” met to discuss interest rates once again. As you know, there has been talk about raising interest rates since the economy outlook is reportedly doing a little better. You can view the article here (http://money.cnn.com/2016/09/21/news/economy/federal-reserve-september-meeting/)

 

The real estate market has been raising, which means home values have been increasing around the country as well. This may be your last chance this year to pull cash out of your home for home improvements, pay off deft, or just plain lower your current interest rate or term of your loan.

 

Start your loan now and close by November 30th and have no house payment for December. Now that's a great way to end the year.

The Week Ahead

THE WEEK AHEAD This week, New Home Sales will be released on Monday. Durable Orders, an important indicator of economic activity, will come out Wednesday. Pending Home Sales and the third estimate of second quarter GDP will be released Thursday. The Core PCE price index, the Fed's preferred inflation indicator, will come out on Friday.

MON 09/26 TUE 09/27 WED 09/28 THURS 09/29 FRI 09/30 New Home Sales   Durable Orders   Core PCE

Investors Liked What the Fed's Said?

Investors liked what the Fed said—or didn't say—following last Wednesday's meeting. Both stocks and bonds reacted favorably; meanwhile, the economic data had little impact. As a result, mortgage rates ended the week lower. 

As expected by most investors, the Fed did not raise the federal funds rate. The Fed explained in its post-meeting statement that the case for a rate hike “has strengthened,” but Fed officials decided to wait for “further evidence of continued progress toward its objectives.” Notably, Fed officials remain divided about the appropriate timing to tighten monetary policy. In a rare occurrence, three out of ten voting Fed members dissented from the decision because they wanted a rate hike to take place at this meeting. Conversely, three Fed officials indicated in their forecasts that they do not see a need to raise rates at all this year. Investors were pleased that the Fed did not come out more strongly in favor of tighter monetary policy, and mortgage rates improved following the meeting. 

The housing data released over the past week was mixed. After reaching a multi-year high this summer, sales of previously owned homes in August declined for the second straight month. According to the National Association of Realtors, low levels of inventory are holding back home sales in many regions. Inventories of homes for sale declined 3% from July and were 10% lower than a year ago. 

There are signs that building activity for single-family homes may pick up in coming months, however. In August, building permits for single-family homes increased 3.7% from July, which was the largest monthly increase since June 2014. In addition, the NAHB home builder confidence index jumped to 65 in September, which matched the highest reading since 2005.

John Easterbrook

NMLS# 226555

Mortgage Loan Officer

806 Bidwell Street

Folsom, CA 95630

p - 916.850.6050

c - 916.224.7653

f - 866.370.9735

John.Easterbrook@spmc.com

Direct Access

There’s another little tidbit that could benefit your buyers.  VA will allow cash out refinances (not all lenders do though) of up to 100%!  This is, to our knowledge, the only product on the market that allows this. 

We also have a unique advantage when it comes to VA and other loans – Patty Aguon.  She had (until she became a retail loan officer) been underwriting VA, FHA, conventional, and jumbo loans for the last 15 years.   She also was the Operations Manager and Underwriting Manager for two of the area’s largest loan companies.  Imagine – having direct access to the underwriting manager – now you do!

Check out OUR rates, we’ve got some of the best in town!

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive, smooth, and transparent experience.  Call us at (916) 850-6050.    

VA is Also Hero of the Loan World

With true 100% financing, eligible vets can take full advantage of the benefit that they’ve earned through their service.  VA does not have a loan limit either.  VA will go 100% to $474,950 and 75% of the purchase price for the difference over up to the purchase price.  For example, using VA, the down payment on a $600K purchase would be approximately only 94%.  No other loan type can touch that!  In addition, there is no mortgage insurance!  There is a funding fee added to the loan, but some vets are exempt – call us for details.  

Check out OUR rates, we’ve got some of the best in town!

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive, smooth, and transparent experience.  Call us at (916) 850-6050.    

Hands Up for Hooters Bike Ride, June 4, 2016

Spark Your Creativity

So, you have decided that you want to change things in your business and your life.

You feel that you are stuck in a rut and just can’t seem to get out of it.

You sit down to write social media posts and can’t think of anything to say.

Your real estate business is going nowhere and you realize that you have to change the way you are doing business.

Or, you’ve reached a pinnacle of success and now you want more.

That’s where creativity is your friend.

Here’s the thing — we constantly hear about artists who have a “natural talent.” In reality, talent has little to do with it.

Creativity is a skill, just like playing baseball. It can be developed. It takes practice.

So, if you’d like to “learn” how to become more creative when it comes to your business, social media or marketing strategies, here are nine ways (that the experts suggest) to jump start your creativity.

1. Doodle – In the book The Doodle Revolution, Suni Brown says that people like Henry Ford and Steve Jobs used this method. It can activate unique neurological and cognitive breakthroughs. Try it for 10 minutes and see what happens.
2. Sign Up for Something You’ve Never Done Before – Push yourself outside your comfort zone. Sign up for an adult education class. Try painting, pottery or something artistic in nature. This is the “practice” part of the equation.
3. Create an Environment – It’s all about location! Leave your office. Go to Starbucks or a park. Or close the door with a Do not Disturb sign. The goal is to create a place where you feel relaxed or stimulated — but with no distractions and no judgmental comments from others.
4. Move Your Body – Go for a walk. A hike. It’s been shown that physical movement has a positive effect on creative thinking.
5. Use a Notebook – Carry it with you wherever you go. When an idea pops into your head, write it down—and don’t judge it. Some of your ideas will not see the light of day. Others may not work “right now.” Review what you have written every 30 days and you’ll be surprised that some of your ideas can actually be implemented.
6. Keep Toys on Your Desk/Drawer – Think Lincoln Logs, Legos, Rubik’s Cube. Do something creative with your hands and mind.
7. Practice Writing – Short stories. Fiction. Real-life scenarios. Only 100 words, but with a beginning, middle and end to the story.
8. Take the 30-Circle Test – Draw 30 circles on a piece of paper and, in one minute, adapt as many circles as you can into objects. One circle could become the sun. Another could be an apple. Take quantity over quality. Here’s a link to a TED talk by Tim Brown and download a PDF with the circles already drawn for you.
9. Role Play – Even if you already know or feel what something else is thinking, physically role-play situations where you place yourself in the role of “your clients” and have someone ask you questions or make a presentation to you. It’s like producing your own “play.” Note how YOU react to being the client instead of the real estate guru.

So, what do you do to get into a creative mood?

 

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive,

When Recasting is Good

While many homeowners are familiar with the option of refinancing their mortgage, not all homeowners understand loan recasting. This may be because not all lenders offer recasting or re-amortizing, and not all borrowers are eligible. However, the process could save your buyers money in two ways: by reducing their monthly mortgage payment, and by allowing them to avoid the cost to refinance.

Essentially, a loan recast means that while the interest rate and the loan term remain unchanged, the monthly mortgage payment is reduced to reflect the actual current loan balance. For example, if a borrower is 6 years into a 30-year mortgage, once the loan is recast, there are only still 24 years remaining to pay it off. For recasting to work, lenders require an additional lump sum payment to reduce your balance. The size of that additional payment impacts how much savings will be on the loan recast. However, instead of recasting, a borrower could pay a lump sum toward the existing loan, but it would not decrease the balance, but not reduce the monthly mortgage payment.

How Loan Recasting Works & Why It’s Important

Loan recasting can make sense if you inherit money (or receive a significant bonus at work) and wish to apply it to the balance on your mortgage. Reducing the balance ahead of schedule, the borrower ultimately will pay less interest. This then enables lenders to recast a loan, or recalculate a monthly mortgage payment.  Best of all, it is a very low cost – and sometimes no cost – much less expensive than a refinance.

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive, smooth, and transparent experience.  Call us at (916) 850-6050.    

There’s a Storm Brewing- Bad Recasting

Feeling the pressure of a soon-to-reset second mortgage? You're not alone.

According to Black Knight Financial Services, more than 3 million U.S. homeowners will experience a second mortgage recast within the next few years.  A "recast" is when the initial 10-year, interest-only period of a home equity line of credit (HELOC) ends, and the loan is converted to a fixed-rate, amortized loan at a new interest rate over some number of years -- usually 15.

 

The effects of a recast can be large. The typical U.S. household will see payments increase $261 per month.  A $261 increase won’t break most folks, but if they had a larger home equity loan, say a $150K loan, the payment could be over $1,000 – that could put some people in real trouble.

 

The good news is that, because the housing market is strong and because current mortgage rates are low, homeowners with an existing second mortgage are in good position to refinance.

A refinance of a second mortgage can eliminate the possibility of a recast; or, at least, stave it off for another 10-year draw period.  If you know of one of your clients that is in trouble, we’d love to help them out. 

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive, smooth, and transparent experience.  Call us at (916) 850-6050.    

Tech Up Your Open House

Using Technology at Open Houses

 

Do you want to separate yourself from the competition and make yourself shine for potential buyers and the seller?  Here are 5 simple ideas that can make you look like a techie and win the day:

 

360 Degree Camera or App

Create a virtual open house, including each room, so you can email a follow-up reminder of what the home looked like to those who attended the open house.  You may also want to email a link to the video to past clients who you think might be interested in that type/style of home. 

 

iPad or Tablet

Preloaded with pictures, mortgage information, schools, events, neighborhood/city information.  Create bullet points so it’s easy to read.  And, it’s easy to update as key stats change.  Instead of a printed flyer, hand them the device to read while waiting to view the home or going from room to room.

 

Slide Show Presentation

Ask the seller for photos of the home during different seasons of the year.  Take photos of local parks and attractions where someone might bike, hike, ski or work out.  Not only will this give them a sense of living the house, but living in the community as well.  

If the home is equipped with “smart technology,” like a remote heat and air conditioning setting apps, video security or smart appliances, be sure to not only mention it, but learn how to demonstrate those features. 

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

Content is King

                                       Be a Content King    

 

Everyone has moments of creativity, but sometimes you need some help.  We’ve found that when we write compelling content, we get a lot more buzz, but coming up with it sometimes can be a frustrating process.  Here are five simple ideas for topics to write about, which will encourage more people to follow you because of the timely, useful information.

 

1. The Top 10
   Perform an MLS search and report on the “Top Ten” real estate sales in your city. It could be the top 10 luxury homes.  The top 10 new homes.  The top 10 entry-level homes.  The top 10 unique homes. 
    
2. Bargain Homes
   Are there some great listings out there that you think are a bargain?  Maybe they need some TLC.  Or they have gone through an extensive renovation.  Or homes in a certain area that don’t go up for sale very often. 
    
3. New Listings
   They don’t have to be your own listings, but search the MLS for listings to share with clients.  They could be customized to be
   1. Top 10 listings between the price range of X to Y
   2. Top 10 Craftsman-style homes.
   3. Top 10 Townhomes
       
4. Frequently Asked Questions
   Pay attention to the questions your clients ask you on a regular basis.  Post the question and either write an answer or create a video.  After a while, you’ll have a serious list of Q & A’s that you can direct your clients to read/view.
    
5. Information About City/Neighborhood/Farm Area
   Write what you know about the local real estate market.  The schools.  Community events. Unique businesses you would recommend.  Don’t hold anything back hoping people will contact you for more info.  The more you tell, the more you sell. 

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

Mortgage Executive Magazine Releases Top 100!

"30 Years old and still on top! Sierra Pacific Mortgage has been named as one of the top Mortgage Companies in America by Mortgage Executive Magazine! #SPM30YearsStrong"

We are Number 1

Being #1 Helps Your Clients

The branch that the Easterbrook Team is a part of at Sierra Pacific Mortgage Corporation and has consistently ranked at the top company-wide.  We assisted our branch in achieving the highest production in 2015.  This has not gone unnoticed at SPMC.  We are currently able to provide special pricing to your and our clientele.  If you know someone that can benefit from our special pricing, please contact us.

We sincerely care for our customers and real estate partners.  In appreciation for our 30 Year Anniversary and $100 Billion in loan volume, we are giving you the best rates in town.  Give your clients the best possible rates and we’ll provide them the best service possible.  Call, text, or email us to request today’s rates. 

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

Get Things Done

Keep Yourself Busy for a Better Chance of Getting Things Done

 

Ahh, the list – that nagging piece of paper or software that keeps reminding you of how you haven’t ordered that inspection yet or delivered that closing gift to your latest closing.  A new article, however, suggests that there is a better way to approach your “To Do’s” and that the busier you are, the more likely you are to complete tasks, particularly those whose deadlines have been missed, found Keith Wilcox of Columbia University and his team.  In our business, it is so important to stay positive.   Getting behind is demoralizing, but Professor Wilcox discovered that busier people are better at bouncing back from a missed deadline and are more likely to get the task done — and more quickly. The theory is that while you may have missed one deadline, with other tasks completed and with others on the go, you feel that you are still winning the productivity war.  He suggests being busy (i.e., having a large number of tasks to complete) helps the negative impact of missing a deadline on productivity.  People do not view missing a task deadline as a personal failure when that are busy, and therefore remain motivated to compete it.  This article provides a valuable window into the psychology of productivity.  I might suggest you add reading it to your To Do List – CLICK HERE (sorry, couldn’t resist).  

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

Don't Be Invisible

”In a crowded marketplace, fitting in is a failure. In a busy marketplace, not standing out is the same as being invisible.” - Seth Godin

 

When is the Best Time to Post on Social Media for Maximum Exposure?

 

For those of you that know us, you know that we are very big on Facebook, Twitter, Google+, and Instagram.  Social media is one of the best ways to amplify the great content you’re creating. But it isn’t enough to just post content to social whenever you feel like it. Some times are better than others. So … When’s the best time to post content to social media?  CLICK HERE for a great infographic.

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

What's in a Plan?

What’s the Plan, Man?

 

Developing a real estate business plan is critical to forming a healthy and sustainable business, defining and measuring your sales goals, and growing your business holistically and proactively. This post will show you how to create a great real estate business plan that helps you organize and grow your real estate business, and provides a free business plan template you can customize.  GET YOUR  FREE PLAN

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

Down Payment Savings

New Study on Down Payment Savings

 

Hanley Wood’s Data Studio recently assessed Metrostudy and Census data to determine how long it would take each generation to save for a 10% down payment. (Results were based on the median household income and median home price for each age group.)

The study found that Millennials and retirees generally take the most time to save for a down payment. Meanwhile, Americans ages 45 to 54 need the least. Here are the complete results:

• Ages 18 to 24: 8.77 years
• Ages 25 to 34: 7.34 years
• Ages 35 to 44: 5.45 years
• Ages 45 to 54: 3.54 years
• Ages 55 to 64: 3.72 years
• Ages 65 and over: 7.37 years

Setting aside enough money for a down payment is one of the most challenging steps in the home buying process. However, on the Easterbrook Team, we have some very helpful strategies can be utilized to make saving easier. We’ve also got an arsenal of strategies to create down payment funds, from 401K’s to the Bank of Mom and Dad. If you know anyone who could benefit from a savings discussion, count on us to help.

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

FHA Streamline

The FHA Streamline Mortgage                                                              no verification of income, assets, debt, or appraisal

The FHA Streamline is a refinance mortgage loan available to homeowners with existing FHA mortgages. The program simplifies home refinancing by waiving the documentation typically required by a bank, including income verification, asset verification, and an appraisal of the home. Homeowners can use the program to reduce their FHA mortgage insurance premiums (MIP).  Rates on MIP have been reduced on mortgages funded after 1/1/2015. 

 

If one of your past clients or family members has an existing FHA, do them a favor and have them call the Easterbrook Team.  Chances are, we will be able to save them some money and make the process very easy for them. 

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635

Calculate Your Future

Real Estate Investments – Calculating Future Value

When determining what a property is worth, there are two major considerations: what it will rent for and how it will appreciate.  Determining what it will rent for can usually be done by comparing a sampling of rents from nearby rentals for sale in the MLS.  Property managers are also a good source for this information.  Some will even offer to provide a free analysis of the property for you.  For determining the future value of real estate, however, it’s a simple calculation.

Let’s assume that you do not have a crystal ball.  Real estate has historically appreciated at a rate between 3% and 5% per year.  The U.S. House Price Index shows that residential homes have risen at a rate of 3.4% per year on average since 1991.  3.4% is a safe bet for this purpose.  3.4% will be represented as .034 for the purposes of our calculation. 

For the calculation, add one to the growth rate (1 + .034) and raise this to the power equal to the number of years that you are projecting. 

Future growth =

For example

Your investor want to buy an investment property worth $200K and wants to know what the approximate historical value will be in 10 years.  Using a 3.4% average rate, we can calculate the future growth factor as follows:

Future growth = = 1.4

 

Multiplying this factor by the current value of $200,000 gives us the potential future value of the property.

Future value = 1.4 X $200,000 = $280,000

Or you can cheat by going to this online calculator of future value CLICK HERE.  Calculating future value is not an exact science and should be used as a tool, but not the rule.  Some markets are hot and appreciate at much faster rates and some are cool and values have been known to depreciate.  The longer you project out in the future, the more accurate (based on historical average) your prediction will be.

To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635