Living Trusts

YOU need to have your home in a Living Trust. It is a must-have security measure to protect your family assets. Avoid probate, legal challenges and leave a legacy that doesn't get trashed. In addition, you'll want to discuss other items with your attorney. WHAT? You need a referral for an attorney who will do a consultation for your and save your assets? Got it: Call BRENDAN BREWER for any California family and general business services. In Brendan we Trust: 415-492-0590.

Market is Heating up again!

The market is on the move again in Marin. While NEW construction spending fell dramatically in the past month, "Remodel" construction is on fire.. and many are selling their homes after their remodeling is complete, with a side note that builders have been BLESSED this year with a late start to the rains. There are a ton of projects that are still not closed in and weather tight: You got lucky!

Back to the market: Get your loan pre-approved. It doesn't cost you a thing. You can get started with no obligation and no hassles at http://www.PTRE.net

While at http://www.PTRE.net you can also request all the newest homes for sale sent to your inbox the minute they come on the market. Even if you're a few months away from doing anything, start watching the market now so that when you are ready to start shopping, you know what the comps are in the areas that you want to buy in. Information is power (if applied properly!). We've been seeing 90+ days on the market for homes. Now, I'm seeing some homes move in 30 days again, 14 days on a recent transaction in San Anselmo. Get in while it's still generally a Buyer's market. Don't get priced out agan! Call or email Pat Townsley for infomation. 415-485-1776. Full service real estate and finance broker. www.PTRE.net

Important questions to ask on a Purchase loan

Here's a couple key questions to ask your mortgage lender prior to getting into contract on a new home purchase. For the point of this example, let's pretend that the Buyer is pre-approved for a 100% no money down home loan on an $800,000 home:

Things to ask:

• What is the current market rate on both first and 2nd?
• Assuming an 800,000 purchase price, what will my total payments be given today's rate?
• Is there mortgage insurance?
• What are the points or fees?
• What other fees and/or closing costs are there?( with no money down, how much do you still need in cash to close)?
• How much can the Seller contribute back to me for closing costs?
• Is there a pre-payment penalty or early termination fee?
• How can I get a pre-approval letter to give to my Realtor to present with my offer?

A good mortgage broker won't have to answer these questions as they would have told you all of these answers without you having to ask. Folks, Let's buy some real estate. Call me to get pre-approved for loans anywhere in California: 415-485-1776, Pat Townsley Real Estate Network, www.PTRE.net

Short Sales Transactions

Unfortunately, this term, Short Sales Transactions, does not mean Fast. This is when a property is worth less than the loans against the property and the seller cannot make up the difference between what the home sells for and the amount still owed to close the deal. This is time for agressive negotiations between the seller and the lender, and it needs to be addressed and disclosed prior to the house going on the market. It's a challenge. I can help. Pat Townsley, real estate consultant. www.PTRE.net

Homes For Sale: It is time to buy

The market is leveling off. This means the "scare" of falling values is normalizing with market supply and demand. Interest rates are holding relatively flat, taking the pressure and guesswork out of that component. Sellers looking to get out of Real Estate have put their homes on the market and they're generally sitting for 90+ before a sale or a price reduction. They're trying to get out before the market falls deeper. So, those homes are on the market. The other sellers will "get off the fence" as the market stabilizes... further saturating the market with inventory. It could turn into a buyer's frenzy...and in a frenzy, the top houses will start to see multiple offers...driving the market back up. We can't predict the future, but I know now is a great time to buy because we DO know what the market is like right now, and it's tasty; come get some. Free home loan analysis and approval and free home listings: http://www.PTRE.net, Pat Townsley, Excellence in Real Estate Financing. 415-485-1776

Reverse Mortgages Available Here

Federally guaranteed (FHA & HUD) REVERSE MORTGAGES are now available through Pat Townsley as California Mortgage Consultants. They'll put extra money in your pocket of retirees over the age of 62 years old. No more mortgage payments... now the banks pay You. Is it the right fit for you or your loved one? Find out: Call Pat Townsley at 800-646-5527 or visit me online at www.PTRE.net. Serving all of California.

Home For Sale

How do you get to know the market and WHEN you want to buy? With basic analysis: I'll provide the Who and the How. You narrow it down by What, Where, Why. Getting specific on your neighborhood could be the most important. Location, location, location. Next; Size, style, amenities. The Why; To improve the quality of your life, put a roof over your head and invest in the future. What if you could have the freshest new home listings in your desired area sent to you when they come on the market? I offer the FREE service of just that. By knowing what is selling and at what price, you'll get to know the area, the prices and the activity. Knowledge is power. Click the Listings button or go to www.PTRE.net and let's get busy. Pat Townsley, Real Estate Broker.

Time to Buy!

Time to get your loans pre-approved and get into the real estate profession. Times have changed and there is value if you work on it. Profit margins on Fixers is a bit less, but now other investors are getting out of real estate in search of higher yields in other markets. Great. Diversify that portfolio, check your current loan, get a loan pre-approved or secure your commercial property loan. Get it all at www.PTRE.net or just click on the APPLY NOW button. It's the simplest way to get your new loan approved or existing loan checked. Who do you know who are on the fence? Folks, it's time to get everything you've ever seen in the movies! You can do it. I can help. Pat Townsley, Real Estate Broker. 800-646-5527. www.PTRE.net

0.25% interest rate. UNREAL!

Is your house of cards about to crumble? Drowning in debt and need exceptional cash flow... and own a house with lots of equity and have an exit strategy? I just might have the solution for a fix. A ZERO POINT TWO FIVE (that's ONE QUARTER).... yep... 0.25% start rate fixed payments for 5 years. It's a monster of a negative amortization payment (deferred interest) at that start rate, but it takes a million dollar mortgage down to a couple hundred dollars out of pocket payment per month. You need equity...but if you're in the tightest cash flow situation in your life and you need total Flexibility, lowest payment and Debt Elimination, call me to discuss how this loan may work for you. Call me at 415-485-1776. See my September newsletter at www.PTRE.net for rate disclosures and APR and sample payments. Pat Townsley, Mortgage guru.

The market is a buzz!

Took the week off with the wife. 10 year anniversary. Went to Cape Cod and all around New England (I've had that "lobster stew by a window with an ocean view" song stuck in my head for years. Prices out there; not too far from our prices in California. It's easy to find homes from the $800k's to the millions. No problem. Market is buzzing from coast to coast. I did my Thursday Realtor duty of attending Broker's Open House Tours today in Marin. LOTS of inventory and buyers anxious to sell now. That's a good thing for buyers when you consider the interest rates are pretty stable now. So, buyers and investors: time to get your ducks in a row and call me for your pre-approvals and sign up to get the newest home listing on my website: www.PTRE.net (free listings of the newest homes on the market).

W.Y.S.I.W.Y.G.

(In reference to Marin Fixer mentioned in previous blog (2 posts earlier, scroll down): Well, there it is. It's actually not quite the flaming piece of sh.... that I was expecting. Where else are you going to buy a home in Marin on a double lot that is actually habitable? I like it. As predicted, the hillside creates a serious challenge to the building and there is no parking. The upside is that it didn't "smell" like rott. There are many challenges, but in the scope of things, it's still a great deal for someone who is determined. Two ways to look at the fixer (mentioned in the previous blog)... Either $200,000 or $50,000 to improve. It all depends on who you are. You could also tear it down... but you'd be pretty screwed at that point... better to remodel. Do Note!: There is only a 1/2" water main coming in, so you'll have to fire sprinkle it... and you'll probably need 3/4" meter on there...and depending on the hook up, that could run into the mid Thousands w/ MMWD. Down and dirty, it's a deal waiting to happen. Call me to visit. www.PTRE.net. 415-485-1776. Looking to Partner up on a deal? I'm game. Let's talk.

Commercial Space

Interesting statistic... I guessed wrong. Marin has about 4.5 million square feet of commercial space (warehouse, retail, etc). It's reported that there is only 140,000 square feet currently available (versus Sonoma County at 10 million feet of inventory and 175,000 avail).
Average Marin Vacancy rate is only 3% with prices ranging from $1.45 to $4.80 depending on location. Sonoma County has a 1.8% vacancy rate with prices from $1.25 to $3.30.
As I drive around Marin, I see signs for Lease, Rent and Sale everywhere. It looked like Supply was on the busines owners' side, making negotiations easier for tenants. Apparently not so. Negotiating a solid lease with options for many years is critical in business vitality and investment terms. It's probably the single-most monthly expenderature that is out of your control once you set the terms in any business. You can control overhead, spending, advertising, sales, even energy costs...but you're bound by your lease. And make sure that you exercise your options in a timely fashion or you could be in a bad negotion point at expiration. Need other thoughts? I fund commercial buildings. www.PTRE.net. Pat Townsley, Broker. 415-485-1776

Marin Fixer under 500k!!!

The market is changing. Here's a little dandy that just came on the market. $395,000 in a neighborhood of $800,000 to $1,000,000 homes. I'm sure the previous owners ran out of money and steam.... probably in that order. So, what does this picture tell us?: Hillside, no handrail, upsloping lot, possibly no garage or sidewalk. Color indicates 1950's original construction, probable knob and tube electrical. So, the hillside gives us the most concern: Hydrostatic pressure over the years plus originally crappy foundation will probably find this thing "racked" and un-square. I'm sure there is plenty of unfinished work. Therefore, without seeing it, I can already smell the must, mold and fresh cut doug fir. You'll need cash and hard money to finanace this. No traditional bank will touch it... hence, the price. This is where cash talks and experience gets the deal done. The right person can put $150,000 into this beaut and flip it back onto the market in 60 days for $800,000. And that's how we do it downtown. Got the experience, cash and moxy? Let's go see it. Pat Townsley, Realtor and Hard Money broker. www.PTRE.net 415-485-1776

Selling California

My good friend and associate Realtor John O'Donnell with Lifestyles Real Estate Inc in Santa Cruz just sent me a marketing piece based on a home he just sold. I thought... good for John, but why waste his postage on me. Of course, it's all about sharing information and showing activity. John's the guy I send clients to for Monterey, Aptos, Santa Cruz, Marina and that area. John and his familiy have a long track record of real estate excellence in that area. We have a reciprocity between each other.
So, to bang my own marketing drum:

Are YOU Looking for a Real Estate opportunities?
I’m a Mortgage Broker & Realtor. One call handles it all.

• Hard Money & Cross-Collaterailization leverage options.
• Best wholesale rates from Top national A, B & C paper lenders.
• Great ARMs, Fixed Rate, Construction Loans & Creative financing strategies.
• Get free home listings at http://www.PTRE.net <(Take advantage of that! FREE for Marin, Sonoma, Solano & Napa)
• House Hunt; SFR, Units, fixers, income properties, rehabs & probates.
• Asset, credit and Mortgage Management consultations.
• Fast, honest evaluations over the phone, by email or in person.

Pat Townsley, Broker. 415-485-1776

Reverse Mortgages versus Negative Amortization

Reverse Mortgages are different than Negative Amortization in one fairly key point: In a Reverese Mortgage, your PAYMENT is also DEBT SERVICED by the "Negative Equity" payment...so you don't actually physically pay a Mortgage Payment every month... the payment is automatically drawn against your payment along with the full principal and interest (if you set it up that way). In a Negative Amortization loan you actually do make a Minimum Payment or "Start Rate" for "X" amount of years. Another key distinction is that Reverse Mortgages have an Age Minimum of 62 years old, loan to value guidelines and maximum loan amounts. They're Golden Years loans so that you can party hearty, take trips, see the family, live your life while keeping the house that you bought and living on the equity that you've put into it over the years. Do I have a Reverse Mortgage for you or your loved one? You betchya. Pat Townsley, keeping you in the pink. www.PTRE.net 415-485-1776.

Enrolled Agents versus Certified Public Accountants

There's no contest here when it comes to Verification of Self-Employment with a bank or lender. EAs an CPAs might do equally efficient in Tax Returns, but EAs are basically General Tax Preparers approved by the IRS, but not State Certified as Accountants. Without slamming EAs, as there are many great EAs, I absolutely recommend that you start searching for a CPA to do your returns. EAs, in my experience, are bookkeepers who want to provide more services but not willing to go through the bombardment of education, ongoing classes and state licensing that CPA endure.
For those of you planning on buying or refinance a home and are self-employed... or thinking of being self employed, may I HIGHLY recommend that you find a CPA. File some form of Self employment income to generate a SCHEDULE C return and you'll have a much better shot at an easier loan transaction with the help of your CPA. I recommend you interview several CPAs to find one who fits your personal and business needs.
Lastly, it is my belief that you're less likely to get flagged for a Tax Audit with a CPA than an EA, general tax preparer, or yourself. For the few hundred bucks to have a CPA do it...it's worth it. Make sure YOUR tax preparer is a licensed Certified Public Accountant. In California, call Michele Hassid, CPA at micheleh@eckhoff.com or Robert Edwards redwards@redwardscpa.com, or ask your associates for a good referral.
For more info, contact me, your California State Licensed Real Estate Broker, Pat Townsley, 415-485-1776. http://www.ptre.net/

Equity Reimbursement Notification

I just received a check for $240,000, payable to ME, for "extra equity" in my property located in San Rafael. A real check, non-negotiable. Question. Do you think it would clear if I cashed it? It reads:
"In compliance with the lending laws of the State of California, the equity reimbursement program was recently developed to reward homeowners for investing in high appreciating properties located in the 94912 zip code." This is my chance, finally, for reimbursement.
Sadly, this is a freakin' scam and a half, but it will get the phone to ring, and the majority of the callers will get pissed and this will further be a black mark on the image of the mortgage industry. I really doubt that my Post Office Box located on Bellam Ave in San Rafael has appreciated $240,000. I've often thought of moving from my Post Box to a larger cardboard USPO tote or into one of the mail delivery trucks as my family is getting larger. I could probably make that move now with my new $240,000.
Buyer Beward! Call me for the reality check. Pat Townsley, Real Estate Broker. 415-485-1776. www.PTRE.net

Construction: 3 Rules.

One more thought on the topic: As my construction Mentor, Mark, always says "You can always be sure of one thing once you've started a project: It's going to be Harder, more Expensive and take Longer than you think." This goes for General Construction and Landscape Construction. Even the best plans end up costing more... especially when getting down to the "finish hardware." Friends; Do it once, do it right. Get your funds in place and be ready. People don't plan to fail, they fail to plan. I can help tailor your plan, get you the right referrals to get the job done right, and give you peace of mind. Pat Townsley. www.PTRE.net

Why Remodel?...and where to spend your money!

Remodeling not only improves your quality of life (upon completion of the project!) ...but it should also ADD VALUE to your home (which is an investment!). As I've mentioned before, ADDING Square Footage to your property will give you the highest return in equity. For resale and appealing to buyers, you should then focus on Kichen (most expensive "per square foot" cost but highest return on investment), then Bath...then Main/Great Room, Master Bedroom upgrades (least expensive). Of course, CURB APPEAL is what gets buyers salivating from the street, so Siding/Exterior, Windows as well as tasteful landscaping are also important. For me, I buy Worst House, Best Neighborhood. Don't buy Best House in Worst Neighborhood as you'll suffer "equity-wise" until the neighbohood's quality catches up to your value... and in that time, your home will be years older and need...a remodel! Providing FREE consultations on remodeling strategeies, cash-out for remodeling, construction loans and creative financing: Pat Townsley, Builder, Broker, and Financial Advisor to the Stars. www.PTRE.net 415-485-1776.

Pre Payment Penalties

Try to avoid them if possible. They're in place from the lenders so that they make sure they make their interest return on their investment by loaning you money. Now, if you absolutely know your new mortgage isn't going to be a candidate for refinancing in the next Three years, then it may be OK to take a prepayment penalty to lower your rate. Likewise, if you're getting a Home Equity Line of Credit (HELOC / 2nd Mortgage), then lenders have started "HIDING" the prepayment penalty in Semantics: They call it an Early Termination Fee. Basically the same exact thing as a pre-payment penalty... they just use ETF to get around the consumer's psychological barriers as well as disclosures in Federal form. Sometimes, prepayment penalties are "just the cost of doing business." Final note: Most Prepayment Penalties are TAX DEDUCTIBLE in the tax year that you PAY the Penalty. Call me if you need more information on prepayment penalties you might have on your existing mortgages or future loans. Pat Townsley, Mortgage Guru. 415-485-1776. www.PTRE.net

I was just offered a 30 year fixed rate at 4% for Free!

What does it all mean. How can one lender offer 1%, another 4% and the financial report says 6% and your bank or broker actually quotes you 6.5%? It's all in SEMANTICS, "grey area" marketing and reality. Most loans are 30 Year Loans, so they quote that, however, the fixed period varies and the Points you pay (or don't pay) can change the rate. Advertisers may say "30-year loan with a Fixed Payment" which is NOT a fixed rate....or a 30 year loan Fixed at "X" percent...(but fixed for how long???). Deceptive advertising gets the phone to ring, then you get the "bait and switch" in many cases. When the Financial Report says Fannie Mae/Freddy Mac offering a 30 year fixed mortgage at 6%, that's the bare bones wholesale pricing; it doesn't include the cost to actaully obtain that rate. Here's a sample of what I might see in one of my many market rate updates:

Security Price Change Intra-Day
FNMA 30 6.0% 99.97 00 BPS
FNMA 30 6.5% 101.50 00 BPS
GNMA 30 6.5% 102.22 00 BPS
FNMA 15 6.0% 101.06 00 BPS
US 10 YR 100.44 00 BPS

This shows Me that at One Point I can give someone a standard 30-year fixed rate at 6.0%. It also shows me that at NO POINTS I can do it at 6.5%. This is your standard Full Doc convential conforming fixed rate loan. There are MANY options you can throw into the mix from Adjustable Rates to shorter and longer term loans, negative amortization, interest only and more. Need the real rates? Contact Pat Townsley, California State Licensed Mortgage Broker. 415-485-1776 at http://www.ptre.net/. Thanks.

Economic Predictions

Snakes On A Blog: If you've been receiving my newsletters, you'll see my forecasting has been pretty dead on as far as interest rates, The Fed, House Values and appreciation. I'm also going out on a limb to predict that the upcoming release of the movie "Snakes On A Plane" will be a block buster cult classic. Using the same logic, I also predict that we're going to see some interesting loan programs emerge in the next 5 months. We're going to see 50 year amorization loans and new hybrid loans where there will be an amalgam of neg-am loans and fixed rate interest only loans. There are two reasons: The industry must create new niches to keep loans in process and Two; the enconomy is strong with inflation leveling off. Fuel prices will continue to be a challenge, insurance rates will rise, educational costs going up, entertainment costs (ticket price to see Snake On A Plane will be $10 per ticket), travel cost will rise (security costs) and the Holidays are right around the corner. The economy needs to keep moving. Buying, selling, producing, importing, exporting. So, everything will get more expensive including an increase in wages to off-set that (a vicious cycle really)...and people will be needing to REFINANCE to make "cash-flow" to afford everything. So, look for 'Snakes' to make headlines, and call me before the mad rush to refinance. Get things planned so you don't stress. People don't plan to fail, they fail to plan. Pat Townsley, Real Estate Forecasting and Finance. www.PTRE.net. Licensed Broker #01234350. 800-646-5527.

Just Sold

Consolidating your point of contact can ease the stress in a transaction. I'm both a Realtor and Mortgage Broker. I can do both the financing and the real estate negotiation. This can not only make the process painless on you, it can also be a good leverage tool to quickly and efficiently make a better and more competitive offer, getting you the home you need. This recently sold Eichler on Penny Royal Lane in Terra Linda (North San Rafael) is a perfect example of that strategy working. Here we see new home owner, Kent Langley of RW Environments proudly standing in front of the home on closing day. We were the winner in a four party bidding war with the fastest and cleanest closing. We also did a stated income high LTV loan. Bam. Done. This fixer is well on it's way to seeing $100,000 of equity in less than two months due to a few basic improvements. We'll move the financing around (Mortgage Management) and improve the rate and term by using the new current market value upon completion of some landscaping. My axiom of Worst House in Best Neighborhood proves a winner again. Let me show you how to do it. I can do the financing or negotiation, or both... I just want to be in there somewhere! Pat Townsley, Excellence in Real Estate financing and acquisition. www.PTRE.net. 800-646-5527.

Bad Credit

There's not credit like bad credit. The good news is: It's repairable. Creditors (lenders; banks, credit cards, private parties, financial institutions, Visa, Amex, MasterCard)...they typically don't report to the credit bureaus (TransUnion, Equifax, Fair Isaac) if you're 30 days late on a payment on a credit card. It's when you get over 30 days that they start reporting that you were late in the previous 30 days. Not much you can do about that IF it is your fault. Collections are another downer. These things will haunt you...so if you've paid, make sure you keep your paperwork Forever. The original creditor will usually hire a Collections Agency to recover the money on their behalf, and that information can get sold off again and again, and I've seen clients with three agencies collecting the same debt to for a creditor who is long out of business. It can be a tangled web. Tax Liens are another issue. You've got to make sure those are paid correctly and get your Receipt and "Book number." Keep these payments forever as well. Lastly, no matter what: NEVER be late on your mortgage. A mortgage payment late will haunt your credit for years and years and really impead your Real Estate financing abilities. If you have credit issues, work with a mortgage broker who understands how to negotiate, navigate and improve your rating! Pat Townsley, Credit Master. www.PTRE.net, 800-646-5527

30-year Fixed rate: SECURITY

If you’re looking for Security, then you need to lock in your 30-year fixed rate if you haven’t already. Rates are attractive again, even in the "jumbo" category...back down to the low and mid 6%’s on the fixed rates. You may also consider looking at "paying a point" if you plan to keep your fixed rate mortgage longer than 5 years... which is really the point behind fixing the rate for 30 years. What a concept. Call me for rates! 415-485-1776, serving all of California; Pat Townsley, Mortgage Broker.

Converting your Adjustable Equity Line to "Fixed"

WARNING: Many lenders are offering to "Fix" your currently Adjustable Equity Lines to a fixed rate below the current Prime rate (at no cost, lower rate, fixed). Here’s a potential challenge: If you’re currently paying Interest Only on this line, and you roll it to most of the proposed Fixed loans, you’ll typically have to pay Principal in addition to the Interest payment. Point being, your payment may go up and you’ve lost the flexibility to pay down/recast the balance and payments and you’ve lost the ability to draw future funds (in most cases). Do your due diligence and get the facts. Every lender varies!
SERVICE: I’m also hearing more and more about lenders and in-house banking lenders quoting one scenario, then upon review quoting an entirely different program and guidelines. If this happens, get the branch manager involved and express your displeasure with the dis-service. Customer service needs to remain Job One.

California Median Home Prices for July 2006

THE MEDIAN PRICE of an existing single-family detached home in California during June 2006 was $575,800, a 6.2 percent increase over the revised $542,330 median for June 2005, C.A.R. (California Association of Realtors) reported. The June 2006 median price increased 2 percent compared with May’s revised $564,440 median price.
NATIONAL RATE: Thirty-year fixed mortgage interest rates averaged 6.68 percent during June 2006, compared with 5.58 percent in June 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.71 percent in June 2006 compared with 4.24 percent in June 2005. The median number of days it took to sell a single-family home was 46 days in June 2006, compared with 28 days (revised) for the same period a year ago. Buying or Selling? Patience! www.PTRE.net. Pat Townsley, Broker. 415-485-1776

Federal Funds rate and Prime Rate

August 8th, 2006: THE FED has given short-term interest rates a break from their climb. The Fed’s primary job is to curb the possibility of inflation. There are many tools, with the fastest reaction coming from short-term (aka Federal Funds) interest rate manipulation, which we tend to hear about as the Prime Lending Rate (Prime is 3 points over the Fed rate).

WHEN PRIME RISES, we see an immediate increase in any adjustable rate loan. This includes any Prime based Home Equity Line of Credit (HELOC), standard ARM (Adjustable Rate Mortgage) loans and your Credit Cards. If you have a Neg-Am Option ARM type loan, watch out for additional deferred interest onto your principal if you’re paying the minimum payments. On Credit Cards, work on your highest interest cards first. If you have room on an Equity Line, check with me, your CPA or CFP as to your best use of leverage to pay those time bombs. If you hear friends, family or colleagues grumbling about adjusting rates, they’d be a great referral to speak to me about the many financing options that can improve their cash flow, security, net worth and lifestyle.

Construction: What is a Story Pole?

Ever see those long sticks nailed to homes with yellow ribbon and orange tips? These are called Story Poles and these Poles tell the Story of your future. It is your friendly neighbor indicating the proposed heights and bounds of a new addition or new construction. If you’re seeing these poles, then the architectural plans are done, stamped and in to the local agency for design review and/or approval to build. If these poles tell the story that a giant wall is going up in front of your view, then you might have reason for concern. Other than that, the addition will bring value to their home and to your neighborhood. Most projects are well underway by this time of year to get "closed-in" before the rains. The picture shown here is a train wreck of an example of sloppy story poles indicating new construction on a slope. Story poles are used for both New Construction and Remodeling/Additions. Need remodel or construction financing? www.PTRE.net Pat Townsley, Construction and Remodel Loans for California. 415-485-1776

Property/Casualty Insurance vs. Mortgage Insurance

HOMEOWNERS insurance is required by mortgage lenders. It protects the homeowner from lawsuits like a "slip and fall" or damages from someone getting hurt on your property. It also insures your home for damages (like a tree falling into your home) or a fire. You can add on to your policy to have earthquake insurance and increased coverages limits including theft. You can also receive a discount from some companies if you insure home and auto and other lines. MORTGAGE INSURANCE is only to insure the BANK if you default on the loan. Mortgage Insurance is typically found when your first mortgage loan is larger than 80% of the value of your home. Call me (415-485-1776) to get out or avoid mortgage insurance. Call CLAUDIA CARDOZA at AAA (415-472-6700 x357) for your home and auto insurance needs. For commercial property and business insurance, call ANDY POPOFF at Farmers Insurance (415-472-1080). Keep your finances in the pink and review your policies, coverage as well as your mortgage annually. Pat Townsley, Consultant. www.PTRE.net. (415-485-1776).

Seller's credit to Buyer for NRCCs

NRCC: Non Reocurring Closing Costs. These are the mechanical fees in any loan process. They're the real "hard costs" of doing a loan outside of the lender's compensation (fees/points/rebates). NRCCs include title and escrow fees, transfer taxes, reconveyances, wire fees, doc prep fees, notaray and a laundry list of little onesy-twosey "junk fees." For home buyers (if structured in the negotiation in the contract via an addendum), the SELLER can credit the BUYER for the closing costs. It can be a sticky thing. The goal is for the BUYER to keep as much CASH at close and basically "finance" the closing costs into the purchase price via the MORTGAGE. Figure most closing costs on an average Northern California/Bay Area purchase run around $8,000, wouldn't it be nice to not have to come out of pocket for these additional fees? The answer is Perhaps. Let's talk about strategizing your next purchase and keeping cash in your pocket at close. Pat Townsley, Real Estate Financial Strategist. 415-485-1776. www.PTRE.net

Real Estate Referral Fees

Mortgage broker and Realtors cannot legally take a commission or referral fee between each other. Same with escrow companies, etc. However, Realtors can refer business to each other and collect a referral fee or commission on the referral upon closing. We have standard Referral Agreements that are pretty common. I offer a 30% referral fee to Realtors who send me clients looking to buy homes in my territories (Marin, Sonoma, Napa, Solano Counties). Of course, I really focus on Central Marin properties and am well traveled in Sonoma and Solano. The reason Realtors would to this referral is to keep a small portion of a potential commission while ensuring that their client gets the best local representation by a Realtor who really knows the area. Looking to buy or sell in Marin? Call me. Looking to buy or sell somewhere else, Call me... I'll refer you to an excellent Realtor where you're looking to buy. Need to finance that purchase anywhere in California.... I'm the guy. Pat Townsley, Realtor and Mortgage Broker. www.PTRE.net. 415-485-1776

Teamwork in a transaction

I'm both a Realtor and a Mortgage Broker. Not many people can and will do both. I'm happy to do both, or either the Real Estate side or the finance side. When I do both, you get one point of contact and quite a bit more ease of transaction. I'm a micromanager, so regardless of how I'm involved in the transaction, I go above and beyond the call of duty to insure everything goes on schedule. I have a heck of a support team behind me from lender Account Executives, Escrow Officer relations and a vast referral network of professionals from construction to legal. I'm here to help and make things easy. Let's talk, let's do some business! Pat Townsley, Broker. www.PTRE.net. Making Real Estate really happen.

1% home loan and no closing costs

Warning; Danger, Will Robinson. Watch out for this often misleading type of advertising. The real goal of it is to sound so good that you call.... then you (hopefully) get the disclosure of how these loans work. Two primary keys to 1% loans and No closing costs: 1% is only a teaser type rate which is a Negative payment...so if you make that 1% payment, you're actually increasing the size of your principal balance in today's market. They're called Negative Amortization loans. The other point is No Closing Costs. There are always closing costs... you're paying them one way or another: either up front at closing, by having a higher interest rate and/or margin or by agreeing to a prepayment penalty on your loan. Need answers? I'm the guy: Pat Townsley, Loan consultant: www.PTRE.net toll free: 800-646-5527

When the _ _ IT hits the Fan

Sometimes, when things go wrong (especially at the closing of a purchase transaction), the pressure is really "On." The one keystone in the purchase transaction is the Mortgage Broker or Lender. He gets blamed for anything that goes wrong. Everyone is counting on this guy to hold it together; Selling Realtor, Buyer's Realtor, Escrow officer, the Buyer, the Sellers, the insurance agent, home warranty people, movers, painters... families and communities are on the line. Even the best mortgage brokers have unforeseen train wrecks, where the wheels come off on funding day. That's where cool heads, fast action, relationships and experience prevail. What doesn't kill a mortgage broker makes him stronger. Call me for personalized service, non-stop service, great loans and on-time closings.
Pat Townsley, Mortgage Broker to the Stars and putting out fires before they begin. Serving all of California. www.PTRE.net or call toll free at 800-646-5527. Close on time, every time.

Accessing Information

Folks, we're headlong into the Information Age. That's what we are as a society. Just one more step in evolution from Stone Age, Bronze Age, Industrial Age... and now...Data. Information is power. Embrace it, sort through it.... be the ball Danny. A powerful tool and soon to be a monster in the industry is the home valuation site called Zillow (Zillow.com). These guys are crunching tons of pieces of information in order to give you some form of value of property. They don't want to be Realtors. That's not the objective of Zillow and thier home "Zestimates." They're giving you free information in order to Advertise. They sell Ad Space. That's the game. They're the SuperBowl of home evaluations and neighborhood data. Watch for these cats to gain the home-field advantage as the Google of Valuations. Need another opinion on your home's value. Gimme a call. Pat Townsley, Realtor/Broker. www.PTRE.net toll free: 800-646-5527

Making a Million Dollar Offer

Here we are in July 2006... lots of activity in the Real Estate market. I'm currently working on representing a client looking to buy in the Loch Lomond area (Pt. San Pedro and Peacock Gap) of San Rafael. Homes are fairly higher end out here... not much "fixer" opportunity, and homes are in the $1.1 million to $3 million range. So, there are many "comps" to set high prices. When evaluating a home for a purchase client, I go back 2 years in historical area sales within 10 miles, all sales on the subject street, and a one year "Active, Pending, Withdrawn and Sold" history to get a pulse on all activity... then we look for any challenges the subject property faces and try to come in with the most competitive and logical offer with a fast close, tight financing and try to avoid the ping-pong of counteroffers. Looking to Buy California? Pat Townsley, Realtor. 800-646-5527. www.PTRE.net

Credit Challenges

I'm sitting in my office with Calvin. His credit is a bit beat up from past delinquent payments and collections. To improve his credit rating, he can "Challenge" the ugly mark via a dispute with the credit agency which is reporting the delinquent. Not all three of the major reporting agencies report the same stuff, so you might see a Delinquent payment only from TransUnion and not the others. Try to resolve any other disputes directly with the source rather than collection agencies. Your credit blunders of years gone-by will haunt you forever... so take action to make sure your credit is clean. Seek professional advice. Many of the online credit scoring companies don't actually give you good information...and it's a waste of your money. Get the right help. Pat Townsley, Credit Medic & Broker. www.PTRE.net, toll free: 800-646-5527

Credit Scores; My take

There are several "new" credit scoring methods now on the Internet. Some scores are over 900. What does that mean? Unknown. It's like Celcius, Absolute or Kevlin to the U.S. standard of Fahrenheit. In the Mortgage industry, we use the FICO (FICO is a trademark acroynm for Fair Isaac Company) score as the industry standard for all agencies. A Mortgage report merges information from the top three credit reporting agencies, giving you Three similar and close, but usually different scores based on your use of credit and the past history. We take the Middle of the three scores (the number, not the average) and use this to qualify your rate. The more you "run" or "pull" your credit report, the more Dings or Inquiries you'll have on your report. When considering a Real Estate financing opportunity (purchase or refinance), only let your #1 choice lender pull your credit, and avoid buying a vehicle, pulling your credit report, opening charge cards, increasing limits and/or ping-ponging debt. Let your lender (me) pull your report and we'll go over it together. I'm a master at credit repair, score improvement and debt structuring. Credit: It's Really important. Call an expert. Pat Townsley, Mortgage Broker. www.PTRE.net, 800-646-5527

Terra Linda and the love of an Eichler.

I grew up in an Eichler. Simple, classic, single-level modular to courtyard 1950's brain child of the man who's name is now legendary. Nice place to live....and I've seen them burn to the ground in about 3 minutes, I've seen them rebuilt and coveted to $1 million dollar super homes. In some circles, Eichlers are almost a cult...transforming them back into the 50's and 60's vintage style. A sweet Eichler; It's a bit better than having a really bitchin' Vega. Of course, when my mom bought our home in 1965 for $34,000.... who knew it would be in the $800,000 to $900,000 range some 40 years later. It would have been inconceivable. If you're thinking of buying or selling an Eichler, I'd love to discuss and broker that deal for you. I've been in just about every Eichler style in Terra Linda. I know 'em; I've replaced the radiant heat, windows, sewers, siding, you name it. What happens in an Eichler, stays in an Eichler. I'm here for your questions. Pat Townsley, Eichler native and Realtor. www.PTRE.net, local San Rafael: 415-485-1776

Information Security & your credit report

Folks, you've got to watch youselves on sending information over the Internet...by fax, whatever. One social security number could screw up your entire life. A loan prospect just emailed me for the first time ever. He's a referral from a past client from three years ago....totally out of the woodwork. (Thanks for the referral Don!). Anyway, this new prospect emails me his bank statements, Social, paychecks and W2s on the very first email. Kinda chilling. All this information, basically Blindly send to me without any previous contact. I've got his name, address, social, DOB, where he works, the hours he works, all his personal banking and savings info. Imagine if this email landed up somewhere else by accident. So, make sure you've got a relationship/rapport before you send you life over the Net. Pat Townsley, Broker and associate Crime fighter. www.PTRE.net

Refinancing on the Cash Flow ARM

I've been happily busy with meeting clients at their homes this past week to discuss the various refinancing options available at this time. A lot of the time, I recommend NOT refinancing as their current low, ARM or Fixed rate is better than the alternative of Refinancing. In several cases, Refinancing is a great alternative to improve their overall financial picture. The ADJUSTABLE RATE MORTGAGE (aka A.R.M.) can be a nice solution for a client where their debts are out of control and their income is luffing. Call or email me with any questions for your particular situation. Remember, your financial health isn't healthy if you're pumping cash in one side and bleeding it out thru another. Balance is sometimes hard to achieve, and we often put blinders on to where we're losing blood. So, let me help; The doctor is IN. www.PTRE.net, toll free 800-646-5527. Pat Townsley, Financial trauma doctor.

Urgent Notification - Subject Confirmation

Rubbish. I'm getting mail almost daily saying that I can dramatically reduce my mortgage payment and that I must call a loan center today. Talk about UnEthical marketing; Would you want to do business with snake oil vendors who prey on the in-informed using scare tactics to drive their business? I don't think so. Avoid the scams. Use your head. Call me with questions. I'll set you straight. Pat Townsley. www.PTRE.net, toll free: 800-646-5527

Who do I pay first?

If you're ever in a Pinch for funds on any given month, PAY YOUR MORTGAGE first. Do whatever you have to so that you pay on time and pay the minimum amount. Beg, steal or borrow. In reveiwing hundreds of credit reports, the biggest Ding on anyone's report is a late mortgage payment. It will haunt you for years. Don't go there. High credit debt or a late credit payment is WAY better than a mortgage late. Credit Questions? Call me. Pat Townsley, Broker. 800-646-5527. www.PTRE.net

Negative Amortization versus Reverse Mortgages

Negative Amortization (aka Neg-Am) loans, also sometimes called A.R.M.s or Option ARMs (Adjustable Rate Mortgage) are good for Cash Flow but really need to be understood by the client. They give 3 to 5 different payment options, with the lowest Option (usually) being one that doesn't really pay the Interest Only portion of the monthly payment, so you're actually deferring monies back ON TO your loan instead of paying it down. So your loan balance actually gets higher over time, sometimes significantly higher. The upside of these NegAm loans is that you have improved monthly Cash Flow in your pocket. You get to choose how to hang yourself.
Reverse Mortgages are typically for the elderly, where the loan absolutely goes "backwards." They're designed so that a person can enjoy the rest of the years in their home without making a payment. There are several ways to slice it up, but basically, the homeowner doesn't make a physical payment; the typical principal and interest payment come directly out of the equity in the property via an ever increasing first deed of trust (mortgage) that the bank holds. Terms and limits apply. For more info, contact me. Pat Townsley, Mortgage Consultant. www.PTRE.net toll free: 800-646-5527

Sweat Equity

Just got off the phone with a client who bought a house about a year ago. They bought a fixer and had grand ideas of upgrading...which is the theory behind a fixer: buy low, put in personal sacrifice of labor and time, then the value will be higher upon completion of those tasks. Add a little room for neighborhood appreciation, and you've got more value (equity) than when you bought it a year before. That's the "work" part of the equation... the Sweat comes from your investment into the project. Without improving a property, you're banking purely on the market to add value...which isn't always the wildfire Appreciation we saw in the 2000 to 2005 market, and yes, sometimes the market dips (corrects). So, the best hedge for increasing value are the Twin forces of Appeciation and Property Improvement when looking at a Fixer type property. Add a bit of Principal Mortgage Reduction (paying down the loan)...and you've got even more value in that property. Remeber my mantra for Fixers: "Worst House, Best Neighborhood." For contractors, the Uglier the better! Don't take on a project beyond your scope of ability as it will end up costing you. For more information on Fixers, Appreciation, Flipping home or getting into a new home, contact me. Pat Townsley, Realtor and Mortgage Broker. www.PTRE.net toll free at 800-646-5527. I've done it. I offer you my first-hand experience and deliver real-world results. Thanks.

Home Values

Quick thought as I reply to another client... "How Much is Your Home Worth" type search engines or services are interesting business models. Thier goal is to not really to give you the value of your house and say "thanks, see ya later," the real end goal is to capture information for Realtors and industry professionals and sell that information as Qualified Leads. The Zilla system is pretty interesting, fast and an actual database (rather than some systems where live agents actually do the research), however, Zilla isn't that accurate in places like Marin where the home tend to be very different from one another....however, it can give you a pulse on the area. I subscribe to HouseValues.com as a Realtor to get some leads. I do give a full evaluation (above and beyond the required info) of your home. Information is power. I've got the power, and will share it with you. Call or email with questions, or for a home and neighborhood value valuation, just click on the link for Free Home Evaluation on my site www.PTRE.net. Thanks. Pat Townsley, Realtor

Verification of Employment and Stated Income

There are two primary types of loan documentation when it comes to the application process: Full Doc and Stated Doc (or No Doc). "Full Doc" means you, the borrower, will provide Two full years of W-2's (if employed) and/or Two full years of Tax Returns (plus current profit and loss statement) for self employed. That's usually the Rub or challenge here in California: Not too many people actually make the income to afford a mortgage out here. SOLUTION: Stated Income loans. This is where we basically make up your income (within reason for your employment). Additionally, we'll need a Verification of Employment (VOE) to prove what you do. If employed, we send a form to your employer. If Self-Employed, then we'll probably look to get one or more of the following: Business license, letter verifying self employment from a CPA, industry license, letters of reference from clients/vendors. To side step some of these issues in the years to come, get some side income going from another source so that you either use your own Name as a business entity or get a DBA (Doing Business As) and/or get income via 10-99 contract and a CPA will then be able to verify that you did receive income as self employed. Verification of Employment completed.
Finding creative solutions for a crazy market: Pat Townsley, Mortgage Broker serving all of California. www.PTRE.net or call Toll free: 800-646-5527

Prop 13

A client recently asked me how his property taxes will change if he sells his home and buys another. The quick answer is that as long as the property is a primary residence and in the same county, he keeps his property tax base as set forth in the landmark 1978 ruling. Some counties offer "reciprocity" where they'll allow the original tax base to transer between counties. Home buyers in the past years don't have a clue about Prop 13 as it isn't offered anymore. Who knew home prices would be where they are today back in 1978. Consult your CPA and/or Tax Attorney for specifics. Historically, Proposition 13, officially titled the "People's Initiative to Limit Property Taxation," was a ballot initiative to amend the constitution of the state of California. It was enacted by the voters of California on June 6, 1978. It would eventually be upheld as constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn[1], 505 U.S. 1 (1992). Its passage resulted in a cap on property tax rates in the state, reducing them by an average of 57%. Proposition 13 received an enormous amount of publicity, not only in California, but throughout the United States. Its passage presaged a "taxpayer revolt" throughout the country that is thought to have contributed to the election of Ronald Reagan to the presidency in 1980. Questions? Ask me at www.PTRE.net. Pat Townsley, Mortgage & Real Estate Broker. Toll Free: 800-646-5527

100% "No Money Down" financing

I've done it. I have clients who have done it.... and so far, nobody has been financially ruined: 100% financing of a home in California. This simply means that you don't put any money down and you get to buy a home, get the pride of ownership, put a roof over your head and get a bit of a tax break with the interest write off. Buy something with some "upside potential" (in need of some basic work to gain sweat-equity), then refinance once you're in the home for a year or two. NO MONEY DOWN loans are NOT the last loans you'll ever have on the home. They're really "band-aid" or short term thinking loans until you can refi into a better rate. No Money Down loans come with a price: Higher Interest rates. Why? Because the banks are taking a RISK by lending to you since you haven't got access to the funds for a proper down payment. In the end Real Estate is still your best Investment Vehicle. I will not put you into a loan that you cannot logically and comfortably handle...and that's why my clients succeed in 100% No Money Down situations. Any Questions? I'm here to help. Pat Townsley, Mortgage Broker. Funding loans throughout California. www.PTRE.net 1-800-646-5527 toll free.

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Your one-stop shop for all your real estate needs...

Welcome to personalized hands-on service for all of your Real Estate Buying, Selling and Financing needs. One call handles it all. I am both a Realtor and Mortgage Broker providing the best of both worlds with one point of contact, saving you time and money. Your best real estate experience is a phone call away: (800) 646-5527. Pat Townsley. Visit my Home Page at www.PTRE.net.
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