Splitting Up Your Mortgage: Wise or not?

A friend just emailed me a familiar scenario to check out. I've seen it done and heard brokers recommending it in the past. Just remember, if it sounds too good to be true, it probably is: Say you have a $700,000 mortgage now at 6.5%. A loan agent may recommend that you can save $500 per month by refinancing your first into a $417,000 first at, say, 6% and getting a 2nd mortgage for $300,000 at 4.5%. Wow. Saves you a gang!?? The Rub is that the 2nd is typically a line of credit with an Adjustable Rate. The "Pitch" is the lower fixed rate on the first mortgage and less emphasis on the potentially explosive Home Equity Line of Credit. PLUS you may be blowing a big mortgage interest tax write off as you can only write off up to $100,000 on a 2nd mortgage, leaving $200k's interest blowing in the breeze. Buyer Beware. I'll show you the right way home. Pat Townsley, Mortgage Broker to the stars. 415-485-1776, http://www.ptre.net/

The Dog Days of Summer

Definition: "Dog Days can define a time period or event that is very hot or stagnant, or marked by dull lack of progress." Indeed: Coasting to the end of summer; School's Open, Drive Safe, My Other Car is also a Hybrid, Visualize Whirled Peas. For many, it's time to put off for a few more weeks, the damage control they've been putting off: Refinancing. For others, it's time to Invest in the myriad of low priced homes. Everything begins with a PLAN. So, start making your plans now. Remember, it's easier to get INTO something than it is to GET OUT OF SOMETHING...or so they say. Not always the case in real estate financing. My team and I will do our best to get you Out of your adjustable loan and Into something secure for years. You can't do it alone, so put the power, experience and excellence of California Mortgage Advisors behind your success. Let's Talk. Pat Townsley, Broker. 415-485-1776. http://www.ptre.net/

Suicidal Tendencies; Death in Yosemite

A week ago today, I was the unfortunate witness to a man committing suicide. I was the only one who saw it; The sole witness to a man's last seconds. He jumped from a great height and plummeted off the sheer cliff face of Half Dome. It was surreal and has haunted me this past week. I didn't have time to save him; He was up and over the edge before I could move. I quickly grabbed my camcorder and documented the scene and peered over the edge to the rocky ground some 3000 feet below. I called 911 moments later as I was still in disbelief at what I thought I just saw. Search and Rescue were first on scene. I borrowed binoculars to see if I could locate the body. There was no body left. No skin, no bones, no torso; Only a red explosion on a very large boulder. May God have mercy on his soul. TODAY, many have the opportunity to save themselves from financial suicide. Life is a serious game and you get one shot at it. Let me serve you. Let me save you. A serious message at a serious time.
Thinking of you.
Pat Townsley, Mortgage Broker. http://www.ptre.net/

Feds leave rates unchanged: A Push.

Well, today was a benchmark: It was my first prediction that didn't come true: I anticipated a half point increase split between the Funds rate and Discount rate in a blog last month. Consider yourself lucky that this is the first prediction in years that hasn't come true. You've been given an incredible reprieve here; In Blackjack, we call this "a push." You didn't lose your money or chance and can play again. If you're on the fence or screwing around, waiting and thinking that rates will come down, I guarantee disappointment. We lost JP Morgan/Chase as a lender of Jumbo loans last week. That's a Huge upset in both Wholesale and Retail lending. Add a stack of additional required disclosures to you new loan applications and things are getting tough. NO LOAN is easy right now, but you've got to take action while there are still banks lending! Let's Talk...sooner than later. Pat Townsley, Mortgage Broker. My team and I are ready to get you through these tough times with the best rates. 415-485-1776; http://www.ptre.net/.