Thinking About Interest and QuoteActions

I receive a daily "Quote Action" from a great company called Productive Learning (www.productivelearning.com). As I was trying to explain a certain interest rate to a current client and the advantage (in this case) of paying a point to lower the rate and payment, today's Quote Action came in. Beyond your usual "motivation/affirmation" type reminders, QuoteActions not only gives you a decent "quote" but they also take it a step further and recommend that you internalize the message in the quote by taking a specific action to making that quote a part of your day. Today's QuoteAction:

"There are no interest-free shortcuts. If you skip a stage in one way, you pay for it in another." Author, Peter Abrahams

Your action for today is to think about a project where you may be cutting corners, then do a thorough job instead.

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Remember, on top of getting a refi going, Tax day approaches. Need a referral to a CPA or Bookkeeper? I gott'em: Pat Townsley, www.ptre.net 415-485-1776

Moving Your Finances from Winter to Spring

Even though the economic seasons and generational seasons don't follow the Earth's four primary seasons during its 365.25 day annual axis cycle (the 0.25 adds up to Leap Year adjustment every four years), we are physically tied to the cycles of the planet; So now we're moving from Winter into Spring. We may associate spring with new life, growth, transitions, time for action, longer days. Business too can walk a fine line between the economic seasons. The US Dollar is in a precarious position and we're balancing on the leading edge. The choices you make now will impact the future financial seasons of abundance or scarcity. Mortgage rates have been going berserk the past few days with banks so backlogged, they're raising rates to slow things down. Add the lack of underwriting staff at banks and the increasing demand for mortgages, and you've got frustration for brokers and borrowers. Moral of the story; Take time to plan properly, set your expectations, be patient, and take time to smell the flowers while your new home loan secures your financial security. Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Words of Faith and Devotion

How do we counterbalance the bombardment of negativity? I always try to put a positive spin on a situation, like when $1900 was ripped from my banking account 3 days before Christmas to find my ATM Card wouldn't work as I was buying my holiday gifts; Perfect timing. I found out that the money was spent at a grocery outlet in Argentina, so, I've got to believe that someone got fed and the food was put to good use. Everyday we've got to surround ourselves with more "Positive" input. For myself, before the rush of daily mortgage lender rate sheets come in by the dozens and the trading floosr open, I read my inspirational "Quote Action" from Productive Learning Inc. Then, I get my visual moment of zen from my daily feed from the Yosemite Blog. If a challenge comes my way, I ask "How can I handle this and enjoy the process?" Each day, I set myself up to win; armed with positive affirmation and faith that I'm going to make the most out of the 86,400 seconds given to me today. I'll put my energy behind your financing and your referrals. Let's do some positive business and enjoy the process. Pat Townsley, Mortgage Broker. 415-485-1776. www.ptre.net

Economic Apocalypse: Cash Infusion = Worthless Dollar

How can I put this one lightly without pissing off either half my clients? As usual: Let's put Politics aside and CLICK HERE; It's a chart from the Federal Reserve here in Q1 2009 presented by Glenn Beck. Again, take off your political hat, have a sense of humor on the Fox-delivery, but look at this chart (this video has been emailed to me from friends both Left and Right, so something is striking a chord here). The infusion of cash into the system is one of the hot-button issues I've been warning/blogging about for some time. Add government "buying" US banks, increasing unemployment, an unprecedented generational occurrence called "The Boomers" and we've got some real challenges. Armed with only this video, please, take chart data and do your own research. It's coming. How will you be prepared? Do you remember my 2006 and 2008 postings on Fourth Turning and subsets of the Kondratieff Wave research? These forecasting models hit right on time and only a few were prepared. Do take a look at this clip from Glenn Beck. Have fun with the delivery, but do your own due diligence on the math and logic behind the chart and come up with your own conclusions. One last thought: What if OPEC decides to move from the US Dollar to the Euro as the medium of exchange? Thanks to everyone in my social network who sent in this video and other ongoing financial opinions. Left, Right or indifferent, the Chart itself is derived from real data.

Keep The Change!

Change. It's what we all want, right? It was the slogan for the new president, it's what so many want socially, it's what we want environmentally, it's what the homeless are asking for on the street corner, it's what banks often say that you can keep. So, just be careful what you ask for. In the world of banking, there are two sides of the fundamental scales of service: Savings and Loan. Bank loan money (through, say, a broker like myself). Banks also want you to deposit money (savings, CD, money market, investments). The catch is: The cogs and gears are all jammed up. Banks aren't making enough spread on their money, so they're making a LOT of it up in FEES, or in this case, let's call it CHANGE. To increase income, banks are increase NSF fees, transfer fees, early termination fees, ATM fees, bounce check and stop-payment fees. So, check your statements, fight the system, make sure the Change in your bank is Change going into your account. Don't get killed on Bank Fees! Tip of the day. That's my two cents. Make sense? Everything counts in large amounts. http://www.ptre.net/

New High Balance Conforming Loan Limits

Conventional Residential Home Loans: That's my bread and butter. One and two unit properties are what I've focused on over the past 15 years. The Fed raised "conforming" loan limits from a max of $417,000 to $725,500 which ended in December of 2008 as part of the stimulus package. This number varied from city, county, region (depending on the median values of the area). So this 725k number was really the max. However, when legislation was passed, they kinda forgot to ask Fannie and Freddie about it...so it took a long time to actually institute these loans. Now, come Q1 of 2009, they dropped the limit to a max of $625,500, and of course, Fannie and Freddie are "backing" these 30 and 15 year fixed loans, and now, new stimulus is moving the limits back up to the 725k mark again...but again, the plan versus the execution is the challenge. Bumps in the road; programs always changing and banks charging more fees. You can't read fast enough to keep up with it all, so, if you're on the fence, may I recommend that you climb down for a minute, give me a call and let's run some numbers. Get it rolling and we'll lock on the dip.
Pat Townsley: 415-485-1776. Broker #0123435. www.ptre.net

Life, Economy and The Power of Positive Thinking

Ever watched a movie more than once? Maybe more than two or three times? Why? Probably because you enjoyed it and it gives you Certainty that you're going to have repeated good feelings from it. After being tortured with the continual economic news and subsequent self-fulfilling prophecies, I need that "good feeling" to make my day an inspiration to others. So I've just re-read "The Power of Positive Thinking" by Norman Vincent Peale. It's a classic. Many tales of old inspiration that still hold true today. What you focus on is what you attract, and thoughts become things. If I can be an inspiration to my friends, my family, my coworkers, my employees and my clients, it just may rub off. It's better than the alternative. Life's too short to focus on the negative. Shit happens; How you deal with it is up to you. Why do we fall? To get up again! I'm the guy who keeps getting up again. Every day, you are given 86,400 seconds. How will you use yours today? With a smile, I hope. Keep fighting. I'm an advocate in your corner. Need a sympathetic ear? Let's work it out. Pat Townsley, California Mortgage Advisors. Licensed broker in all 50 states (but let's do some business here in our back yard! Your referrals are appreciated.

Jessica Simpson, Chelsie Hightower, Kelly Clarkson and the The Fate of the World

One of these things is not like the other. Bury your head in the sand, information over-load, detachment from what we perceive to be "reality." The first three in the heading here are the this week's most popular web searches by visitors to Yahoo. So, maybe Yahoo attracts a more "pop culture" user. At the bottom of the list: Foreclosures. Not Job Search, not Unemployment, Not Government Stimulus, not the Economy. Interesting. It's easy to get distracted, to procrastinate, to hope it's all going to get better. Sure, maybe there is nothing you can do to save the world by yourself, but you can at least work on saving yourself. If it's escaping to La La Land to find out pop culture, well, there goes the country. If it's to focus and save yourselves, your home, to get ahead and take advantage and take action in turbulent times: When would NOW be a good time to start talking with some advisors. Or, tune out, buy a Snuggie or a Flowbie and veg-out to someone esle's life on the network. If you don't plan, you'll be part of somebody else's plan. Let's talk about where we go from here with your financial future and security. Pat Townsley, California Mortgage Advisors. 415-485-1776. www.ptre.net

Riding Out The Storm

Was it REO Speedwagon who sang about "riding out the storm?" That would make each on of us Riders on the Storm. Even though Morrison didn't make it, we can. Back in early 2008, got some negative comments where I said "In 2009, we're going to be in a Depression, begging and looking up for a Recession." There are those who said we'd never get into a Recession. So, I won't bang my drum about being some special forecaster; Lord knows I've blown a half million bucks the past year and "crapped out" on the financial craps table of life. So, what can YOU do now? PREPARE. Brace. Fortify. With unemployment at its worst since 1947 and the markets down and values falling and markets grinding to a global stop, we haven't seen the end of this. We may be at the quarter-way mark. It's all cycles and trends; it just sucks to be in the valley right now. For those who can: LOCK-IN your 30-Year fixed rates NOW. Get them going. For the Jumbo players, Get into at least a 5-year interest only loan (that's the only rate that makes sense on Jumbos right now). DON'T leave yourself in an adjustable situation. The rubber band will snap on rates and it will be too little too late. Gett'er done now: Pat Townsley; Mortgage Broker. http://www.ptre.net/. The next set is coming in, so line-up, outside break, get ready to ride the next wave.

Interview with a Professional coming to PTRE

I'm going to start a weekly "Interview With A Professional" series that I'll be posting to my WordPress site. I'll be including two of my top credit people including the Identity Theft agent from a previous blog, a credit repair specialist, and a contact from a reporting bureau. I'll also be talking with Realtors, CFPs, Attorneys, Loan Modification brokers, Headhunters, CPAs, solid business associates of mine that I know are a wealth of knowledge. My goal is to keep you informed and give you additional referral/reference sources to protect your your assets and life, help you get motivated and networked. Food for thought. Be looking for Interview With A Professional" coming soon to http://www.ptre.net/. In the meantime, contact me with any questions. Pat Townsley, Advisor to the star. 415-485-1776. http://www.ptre.net/

Credit Fraud: A hot button topic

Wow: Lots of responses to my posting on credit fraud last week. As a Mortgage Broker, I've seen thousands of credit reports and have had a high level of success helping clients improve their scores, finding errors and ways to fix them. It is getting more difficult. Right now, I see three primary ways people are opening themselves up to getting hosed:
ONE: Not Shredding documents (bank statements, checks, etc). TWO: Using un-secure sites for online purchases.
THREE: Not using best practices for mailing out checks or sensible credit card run receipts.
Crime is on the rise. Use your brain. If mailing a check, put it into a secure blue post box or in mail center; Don't leave it with "flag up" in your front yard. In the meantime, contact me with any questions. Pat Townsley, Advisor to the star. 415-485-1776. www.ptre.net

1 in 5 Homeowners Underwater: What to do

The map here shows the Lay-off Hot Spots nationwide. Red being high, white, not so bad. So, who wants to be a 'red state' in this map? Stats are indicating that 1 in 5 homeowners owe MORE for their homes than they home has Value. We call this being Upside Down or "underwater." Not a comfortable place to be. Add that to the unemployment and there are several word starting with the letter F that come to mind. A bank that begins with the letter W predicts that by the end of Q4 2009, 34% of all of their current loans in their bank will be in foreclosure. That's probably a bit high to pad shareholder's positions when the number comes in at a similar 1 in 5, but that's still 20% of the country upside down and/or and additional 20% in foreclosure. Long story short: Stick it out as long as you can. See counseling on many levels, and get multiple opinions from objective professionals. And lastly, try to find something positive in the mix. Focus on what's good in your life. Keep your faith high; This is the beginning of when we're going to need it most. Need counseling. I'm here to lend and ear. Pat Townsley, Mortgage Veteran of a Thousand Psychic Wars. 415-485-1776. www.PTRE.net

Capital One buys Chevy Chase

Over the past decade, one of my favorite mortgage lenders was Chevy Chase Bank. I always envisioned Chevy Chase with a loan file tripping into chairs and papers flying, or Ty Webb with Danny on the golf course at Bushwood. But Chevy Chase Bank was a serious player; They basically had their own money, had some nicely priced ARM products, a great local rep (Amy, I hope you're doing well), and decent, sensible underwriting. But like so many, Capital One recently acquired Chevy Chase. Another lender in the Implode-o-meter. Perhaps Capital One wants some access to Government "TARP" funds so adding additional banking to their portfolio will help get some. Washington Business Journal stated "Capital One Financial (NYSE: COF), one of the nation’s largest credit card issuers, only recently entered the retail banking industry with bank acquisitions in New York, New Jersey, Texas and Louisiana. It posted a $1.42 billion fourth quarter loss after boosting reserves to cover bad loans. It's a mad mad mad mad world. With High Risk can come High Returns if the notes are good. Need good advice on where to take you real estate financing: Come to daddy: Pat Townsley, Mortgage Broker. 415-485-1776. King of research. www.PTRE.net

Stolen Goods and Identity Theft: You're next!

This morning, my wife found that her car was broken into last night and her iPod docking station was stolen and the glove boxes opened (it was a fast, smart, tech-gear oriented lift). SAPD noted several cars had been hit the same night. Now, sure, we live is "safe" San Anselmo, so the point here is to "Lock your car doors" and start locking your house. But it doesn't stop here: As the economy declines, more jobs lost and depression is in air, Desperate times call for Desperate Measures: In short, we see CRIME INCREASE. The point-in-case theft (above) in our community is NOTHING compared to the ever-expanding world of International IDENTITY THEFT. You really have NO IDEA how much of your information is at large. This evening I attended a San Anselmo Chamber of Commerce presentation featuring State Farm agent Kris Kelson plus Identity Theft expert John Taylor. I HIGHLY recommend that you reach out to John Taylor (click here to email him) and get informed. The threat is real, the solutions are available. Protect your ass...ets. You can also call John Taylor at Taylor and Associates at 415-454-3977 for a consultation. In the meantime, rest assured that California Mortgage Advisors has always had measures set in place to safeguard your personal information. Your loan and data is safe with me: Pat Townsley, Mortgage Broker. 415-485-1776. www.ptre.net

The Carrot or the Stick?

The Carrot or the Stick... sometimes known as The Carrot AND the Stick; Basics of human psychology and life: Pleasure or Pain. Sometimes the pain of FEAR (False Evidence that Appears Real) paralyzes people. This paralyzing (complacency) seems safe, therefore, no pain. Conversely, they also know if they don't take action, they'll face Pain of loss of not trying, not doing their best, not taking the chance or taking charge of their own actions towards exceptional opportunities. Who's going to come out of this Recession ahead? Those who sit in Fear, or those who step up here in 2009, make the bold moves, make the investments in markets, new businesses, in education; those who work harder and go the extra mile will receive the carrots. So, while you sit on the sidelines, straddle the fence, know that I'm working harder than ever to make 2009 the best year ever, securing my future, my family's future, and for the future of my clients and friends as Your Mortgage broker. Pat Townsley, moving up. www.ptre.net. Let me help make your 2009 the Best Year Ever.

Giving it away: Sleepy Hollow Home for Sale on Butterfield!

981 Butterfield Road, San Anslemo CA, MLS Listing # 20903596 with Listing Agent John Vantress with Bradley RE in San Anselmo. I know this house Intimately, and it's on the market for a song; Probably the best value in all of Marin County. I hate to see it on the market and hate that I'm personally not able to swoop in and pick it up right now. If you know anyone looking for the best school district, great house, pool and privacy; Here it is. Need to finance it? Contact me. Do you want to preview it? HURRY UP and take action! This beauty is priced to move! If you need a referral to represent you as a Buyer, please contact me as well. http://www.ptre.net/

Lessons from Legos; Keep moving forward

I've had some down-time with the family the past week, intertwined with emails and Facebook postings from friends and business clients where, perhaps it's "post-election blues" where there was all this expectation of immediate change and hope...and now that the hype is over, everyone is just; BLAH. A Blah added to winter, rain and econmic blues. So, Richard (my 7-year old) is building a house from Legos last night. He turns proudly and says "Mommy, Daddy, check out my...." and as he turns, the whole Lego house wall falls off and the foundation drops and the whole thing ends up on the floor in a pile. The result was frustration, tears, "I don't want to build another one," "this always happens." So, in my infinite wisdom, I sit down and simply re-start something else supercool. He slowly re-engaged in the building of the new project, and I calmly explained the old "pick yourself up by your bootstraps" and just keep going. Because, in the end, what else it there? Life is simply learning and relearning. So, pick up the pieces, get a plan, get busy, and Keep Moving! Motion creates Emotion. Wanna talk about it? Let's talk: Pat Townsley, mortgage and Lego therapist: www.ptre.net

Inflation Cometh, Oh Yes, Brace for impact

It's gonna hurt later than sooner: Ladies and gentlemen, please put your tray tables up and return your seatback cushions into thier upright and locked positions; We're NOT in for a soft-water landing. This goes back to the old statement "be careful what you ask for." Look, the massive infusion of funds into the US economy is only a bandaid. It is NOT the cure to the cause. Remember your Greek mythology: Cut the head off the Hydra, and two grow back in its place. Such is true in the short term stimulus package here. In two years, maybe up to five (but I'm taking the "under" in this bet)...we're screwed. Interest rates WILL BE back in the double digits; 12 to 16% rates on loans will not be a surprise. Remember when the Dow would change 400 points in a day and it would be in 6000 point font on the newspaper? Today we have 800 point swings in a day and it lands in the classifieds on page D-7. Unemployment; Half Million jobs lost; sweep that under page C-3 under the local murder story. Folks. Conspiracy theories abound, but it is COMING. Learn from your history. For over 24 months I've been blogging on the forecasts; and they've been dead on with the exception of ONE rate cut miscalculation. Infusion of cash will fix a few roads, repair some buildings, buy some government office furniture...but the so-called "pork" of what is coming is a slaughterhouse. This won't be a soft water landing in the waterways of NYC, this will be Flight 800. Lock in your rates now. http://www.ptre.net/ Pat Townsley, Agent to the stars. 415-485-1776.

California Financing Takes Another Hit; "ING BANK"

Yikes, as predicted, the ripples will continue in the world of Real Estate Financing. Today, ING Bank announce effective immediately that they will no longer consider 2nd homes, interest only loans or any incentives for "really good" loan to values. What does this mean to you? Simply adding fuel to the trend analysis that real estate financing is getting MUCH HARDER so you must ACT NOW if you want to refi or buy. So far, we've lost the big boys: WaMu, Chase, jumbo loans at Wells, and now ING showing signs of fears and doubt. The government package ISN'T going to save you and pump money into consumer's hands. Just because we have a new president doesn't mean the wheel of fortune will be lubricated and money is easy. Quite the opposite. Change takes time, and the perception of fear is a killer! So, Buckle-Up and Honker-down...but look at the facts, get the real data, make your own informed decision. Don't dream up shit that hasn't happened, but prepare yourself for it instead "I have been through some terrible things in my life, some of which actually happened." Writer, Mark Twain. Let's talk. Pat Townsley, Broker. www.ptre.net 415-485-1776. Real rates, real service, real person for today's real estate.

Bailout Fundamental Math; S & L 101.

Savings and Loan 101: Banks attract customer deposits by offering a guaranteed rate of return on investment (usually a guaranteed rate and secure investment). So, the bank takes your money and says we'll give you....5% return on the money you're depositing for the next "X" months/years. The rate (percent) needs to be attractive for someone to put their money in the bank. That's the "savings" portion. Next is the "loan" portion, where a bank loans out the money you've invested to someone who agrees to pay the bank back, say, at 7% interest. So, the bank is basically "brokering" and earning the difference of the money invested at 5% and the money loaned at 7%, in this case, they're making 2% gross profit. Now, if there is no "carrot" for people to invest money, for example, an offering of a 2.5% return on a 6-month CD, then borrowers say; Screw it, I'm' better off with my money stuffed in my pillow; It feels safer there plus the rate of return isn't appealing at the bank. Next, the banks are loaning out money at something silly like 4.5%... so now the banks have no profit margin, plus loans are defaulting, and the whole thing turns to shit. The fundamentals of banking are being manipulated in a way that is us-sustainable as a business model and consumers have no confidence. It's deeper than this, but if you can get a loan in the 4%'s right now on 30-fixed, I'd recommend that you sack-up and do it. Do it now. It's the ONLY thing in your advantage in banking right now. www.ptre.net Pat Townsley Real Estate Network. 415-485-1776