Bushes new economic stimulus plan

Bushes new economic stimulus plan is now approved with congress and just needs to be approved with the senate now. That’s Great! I just wanted to share my excitement about the program. I have a past blogg that explains more about this program.

The Federal Government lowers the federal funds rate to 3%

This article is taken from their website located at http://www.federalreserve.gov/newsevents/press/monetary/20080130a.htm

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3 percent.

Financial markets remain under considerable stress, and credit has tightened further for some businesses and households.  Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Today's policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity.  However, downside risks to growth remain.  The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.
--
For more information please go to their website at http://www.federalreserve.gov/default.htm

Ed Bates
Wasatch First Financial
MLoans.net

801.330.4964 cell
ed@mloans.net
Apply online www.mloans.net

Where do we go from here?

I have been reading news articles lately and wonder about the whole mortgage market in general.  We know that the sub prime market is in trouble.  We know that Bush and Congress have an economical stimulus plan that could help the mortgage and real estate market.  The feds have slashed rates again this week with the possibility of another rate cut next week. 

 

I read through all this and "WOW" What an industry to be in. 

 

Mortgage guidelines are changing on a daily basis.  The reason why I bring this up is that in order to stay on top of the mortgage business it takes a lot of time, reading and emails to stay updated. 

 

The reason for my blogg today is to say that even though the real estate industry is having some trouble, it is still a great time to buy a home, or refinance.  Interest rates have never been this good.  It's true that lenders have changed their guidelines, some on a daily basis and made it harder to obtain financing.  But still it is a great time to buy a home.  I cannot predict where rates will go from here, up or down.  But for now, there is a lot of money saving loan options still available on home financing. 

 

Ed Bates
Wasatch First Financial
MLoans.net

801.330.4964 cell
ed@mloans.net
Apply online www.mloans.net

Bush new economic stimulus plan

Their was an article that I read by CNN on Friday the 25th of January 2008
it talked about an economic stimulus plan that was announced Thursday by
congress. Congress and the Bush administration announced this bill that
addresses the mortgage crisis. From what I read and have looked into it
aims to make getting a mortgage easier and cheaper in high-cost markets.
It talks about refinancing as well as foreclosure

The bill talks about lifting the Freddie Mac/FannieMae loan amount from
$417000 to $625000 for a period of 12 months. I think that this would be
great for most markets due to the high cost of homes..

Some of the benefits of this program I think will be helping those with
Jumbo mortgages to even refinance as well as save them money. It would
help to get homes sold faster. It will also help homeowner who are
distressed to be able to refinance and may provide a way out.

I think that a home losing value affects some people mentally. What I mean
by this is that its like I would be more likely to spend money on other
goods if I new that I had growing equity in my home. On the other hand I
would not spend as much if I were loosing equity in my home.

Ed Bates
Wasatch First Financial

801.330.4964
www.mloans.net

Apply online for your home mortgage today!

"My adjustable rate mortgage is adjusting up way too much!"

That's a complaint Loan Officers are hearing a lot lately.
You're not alone. Different estimates are that between 500 billion and 1
trillion dollars of adjustable rate mortgages (ARMs) are set to adjust by
the end of next year.
For some people, interest rates are going up 3-4% once their adjustable
rate mortgage adjusts. This is resulting in a payment increase of anywhere
between $100 and $500 a month, possibly more depending on the size of your
loan.
Remember that your not alone. Many homeowners are facing the same
dilema. As your rate rises so does your payment. As your payment rises so
does the stress. When purchasing a home it's important to take these
changes into account. If your already in the home then it's time to look at
some financing options.
Stop the "PAYMENT SHOCK" Blues and look into a Fixed rate until the trend
of Adjustable Rates has settled.

Thanks

Ed Bates
Wasatch First Financial

801.330.4964
www.mloans.net

Apply online for your home mortgage today!

The Federal Reserve slashed two key interest rates

NEW YORK (CNNMoney.com) -- The Federal Reserve slashed two key interest
rates by three-quarters of a percentage point Tuesday following an
unscheduled meeting, citing continued concerns about a weakening economy
and turmoil in the financial markets.

The Fed lowered its federal funds rate, which impacts how much consumers
pay on credit card debt, home equity lines of credit and auto loans, from
4.25 percent to 3.5 percent. The Fed also lowered its discount rate, which
is what it costs banks to borrow directly from the central bank, by
three-quarters of a point, to 4 percent.

Stock futures, which have been pointing to a gloomy start on Wall Street
after market sell-offs abroad Monday, moved off their lows following the
rate cut but were still sharply lower.

Wall Street had been betting that the central bank would need to initiate
an emergency rate cut before its next scheduled meeting, which concludes on
Jan. 30, in an attempt to help keep the economy from tipping into a
recession.

Since September, the Fed has cut the fed funds rate from 5.25 percent to
4.25 percent. Investors have been clamoring for more, and bigger, rate cuts
in the hopes that it will kick start a moribund economy and encourage
businesses and consumers to spend.

Still, others think the Fed needs to proceed cautiously, especially since
it's fair to argue that aggressive rate cuts during 2001 may be the reason
why banks are in the subprime mortgage mess they are in now.

Article by CNN Money Posted on January 22 2008

Ed Bates
Wasatch First Financial

801.330.4964
www.mloans.net

Apply online for your home mortgage today!

Why use a mortgage broker

There are many reasons that you should use a mortgage broker and many
advantages to using a mortgage broker.

Here are just a few..
1. One reason to use a mortgage broker is because a mortgage broker has
access to all kinds of different home loan programs.

2. A mortgage broker is also able to move your file to another lender
should a better deal appear.

3. If there is a problem with your file in underwriting your mortgage
broker can switch lenders within minutes and ensure you meet your close
date. Local banks cannot do this.

4. Mortgage brokers are also familiar with the area in which they operate.
Using someone local has big advantages. With so much mortgage information
online, it's hard to know who to choose. If something goes wrong along the
way with your loan, it is easier to deal with if you have a loan officer
you can meet with face to face rather than a website or 800 number.

5. As a mortgage broker, I'm completely independent. I'm not employed by
or work for any

Thanks

Ed Bates
Wasatch First Financial

801.330.4964
www.mloans.net

Apply online for your home mortgage today!