Plug Into the Power!

The Easterbrook Team –Plug Into the Power!

When you want speed and efficiency, you go to the source.  The nationwide hub for Sierra Pacific Mortgage is based in Folsom.  SPMC is a direct lender and one of the top 25 lenders in the USA!   From processing to underwriting to document drawing and funding, SPMC is fast and responsive. 

It is no coincidence that the Easterbrook Team is also based in Folsom.  As a nationwide direct lender, we can provide you with the personalized service you require and power you need to close your transactions fact.

The Easterbrook Team
916.850.6050 EasterbrookTeam@spmc.com

Lady Bird Home Up For Sale!

Home from Lady Bird Up for Sale

An upscale home in Sacramento's Fab 40s neighborhood, made popular by its appearance in the opening shot of the film "Lady Bird," hits the market Monday with a listing price of $3.895 million.  The expansive brick house, about 6,500 square feet in size, sits on a more than half-acre property at 45th Street and Folsom Boulevard in East Sacramento. It has six bedrooms, six and a half bathrooms, a pool house, library, wine cellar and more. To see the SacBee article, CLICK HERE.

The Easterbrook Team
916.850.6050
EasterbrookTeam@spmc.com
www.homeloanworkshop.org

Hedging Against Inflation

Hedge Against Inflation

Many economists and the Federal Open Market Committee are very concerned about inflation – you should be too.  At today’s current inflation rate of 2%, the value of a dollar will fall by half in 29 years.  The average APR for credit cards is 16.71% and expected to rise to 19% by the end of 2018.  If it sounds like you are being squeezed from both ends, you’re right.  Rising prices and rising rates can paint you into a financial corner.  How can you hedge against inflation?

1.       Invest in hard assets.  Real estate is the ultimate hard asset and often appreciates most in times of inflation.  Rents are also pressured by inflation and will generally rise.  As a home owner with a fixed rate mortgage, you can control your own financial destiny instead of supporting someone else’s.

2.       Convert your adjustable loan to a fixed rate.  Periods of low or declining inflation favor adjustable rates over fixed rates when you borrow money for real estate. The opposite is true during times of inflation.  To hedge against inflation, “disARM” yourself and you’ll sleep easier.

3.       Pay off revolving debt.  It will take 100 months (8.3 years) to pay off a credit card at current rates if no additional debt is added.  To elevate your credit score, it is important to use your credit cards – but pay them off monthly to avoid balances increasing and to avoid paying interest.  If you already own a home, use the equity to pay off debt.  You can substantially reduce your monthly outgo by paying off debt with your equity.  Typically the cost of paying off debt with a mortgage is only a fourth of the cost of credit card payments.

The Easterbrook Team
916.850.6050
EasterbrookTeam@spmc.com
www.homeloanworkshop.org

Love Thy Neighbor

Love Thy Neighbor

Realtors are the neighborhood hosts that introduce new homeowners to neighborhoods by profession.  One excellent piece of advice that they can provide their buyers to thrive in their new home is to be neighborly.

Neighborliness usually delivers big benefits. Here are three excellent reasons to get to know your neighbors.

1. Increased safety (good neighbors look out for each other)
2. Improved health (tight communities experience less heart disease and stress)
3. Appreciating home values (close-knit neighbors enjoy neater yards, lower crime rates and better schools)

Studies show improved health and educational outcomes for those living in mutually supportive neighborhoods.

The “Roseto Effect” was named after Roseto, Pennsylvania. That was the site of a half-century  study that explored the medical advantages of living in a supportive, closely-knit community. And it found such environments had a significantly lower incidence of heart disease and other stress-related illnesses. A good starting point toward neighborliness is to participate in an online community.  One such online site, Nextdoor, provided these findings:

·         93% of homeowners say it’s important to look out for each other.

·         67% of homeowners say that they feel safer when they know their neighbors.

·         35% of those that know their neighbors report that they have shared information about crime and safety with them.

·         79% of those that use an online community talk with their neighbors in person at least once a month.

Who would have thought that it would be in your best interest to go out of your way to say Hi?  Good luck with your community building.

The Easterbrook Team
916.850.6050
EasterbrookTeam@spmc.com
916.850.6050

3 Things to Look for in a Lender Partner

Subject Line:  3 Things To Look for in a Lender Partner

All top producing Realtors have a top-notch team surrounding them.  A good contractor, home inspector, and transaction coordinator are invaluable.  Few team members, however, are as important to keeping a transaction together as a good lender.   Here are 3 things to look for.

1.       Look for Expertise:  Look for a direct lender with direct lending capability and a loan officer with extensive experience.   The mortgage process has become very complex.  Knowing how to apply that knowledge to a large suite of products like FHA, VA, conventional, first time homebuyer programs, and move up products is critical to keeping your business running efficiently and keeping your buyers happy.   

2.       Look for In-House Capabilities:  A good in-house underwriting team can review loans within 24-48 hours.  Dedicated in-house loan processing is so important to keep the loan process flowing smoothly with a priority on YOUR loans.  That means you can reasonably expect a loan commitment in seven days or less.

3.       Look for an Array of Products: There are many federal, state, and local programs available that can put homeownership within reach. Make sure your buyers have access to all of them.  Make sure that your lender has the knowledge and confidence to use them. 

On the Easterbrook Team, we are constantly striving to “Make the Process Easy” for our borrowers and Realtor partners keeping up on all the newest loan products and working to process them with quickly and efficiently.  If you are looking for a lender, a second opinion, or just want some loan advice about a new listing you have, call the Easterbrook Team at (916) 850-6050.   

In a World Full of Acronyms

Acronyms are Good For You

OK, not all acronyms are good, like when the FBI comes knocking on your door.  The good acronyms we are talking about today are LPMI (Lender Paid Mortgage Insurance) combined with FHLMC (Freddie Mac) or FNMA (Fannie Mae) – the two big GSEs (Government Sponsored Entities).  Together they are a thing of beauty for your high FICO (720+) buyers. 

Private mortgage insurance (PMI) is required on conventional loans over 80% loan to value.  LPMI removes the monthly mortgage insurance for the life of the loan.  It’s done by slightly raising the interest rate and having the lender pay for the mortgage insurance upfront.  Not only does the typical high FICO buyer save more on their monthly payment, but we have had two buyers lately qualify for the house they really wanted where they would not have with standard mortgage insurance. 

FHLMC, or Freddie Mac, has a great purchase program called Home Advantage.  FNMA, or Fannie Mae, has an excellent purchase program called HomeReady. These products go up to 97% and offers reduced mortgage insurance rates.  Combine them with LPMI and you’ve got a winning combination!  Home Advantage and HomeReady are not a first time home buyer programs, but guidelines require that the buyer not own another home at the time of purchase.  Call us for details.

The Easterbrook Team

916.850.6050

Wait a Second... It's Still Tax Deductible

Wait a Second…It’s Still Tax Deductible

There has been some confusion surrounding the new tax laws enacted December 22, 2017.  We were told that the sky was falling, and they were right – but it was just a Chinese space station that didn’t hurt anyone – kind of like the changes to the tax laws.

The IRS sent a memo out recently (click here for memo) that read:

·         “Taxpayers may only deduct interest on $750K of qualifying home mortgage deduction.”

·         Taxpayers may deduct qualifying interest if it was ”used to buy, build or substantially improve the taxpayer’s home that secures the loan.”

·         “Despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled.”

The Easterbrook Team
916.850.6050
EasterbrookTeam@spmc.com