The Industry Report

[Video] A Funny Look at Google Street View

How many of you are using Google Street View on your site(s)? Do you like it? Why or why not?

[Hat Tip: Irina Netchaev; PasadenaViews.com]

Ever Work With A Real Estate Agent Like This?

Irina Netchaev over at Pasadena CA Real Estate Homes asks us:

"What makes a great Real Estate Agent?"

It's a fair question because unfortunately, I think most people have dealt with the type of fella in this video before...

Irina rocks because she adheres to the "Solve. Don't sell!" philosophy oh so well while others are yelling "me, me, me" or "I'm the best, I'm the best, I'm the best."  

Upcoming Events: NAHREP National Conference

I'm not often one for shameless self-promotion but...I'm excited to announce that I have been invited to speak on a panel for the National Association of Hispanic Real Estate Professionals (NAHREP) Hispanic Marketing Convention & Expo. at the Arizona Biltmore Resort & Spa in Phoenix, Arizona taking place September 27 - October 1st. The name of the panel is Online Social Networking and Blogging for Business and will be taking place Monday, September 29th at 10:10am.

I'll be speaking alongside:

Jay Thompson: author of Phoenix Real Estate Guy and owner of Thompson's Realty and,

Kevin Boer: Broker/Owner of 3 Ocean's Real Estate and Managing Principal at Domus Consulting Group

The panel will be moderated by Brian Requarth, CEO and Co-Founder of Bilingual Marketing Group and the driving force behind VivaReal.

I had the honor of presenting alongside Brian at NAHREP's Regional Conference in Anaheim, CA last month. I haven't met Jay or Kevin in person but I know who they are and I can tell you that they're phenomenal. In short, the presentation is going to be a blast and full of information!
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WHAT DO YOU WANT US TO TALK ABOUT?
If you have any questions that you'd like the group to focus on, drop a comment at the end of this post; the presentation is for YOU so we'd like to know what questions you'd like answered. Just remember, the title of the presentation is: Online Social Networking and Blogging for Business.

Daily Mortgage Rate Update: September 9, 2008

Yesterday was one heck of a day in the mortgage industry! News of the Freddie Mac/Fannie Mae bail-out brought on lower interest rates and why wouldn't it...with a significant reduction in risk, both lenders and investors are feeling ever so confident. Here's where we currently stand...

Current Mortgage Rates: [Updated]

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.75% (5.853 APR)

15-Year Fixed Rate Mortgage
5.375% (5.547 APR)

5/1 Adjustable Rate Mortgage
5.375% (5.450 APR)

7/1 Adjustable Rate Mortgage
5.875% (5.978 APR) 

*Disclaimer: Equal opportunity lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Lock/Float Recommendation: The conservative nature in me says if 5.75% works, lock it! There's room to float, for now, but check back in and/or contact me to verify pricing and look for any changes to rates.
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Additional Articles of Interest:

Is Mortgage Insurance (MI) Tax Deductible?

Gift Money for Down-Payment

The Fannie & Freddie Government Takeover...

...is official! And you've read some of the headlines...

I was going to go on and explain what this meant for your mortgage interest rate as a homeowner and prospective homeowner but Dan Green, author of The Mortgage Reports, offers such an excellent explanation in as little as 265 words!

Is Mortgage Insurance (MI) Tax Deductible?

Q. Is Mortgage Insurance (MI) Tax Deductible?

A. The short answer is Yes! The tax deductibility law has been extended through the year 2010.

Back in da day if you didn't want to pay mortgage insurance, you didn't have to. All you had to do was structure an 80% 1st and carry a 20% 2nd. It was as simple as that! Problem solved. Today, high LTV 2nds are still wading in the distance and so Mortgage Insurance it is. But at least the Tax Deductibility Law has been extended through the year 2010.

We talked about Mortgage Insurance and it's Tax Deductibility back in October of 2007. Here's an F.A.Q. (pronounced "f-a-k" or "eff-ay-que") to recap:

1. What is the most basic explanation of the change in the tax law?
Mortgage Insurance premiums paid (or accrued) for taxpayers on qualified residences will be treated as interest and will therefore be tax deductible.

2. What mortgages will be eligible?
Loans used for what is termed "acquisition indebtedness." This includes both purchase and refinance loans.

3. Are only first-time homebuyers eligible for a tax deduction?
No, any borrower who is a taxpayer is eligible.  Whether they will actually have a deduction available to them depends on:

When they closed their mortgage
The type of property
Their adjusted gross income
Whether or not they itemize their deductions

4. What is a “qualified residence”?
The term “qualified residence” means the principal residence of the taxpayer and one other residence of the taxpayer that is selected by the taxpayer for the taxable year and that is used by the taxpayer as a residence

That would mean, for example, a primary residence and one second home; not a property financed or owned by the borrower solely as an investment property.

5. How much can a taxpayer make and still get the deduction?
It is based on their adjusted gross income (AGI), not their total income.

The maximum AGI to be able to deduct the premium in full is $100,000 (or $50,000 for a married taxpayer filing an individual return).

6. What happens if the AGI is more than $100K?
The amount that may be treated as tax deductible interest is reduced 10% for each $1000 until the amount becomes zero at $110,000.

7. Does this only apply to purchases?
No, it also applies to refinances.

8. Does the deduction apply to borrower AND lender paid Mortgage Insurance?
No, only borrower paid mortgage insurance.  To qualify for the tax deduction, the borrower must be making the MI Payment.

9. How will the borrower get the necessary information for tax filing purposes?
A statement, such as the one detailing mortgage interest paid during the year, will be sent to the borrower by the mortgage servicer by no later than January 31st of the following year.

Disclaimer: I am NOT a licensed Tax Professional. I am a Mortgage Originator providing you with educated insights into Mortgage Insurance and it's Tax Deductibility through guided research. Please contact your Tax Professional to verify this information. If you do not currently have a Tax Professional, I can refer one to you.
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Read: Canceling Mortgage Insurance for more information on how you can stop paying MI.

Recommend A Colleague Today!

Yesterday I asked if you've ever worked with a Real Estate Agent like this...

The video was meant as a spoof so I hope no one took offense. Unfortunately however, many a consumer and many an agent has experienced working with, or working alongside someone like this. No? C'mon, tell me it ain't so...

Well, in spite of the negative perception that exists of Real Estate Agents (and Loan Officers too for that matter), there are many great, excellent, trustworthy, and ethical real estate agents worth talking about. So what I want to do today, and I urge you to follow along, is recommend a Real Estate Agent!

Write a blog post hi-lighting/recommending one of your colleagues in the industry. They can be in- or out-of-state.

Look them up on LinkedIn and recommend them!

You and I both know you're good. Let's talk about someone else today, recommend them for being the professional that's everything but the person in that video. Here, I'll go first...
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Tyler Osby; Author of WealthwithMortgage.com
Wealth Creation Specialist at Four Legacies Mortgage

"In a service industry, I believe that excellent work is guided by one philosophy: "Solve. Don't sell!" Tyler exemplifies this philosophy well. He possesses a profound knowledge of the mortgage market and willingly shares that knowledge with others. Whether you're a Real Estate Professional, a homeowner, or a first time home buyer, Tyler Osby possesses the knowledge and expertise to guide you through the process with confidence and ease."
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Patrick J. Canavan
Realtor & Eco-Broker at Prudential California Realty

"Patrick is an exceptional Real Estate Agent! Extremely knowledgeable, resourceful, sympathetic and energetic, Patrick is the Real Estate Agent every buyer and seller wants to work with. He knows how to be aggressive and produce results yet engages with you in a manner that is sympathetic and inspires confidence throughout the buying/selling process. What's even more unique about Patrick is his background in architecture... Ask him about it someday and watch as he opens with inspiration!"

Tyler, Patrick...you guys rock!

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So, who do you recommend? Loan Officer or Real Estate Agent...

I'm gonna tag: Irina Netchaev, Rebecca Levinson, Susie Blackmon, and Dustin Luther.

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[Photo Credits: Tyler Osby & Patrick Canavan used with absolutely NO permission. But really, hope ya don't mind fellas!]

Check Out this Home-Equity-Sharing Scheme!

"The sales pitch is simple: Tap into your home equity without taking on more debt, without paying any interest and without having to worry about additional monthly payments, ever." -- [Source: MarketWatch]

Hmm... Well, I'll tell you this much: I don't like sales pitches and I don't like the sound of this Real Estate Equity Exchange Agreement. Then again, I've never participated in nor have I ever executed on such an agreement.

The premise is simple. You take on an equity partner in REX who fronts you a certain percentage of cash (with no monthly payments) based on your available equity for a return stake in the share of your home's overall equity (REX cashes in on that share upon the sale of your home). I'm not sure what the percentage stake REX takes is but here's an excerpt from the article:

"in nine out of 10 deals, homeowners take the maximum upfront cash and give up a 50% share of the home's value, according to Tjarko Leifer, managing partner for REX."

I don't know about you but that doesn't sound too enticing to me!

Should you wish to cancel out of your agreement early, there's a fee in place that resembles a pre-payment penalty only this fee starts at 25% and reduces in 5% increments year after year. Once your five year penalty expires, you can sell your home or refinance to pay REX their share of the equity in appreciation and cancel on your REX Agreement.

So what do you think? Does this sound like your brand of vodka? Do you feel like taking on an equity partner? Or is this all a little too scheme-ish for you?

[Video] On Down-Payment Assistance

How do you feel about the elimination of Down-Payment Assistance? Ha! Should I really have to ask you that?

Here's an interesting video...

4realz.net Has A New Look!

That's right!

Dustin Luther over at 4realz.net has a new look and it's stylin'! You should hop on over and check it out.

Dusin recently moved from a free wordpress.com hosted platform to a self-hosted platform on wordpress.org. Now ask any blogger and they'll tell ya that this is no easy feat! Especially for those that aren't tech savvy. Just imagine, one mis-step and all of those months of blogging (researching, writing, etc.) go down the drain. It would be a blogger's worst nightmare! Anyway, after a little test run Dustin moved over successfully (of course he did, he's Dustin Luther!). And because he's such a great guy, he hi-lighted his step-by-step here in case you're looking to make a move of your own.

For those of you don't know Dustin already, he knows a great deal about marketing in this web 2.0 world and real estate so be sure to subscribe to his blog while you're there; you'll learn more than just a thing or two.

(From Left to Right: Dustin Luther, Irina Netchaev, Ricardo Bueno (that would be me), and Ana Connell)