30 year fixed mortgage rates shot up to their highest levels in six months last Wednesday.

Fannie Mae mortgage backed securities (they serve as the foundation for mortgage rates) dropped by -231 basis points in just three days.

Many borrowers that had been pre-approved for loans with interest rates in the upper 4’s found out that their new rates could be in the mid to upper 5’s.

We did make a comeback on Thursday and Friday but this still left us -82 basis points worse than Monday’s rates.

The reasons for the deterioration in rates?  It was really a powerful 1-2 combination that set up our perfect storm.  First, foreign investors showed their concerns over our constant barrage of Treasury sales.  As we continue to auction off more and more of our Treasury debt, we naturally must pay a higher rate to borrow that money.  That puts pressure on your mortgage rates.

Also, we received a few economic reports such as Consumer Confidence that pointed to positive economic data.  Any kind of economic data that is positive will lead to higher mortgage rates as long-term investors fear the threat of eventual inflation that is a byproduct of a growing economy.

Obviously, as we slowly climb out of our recession we will start to get more and more positive economic reports which will lead to this very same type of volatility.

The silver lining?  Mortgage rates are still fantastic and borrowers that have been sitting on the sidelines were sent a huge wake-up call.  It is simply not worth the risk to wait for lower rates.  The opportunity cost of missing out on home prices that are artificially and temporarily too low is not worth waiting for lower rates.

The purchase market is about to heat up.  We have great rates, large inventories of homes, and reduced home prices…this all adds up to the right time to buy.

Courtesy of Brian Bagon Crest Mortgage Group

The Homeowner’s Stability Initiative just signed into law gives a tax credit worth $8000 or 10 % of the home’s value whichever is less to first time home buyers on their 2008 or 2009 taxes.  This is great news for those potential buyers who have been on the fence about buying their first home; and keep in mind that we have terrific rates on new loans!  This is especially great news for those of us who are in an area of the country that has a fairly stable economy!  In some areas like California this may not make up for the continual falling prices but in New Mexico our prices have been fairly stable and our area recommended by many news sources as a good place to live!

If a first time home buyer has a $10,000 down payment and gets $8000 back in tax credits, that is only $2000 out of their pocket!  Sounds like an excellent deal to me!  We can either see the glass as half full or half empty.  I prefer to see the half full glass, and I’m not participating in the doom and gloom!

So how do you capitalize on the Homeowner’s Stability Initative?  Just make a commitment to do something different!  This is what changes lives; the commitment to do so!  let me know if you’d like more informatio!

The American Recovery and Reinvestment Act (ARRA) increased the maximum conforming mortgage loan limits for mortgages originated in 2009.  The increase affects 250 counties across the US.  Fannie Mae and Freddie Mac maximums will return to their late 2008 levels for these areas.  Several lookup tables are available on the Office of Federal Housing Enterprise Oversight.

Loan limits for mortgages originated in 2009 are set under the provisions of the American Recovery and Reinvestment Act of 2009.  Under that legislation, loan limits for 2009-originated loans are set at the higher of the 2008 limits and those that were originally announced for 2009 under the terms of the Housing and Economic Recovery Act of 2008.

Urgent Message from Dave Liniger of REMAX International

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, I believe that we could be on the brink of a substantial turn around in the real estate market. Now, it’s critical that we all join together and deliver a powerful message to our legislators that we support this stimulus.

Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.

Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on our industry. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures, we could see an immediate and dramatic turn-around in real estate.

I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.

I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official Senate and House web sites to locate the email and phone number of your legislators.

This may be one of the most critical moments for the real estate industry in our time. Please pass this information on to anyone you might do business with. The outcome of this legislation will have a lasting impact on us all. I appreciate your assistance on this urgent matter.

Thank you.

Dave Liniger

United First Financial

Have you made your New Year’s Resolution yet? If not you better get busy as we are now into the seventh day of 2009! If so was getting out of debt on your list?  Getting out of debt is high on the list of most people. I think it is higher than that on my list but probably because I have found the way to do it!

Since starting the Money Merge Account (MMA) System a year ago we have reduced the time to pay off all debt to 8.3 years. This terrific program is like a financial GPS system that shows you how to get to where you would like to be, which I think for all of us is out of debt. However before the United First Financial MMA came into my life I had no idea how that could be done! Like most of us I just assumed that paying off your home was a dream not achievable by anyone except the wealthy! As a long term real estate agent I was used to helping people get their dream home and along with it of course a mortgage.  That is the American dream of home ownership.   Becoming debt free which seemed impossible with our mental programming that having a mortgage was good for us!  After all we do get a tax deduction on the interest!  If you like to save 25 -30 % on every dollar but in so doing lose the 70 – 75 % on interest to a bank it’s ok and the banks need it!  However I decided to take charge of my financial future!  After all the banks are getting bailed out but so far no one no one has offered to bail me out!

Everyone I meet is first excited about the possibility but then doubt sets in, see The Nine Stages of the MMA. To overcome the doubt I did my due diligence; thoroughly checked out the company and found it to be a sterling company with an unblemished reputation. Then of course since I have an extensive background in math due to my pre-med education the next thought was I could do it myself! It was demonstrated to me that the MMA program will out perform just putting an extra fixed amount of discretionary income toward the mortgage.  Not to mention we tried to just put extra into the principle  before and it is very hard to be disciplined enough to follow through!  I think we did it a few months before life happens and there is always another use for that money!

With the MMA system there is little to no change in lifestyle but you are following this financial gps tool toward becoming debt free!

Becoming debt free is high on my list of New Year’s Resolutions, along with riding more and worrying less!

Find out more about United First Financial’s Money Merge Account!

I know how partiotic we all are and we want to show our service men and women that we appreciate their sacrifice but sending a card to an “Injured Serviceman at Walter Reed” is not the way to do it.  Walter Reed Hospital will not accept these cards as a protection to the serviceman.

Here is an example of why.

“Walter Reed Army Medical Center officials want to remind those individuals who want to show their appreciation through mail to include packages and letters, addressed to “Any Wounded Soldier” that Walter Reed will not be accepting these packages in support of the decision by then Deputy Undersecretary of Defense for Transportation Policy in 2001. This decision was made to ensure the safety and well being of patients and staff at medical centers throughout the Department of Defense.

In addition, the U.S. Postal Service is no longer accepting “Any Service Member” or “Any Wounded Service Member” letters or packages. Mail to “Any Service Member” that is deposited into a collection box will not be delivered.

Instead of sending an “Any Wounded Soldier” letter or package to Walter Reed, please consider making a donation to one of the more than 300 nonprofit organizations dedicated to helping our troops and their families listed on the “America Supports You” website, or visit the American Red Cross website.”   From US Common Sense.

You can verify this out at:  Snopes

From a very satisfied customer an unsolicited testimonial:

>>>>>>>>>>>>Recently, my wife and I were migrated to Version 4.1 of our Money Merge Account Software Program. How is it working for us? In one word: WOW. No, WOW doesn’t quite cut it. WOW times 1000. There, that is more accurate. In only two short weeks on the product, we have:

* Evaluated 4 different investment opportunities to find the best one.
* Taken our 28 year long mortgage down to 4.78
* Realized the impact of our “eating out” habits and reformed our ways
* Paid off over 50% of our credit card debt

These are facts! I have the proof on paper in black and white ink.

Could I have done all that on my own? Sure, but how long would it have taken me? The 4 investment opportunities alone would have kept me knee deep in excel spreadsheets for the next month or so. How long did it take with the MMA? About an hour for all 4.

Would I have been able to realize the impact of moving $4,631.50 from savings to send to my Visa card? Not a chance. I would have probably just kept making minimum payments. Or I would have just sent an extra $1,000 or so. How would my human mind have ever conceived that $4,631.50 would leave behind enough in my savings to earn maximum interest and keep me liquid, while maximizing the reduction of principal on my credit card and thus minimizing the interest that I give to my credit card company?

How could I have known that for every $50 I spend in dining out was actually costing me $71.16 in true costs? That is years and years of drowning in consumer debt that I can save myself. All of a sudden, the Olive Garden didn’t taste so sweet.

So to everyone out there that thinks they can get themselves out of debt, build true lasting wealth, and never worry about money on their own: I wish you the best of luck. For me; I sleep like a baby knowing that I will be debt free in 4.78 years, be a millionaire by age 35, retire at the ripe old age of 40.

Will I ever have to stress over a major financial decision? NO. My un-biased software will make those calls for me.
Will I ever wonder if my money is really working for me or someone else? NO. I know my money is where it will suit me best.
Will I ever miss a payment or risk damage to my credit score? NO. My software will remind me to pay all my bills. It will even do most of that work for me!

But hey….you can do this on your own. Have fun with the countless hours of spreadsheets and turmoil. I will be relaxing with my family if you change your mind.<<<<<<<<<<<<

A friend shared this video with me and it is such a beautiful tribute to our armed forces:  videoplay?docid=-2487638612433437293&q=Vetera Enjoy!