Market Stabilization...weathering the storm

I've figured out how to stablize the US Economy. It happened today, and it seemed to have worked: Close the stock exchange! The US markets closed today for Holiday. There were no mid-day intra-day mortgage price changes, no banks swooping-up failing banks; Just a day to reflect on the past and strategize for the future. The future is certainly uncertain. Your decision to Refinance or Purchase will be based on your level of Pleasure or Pain. I am advising clients for longer-term security to face the inevitable turbulent times ahead. There are plenty of lenders willing to work with most clients. The sweet spot now is the 750,000 loan size and under. Those people on adjustable loans can lock in security of a 30-year loan now. Certainly in SF and Marin County on that size loan, take the Fear (pain) out of your future and Secure (pleasure) an new loan with Pat Townsley. I provide you with peace-of-mind and service. Call me to discuss your needs and options: 415-485-1776. Licensed mortgage broker. http://www.ptre.net/

America is Conforming!

New Federal "conforming" loan limits are now in effect. Prepare for the marketing onslaught. In some areas of the US, the Conforming rate has gone from $417,000 to $729,750. It's supposed to help US homeowners both in Refinance and Purchases by giving slightly easier loan underwriting and improved rates over the "Jumbo" loans (aka Non-conforming). The only Rub right now is that rates are bit too high TODAY for it to really do much good. We need the policy makers to drop the discount rate by 1 full point, then we've got some gas. Here in California, we'll see some good opportunities for many homeowners.
In closing, don't think we're an island here in the US. What we do impacts the world, and what the world does impacts us. It's a global economy, so make sure you're watching out for your own best interests as the blue planet plays financial hopscotch. Position yourself with secure diversified assets and a long term position on your mortgage whenever possible. Your broker: Pat Townsley, 415-485-1776, www.ptre.net

Cash out while you can!

It's been said that cash is king. With home values being "challenged" by today's real estate downturn, it's getting harder to refinance debt consolidation loans, cash for improvements, cash for investments or even to simply Fix or Lower your monthly payment. Please read the article below on utilizing your equity line Now if you need "padding." Also, I highly recommend that you look at the refinance opportunities (and purchase as as well) right now as the banks are getting tighter and tigher. Regardless of any stimulus package, eventually all borrowers, even the best borrowers, won't be able to finance real estate. One action that will help would be a cut in the Discount rate, but until that happens by at least a full point, real estate concernts will continue to drag down the entire country. Take action. Let's Talk: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

What goes up, must come down...

Mortgage rates are taking a beating this week; Almost a full point increase. I'm looking at the CNN home page and their breaking-news headline "Home Equity Slips Below 50%." That's a horrific sign. Another reason to access your equity line now (if you need it for Anything: see my blog under this posting). Rates reacting to bonds, sentiment and demand. For 15 years, I've been saying: Rates are going to do one of three things: Go up, Do down, or stay the same (on any given day). They've had quite a run-up, testing the top-band of resistance to how fast and high they can go. What will help? An immediate strike by the Fed on the Fed Discount Rate will ease things up on mortgage rates, but with the perceived "risk" to lenders, we should expect rates to remain in the 6%'s for the next few months. It wasn't too long ago when they were at 8.5%. Again, the Adjustable loans are now giving the lowest rate, now fully indexed at 3.87%. That's a sweet rate, but it comes with a bit of cost and less long-term "security." If your Fixed rate ARM is about to Adjust, rates in the 6%'s are STILL a better play than taking the hit on the adjustment. Keep that "Blue Sky Thinking" and stay positive in the face of adversity! Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Banks closing Home Equity Lines

How's your house of cards? Let's consider your home equity line. The interest is a tax deductible item up to $100,000 on your primary and/or vacation home. Now, you may have some “room” left on your home equity line that you’re counting on as “padding” for a rainy day. WARNING: Lenders are CLOSING existing equity lines. The process of elimination has already started. You may get a simple letter in the mail saying Your Account Has Been Frozen. It’s nothing you did, it’s just the market, the lender and a surprise. Not all surprises are good! If you even THINK that you need to pad your cash accounts, are considering paying off credit debt, buying a car or doing some upgrades around the house in the next SIX MONTHS…or if you think your INCOME is going to be impacted and your only reserves are within this Equity Line, it is the opinion of this mortgage broker that you BORROW IT NOW and put it somewhere earning a few bucks. You can always pay it back, take the tax write off on interest and call it a wash. Ask Yourself: WHAT IF my home equity line was frozen tomorrow? Call me for more information and the best new loan programs in this ever-changing market. Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

(WARNING: If you have NOT accessed your equity line in the past 12 months CALL ME BEFORE you pull money out of your equity line! Borrowing money off your line is considered "Cash Out" when consolidating a new first and 2nd mortgage in any upcoming Refinance and WILL IMPACT your Loan To Value and possibly a new rate if you're planning on a Refinance!)

Understanding Soft Markets in California

The entire State of California has been has now been classified as a "Soft Market" area. In short: A fear of falling home prices. If a lender was to loan on your home based on an appraisal done today, it could drop even lower, putting the bank in a higher risk loan position. Previously, certain areas or counties were picked out. Now, the entire state is suspect. From this general blanket, banks have further identified regions and counties for even higher risk...so every bank has some type of "Grade" or Scale to rate the severity of the risk. Some do an "A to D" rating, other resort to name calling from Soft to Severe: Soft Market, Distressed Market, Severely Distressed Market.

How does this impact you? It impacts your Loan To Value and it may impact your rate on a new loan. On a purchase or refi, banks will whack 5% right off the top of the loan-to-value in Soft Market areas to 25% off and increase rates in Severely Distressed Markets. Even Marin in now a "soft market" but it's got a good rating. Sonoma is increasing in risk, and Napa is considered a Severely Distressed Market. Call me for more information. Take action to refi before rates increase and your loan to value becomes unfinanceable (that's a real word with dark overtones). Pat Townsley, Mortgage broker: 415-485-1776. http://www.ptre.net/

What is a BPO in Real Estate?

BPO stands for "Broker Price Opinion." That's on real estate professional's evaluation, statement of value, educated opinion. They are often used to "replace" a full appraisal. They can be faster and cheaper. The BPO of a residential property is conducted by a local, licensed real estate professional. The report combines information from a drive-by exterior examination, external data sources, previous sale data, property assessment data, recent comparable sales and current neighborhood listings, as well as a photograph of the subject property. The BPO includes estimate of repairs to obtain fair market value, neighborhood information, and value estimate (90, 120, 180 day marketing time for "as is" and "as repaired" values). Photographs include subject and street scene photographs. Front photographs of all comparable sales are also available for an additional fee. This product is not an appraisal and does not include an inspection of the interior of the property. There are Residential BPOs and Commercial BPOs. In today's market, banks or brokers may want a BPO to negotiate a Short Sale. More questions? Call your financial wiz: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Financing the new Audi R8

As featured in this year's Super Bowl, This car, the Audi R8, is pehaps one of the finest driving machines made. How would you like to imply write a check for it and drive it off the lot, and the interest becomes a tax write off. No new loan. Close the deal faster, and you are on it. The Home Ownership Accelerator will get you on the accelerator of this Audi beast. Call me for financing. Pat Townsley, Mortgage Broker. Providing you with financing security, flexibility and a quality of life you deserve. 415-485-1776. http://www.ptre.net/

Lowest mortgage rate in town!

Here's the loan that is changing the world of mortgage. It's a loan where you take total charge of your life, your finances, your opportunities. 80% maximum loan to value, currently at 4.014% with your choice of interest only or any amount towards princiapal. You can pay it down as much as you want and the balance is averaged DAILY.... so the more you keep money in your loan, the faster you pay it off. Keep more money in your mortgage, then simply draft your bills out of the money at the end of the month. You are your own bank, earning more money, paying more debt down faster. You get checks and a credit card off of your home. Loans to $2million. Imagine you only owe $400,000, but you could have a line to $1,000,000. You're only paying on the money you owe, but you have instant access to draft another $600k in a day if you need it....or pay the loan to Zero and have this massive line at your fingertips. It's not for everyone, it's for wicked smart invstors who understand the power of compound interest. Call me for more information. Pay your traditional 30 year fixed down in 14.7 years and save hundreds of thousands in interest. The last loan you'll ever need. Pat Townsley has this loan currently at 4.014% and it's getting better. Sweet. 415-485-1776. http://www.ptre.net/

By Referral Only

In 2006, I personally spent over $100,000 in advertising in industry magazines using full page color ads to promote my services, going head-to-head against the "retail banks" which I also represent on the wholesale side. Result: 90% of my business came from referrals from my past clients and repeat business from my satisified clients. The other 10% by referrals from network marketing. So, now I've dropped the full color ads, focus my core business on residential purchase and refinances, post to this blog, and ask for your help to refer business my way when it comes to you and who you know. So, THANK YOU for your support and referrals. I'll take care of your, your family, your associates with Excellence in Real Estate Financing! I take nothing for granted, live with an attitude of gratitude, and appreciate your continued referrals! Professionally yours, Pat Townsley. http://www.ptre.net/

The 5 Balls

"Imagine life as a game in which you are juggling some five balls in the air. You name them - Work - Family - Health - Friends - Spirit, and you're keeping all of these in the air. You will soon understand that "Work" is a rubber ball. If you drop it, it will bounce back. But the other four balls -- family, health, friends and spirit are made of glass. If you drop one of these, they will be irrevocably scuffed, marked, nicked, damaged or even shattered. They will never be the same. You must understand that and strive for balance in your life. How?

1. Don't undermine your worth by comparing yourself with others. It is because we are different that each of us is special.
2. Don't set your goals by what other people deem important. Only you know what is best for you.
3. Don't take for granted the things closest to your heart. Cling to them as you would your life, for without them, life is meaningless.
4. Don't let your life slip through your fingers by living in the past or for the future. By living your life one day at a time, you live ALL the days of your life.
5. Don't give up when you still have something to give. Nothing is really over until the moment you stop trying.
6. Don't be afraid to admit that you are less than perfect. It is this fragile thread that binds us together.
7. Don't be afraid to encounter risks. It is by taking chances that we learn how to be brave.
8. Don't shut love out of your life by saying it's impossible to find. The quickest way to receive love is to give; the fastest way to lose love is to hold it too tightly; and the best way to keep love is to give it wings.
9. Don't run through life so fast that you forget not only where you've been, but also where you are going.
10. Don't forget that a person's greatest emotional need is to feel appreciated.
11. Don't be afraid to learn. Knowledge is weightless, a treasure you can always carry easily.
12. Don't use time or words carelessly. Neither can be retrieved."
From the book "Suzanne's Diary to Nicholas" by James Patterson

Financial Planning versus Vacation Planning

I was having breakfast with my Certified Financial Planner this morning. He brought up an intersting, funny, sad but true point: 90% of Americans spend more time each year planning their vacations than they do planning for their financial security. What a concept!... and then I thought about the hours we have spent just planning our annual camping trip to Yosemite. I get exhausted just watching my wife spend hours online; preparing menus, site reservations and organizing daily activities for our family and friends. Unreal. How much time have we spent discussing money? Zip. I'm guessing I'm not alone. So, it does make more sense to have someone ELSE do the driving when your money and future is on the line. If you'd like to contact a spectacular CFP with an MBA and a passion for increasing your wealth, Contact BRUCE FRANKEL with Yerba Buena Financial Partners. 415-334-8000 or email bruce.frankel@ybfp.com
I've referred several of my clients to Bruce and the results have been outstanding. Yerba Buena Financial Partners; "The Advocates Behind YOUR Success!"

Reasons to Buy a House Now...

There are many reasons to buy a house NOW. I can also play devil's advocate and quote a few negatives, but, hey, No Pressure...No Diamonds. Let's keep positive and abundant thinking.

1. Interest rates are coming down.
2. New loan programs are coming with improved guidelines.
3. Property values are down.
4. You'll never be a "market-timer" and nail the bottom of the market.
5. Sellers are motivated to sell. We call this a BUYER's MARKET.
   

   
   The one thing you do need before you go home shopping is a PLAN. This plan includes knowing what you can afford, how you can structure a solid financing plan, and what to buy. I'm the Second Step in the process. The FIRST STEP is you overcoming your excuses and objections, picking up the phone and calling me for your free loan pre-approval. Doing anything else is just burning up daylight. Time is the one thing that you simply cannot get back. Take action and call Pat Townsley, Mortgage Broker: 415-485-1776. http://www.ptre.net/
   

Here we go! Mortgage Time; Median Conforming Limits

OK, It's time. All the lenders and investors are sending out their guidelines. The conforming limit is now $729,750 for the majority of the Bay Area and other areas of California. This is YOUR time to take action. No more BS. Let's get to work. Banks are ramping up. Conforming means more flexibility in underwriting and improved rates over "Jumbo" pricing. Call me to discuss rates as every borrower is unique.

Your referrals are appreciated. Let's go.
Pat Townsley, Senior Broker
California Mortgage Consultants Inc.
Serving ALL of California.

REFINANCE NOW! 415-485-1776

Economic Stimulus Package signed into law

Hurry, hurry! Come one and all. The Economic Stimulus Package has passed both House and Senate and is being signed into Law by President Bush. The impact will NOT be immediate. Banks will have to digest this and work with their investors and corporate policies. So, it won't go into effect immediately, but now is the time to get your loan started. "Conforming" loans may be as high as $729,750 but not a blanket number across the U.S. In California, we should see many of our counties at this maximum limit as it is calculated increase of 125% of the median sales price (closed sales). This will END December 31st, 2008... So THE CLOCK IS TICKING! Father Time 2009 is only months away. Take Action NOW! Let's get it started now: Pat Townsley, California Mortgage Consultants senior Broker. http://www.ptre.net/ : 415-485-1776

What is the Conforming Loan limit?

What is the Conforming Loan limit? Looks like it's going to change...but WHEN already? A study released Feb. 7 by Deutsche Bank analyst Nishu Sood looks at the loan provisions and sums it up with this headline: “High-profile policy, low-profile impact.” Sood concludes: “Every little bit helps, but we expect only a few percent of home transactions to be impacted in 2008.” When will it change and by how much will depend on median sales prices (values) in certain areas. There is still too much disinformation. 125% of median price increase based on the current level of $417,000. Others say it's an automatic increase to $625,000, $650,000 or $730,000. What we do know is what rates we have available today, and that banks are slammed, so getting you loan going NOW is important. Get the appraisal done with a broker you trust and will do you right. I'm that guy here in California. 415-485-1776. Pat Townsley. http://www.ptre.net/

Financial Success: The law of attraction

What is The Secret to wealth mastery? Drive, Action, Support and a Plan. In fact, you can survive without "support" as some people might "put you down" and talk you out of taking action or making money. What are the Scarcity thoughts holding you back. How can you Breakthrough your beliefs, fears and take your life to the next level of Abundance? It all begins with YOU. Don't wait for the perfect circumstances, don't talk yourself out of it; break the habit and instill a new set of rules: The fruit is on the vine waiting to be harvested. There are great loan options out there for you to purchase a new home. Set up your vision boards....There is NOTHING wrong with having financial success...But you need a big enough motivation. Be it a fluffy rainbow that guides you to the goal, a light from the Heavens, a calling from deep within for a purpose. You will either sink or swim. Take Action and call me, Pat Townsley... I'll give you some great solutions, build a strategy for the future, put a plan in place and change your life, for the better, forever. One common thread that all successful people share: They Continue and Try Again, and again and again. Sorry to get "motivational" on you, but You don't know what you don't know. Get the info. Take action. Let's talk. http://www.ptre.net/ 415-485-1776.

Obama, McCain, Clinton, Primaries...

Before election day 2008, how are the campaings and primaries going to help your financial life? What impact will it have on your home loan, buying a home, refinancing a home? NOTHING. In fact, it's an absolute distraction when you consider your own financies. Let's refocus on yon your financial kingdom:
Mindset: Focus on your outcome. Know where you are and where you want to be.
Education: Know the loans and resources; get the right information.
Action: Start the loan process. How many more times do you need to think about making a decision, how many more excuses do you need for life to pass you by and bury you head in the sand. Make a commitment. Keep moving forward. Surround yourself with achievers.
The time is NOW. Contact me and I'll give you the tools for success and we'll rock.
http://www.ptre.net/, Pat Townsley. 415-485-1776. I'm running as your Mortgage Broker, and I approve this message.

Vacation Home, Second Home: Same Thing, Same rate!

Many of my clients know about our second home in Tahoe. Nothing quite like having a quiet retreat, snow-capped mountains, close to a stream with a lake view. Did you know that many lenders do not charge higher rates for a vacation or second home? The interest falls within the federal tax interest write off guidelines, and I have funded dozens of vacation homes throughout California. I found my vacation home, drove a bulldozer through it and didn't just build a new home, I built a legacy for my family. Share the fantasy. For purchase, refinance and construction loans... Contact the guy who's done it! Pat Townsley. 415-485-1776. http://www.ptre.net/

Luxury Homes in Bend Oregon

If you care, or if you've followed my career in real estate, you'll know I've built a couple homes. I learned the craft from a master builder, now based in Bend Oregon. What a place. I'm now partnering with http://www.luxuryhomesinbend.com/ to help California's purchase vacation homes in this beatiful city. I have half a mind to move up there myself. I have partnered with a Bend-based morgage company to refer my clients for Oregon financing, and I offer "cash out" strategies on your California properties to get into the finest built homes in Oregon. I'm proud to partner and sponsor LuxuryHomesInBend.com. Helping you get the most out of life...Buy well and buy often. Find out more about Investment Home Purchase strategies. Pat Townsley, Broker. http://www.ptre.net/ , 415-485-1776

No cost refinance, No Fees, No points, Lowest rates

Every advertisement is saying this. From the "nation's largest lender" to the private money guy. Folks, there is NO FREE LUNCH. Even the U.S. Postal Service is raising the cost of a First Class stamp to 0.42 cents in May. Seems like it just went from 40 cents last week. So, if postage is going up, transportation costs increasing, cost of energy increasing, cost of goods going up... everyone will have to spend more on every thing as the wholesalers and retailers WILL have to raise the cost of goods sold to compensate for the higher cost and maintain a profit margin. So, in a No Cost mortgage transaction, YOU do pay...it's just burried in a higher interest rate to you. It always has been and there always will be a cost to you to borrow money. Just know how much, where it is, and how you can leverage it to your advantage. Call me to lay it out in common sense and financial sense to you. I am the bridge between your goals and accomplishments. Pat Townsley, YOUR Mortgage Broker. Serving ALL of California. Based in Marin, Sonoma and San Francisco Counties, with branches in San Diego, Santa Barbara and Bend, Oregon (hmmm.. that's outside of California last time I checked). Hawaii too. http://www.ptre.net/

Money: House of Cards

Money will deliver us all... and money is just about to get a bit easier to get. It's the one resource that is endlessly abundant. We can't get back lost Time, but we can recover lost money. We must also be careful not to fall into the belief that the Fed Stimulus package is going to save our butts. The picture here pretty much sums it up. Careful how you stack it... and eventually, some of these stacks will fall down. It is time to get your mortgage check up and get your application going. Every bank is getting backed up like a bear preparing to hibernate. The best wholesale rates from all the top lenders and great service to back you up the whole way: Pat Townsley, California Mortgage Consultants Inc. 415-485-1776. http://www.ptre.net/ . Rate, program, solutions, asset allocation resource, wealth building strategist... and Acme "super genius."

Lowest home mortgage payment

The Fed's stinulus package isn't going to help too many individuals. That is "microeconomic thinking." The stimulus package is a Macroeconomic stategy for the overall U.S. economy. When Godzilla and Gamera fought (in many of their movies), they were trying to protect people, but ended up wrecking an entire city in the process; Trying to help the individual and having an effect on the entire city. Maybe not the best cause & effect example since the effect was usually the destruction of Tokoyo. Something small that can have a big effect is the interest rate you pay on your mortgage and compound interest. As a mortgage broker, I have a loan which is currently at 4.04% with NO negative amortization. The loan goes to $2.5 million dollars and has NO prepayment penalty. It's not for everyone...but it could be a way for your to lower your payments, pay off your loan faster, have more flexibility; Effecting you and eventually impacting the U.S. in a positive way. Everything counts in large amounts. Contact me, Pat Townsley for more on your purchase and refinance needs. http://www.ptre.net/ 415-485-1776.

Shuttle Atlantis blasts off like the US Mortgage Market

ah CAPE CANAVERAL., ter two months of delay, shuttle Atlantis blasted into orbit Thursday with Europe's $2 billion science lab named Columbus. Billions of dollars in gear floating away into space. Hey, I'm all for the space program, but back down here on Earth, we can use a little help. Be looking for new conforming loan limits and economic stimulus package items to clear the Senate today. This will have a HUGE impact on the Marketing of mortgages (home loans) nationwide. Watch out for false promises. Also, I wouldn't be surprised if RATES RISE due to the stimulus, so, lock in your new loan with Pat Townsley, California Mortgage Consultants' senior Broker. 415-485-1776. http://www.ptre.net/

Tornado rips thru cities; destoys homes

If the housing market didn't have enough challenges, imagine your house being torn to shreds by a tornado. Today's home mortgage market is much like a tornado; a whirling dervish of confusion, awe, power and destruction, but...from the ashes of disaster rise the roses of success. Protect yourself and your home with an adequate home insurance policy and umbrella policy. For financing your new home or repairing and updating your home, call Pat Townsley, Mortgage Broker, Serving all of California. 415-485-1776. http://www.ptre.net/

Mortgage in a box

Every home buyer and homeowner is unique. Every loan must be tailored to fit the needs of the individual. Most banks have three or four boxes to put your loan into (like that old Round Table Pizza commercial: "Go to fridge, get box"). As a broker, I don't just look at your immediate needs and debt, I go deeper; What's coming up in your life, what's important to you, what are your goals and motivations. From there, I don't have one box, I have over 80 lenders each with four boxes, and from there, I can also utilize equity lines, cross collateralization and exponentially increase the number of solutions for your financing needs. Don't get stuffed into a box. I deliver freshness and the best ingredients! Go with service, solution and experience. Pat Townsley: I will not suspend my campaign as candidate as your Mortgage Broker. (and I endorse this ad). 415-485-1776. http://www.ptre.net/ , providing Excellence In Real Estate Financing.

Get Ready Marin...and California!

I've lived in Marin for 43 years now. The Grinch, who lived just north of Whoville lived on the top of Mount Crumpit for 53 years. His life was a disaster he realized where he was in his life. No point there really, but there are local, state and federal initiatives to prepare individuals, families and communities from disasters including earthquakes, fires, floods and even the results of terrorism. In Marin, we have "Get Ready Marin." In addition, there are CERT courses community members can take and prepare you and your home for and from disaster. Another consideration is the "72Hours" site. While I prepare and protect you and your family from home financial disaster, consider taking action for natural disasters. Get your "5-minute" bag ready and your 72 kits for home and auto. Let Me help you get your Finances ready to ensure your estate security from disaster. Pat Townsley, Mortgage Broker & Survivalist! 415-485-1776, Serving all of California: http://www.ptre.net/

Financing Your Life considering Maslow, DISC and Gems

I just took a DISC assessment through my personal coach, Tony Robbins. DISC is just one of the personality profile "tests" to find out places of strength, weakness, what type of personality is most dominant. I've taken multiple "Gems" profiles through a great program called "Understanding Gems" by Dawn Lyons of The Referral Institute. Gems is basically the same as DISC, but more easily described and re-formatted by Dani Johnson, another rock-star success story. I also found an interesting spin of Maslow's Hierarchy of Needs pyramid for to indicate one's personality needs. This one looks like it was created on Castro Street, but I found it interesting that Finances was way up at the top. Important to be at the top, but without the foundation of health, purpose, relationships.... you'll never get the money, and without the money, you'll never get to contribute and celebrate your successes. Point being: Stay healthy, be happy, and build a solid business relationship with a top mortgage broker so that I can do the work for you, giving you more time, better finances, and the right to celebrate your successes. Call me for your finances or for referrals and testimonials for my coaches and mentors mentioned above. Pat Townsley, Consultant, Coach, Super Genius. http://www.ptre.net/. Call 415-485-1776 to get your mortgage finances fixed.

The Secret to closing More Mortgage Deals

Wow. I finally found it. After starting in this business in 1984, then really digging in over a decade ago as a loan originator, to becoming a Broker, then a Realtor, then hanging up my Realtor designation and focusing 100% on the core business of being a morgage broker, I found the Post-It that sums up how to be successful in the mortgage business. If we just simplify the process, keep our eye on the goal and provide excellent service, the four step daily plan works.

If you know anyone looking for a new conforming loan including Stated Income (aka No Income Qualification)...I've got them along with THOUSANDS of other opportunities in today's real estate financing market. It's time to call: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/ . Keeping it Real. Simple. Let's Talk!

Fed cuts half point as predicted. Let's Finance!

It's like a Brisk! The Federal Reserve cut a key short-term interest rate by a half-percentage point today, its second significant cut in just over a week, as the central bank tries to combat the growing risk of a U.S. recession.
U.S. stocks, which had been slightly lower ahead of the announcement, surged on news of the rate cut. I'm not going to toot my own horn here, but the Townsley rate-predictometer has been dead-on the money for months.
The "federal funds rate" is an overnight bank lending rate that affects how much interest consumers pay on credit cards, home equity lines of credit and auto loans, was cut to 3.0% from 3.5%. The rate had stood at 5.25% only four months ago. That's a lot of movement. Time to get busy. I'm never too busy for your calls to get it going now.: 415-485-1776, Pat Townsley, Mortgage Broker. http://www.ptre.net/

Online submission and automated desktop underwriting

When I first started in the business, I thought I'd write a super slick Excel program that would calculate every option for a borrow when I would get them on the phone. Of course, I would spend all my time working on the spreadsheet, never picking up the phone. This was Pre-Internet, Pre-Telemarketing laws, and Pre-dot-com where everyone became a licensed real estate professional. My mentors, Jim & Bruce said "All you ever need is a piece of paper, a pencil and a calculator. That still holds true in this information age: It's simple basics; financing fundamentals. All these computer models, so-called Online underwriting and automated loan submissions are still fueled by people...and if you don't have someone you can talk to about your loan, someone who understands your personal needs, explains the "costs" associated with a new mortgage, the pitfalls, etc, then you can find yourself at the signing table with pile of documents that you have no idea what is going on and you find yourself in a loan with excessive and un-anticipated fees. Make sure that when you get to the closing table that your mortgage broker is there with you. Don't waste money. This industry still required, now more than ever, solid personal attention: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

The market is on Fire, again. This is a rollercoaster of market activity, so I recommend that you get your ducks in row now. Overall, look for Wednesday or Friday to be the biggest days for mortgage rates. Wednesday's GDP and Friday's Employment and ISM reports are the most important pieces of data, but we may see quite a bit of movement in rates tomorrow or Thursday also. If we see weaker than expected results from the most important reports, we should see rates close the week much lower than last Friday's closing levels. If the data shows stronger than expected results, we may see mortgage rates move higher again this week. This is of course, assuming that Wednesday's Fed meeting adjournment doesn't reveal any surprises. Please contact me if you have any financing questions including the Fed's proposed increase in Conforming loan limits. Who do you know who has been considering refinancing? Please get them in touch with me ASAP: Pat Townsley, Mortgage Broker; 415-485-1776 and http://www.ptre.net/

Home Loan Time!

This morning the Fed surprised everyone by taking a .750 cut to the Fed Funds Rate - prior to the opening of the stock market the Dow futures were off over 500+, it then opened up almost as low and since has made a 350+ point recover to just off 150+. Bonds of course were the beneficiary of a massive flight to quality, but are starting to drop to the morning lows, which are still pretty high.

What does this mean in the terms of real estate financing? This will move "other markets" (bonds, treasuries) around and will absolutely help lower the fundamental mortgage rates. Now, it's up to the banks to play ball. They can still hide and recoil from the market due to fear, or they can loosen up a little. Conforming loans (those under $417,000) are the "sweetheart loans" that the banks are advertising. Watch out for misleading information in print, radio and TV. Just because they say that your payment will go down $1000 per month doesn't make it so. Start your new loan here with veteran mortgage broker Pat Townsley. 415-485-1776. http://www.ptre.net/

Fed Set To Cut Key Interest Rates By 1/2 point.

The Federal Reserve board could call for an "emergency meeting" at any time to announce a rate cut. We are in an official Recession. That in itself isn't a huge concern. If it goes on for three or four quarters, then we've got a problem. President Bush will announce, or attempt to announce, that the Federal Government is going to take action to help out the average American with some form of tax break or check...something to attempt to "stimulate the economy." It won't help (overall). Look for Ben Bernanke to announce a 50 basis point cut (1/2 point) at the next session. How will the markets react? They're already anticiapting it, so it's basically being priced into the economic models already. Mortgage rates and lenders are already ready. Now, if the Feds come up short with a 1/4 point cut, that will disapoint the markets; stocks will tumble, mortgage rates will rise. I will be here to take care of your real estate financing, regardless of where the market goes. I have been dead on with my finanical predictions, not that I'm a genius; far from it in fact, but when it comes to this stuff.... well, check the record! Pat Townsley, Broker. 415-485-1776. http://www.ptre.net/

Commercial Building Loans

I never thought that commercial deals would become easier than residentail financing, but it appears that the day has come. As a Wholesale Broker, I have access and deep relationships with the top lenders in the nation. Investors are scared of residential housing markets, not the commercail markets. It's a totally different animal, and properies are welll worth considering. Apartment buildings with 5 units or more, mixed use (business and residential combo), warehouses with office suites. Run your scenarios by me, Pat Townsley, Commercial Real Estate Financing for your Suite life. 415-485-1776. http://www.ptre.net/

Crisis Services Plan

Jan. 17 (Bloomberg) -- "Federal Reserve Chairman Ben S. Bernanke said fiscal stimulus of as much as $150 billion would help revive economic growth, while warning against any widening of the budget deficit in coming years." So what's the solutions when we are in a Recession? The US economy depends on AMERCIANS buying things. When they don't have money, they don't spend, the economy stalls. They're buying things on Credit that they can't pay back. Flooding the market with money doesn't help. Raising wages is always a disaster. I've got the answer. Please contact me for your Crisis Services Plan. Broker, Pat Townsley, 415-485-1776. http://www.ptre.net/

Loss Mitigation: The Short Sale

"I fell in to a burnin' ring of fire" rings in my head as I think about Short Sales. A Short sale is different from a foreclosure. Basically, a Short Sale, the Homeowner is still Selling their home on the open market, but the existing loan company must agree to forgive some of the debt owed against the home. And, the home has to SELL in order to get out from under it. Yes, it damages credit, but not as bad as a Foreclosure, where the Homeowner has failed to make the mortgage payments and the bank simply (well, it's not "that simple") takes the home away from the homeowner. In short, A Short Sale has to SELL in order for it to close. In a Foreclosure, the bank takes the home away from the owner and it becomes the property of the bank, sometimes called a Bank REO (Real Estate Owned). The banks have companies that negotiate the sales of these properties. In most cases, the bank will take a loss. These losses are analyzed by the Loss Mitigation Department of the bank. The Loss Mitigation reps determine if they’ll accept the terms of a Short Sale. They can also talk directly with the borrowers in some cases to re-negotiate an existing note. Banks do not want to own real estate. They want the interest. They’re interested in liquidity and ROI. Questions?
Ask Broker Pat Townsley, 415-485-1776, http://www.ptre.net/

Looking for Foreclosures?

Find forelcosed homes for two-dollars and help a family out. Hmmmm. Look at this happy family. Are they happy because they just got a screaming deal on a new home or are they happy because that Was their home and they got caught up in the financing overleveraged mess and now lost their home and someone magically "helped them out." Foreclosures on owner occupied homes are no fun. Someone is losing, someone is winning. There's no "feel good" in it for the ones getting foreclosed upon. That being said, Pay your mortgage at all costs. Foreclosures, short sales, bankruptcies....they'll ruin your credit regardless, so do everything to save your home. Now, If you are looking for Foreclosures, your local Realtor can help as well as many foreclosure websites (generally finder's fee based). One site is http://www.hudforeclosed.com/ and there are many more. Watch out for scams....and of course, call me to get financing for a home you're going to buy at 415-485-1776. Also, call be BEFORE you go upside-down on your existing home financing. Pat Townsley, Mortgage Broker. http://www.ptre.net/

Preparing for a Refinance (Purchase fundamentals too!)

Now is the time to prepare yourself for a refinance opportunity in the late spring or early summer. By preparing, I’m advising you to take some actions to ensure you get the best possible rate and program when it comes time to underwrite your loan. Banks are exceptionally tough right now and will continue to be a challenge:

> Credit: Make sure your credit rating is solid. A score of 720 is really desired. Improve scores by keeping credit debt under 30% of the available balance of any card. Don’t pile the debt on to one single card, spread it across a few and don’t open any new credit accounts, buy a car or anything that will ping your credit.
> Assets: Lenders like to see several months worth of “reserves”….so try to pad your accounts as best as possible; PERSONAL Checking, PERSONAL Savings, 401k, equity accounts….Liquidity.
> Tidy up: With more storms coming, keep the yard and home looking sharp so that when the appraiser does come, she’ll be able to show your house in GOOD shape and therefore be able to use the highest possible comps. Don’t open up any walls or have any construction going on when we go to appraise.
> Keep documentation: We’ll need copies of bank statements, recent mortgage and insurance statements when applying.
> Pay Attention to the market: " Tune in" to some of the different loan products to find the one that meets your needs. There are fixed rates, Option Arms, Home Ownership Accelerator loans, Hybrids. Notice if you’re cash-flow sensitive, rate driven or fixed rate oriented.

Call or email with any questions. Lots of factors that you can start to control NOW so that you're good to go. Your call. Let me know how I can help. I've got the goods: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Soft Market Policies: More challenges for loans

New and tougher underwriting policies are on the rise in markets where the trend is for declining property values. The banks, in order to avoid future over-leveraged properties (via continually decreasing values) and maintain a reasonable equity position in the loan to value (to protect themselves)n have identified many geographical areas as "Soft Markets" and will require either MORE down payment on PURCHASE or on a REFI, you may be out of luck, outside of lender guidelines or even "upside down" on your mortgage. If it's Money Down, Upside Down, or Goose Down Pillows...Soft Markets are on the rise. One more reason to TAKE ACTION NOW on any refinancing and to sock away more money. I'm here to help and advise. Don't get left down and out. Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Once Great, She didn't see it coming...

The greatest vessel of her time that ever remanded sea, she was the mighty clipper ship, the “Sovereign of the Seas.” East Boston 1852, her frame of seasoned white oak, 12,000 yards of canvas tall, she crossed the line and doubled the horn again and again. No ship to date had stowed so much down in the hold. “We’ll weather any storm” the captain always said. After a magnificent run of seven years, she wrecked up on the Pyramid Shoals. America has quite a bit in common with this ship: Built against all odds, breaking records, weathering storms, thinking she, like the Titanic, like Rome, would never fail. American homeowners have leveraged as much equity from their homes as possible to buy “things.” Tapped, America is still spending more that we’re earning. How is that possible? Credit Cards. Soon, those will be maxed out as well. We’re looking at an epic possibility: Foreclosures, plus credit card bankruptcies, plus increasing unemployment, plus rising prices. Americans are mirroring the US Government’s fiscal procedures as a role model. Not cool. Time to batten down the hatches, tighten up the rigging, stow the gear and prepare for rough seas. Get your finances organized, your debts cleared and some padding in your pocket for the incoming tides. Only an ark will withstand the lowland shoals ahead. Please contact me for a free debt consolidation consultation. http://www.ptre.net/ . Pat Townsley, Broker.

Thanks to David Coffin for his inspiring accurate & historical tale telling and shanties including The Sovereign of the Seas from "Safe in the Harbour."

Why REFINANCE now? !

There are many reasons to start to refinance your existing finance now. Even if you have 6 to 12 months left on your tasty current fixed rate mortgage, there are some critical motivators in play right now:
1. Falling home prices may dramatically effect your home's value, decreasing your "loan to value" and making it more costly to refinance.
2. Lenders are tightening up their offerings, making it much more challenging to qualify for loans, even for people with perfect credit and good loan to values.
3. Market Saturation: This summer, the few banks that are left will be so overloaded with refinances and purchases, that they can use the pressures of supply and demand to actually Raise rates, even in light of the coming Fed rate cuts. You'll be caught in the maelstrom.
4. I'll save the rest of the reasons for the next newsletter or in a personal phone call with you to 415-485-1776. Sign up for my online newsletter at http://www.ptre.net/

Today's Market.

The National Assoc of Realtors revised their home sales outlook. Both new and existing home sales should bottom in the first quarter of 2008, then rise for the remaining three quarters. The housing starts outlook may continue to decline through 2008. WHAT DOES this mean to you? General homes being built right now aren't going to do so well, but "Resale" homes and homes coming on the market Starting March/April should see the bottom of the market.

30 YR Bond +0.04 4.38%

10 YR Bond +0.05 3.88%

1 Year TBill 3.17%

11th District COFI 4.23%

Prime Rate 7.25%

Discount Rate 4.75%

Fed Funds Rate 4.25%

I believe that there will be a massive inventory at the beginning of the 2nd quarter of 2008. The Fed will have lowered the interest rates enough that it will be a good time for people to get low priced homes with great rates. The only Rub is that lenders aren't giving out loans like they have in the past: It is MUCH harder to qualify for a loan. The sooner you start, the better positioned you will be to Purchase. Likewise, Refinance NOW while values are still relatively strong in comparison with the potential value drops in many markets. More information at http://www.ptre.net/

Back to Work: 2008

Rate direction may be slightly up over last week. The bond market is losing some of last week’s price gains (prices falling, rates climbing) as global stock markets found buyers and money shifted from bonds to stocks. The posture in the stock market at the moment is toward purchasing, but it’s likely only technical, corrective trade will dominate today. There is little in way of economic reports this week which would otherwise create volatility.

2008 is going to be one of the greatest Real Estate Buying opportunities in our lifetimes. For those who are considering Real Estate investing, now would be a good time to Get Ready. Call me for free loan consultations and free loan pre-approvals for properties in California: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Pop goes the Mortgage Industry: Washington Mutual

WaMu just announced that they're tightening up the guidelines even more. As if it wasn't hard enough to do business today and get a loan, they've change the majority of their "stated" core products to require both 720 FICO score AND 50% Loan To Value max. That means: 50% DOWN PAYMENT. So, what WaMu is saying this week: We don't want any business. Any lender can cherry pick at Full Doc conforming loan....they're a dime a dozen. WaMu, like other lenders, is effectively pulling out of wholesale lending. That's one broker's opinion. I'm usually right. Where will you go for your next loan? How about http://www.ptre.net/, Pat Townsley, Broker.

Credit Debt: Out of Control

The credit markets are in difficult times. With online buying increasing in popularity and physical retail locations rarely seeing cash as a method of payment, the Credit Card is now the method of payment. Holidays often force people to purchase beyond their means out of guilt and obligation...and last minute deals. So, come 2008, there is going to be a LOT more credit debt on the average American. Give us enough rope and we'll hang ourselves with all this debt. If you have a home mortgage that allows you to pay off the debt, you might consider a refinance. It's not always the best bet or smartest play. I offer a confidential review of your financing opportunities. Leverage and position yourself sooner than later. Be PROACTIVE and not REACTIVE to the Credit Challenges ahead. Don't find yourself going over Niagra Falls in a boat with no oars. Mortgage lenders are TIGHTENING UP and you're not going to have many opportunities soon. Take Action! I'll guide you through the maze. Pat Townsley, Loan Consultants. 415-485-1776. http://www.ptre.net/

Sign Up for my newsletter

Happy Holidays to all. Trying to be as "Green" as possible moving forward into 2008, I am now offering my monthly newsletter in email format via my secure "no spam" website. I’m doing this to cut down on paper, postage and waste. Please take action to sign-up for my electronic newsletter at www.PTRE.net. You can do it in less than 15 seconds and I promise that this is my own private database; I will not "spam" or sell my information. Over the past decade, my printed personal newsletter has gone out to just over 1000 clients per month. Quick Sign up at http://www.ptre.net/. Thank you.

More Mortgage Troubles on Wall Street: Bear Stearns

"NEW YORK (CNNMoney.com) -- Bear Stearns swung to a quarterly loss Thursday and said it was taking a $1.9 billion writedown due to bad bets made on risky home loans, becoming the latest Wall Street firm to deliver disappointing quarterly results." Posted on CNN.com 12/20/2007.
Not good news. Merril Lynch has had an even tougher time. WaMu has closed its "subprime" division. Wells closed its Wholesale 2nd's division. Citi, Chase, Wachovia/World, ALS, IndyMac and Countrywide have all reigned in their underwriting criteria. It's going to be tough times to get your next home loan. Those who ARE able to get into the market will do very well. It's a case of "the rich getting richer." We are seeing the early, but bold, warning signs of economic Depression. Time to buckle down and tighten up. If you're in an adjustable loan now, it's time to take advantage of the current low rates and lock in a long-term loan before prices make underwriting impossible. Pat Townsley: Solution Guy. http://www.ptre.net/. 415-485-1776

Why Refinance Now

Lenders are tightening up guidelines daily, so by refinancing now, you’re securing your life and buying serious peace-of-mind. I’ve been through absolute hell this past month with some of the simplest of loans falling apart and subsequent-damage control due to constant market corrections and changing guidelines. The deals are getting done, but with many more hoops-a-fire to jump through. The financial and credit sectors are in a lock-down. Americans aren’t saving. Consumer debt is out of control. Holiday retail sales numbers will be disappointing, banks will be closing branches or closing entirely. We’ll see decreasing consumer confidence and the media eating it up and skewing data for any political positioning for either side. Everything will be increasing in price from food to fuel, raw materials to transportation. Money won’t come easy anymore. Rates are as good as we’ve seen in over a year. If you (or anyone you know) needs to refinance anytime between now and 2009 and you have any concern that your home may now (or in the future) slide in value, the "Loan To Value" should be of great concern to you...right now. Secure a long-term position now before things change for the worse. We’ve only just hit the iceberg, and I’m the guy with the lifeboats. Let’s Talk. Captain Pat Townsley, Mortgage Navigator. http://www.ptre.net/. 415-485-1776.

Action without Reaction

Last Tuesday the Fed took another step at "helping" the economy by lowering the Fund Rate by a quarter of a percent. There’s also continued talk of the government and banks agreeing to "freeze" certain existing adjustable home loans as well as a bill on the table to eliminate "yield spread premiums" to lenders (in an effort to "level the playing field"). None of these will really help. Foreclosures and bankruptcies will tear us up in 2008, decreasing values and tightening guidelines will make refinancing harder in the months to come. It will make Purchase prices much more attractive, but you’ll need more money down in most cases. Get pre-approved before you shop! Purchase Loans throughout the State of California: Broker, Pat Townsley. 415-485-1776. http://www.ptre.net/

New FLEXIBLE loan program

I’ve got new loan programs rolling out from over 70 of the top remaining banks plus I’d like to introduce you to the "Home Ownership Accelerator" loan program. Let’s get a head start on 2008. If your loan is poised to adjust in the next 24 months, we should talk and put a plan and timeline together. Start your 2008 personal, family and business goals now and let me help you secure your future; Financing with Planning and Purpose, Not Pressure. Ask me about the Home Ownership Accelerator loan.

Pat Townsley, http://www.ptre.net/ 415-485-1776.

Dead Cat Bounce

Dead Cat Bounce... A twisted definition of a visual occurance in a graph charting a time horizon. What we see is a rapidly declining market, then it appears to "hit" bottom, pop up a bit (maybe even a few times from "the bottom," then continue the decline. That's what we'll see in the real estate market ing 2008, probably a few times before we hit real bottom. There are many challenges facing homeowners, the US and the world. Our national economy has a huge effect on the global market. A rising tide lifts all ships, and the opposite as well. Who do you know who needs a solid mortgage solution? Please refer them to me. Pat Townsley, Mortgage Broker. http://www.ptre.net/. 415-485-1776.