Lost in translation
www.youtube.com/watch

How badly do you want salmon?
www.youtube.com/watch

Herbal Essences
www.youtube.com/watch

This is brilliant
www.youtube.com/watch

Sushi
www.youtube.com/watch

Easter egg? hunt
www.youtube.com/watch

~ MAR. 2008 ~

This month marks the Federal Reserve’s 6th straight rate cut since September. Just prior to the cut, the Fed helped bail out Bear Stearns with JP Morgan Chase. What are the government’s “assistance” moves intended to accomplish? Well, with the increase in prices and slowdown in the mortgage market, both consumers and banks are under a lot of stress. The Fed’s actions are intended to make it easier to spend money and boost confidence. What does this mean for you? Fed rate cuts are inflationary. As a direct result of a falling dollar which occurs from Fed rate cuts, oil prices have come up nearly 40%, and gold prices are up over 25%. And you can expect mortgage rates to ultimately rise from here. It is inevitable, as inflation is the arch enemy of fixed-income investments, long-term bonds and mortgage-backed securities, upon which mortgage rates are based.

On a sidenote, if the media is making you confused over whether we're headed for inflation or for recession (god knows both are constantly mentioned!), checkout this wikipedia article and judge for yourself why Alan Greenspan has been dropping the dreaded "S" word: en.wikipedia.org/wiki/Stagflation.

REFINANCING:
If you are looking to refinance, don't wait. Home loan rates dropped over 1.00% in the last two weeks. But after each of the last five rate cuts, we have seen rates RISE significantly in a short period of time... and we just had another rate cut.... Fixed Rate mortgages have begun to increase, so if you are looking for a secure long-term loan, now’s the time to get one, before Fixed Rates rise further. As for Adjustable Rate Mortgages, these are significantly lower than Fixed Rates. So if you don’t expect to keep your property longer than 5-7 years, or if you expect your income to rise by the time the ARM adjusts to potentially higher market rates - consider an ARM. In short, with the current direction of the market, now is the time to refinance.

PURCHASING:
If you are looking to purchase a home, act quickly. Because if rates increase 1.00%, home prices have to fall over 10% before you can make back what you lose in monthly housing payments. Yet in the Bay Area, prices aren’t falling as much as in the rest of the country, so act now before rates increase further. Waiting could cost you thousands of dollars. There are some great buys out there! (Let me know if you're looking for a good realtor...)

SELLING:
With all the news about house prices dropping, be aware that buyers are expecting great deals, even if your particular neighborhood hasn't declined in value. So make sure your realtor prices your home competitively. You can improve your competitive advantage by offering your buyers a “Rate Buy-Down Option” on their financing. Helping buy down your buyer’s interest rate will cost you much less than dropping the sales price of your home, so everyone wins. If you find that the market value of your home is less than your mortgage, consider a Short Sale. If your only other option is foreclosure, a Short Sale may be the ideal solution for you. I negotiate with lenders on a daily basis, helping clients avoid foreclosure, so contact me if you have any questions.

~ NOV. 30 ~

You've probably heard about FHA reform in the news recently. As a result of the significant market volatility experienced this summer, lawmakers are clearly invested in updating and expanding the limited reach of FHA lending. All politics aside, this new flexibility will likely help many homeowners who take the initiative and seek out help before it's too late. However, there is still a lot of confusion and misinformation about the features and benefits of new FHA legislation currently awaiting approval. So if you have any questions about your particular financial situation, let me know so we can sort through your options.

It's All About LOCAL Markets:
Remember that most mortgage statistics in the media are national data, and do not necessarily describe the climate in your local market. What of the San Francisco Bay Area? Despite dwindling sales statistics, median prices of existing homes rose since last month and last year. In October, the median price was $861,500 for single-family homes, and $520,000 for condos. NAR predicts that the Bay Area will likely see a nice appreciation in home values, due to a strong job market turnaround since the dot-com bust and the continued high-demand of the area.

SELLERS:
In areas where inventory is high (such as the South Bay, and increasingly the mid-county areas), make sure you price your home competitively to avoid having to chase the market as prices come down. In areas such as Los Gatos, Saratoga, Los Altos, and Palo Alto, where prices have actually appreciated, you may still find yourself receiving multiple offers on your home. What if your home has been on the market for a long time and still doesn’t sell? Assuming that the realtor has done everything to optimize the appeal of your home to potential buyers, the only option is to lower the price. If the price-reduction will drop below what you owe on the mortgage, and you still feel the need to sell the home- consider a “short sale”. (I'm working on a lot of short sales right now, so if you need more info about this process, you know who to ask:))

BUYING / REFINANCING:
As lenders’ guidelines have tightened, it is important to get a credit consultation and get pre-approved. This will grant you stronger buying power as you compete with other buyers. Be aware that despite national media talking about home prices coming down, this may not be true in the particular local market where you are looking to buy. Many cities and neighborhoods in the Bay Area are still seeing appreciation in home values. So talk to a local real estate agent about what you can realistically expect to find. And talk to a mortgage consultant in advance to avoid last minute drama in getting a loan. If you have an ARM that is scheduled to reset in the next 2-18 months, you should schedule an appointment with a mortgage professional right away to discuss refinancing options.



~ SEP. 25 ~

MEDIA HYPE vs. REALITY
We hear a lot about the rise in foreclosures, and the credit crisis. Which is true. But: what is the media NOT mentioning?... that 97.4% of mortgages are current (no defaults in payments). Meaning, most people are doing fine.

BUYING IN THE FUTURE
Envision this scenario. Home prices coming down over the next eight months... everyone waiting for the lower prices... competition among buyers for lower-priced homes... with so many buyers to choose from, sellers becoming more "picky"... it becoming a "seller's" market. So buyers: enjoy the current market while it lasts.

AVOIDING FORECLOSURE
Dear friends, it is tragic how many people have been treated unprofessionally and unethically by oportunistic subprime lenders, and are now facing foreclosure. Foreclosures are not only practically and emotionally debilitating, but they also adversly affect credit. If you know anyone facing this threat, please have them contact me: they might be able to avoid foreclosure through "short sale," wherein a lender releases the mortgage lien even if the property is sold for less than what is owed.
Remember: having a few late mortgage payments show up on the credit report is not NEARLY as bad as having a foreclosure on the credit.



~ SEP. 20 ~

WHY FED RATE CUT DOES NOT = LOWER FIXED-RATE MORTGAGES
Fixed rate mortgages move in accordance with investors' expectations of inflation, NOT in accordance with the Fed Funds Rate. If investors think inflation will accelerate, mortgage rates will rise. Now, aside from the housing sector, our country does not seem to be in a recession. If anything, economists have been keeping an eye on inflation pressures. And as the recent rate cut will make funds more available, there is even greater concern of inflation (countered by some concern that we were closer to recession than we thought... yeah, there's mixed opinions). Hence, the slight rise in mortgage rates. Prediction for the year ahead? According to the National Association of Realtors, fixed rate mortgages will rise.
Nota Bene: By "investors", I refer to those folks on Wall Street who invest in mortgage-backed securities.

FORECAST: DROPS IN HOME PRICES
Moody's Economy.com came out with a forecast on the drop in house prices across the nation. Many metro areas will be reaching two-digit percentage drops. Stockton is expected to mark the worst drop, at 25%. Once again, it looks like the downturn in the housing market will not affect the Peninsula nearly as much as it will the rest of the nation. Here are the predictions for the Bay Area:
- Vallejo 15.3%
- Santa Rosa/Petaluma 14%
- Oakland 10.3%
- San Jose/Sunnyvale/Santa Clara 4.4%
- San Francisco/San Mateo 2.7%



~ SEP.18 ~

FED RATE CUT
If you haven't already heard, the Fed cut both the Federal Funds rate and the Discount Rate today. Although fixed-rate mortgages are more closely tied to the 10-Year Treasury and are NOT sensitive to Fed rate cuts, we may see an improvement in the start rates of adjustible rate mortgages over the next year. This improvement, coupled with the large housing inventory, would be good news for those looking to buy a house.
Homeowners who already hold an Adjustable Rate Mortgage, if your rate is due to adjust within the next year, talk to your loan consultant and see if you will benefit from refinancing.

ANNOUNCEMENT!
I am offering my friends, and friends of friends, a free credit consultation along with a copy of the credit report. I have strategies and technology that may improve credit scores... and good credit scores yield better interest rates. So if you or anyone you know plans to refinance or purchase a home in the next 18 months, contact me so we can schedule an appointment.



~ AUG. 14 ~

FORECLOSURE STATUS
Want to know how the Bay Area compares to the rest of the nation in terms of foreclosure rates? Realty Trac made a list of the top 100 metro areas in the U.S., and this is how we rank (1 being the worst):
#19 Oakland
#56 Sunnyvale/SJ/Santa Clara
#78 San Francisco

This verifies what I hear from local realtors: that in general, the downturn in the mortgage market is not affecting the Peninsula as much as it does the rest of the nation. It's the Central Valley areas that are really suffering. Here are the other California cities, and how they rate:
#1 (worst in the US!) Stockton
#4 Riverside/San Bernardino
#5 Sacramento
#8 Bakersfield
#14 Fresno
#23 San Diego
#27 Ventura
#29 LA
#45 Orange

A Phoenix Will Rise From The Ashes.....


"Only to the extent that we [are willing to] expose ourselves over and over to annihilation can that which is indestructible be found in each of us." ~Pema Chödrön


"One does not become Enlightened by imagining beings of Light, but by making the Darkness conscious" ~Carl Jung


"On the Plains of Hesitation bleach the bones of countless millions, who, at the Dawn of Victory, sat down to wait, and waiting--died."


"Nobody can give you freedom. Nobody can give you equality or justice or anything. If you're a man, you take it." ~Malcolm X


"The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. But no price is too high to pay for the privilege of owning yourself." ~Friedrich Nietzsche


"I would not know what the spirit of a philosopher might wish more to be than a good dancer." ~Friedrich Nietzsche