That was indeed the question of the week...and the final answer came on Friday, as the House of Representatives followed the Senate's lead and passed the $700 Billion rescue plan.
The week began with the House initially voting against the plan on Monday, causing Stocks to plunge in their final minutes of trading to their single worst loss in the 112-year history of the Dow Jones. However, on Wednesday, the Senate passed a revised rescue plan that included some tax breaks and an increase in FDIC protection from $100,000 to $250,000. This was the version the House subsequently passed and President Bush signed into law on Friday.
Why was it important for the plan to pass? Simply put, the plan frees up some of the frozen credit that consumers and small businesses across the country need to survive. As examples, even auto loans were becoming harder for consumers to qualify for...and on the business side, many retail operations have had difficulty in financing their inventory. Credit issues like these are not good for the economy, confidence, and consumer spending, and the rescue plan was passed to help matters.
In other news from Friday, the Labor Department reported that 159,000 jobs were lost in September, which is much worse than the 105,000 lost jobs that economists were expecting. So far in 2008, we have lost 760,000 jobs. And while Bonds and home loan rates would have typically improved on this weak economic news (remember weak economic news usually causes money to flow from Stocks into Bonds, helping home loan rates improve), talk that the Fed and other Central Banks around the world may start cutting their benchmark rates kept Bonds and home loan rates from making a big improvement. Remember, a cut in the Fed Funds Rate is inflationary, and therefore bad for Bonds and home loan rates.
When all was said, done and passed during this incredibly volatile and historic week, Bonds and home loan rates ended the week only slightly improved from where they began. I will continue to monitor this situation closely in the days and weeks ahead.
Tuesday, October 7, 2008
Tuesday, September 30, 2008
Deal or No Deal?
The Bailout
There were several major developments, beginning with the announcement that Japan's Mitsubishi Financial Bank will purchase 10% to 20% of Morgan Stanley, saving the company from the same bankruptcy fate as Lehman Brothers. On Wednesday, the financial markets received another vote of confidence with word that billionaire investor Warren Buffett's Berkshire Hathaway is investing $5 Billion into Goldman Sachs. But then on Thursday, Washington Mutual was seized by the federal government, and its assets were sold to JP Morgan Chase for $1.9 Billion. The fall of Washington Mutual represents the biggest US bank failure in history.
But perhaps the biggest news of the week began on Tuesday, as Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson began their testimony in front of the Senate Banking Committee on the $700 Billion rescue plan proposed by President Bush.
The plan calls for taking illiquid mortgage backed securities off the hands of lending institutions, and through the week several elements of the plan were intensely debated, including the amount of the plan, the government's role, the absence of oversight, and limits on pay for executives of bailed-out financial institutions. And while full details are still pending, it appears that an agreement has been reached, with the intent to revive our financial system and avoid negative far reaching effects to the rest of our economy.
Despite all the historic events of the week, home loan rates ended the week only around .125 percent worse than where they began. I will continue to monitor this situation closely in the days and weeks ahead, and keep you informed.
Please visit my website for more information: www.ascotmortgage.com
Sincerely,
Donna Clements Shawver
There were several major developments, beginning with the announcement that Japan's Mitsubishi Financial Bank will purchase 10% to 20% of Morgan Stanley, saving the company from the same bankruptcy fate as Lehman Brothers. On Wednesday, the financial markets received another vote of confidence with word that billionaire investor Warren Buffett's Berkshire Hathaway is investing $5 Billion into Goldman Sachs. But then on Thursday, Washington Mutual was seized by the federal government, and its assets were sold to JP Morgan Chase for $1.9 Billion. The fall of Washington Mutual represents the biggest US bank failure in history.
But perhaps the biggest news of the week began on Tuesday, as Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson began their testimony in front of the Senate Banking Committee on the $700 Billion rescue plan proposed by President Bush.
The plan calls for taking illiquid mortgage backed securities off the hands of lending institutions, and through the week several elements of the plan were intensely debated, including the amount of the plan, the government's role, the absence of oversight, and limits on pay for executives of bailed-out financial institutions. And while full details are still pending, it appears that an agreement has been reached, with the intent to revive our financial system and avoid negative far reaching effects to the rest of our economy.
Despite all the historic events of the week, home loan rates ended the week only around .125 percent worse than where they began. I will continue to monitor this situation closely in the days and weeks ahead, and keep you informed.
Please visit my website for more information: www.ascotmortgage.com
Sincerely,
Donna Clements Shawver
Tuesday, September 23, 2008
Iron Hank and Super Ben Take Path to Save the World.
"THE PATH TO SUCCESS IS TO TAKE MASSIVE, DETERMINED ACTION." -Anthony Robbins.
And success in stabilizing the markets and the economy is exactly what the government is hoping will happen as a result of the massive, determined actions they took late last week in response to unprecedented happenings in the financial markets.
And success in stabilizing the markets and the economy is exactly what the government is hoping will happen as a result of the massive, determined actions they took late last week in response to unprecedented happenings in the financial markets.
Treasury Secretary Hank Paulson announced that the US government will guarantee money market funds, after panic led to a "run on the bank" type of environment. A whopping $180 Billion was withdrawn from market funds on Thursday alone. And the fear was so great that a premium to put money into Treasury securities was paid, which actually exceeded the rate of return. So effectively, the return was negative! People were actually paying for a place to put their money that would be safe because they had fears of losing principal. The government guarantee helped to ease these fears and stabilize the markets.
The Fed announced plans to create a market place for illiquid mortgage debt. This should do a lot of long-term good to help the housing and lending environment. As if that weren't enough, the Securities and Exchange Commission also placed a temporary ban on the short selling of 799 different financially related stocks.
What prompted these dramatic actions? Very dramatic happenings earlier in the week.
After 158 years in existence, Lehman Brothers filed for bankruptcy last Monday due to overexposure of high-risk loans in the mortgage arena. Then, the Fed gave insurance giant AIG an $85 Billion lifeline to keep it from going into bankruptcy, after initially stating it would not intervene. Then it was announced that Merrill Lynch is being acquired by Bank of America, which will save them from the same fate as Lehman Brothers, and now troubled bank Washington Mutual is looking for a buyer as well.
Also playing a role was the fact that the Fed left its benchmark Fed Funds Rate (the rate banks charge each other for overnight lending) unchanged on Tuesday, not wanting to counter the recent improvements the US economy has made in the way of inflation. While this benefited Bonds and home loan rates earlier in the week, Stocks felt heavy selling pressure on the news...which added to the reasons for the actions taken late last week.
The government's announcements on Friday are great news for the overall health of our financial system, though they did cause Bonds and home loan rates to move away from their best levels of the week. All in all, Bonds and home loan ended the week slightly worse than where they began. Additionally, stocks had their most volatile week in history - but ended the week almost exactly where they started.
Please visit http://www.ascotmortgage.com for more mortgage news and a complimentary consultation.
Tuesday, August 12, 2008
Reverse Mortgages: Part Three
Jumbo Reverse Mortgage
The EQUITY PLUS ADVANTAGE is a new jumbo product that is proprietary in its creation to the investor. It allows the borrower to take the maximum amount of money with lower closing costs - no FHA Mortgage Insurance Premium. This product will yield the senior borrower the maximum amount of cash.
The Equity Advantage Product has a 3% margin which is lower than other products available in the market. A higher margin of 3.5% may be selected in return for reduced closing costs. The rate is adjustable, compounded and reset monthly. It is based on the LIBOR index, one of the most stable indexes in the industry, with a 12% cap. Rate.
There is a minimum draw amount required at closing of $100,000 and includes closing costs, liens and any lump sum advancement. The CREDIT LINE GROWTH is 5% per annum with a minimum service fee of $30. per month.
Please contact Ascot Mortgage Services, LLC at 214-360-9505 for a complimentary consultation or schedule a call with your financial advisor to examine the financial, trust and estate planning benefits of a jumbo reverse mortgage.
The EQUITY PLUS ADVANTAGE is a new jumbo product that is proprietary in its creation to the investor. It allows the borrower to take the maximum amount of money with lower closing costs - no FHA Mortgage Insurance Premium. This product will yield the senior borrower the maximum amount of cash.
The Equity Advantage Product has a 3% margin which is lower than other products available in the market. A higher margin of 3.5% may be selected in return for reduced closing costs. The rate is adjustable, compounded and reset monthly. It is based on the LIBOR index, one of the most stable indexes in the industry, with a 12% cap. Rate.
There is a minimum draw amount required at closing of $100,000 and includes closing costs, liens and any lump sum advancement. The CREDIT LINE GROWTH is 5% per annum with a minimum service fee of $30. per month.
Please contact Ascot Mortgage Services, LLC at 214-360-9505 for a complimentary consultation or schedule a call with your financial advisor to examine the financial, trust and estate planning benefits of a jumbo reverse mortgage.
Reverse Mortgages: Part Two
Top Eight Reverse Mortgage Misconceptions
1) I'll have to sign over the title, and the bank/lender will own my home.
As a homeowner, you never relinquish title to your home when taking out a reverse mortgage.
2) The bank will take my house when I use up my reverse mortgage funds and I'll be thrown out of it.
The purpose of a reverse mortgage is to help you stay in your home. It does not become due until the last surviving borrower permanently leaves the home, regardless of the balance of funds. The only exception is if you violate one of the terms of the loan (e.g. fail to pay homeowners insurance or property taxes, transfer the title to another name, or allow the home to fall into disrepair).
3) When my reverse mortgage comes due, the bank/lender will sell my house.
While the repayment typically comes from the sale of the home, that's determined by you or your estate. If the home is sold, your and your estate pays the reverse mortgage balance and keeps any remaining funds.
4) I'll owe more than my home is worth, passing debt onto my children.
Reverse mortgages are non-recourse loans, which means that the debt cannot be passed down to heirs. If the home is worth less than the loan balance, you only repay the current value of the home.
5) I won't qualify because of my bad credit or lack of income.
Income and credit scores are not determining factors for reverse mortgages. The lender only conducts a minimal credit check for identity-verification purposes and to satisfy government and investor guidelines.
6) I'm not eligible because I don't own my home free and clear.
You may qualify, even with a first or second mortgage on the home. Any existing mortgage debt will be paid off first with the proceeds from your reverse mortgage. You receive any remaining funds.
7) The bank/lender will take part of my home's future appreciation.
Prior to HUD's involvement in the reverse mortgage industry in the late 1980's, some loans did have a "shared appreciation" clause. However, we do not offer any reverse mortgages with this type of clause.
8) I don't need a reverse mortgage - I am not poor!
Reverse mortgages are not only for those with financial needs, but for those who simply want to improve their standard of living or make plans for their estate.
Don't hesitate to call Donna at (214) 360-9505 or visit Ascot Mortgage Services online for more information about home financing or investment properties in Texas.
1) I'll have to sign over the title, and the bank/lender will own my home.
As a homeowner, you never relinquish title to your home when taking out a reverse mortgage.
2) The bank will take my house when I use up my reverse mortgage funds and I'll be thrown out of it.
The purpose of a reverse mortgage is to help you stay in your home. It does not become due until the last surviving borrower permanently leaves the home, regardless of the balance of funds. The only exception is if you violate one of the terms of the loan (e.g. fail to pay homeowners insurance or property taxes, transfer the title to another name, or allow the home to fall into disrepair).
3) When my reverse mortgage comes due, the bank/lender will sell my house.
While the repayment typically comes from the sale of the home, that's determined by you or your estate. If the home is sold, your and your estate pays the reverse mortgage balance and keeps any remaining funds.
4) I'll owe more than my home is worth, passing debt onto my children.
Reverse mortgages are non-recourse loans, which means that the debt cannot be passed down to heirs. If the home is worth less than the loan balance, you only repay the current value of the home.
5) I won't qualify because of my bad credit or lack of income.
Income and credit scores are not determining factors for reverse mortgages. The lender only conducts a minimal credit check for identity-verification purposes and to satisfy government and investor guidelines.
6) I'm not eligible because I don't own my home free and clear.
You may qualify, even with a first or second mortgage on the home. Any existing mortgage debt will be paid off first with the proceeds from your reverse mortgage. You receive any remaining funds.
7) The bank/lender will take part of my home's future appreciation.
Prior to HUD's involvement in the reverse mortgage industry in the late 1980's, some loans did have a "shared appreciation" clause. However, we do not offer any reverse mortgages with this type of clause.
8) I don't need a reverse mortgage - I am not poor!
Reverse mortgages are not only for those with financial needs, but for those who simply want to improve their standard of living or make plans for their estate.
Don't hesitate to call Donna at (214) 360-9505 or visit Ascot Mortgage Services online for more information about home financing or investment properties in Texas.
Reverse Mortgages: Part One
What are Reverse Mortgage?
A Reverse Mortgage is a unique loan that enables senior homeowners to convert part of the equity in their homes into income without having to sell the home, give up title, or take on new monthly payments. Reverse mortgages are available to individuals age 62 or older who own their home.
How Does this Differ from a Conventional Loan?
· Does not require repayment until Borrower (s) move out, sell the property or pass away
· No income and minimal credit qualifications
· No monthly mortgage Payments
· Mortgages in Mexico
Reverse Mortgage Qualifications
Benefits are calculated by appraised value of home or maximum lending limit (whichever is less) The age of the youngest borrower Current interest rate No restrictions on how you use the funds in most States Proceeds from a reverse mortgage are non-taxable (please consult financial advisor)
How safe is FHA Reverse Mortgage? FHA administers the HECM (Home Equity Conversion Mortgage) and guarantees that borrowers receive their requested loan advances if the lender defaults You and your heirs will never owe more than your house is worth
Flexible Payment Options
Four payment options are available to you:
· Tenure Option (you pick the monthly payout amount for x years)
· Term Option (specific payment for x years)
· Line of Credit
· Combination of above
· You can change the plan at any time during the life of the loan (not all options available in all states)
Upfront and Financed Coasts
You will be provided an itemized estimate of closing costs, but typical costs include appraisal, title insurance, origination fee, counseling fee, FHA mortgage insurance, recording fees and other typical and customary closing costs. All closing costs are funded through the loan.
Appraisal Process and Borrower's Responsibility
· Home must meet FHA guidelines
· Termite report may be required
· Most repairs can be funded through the loan
· Property taxes MUST be kept current
· Maintain homeowners insurance
· Utilize home as primary residence
Repaying the loan
· No repayment necessary until borrower's move, sell or pass away
· No penalty for early repayment
· Non-recourse loan
SUMMARY OF REVERSE MORTGAGE BENEFIT . You maintain the benefits of home ownership . Satisfy your desires, needs, wants .
Stop Foreclosure
· You maintain the benefits as long as you remain in your home
· Allows you to maintain financial independence
A Reverse Mortgage is a unique loan that enables senior homeowners to convert part of the equity in their homes into income without having to sell the home, give up title, or take on new monthly payments. Reverse mortgages are available to individuals age 62 or older who own their home.
How Does this Differ from a Conventional Loan?
· Does not require repayment until Borrower (s) move out, sell the property or pass away
· No income and minimal credit qualifications
· No monthly mortgage Payments
· Mortgages in Mexico
Reverse Mortgage Qualifications
Benefits are calculated by appraised value of home or maximum lending limit (whichever is less) The age of the youngest borrower Current interest rate No restrictions on how you use the funds in most States Proceeds from a reverse mortgage are non-taxable (please consult financial advisor)
How safe is FHA Reverse Mortgage? FHA administers the HECM (Home Equity Conversion Mortgage) and guarantees that borrowers receive their requested loan advances if the lender defaults You and your heirs will never owe more than your house is worth
Flexible Payment Options
Four payment options are available to you:
· Tenure Option (you pick the monthly payout amount for x years)
· Term Option (specific payment for x years)
· Line of Credit
· Combination of above
· You can change the plan at any time during the life of the loan (not all options available in all states)
Upfront and Financed Coasts
You will be provided an itemized estimate of closing costs, but typical costs include appraisal, title insurance, origination fee, counseling fee, FHA mortgage insurance, recording fees and other typical and customary closing costs. All closing costs are funded through the loan.
Appraisal Process and Borrower's Responsibility
· Home must meet FHA guidelines
· Termite report may be required
· Most repairs can be funded through the loan
· Property taxes MUST be kept current
· Maintain homeowners insurance
· Utilize home as primary residence
Repaying the loan
· No repayment necessary until borrower's move, sell or pass away
· No penalty for early repayment
· Non-recourse loan
SUMMARY OF REVERSE MORTGAGE BENEFIT . You maintain the benefits of home ownership . Satisfy your desires, needs, wants .
Stop Foreclosure
· You maintain the benefits as long as you remain in your home
· Allows you to maintain financial independence
The process is easy, please give Ascot Mortgage Services, LLC a call at 214-360-9505 or for more information about reverse mortgages and other loan programs visit us at ascotmortgage.com
Friday, August 1, 2008
Investment Properties in Texas
Investment Properties in Texas
Owning investment properties in Texas is becoming more popular these days, as investors grow tired of the ups and downs of the stock market. Those who find becoming a landlord appealing, may find investment properties a good way to build wealth.
For many small investors, long-term ownership makes the most sense. You'll have plenty of time to ride out any swings in the market, and rental income can make a nice supplement to your day job. Find enough rental properties, and being a landlord may become your day job.
Finding profitable rental properties can take time, connections and plenty of research. At Ascot Mortgage Services, we have financed many investment properties over the years and we can refer you to several real estate professionals who specialize in investment real estate in Texas and Mexico.
Savvy investors are now looking to invest in Model Home Leasebacks, which means the investor buys a model home from a new home builder and then leases it back to the builder, knowing that all maintenance and fees will be paid. It is a win-win situation for both the builder and the investor. Please call Donna for more information regarding model home leasebacks.
Please contact Ascot Mortgage Services for a complimentary consultation on investment real estate in Texas and Mexico. Visit our website www.ascotmortgage.com , call us 214-360-9505 or email us at info@ascotmortgage.com.
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