Texas Mortgage Blog

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“Fanatical Change” Directly Impacts People in Need

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8,000 Reasons to Purchase a Home Now

In February Congress passed a bill that would give you $8,000 for purchasing your first home with virtually no strings attached.

 

It’s very simple.  If you haven’t owned a primary residence in the last three years or you’re purchasing your first home, you likely qualify to receive $8,000 from the government just for making your purchase between January 1st and December 1st, 2009.  Yes, that says December 1^st and not the 31^st.  The dates are about as tricky as it gets. 

 

Here are two quick facts:

1.)  Interest rates rose nearly .5% last week and are expected to rise to somewhere around 6.5% by the end of the summer.    

and,

 

2.)  A recent national survey showed that nearly 54% of first-time home buyers did not know about the $8,000. 

  

If you’re thinking about buying a home then consider the impact of rising interest rates before you delay because home prices and interest rates likely won’t be this low at the same time again in our lifetimes.  If you’re a first-time home buyer then this is the perfect time to make the leap from renter to owner and get $8,000 in the process. 

 

If you have home buying questions: Ask Zeus. We’re Smarter.  I look forward to us helping you. 

 

My warmest regards,

 

 

 

Steven Kaufman

President of Zeus Mortgage

 

PS - Unmarried joint purchasers, like a father and son, can still receive the $8,000 payable to the buyer who qualifies.  Also, owning a vacation home or investment property doesn’t disqualify you from the $8,000. 

 

For Real Estate Articles or to get Pre-Approved please visit us at:

www.askzeus.com

13 Reasons to Refinance Now

 

13 Reasons to Refinance Now or Forever Hold your Rate™

 

By now you’ve heard that the US Treasury is selling bonds at 3% in order to offer mortgages at 4.5% which should yield a profit of 1.5%.  Yes, most of America is surprised that the powers that be are finally starting to consider ideas that actually make the government money versus the new bailout alternative.  With interest rates, on certain loans, at nearly 4 year lows right now, should you refinance now or wait for the promised decline?

 

Most experts would tell you to “make hay while the sun is shining”.  There is too much uncertainty in the financial markets to leave this savings to chance.  With rates at about 5% right now, taking a chance for a 4.5% rate could be costly.

 

If you are the ultimate price/rate shopper this is the gamble you are taking.  There are some significant advantages to refinancing before the end of 2008 that might also influence your decision.

 

Here are 13 Reasons to Refinance Now. 

  

1. No Payments Until March 2009:  This isn’t some furniture/electronic store gimmick.  If you refinance now versus waiting until the rates may drop then you can likely skip two mortgage payments.  That would mean no mortgage payment in January or February depending who your loan program.  

 

2. $311 Dollars Per Month:  That is the average payment decrease you can expect from refinancing with Zeus.  Would it help your saving/retirement goals if your monthly payment decreased by $311 per month?

 

3. Little or Nothing Out-of-Pocket:  In nearly every case, the cost of your refinance is rolled into your loan so there is virtually nothing paid by you out of pocket.  

 

4. Cash Out:  Many homeowners have been on the fence regarding when and how to take out the equity in their homes in the form of cash.  Refinancing your home to pull out the equity in the form of cash is something that a lot of homeowners do when interest rates hit these lows.  

 

5. Tax Time: 
   1. The fees associated with your new loan are tax deductible on your 2009 tax return if you complete your refinance by December 31.  They are tax deductible even if you roll them into your new loan.   
   2. Your property taxes are deductible in the year they are paid.  So, refinancing in December would give you the cash to pay your property taxes in December and allow you to deduct them in 2009.  If you wait until January or February to pay your real estate taxes then you’ll have to wait until 2010 to deduct them. 
   3. If you’ve considered using credit cards to pay your property taxes or finance your Christmas gifts then you might reconsider once you learn that mortgage interest is tax deductible, but credit card interest is not.  Many homeowners do a cash-out refinance in December in order to pay for their Christmas gifts simply because they can deduct the interest on their new mortgage which helps boost their income tax refund.   

 

6. Dead Equity:  If you have dead equity sitting your home or investment properties then there has never been a better time to gain access to that dead equity and put it to work for you at a very low cost.  

7. Remove PMI:  Home owners find that lower interest rates coupled with the ability to remove PMI is all the reason they need to move full speed ahead on refinancing as soon as possible. 

8. Declining Home Values:  If property values continue to decline then you could be leaving money on the table if you intended to take out your home equity in the form of cash.  If you recently purchased your home and they are still building new homes around you then your home's value could decline drastically which could prevent you from refinancing later.     

9. Open ARMs:  If you have an Adjustable Rate Mortgage (ARM) and you haven’t refinanced yet then this is your opportunity to move forward.  Many ARMs adjust to their highest rates in January so your payment may jump up several hundred dollars when you receive your next statement.  The only way to prevent this is to pay off your mortgage in full, or simply refinance.   

10. Jumbo and Investor Loans:  Wall Street has taken some pretty big hits when it comes to jumbo and investor loans.  Fannie Mae and Freddie Mac have really tightened their guidelines for investor loans which has resulted in a significant decrease in their popularity on Wall Street.  This means the interest rates on jumbo and investor loans will not likely decline much more than their current lows.  This sentiment is likely to continue through 2009, and this is why many savvy investors and jumbo loan home owners have been refinancing in record numbers during December according to the NMBA.

 

11. Year End Terrorism:  In the post 9/11 era mortgage rates typically rise toward the end of the year and in January.  Why?  Because the rise in religious holidays typically coincides with the rise in terrorist attacks around the world.  The unknowns associated with these attacks cause rates to rise.  This is another great reason to refinance now versus waiting until the New Year.   

 

12. Time is Running Out:  As you may have heard in the national news, the qualifications for refinancing are getting tougher by the day.  What is possible today may not be possible in just a few months or weeks or days.  If you have a difficult situation then you should certainly act now versus waiting.  Any delay on your part could be very costly if the market continues to tighten and guidelines continue to get tougher for home owners with your particular situation.  

13. Property Taxes are Due:  Based on the median home price in Houston , Texas , the annual tax bill averages around $6,000 per home.  If you don’t have a current escrow account or your current account is too low, then refinancing before the end of the year could save you big.  You can roll that $6,000 into your new loan versus taking it out of savings or using credit cards.   

With all these potential risks to consider, why would anyone wait?  You can see our December 4, 2008 ABC News interview regarding this question by clicking here:

 

 http://abclocal.go.com/ktrk/story?section=news/consumer&id=6537463.

 

Most people are jumping at the opportunity for these low rates because no one really knows what will happen in 2009 with loan guidelines, fees, home values, and interest rates.

 

 To Refinance Now complete our easy online application by clicking here:

 

 https://www.askzeus.com/homebuyer/application.asp 

or call 713-ASK-ZEUS (275-9387) for our Quick, No Cost, Approval over the phone.   

 

Refinance Now or Forever Hold your Rate™

 

  

 

We Know Mortgages from A to Zeus.

 

Top to bottom. Front to back. A to Z. We’re the mortgage experts, so you don’t have to be.

 

Nobody knows mortgages like Zeus.  Nobody.

 

 

 

 CLICK HERE for our Quick, No Cost, Approval 

 

 

Ask Zeus.  We’re Smarter. ®

   

    

800-ASK-ZEUS            ASKZEUS.COM

 

 

© 2008 All Rights Reserved. Zeus Mortgage, Ltd. 

 

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Houston Home Mortgage

Are you interested in a Houston Home Mortgage?  Houston home loans have become harder to come by for many companies, but not Zeus.  When other companies are going belly up we seem to be busier than ever.  Why is that?  Most likely because of the low interest rates, low closing costs, fast closings, and unparralled Customer Service.  We've offered it for years and now everyone is taking notice.  If you are looking for a FHA, VA, or conventional loan then you should call the Loan Officers who will take time to understand your personal situation.  For more information on Houston Home Loans then please visit www.zeusmortgage.com. 

Ask about our Quick, No Cost, Approval Process. 

800-ASK-ZEUS (275-9387)

Foreclosures and PMI?

see the news video here: 

http://www.khou.com/video/news-index.html?nvid=293685

Foreclosures leave some banks in the red despite mortgage insurance. PMI

Foreclosures leave some banks in the red despite mortgage insurance

04:20 PM CDT on Wednesday, October 15, 2008

By Christine Haas / 11 News

HOUSTON

—When realtors Gary Bisha and Michael Greiner first listed a Bellaire foreclosure in February, they didn’t find memories of a family’s love and life.

AP

They found two dead cats and a mountain of damage.

“We do see some destruction in some of the houses where I think people are mad at themselves and the world. They want to take it out on something. It’s sad sometimes to see what people leave,” said Bisha.

He says that, in most cases, families flee homes and banks try to recoup the losses.

“We are still getting about the same amount of foreclosures as about a year ago. People are expecting that to continue for at least another year,” said Steve Kaufman, who owns Zeus Mortgage.

Kaufman predicts that as many as one million homes nationwide may be in foreclosure by the end of the year. 

Many people are now wondering what banks are doing with the hundreds of dollars in “PMI,” or private mortgage insurance, that millions of consumers pay monthly. 

“It (PMI) is insurance that protects your bank from you if you are in default on a loan,” said Kaufman.

He says PMI insures the bank for only 20 percent of the mortgage. 

The bank is responsible for the monthly payments that the homeowner didn’t make, and that loss is piled onto the bank’s expenses on damaged homes. 

“There is a lot more cost involved once it has foreclosed. It’s not just, we put it on the market and sell it. The bank may put $20,000 into it and get it repaired and paying an agency or whoever sells the home,” said Bisha.

In this market the home often sits vacant for months. 

“The bank does not recover their money,” said Bisha.

“This is a losing proposition for both sides, the homeowner and the banks. No one wants a foreclosure,” he said.

Fannie Mae/Freddie Mac Bailout Henry Paulson (FHFA)(GSE)(MBS)

As you know, in a truly historic event yesterday, Treasury Secretary Paulson and Federal Housing Finance Agency Director Lockhart announced that “FHFA has placed Fannie Mae and Freddie Mac into conservatorship.”  The government (FHFA) will now be managing Fannie Mae and Freddie Mac for the foreseeable future.

Below are thoughts and some insight on the current and future issues surrounding the Treasury’s move.  This is a little long, but please read….you need to know.

Overview

To stabilize and to stimulate the housing and financial markets, the Federal Government is taking the following key steps.

·        The GSEs will be allowed to increase their MBS portfolios through the end of 2009

·        Treasury will be initiating a program to purchase GSE mortgage-backed securities (through December 31, 2009)

·        Treasury has established a new secured lending credit facility which will be available to Fannie Mae, Freddie Mac and the Federal Home Loan Banks

It appears that Treasury Secretary Paulson and the Bush Administration determined Fannie Mae and Freddie Mac were unable to perform their housing missions at a time when they were most needed because the GSEs were trying (unsuccessfully) to address safety and soundness issues associated with raising capital.   As a result of this plan, Treasury has indicated that the GSEs will now not be under any pressure to sell assets.

In the short-term, it is expected that mortgage liquidity should improve.  Rates should decline as the risk spreads built into the GSE pricing (due, in part, to fear of potential GSE failure) should be reduced if not eliminated.  The extent of the decline will depend on what happens to Treasury yields in the coming days. 

Without capital constraints in the near term and based on Secretary Paulson’s comments (see below) , it is thought that the new Fannie and Freddie will likely rollback at least some of their price increases and loosen underwriting requirements to some extent.  It will be curious to see the MI reaction to this government intervention as their tightening of guidelines will now be “front and center” in the effort to expand mortgage financing availability.  

On a longer term basis, there will be a “heavyweight” debate next year and beyond about the future size and structure of the GSEs (e.g.  public or private entities).  That debate will not occur until the new Congress and Administration take office next year. 

Why did Treasury/FHFA take this action?

It appears to us that Treasury/FHFA lost confidence in Fannie Mae and Freddie’s Mac’s ability to support the housing recovery while, at the same time, addressing their safety and soundness responsibilities by preserving and raising capital.  Below are some of Secretary Paulson’s remarks.

Secretary Paulson said:

“I attribute the need for today’s action primarily to the inherent conflict and the flawed business model imbedded in the GSE structure and the ongoing housing correction”.   He added that he has “long said, the housing correction poses the biggest risk to the economy”.

“Our economy and our markets will not recover until the bulk of this housing correction is behind us.  Fannie Mae and Freddie Mac are critical to turning the corner” and that “the primary mission of these enterprises will now be to proactively work to increase the availability of mortgage finance including by examining the guaranty fee structure with an eye toward mortgage affordability”.

Comment

We have all seen the steps that Fannie Mae and Freddie Mac have taken to preserve and raise capital throughout this year.  These measures have included raising prices on mortgages and tightening underwriting guidelines.  As everyone is also aware, they have been aggressively trying to put back loans to seller-servicers who, in turn, are going back to originators.     

Secretary Paulson in particular appeared to conclude that GSEs cannot serve two masters (i.e. its housing mission and its shareholders) during the housing crisis. 

What does this mean?

To state the obvious, we are in uncharted waters.   This plan is not a “silver bullet” that will address the underlying problems (i.e. record mortgage delinquency and foreclosures) that caused the need for this unprecedented action.  MBA’s National Delinquency Survey last week indicated that over 9% of all mortgages are either delinquent or in the foreclosure process.  While the new GSE approach to mortgage availability will increase the number of potentially eligible borrowers, it will likely not have any significant impact on affordability (borrowers must still qualify and make downpayments) in those markets where house prices increased the most during the “housing bubble” until house prices and borrower incomes are in line.   With this as a caveat, below are some immediate thoughts.

·     Short term goals

Two of the immediate goals of this action are:  1) “to increase the availability of mortgage finance” as Secretary Paulson said and 2) to lower mortgage interest rates through the Government guarantee of GSE debt. 

·     Long term objectives

On a longer term basis, the Government’s action yesterday raises the fundamental question about the government’s role in housing going forward.  Secretary Paulson deferred the discussion of this question and the “flawed GSE business model” ( i.e. serving two masters ---public and private objectives) to the next Administration and Congress.     

In this update, the focus is on short-term impact since the debate about the GSEs’ future structure and size will depend on who wins the election and the make-up of the Congress.

Short term Impact

For the housing industry, the short-term impact of the Government takeover appears to be positive.

·     Mortgage rates should decline

·     Liquidity should be increased

o   GSEs should loosen standards (somewhat)

o   GSEs should reduce fees including guaranty fees

·     Some housing experts feel house price may stabilize sooner and the level of further house price decline will be moderated as a result

Houston Real Estate - Testimonials from the people who know best.

Dear Steven,

Here's the recommendation I wrote for you.

Details of the Recommendation: "Houston's Lending Brainiac and Real Estate-Saving Machine. The Brand, and all about others. I can speak as being someone on the receiving end of Big Steve's superb instruction and materials. I have sat under his teachings numerous times, and have not heard anyone better on the topic of hard money. He's interesting to listen to, because he is fun, witty, creative, down-to-earth, and extremely educated in his field (or should it be "fields"). Steve is NEVER without answers to your mortgage or finance questions. Steve is obviously gifted and it is no wonder -- his uninhibited, selfless style just adds to his success. Be encouraged to invest your time in Steve as well. I refer my friends only Steve; and my friends are his, because that is just the way he is ... even his employees look like they enjoy working for him. Phenominon! * * * *"

Sylvia Ireland

Division Capital Coordinator &

Engineering Technical Professional at Halliburton

 

http://www.askzeus.com/homebuyer/

 

The Wealth Club - Gordon Appleby

On April 26th Zeus Mortgage presented at Gordon Appleby's "The Wealth Club" as part of his "Project Prove It".  This was one of the best groups I've ever had the privilege of speaking to.  They really knew their stuff and were open to new and advanced ideas. 

Here's an email from one of the attendees: 

Steven,

Your presentation was awesome.  Your style was lively and the content was superb.

Although I have owned a few homes in the past, I am just beginning my real estate investment adventure.  Knowing my neophyte status, where would you recommend that I start to gain the knowledge to be successful.  Any recommendations which you provide will be graciously accepted.

Warmest Regards,

Joe

Read the rest of this post for my response. 

Houston Hard Money Lenders are Closing!

Surprise... Surprise!  The mortgage meltdown has started to hit the hard money lenders in Houston.  Excel Mortgage, Investwell, and Active Finance Group (AFG) are the latest hard money lenders who provide rehab or temp to perm loans that work in the Dallas and Houston markets who are now shutting down.  Stay tuned for more details as they become available.