Mortgage bonds remain at lofty levels near the all time high in history. It doesn’t get better than this so people should be taking advantage of it while it’s available! As discuss many times before rising inflation is the arch enemy of mortgage rates and the inflations indexes remain low for now, but are starting to show some signs of life. Yesterday’s hot read on Core Producer Price Index (PPI) came in at 0.4% above expectations of 0.1%. Today’s Core Consumer Price Index (CPI) rose by 0.2%, above the 0.1% expected, while the year-over-year Core rose to 2.3%, the highest level since October of 2008. Remember that the Core reading removes ultra-volatile food and energy prices, so is considered to be a bit more accurate of overall price inflation. That said, the headline CPI (which includes food and energy) rose by the fastest pace in four months to 0.2%, but ended up below the 0.3% expected. So these inflation readings are increasing a bit and while the overall year over year numbers are still tame, if this trend continues mortgage rates will have to rise at some point. The moral of the story is don’t take these historically low rates for granted expecting them to be here forever!

Jumbo loans have become more available and priced more aggressively over the past several months. The 7 Year Jumbo ARM has the best rates I’ve seen for that program right now as a 1.5 Million loan amount has a better rate than below 417k conforming! The Jumbo 7/1 ARM is at 3.00% right now with no points! Amazing!

By: Tony Guaraldi
Mortgage Banker

Alain Pinel, the renowned real estate entrepreneur whose name is on the façade of a leading national real estate company, has returned to Northern California and will serve as Senior Vice President and Managing Officer of Intero Real Estate Services, a premier real estate brokerage company headquartered in the Silicon Valley.

In his new role, Pinel will use his experience and past success in facilitating Intero’s Estate and Luxury markets, nationally and internationally.

“I have a passion for this business,” said Pinel, “I am excited to begin a new project with an outstanding brokerage and a progressive leadership team. I look forward to joining forces with Intero and working with their Luxury Brand.”

Pinel’s 30 years in the real estate business have made him a leader with a solid track record for success:

In the ’80s, while EVP and General Manager of Fox & Carskadon, then the largest residential real estate firm in the area, the firm tripled its volume of sales (over $3B) and emerged as one of the top companies in the country as well as a regional high-end real estate leader.
In 1990, as founder, chairman and CEO of Alain Pinel Realtors, he reinvented the marketing of high-end properties around international advertising and state-of-the-art technology, before selling the firm to his two partners to spend a few years in Europe.
Through the end of 1994, Alain Pinel was in Paris, in charge of the commercial activities of Sefimeg, the largest real estate entity listed on the French stock exchange with a portfolio of over 9,000 apartments and 3 million square feet of leased commercial space.
In 1995, Coldwell Banker brought him back to California. As SVP for the San Francisco, Peninsula & Silicon Valley region until 2002, Pinel put incredible new records on the books for the company with a sales volume of $13 billion in 2000 and 14,000 closed residential sales.
In 2002, together with three partners, he founded Imminence, a start-up that changed the way real estate is done in France and neighboring countries. With a core business built around the MLS system, he provided a menu of marketing, financial and productivity tools to the industry.
From 2008 to the Fall of 2011, while SVP & General Manager in Massachusetts for William Raveis, the 10th largest real estate firm in the U.S., the company saw its market share jump 50%. It was voted “Best real estate company in Massachusetts” four years in a row.

Mr. Pinel is also a former VP of FIABCI, the International Real Estate Federation in Northern California, and former VP of the French-American Chamber of Commerce.

“We are thrilled to have Alain Pinel as part of the Intero team,” said Intero Real Estate Services Founder, President & CEO Gino Blefari. “Alain is a seasoned real estate veteran with tremendous knowledge and experience in the industry and we look forward to having his expertise added to our Estate and Luxury market strategy. His extraordinary level of professionalism will continue to lead and expand the Intero brand as a household name locally and abroad.”

About the Intero® brand

Founded in 2002, Intero Real Estate Services, Inc. has quickly become one of the premier real estate brands in the U.S. In 2004, Intero Franchise Services Inc. began franchising and currently is operating in many of the western states. In 2009, Intero International Franchise Services, LLC embarked on developing territories in Asia Pacific, Europe, Middle East, Africa and the Americas. The companies are private and headquartered in California’s Silicon Valley.

The EU Summit wrapped up with leaders working through the night and concluding at 5am this morning. The decision? They agreed to a new, tighter “fiscal integration” across the Eurozone. This means that a new treaty will be drafted, setting guidelines such as annual budget deficits being limited to 3%, and failure to meet guidelines like these would automatically spark disciplinary procedures. As expected, Germany was the winner in this negotiation as they demanded a tighter fiscal union in lieu of firing up the printing press and buying troubled sovereign debt.

There are still so many questions that need to be answered, and there is concern that Southern European member countries won’t be able to grow their way out of their debt problems and meet these new fiscal targets. Germany avoided having to start printing money for now, so they somewhat won the battle. But time will tell whether the European Bond markets have the patience to sit through a new Treaty draft and more uncertainty, confusion and unanswered questions by keeping yields at or near current levels. If European yields spike further, the ECB’s hand may be forced to do even more. One thing we know for sure – this story is far from over.

What does the historically low 30 year fixed rate really mean to our buyers??? Well we ran an amortization table and compared a 6.25% fixed rate to a 4.25% fixed rate on a 500,000 loan size and were surprised with the results! We asked our marketing department to create a flyer to show the benefits of buying while rates are low and I’ve attached a sample titled “What Does a Low Rate Really Mean.” If you would like to add your info to the flyer and send out, just let us know and we’ll create it for you. Check it out the results are amazing!

Have a good one!
Tony Guaraldi
Mortgage Banker
10275 N. De Anza Blvd. Cupertino, CA 95014
408-342-8644 Office 408-516-5922 eFax
408-504-3295 Cell
TGuaraldi@westernbancorp.com
DRE# 01395538 NMLS# 293894
www.westernbancorp.com

I wanted to say I hope you are enjoying the last of your summer, we finally had our first rain in a while and looks like there is more to come.

I attached the monthly Market stats, The biggest thing to notice is that there are about 30% less home for sale on the market now than there were this time last year. The amount of inventory we have had to choose from has been shrinking, As rates hit another all-time low a few weeks ago it has really kept the market moving. If things continue the way they have been it looks like we are past our so call “double dip” in this local area. Now is a great time to make a plan and still take advantage of low rates while prices are what appears to be the bottom.

Here are some interesting articles I found.

First time home buyers are being aced out by investors

http://www.mercurynews.com/business/ci_18853804

Famous Carol Rodoni Came by our Intero Saratoga office last week to give her economic update, We have it on video and want to share it, it is very great information.

Part 1 http://www.youtube.com/watch?v=yCpU9yB2nE8

Part 2 http://www.youtube.com/watch?v=YrBYqKYvA-Y

Part 3 http://www.youtube.com/watch?v=VKII5HuOOWM

Please let me know if if you or anyone you know needs help in any real estate transactions, it is a great time buy/sell real estate!

From One of our Top Producing Loan officer at Intero.
“Wow what a week for the stock and bond markets! On Wednesday the Fed announced a few things that really moved markets. First that they said that there remains “significant” risks to the downside for the US economy. Not good for stocks and good for the bond markets. Second the surprise announcement that the Fed will reinvest principal payments on their current holdings of agency debt back into Mortgage Backed Securities. If you remember in 2009 and 2010 the Fed bought 1.2 Trillion in mortgage bonds and many of those are paying off with refinance activity now. So they surprised the markets by saying that they plan to reinvest the payoffs back into more mortgage bonds in an effort to keep mortgage rates low. The third thing is that they see inflation has moderated and will do so further. Not sure everyone agrees with their inflation predictions but it was a very bond friendly statement. With this release the bond markets took off on Wednesday afternoon and set a new all time high record for mortgage bond prices. Again mortgage rates move in the opposite direction and are at all time lows. The interesting thing is we are not seeing the improved bond prices directly impact the mortgage rate sheets as they normally would so maybe there is a limit on how low these rates will go. Time with tell but to put it simply we remain at all time lows so take advantage!

Have a good one!
Tony Guaraldi
Mortgage Banker
“

Intero has #1 Market Share in Silicon Valley. Solidly ahead of CB in July and nearly twice as much as APR.
Now is a great time to buy or sell with the bay areas number one Real Estate Company!

Finally, a recipe for success as Cali Mortgage figures out a way to get disputes removed from credit reports.

In 2010 Fannie Mae made some changes to DU (Desktop Underwriter), their automated underwriting lender approval program. One of the most recent changes to Fannie Mae’s DU is the implementation that a mortgage applicant cannot have any disputes on their credit report. It doesn’t matter if the dispute is paid, resolved or no longer in dispute. It will have to be removed from credit report before close of escrow.

It is frustrating but quite simple: Most collection agencies and creditors are very large companies who have attorneys that write-up the letters that the actual collectors are allowed to give out. Apparently, it is very expensive, time-consuming and basically impossible to complete the process of adding a new letter to approved letters list therefore you are dead in the water when you ask for a “no longer in dispute letter” that isn’t already approved by the attorneys.

This is becoming a widespread problem in the mortgage industry. In recent months several mortgage applicants were turned down for financing due to a dispute being on their credit report. When Fannie Mae decided on this new guideline I am not sure it was well thought out or that they were aware of the tremendous impact it would have on lending and how difficult it is to remove a dispute.

It is possible to have a very high FICO score and have a dispute at the same time so this guideline is affecting responsible borrowers that have immaculate credit otherwise, substantial savings, and excellent employment history.

Cali Mortgage hopes Fannie Mae will remove the guideline in the near future but in the meantime it is something we all have to deal with…

Are you ready for the good news?

Through hard work, racking their brains for months and a little bit of luck Cali Mortgage has finally developed a way to effectively and strategically remove disputes from the credit report. The process takes about 72 hours and has had a 100% success rate thus far. There are certain types of disputes that would still remain difficult to remove so contact us at Cali Mortgage to find out about your specific dispute.

If you are looking to buy a home or already a home owner here are a few things to consider:

* Think about the possible consequences before disputing with a creditor.
* Check your credit for disputes so you can begin the removal process before you are in the middle of a transaction.
* Do not try to handle dispute removals yourself. More times than not you will worsen your credit even more.
* Don’t contact collection agency until you have spoken to us about your situation.

If you are located in California Cali Mortgage will help you with the dispute removal and recommend use of their lending services for the finance transaction. For out-of-state clients Cali Mortgage can help with the dispute removal and connect you with a trusted loan officer in your area.

Hello,
Happy 4th of July Weekend, I attached the Market Stats up until this month as well as some interesting articles. Below I attached some cool places to watch fireworks. I hope you have a great weekend with lots of good food and good times!

Home prices in major U.S. cities have risen for the first time in eight months, boosted by an annual flurry of spring buyers.
Prices rose in 13 of the 20 cities tracked by the Standard & Poor’s/Case-Shiller home-price index, according to the April report released this morning. Washington, D.C., saw the biggest price increases, followed by San Francisco, Atlanta and Seattle. This is good information to know when talking with your buyers and sellers. Check out the full article by clicking the link below.
Spring buying boosts home prices in 13 US cities – Yahoo! Finance http://finance.yahoo.com/news/Spring-buying-boosts-home-apf-3361254249.html?x=0

IPOS Boost demand for Silicon Valley Homes- Bloom Berg

http://www.bloomberg.com/news/2011-06-15/tech-ipos-boost-demand-for-silicon-valley-million-dollar-homes.html

And one to the fireworks….

If you live in the SAN JOSE area, here some events going on locally this WEEKEND:
(information below courtesy of SJ mercury – Charlie McCollum)

At the old ballgame

In recent years, the closest thing to a big downtown San Jose fireworks display has been at Municipal Stadium, home of the San Jose Giants. This year, there is actually a ballgame being played on July 4 (Monday), so you can not only get bang for your buck but also some seriously good minor league baseball (the Giants are having one of their best years, with lots of young talent on display). Plus, there’s usual fun and frolic staged by the Giants before and during the game (the kids will love it) and the good barbecue at Turkey Mike’s. The 6:30 p.m. game is against the delightfully-named Modesto Nuts, with the fireworks at the end of the game. Tickets are $9-$18, www.sjgiants.com.

A big weekend

The Stanford Jazz Festival’s 40th season is under way, stocked with impressive acts through Aug. 6. Leading off the holiday weekend with two shows, Thursday and Friday at 8 p.m., is Milton Nascimento, the legendary Brazilian singer-songwriter, dubbed the “songbird” by Antonio Carlos Jobim. Nascimento’s tunes unite street samba, pop brilliance and jazz coloration in special ways, and his falsetto (when smoothly operating; he’s now nearly 70) is among the purest and most poignant sounds in music. Dinkelspiel Auditorium, $35-$65. Saturday at 8 p.m., the festival presents spirited Israeli clarinetist and saxophonist Anat Cohen with her quartet, anchored by the terrific drummer Daniel Freedman. Campbell Recital Hall, $40 ($30 students). Sunday at 2:30 p.m., two marvelous singers — Clairdee and Bobbe Norris — pick favorites from the Great American Songbook, accompanied by pianist Larry Dunlap and an ace quartet. Dinkelspiel Auditorium, $28 ($18 students). www.stanfordjazz.org or 650-725-2787.

Old-styled Fourth fun

Quite often, the best July Fourths are the smaller, old-fashioned kind. In San Jose on Monday, the Shasta-Hanchett and Rose Garden neighborhoods — along with businesses along The Alameda — will once again host the recently revived Rose, White & Blue Parade, which was a big deal in the city from the late 1800s to the mid-1920s. This year, the parade starts at 10 a.m. at the corner of Shasta and Martin avenues and wends its way through the neighborhood to a festival on The Alameda between Julian Street and Pershing Avenue. There’ll be food, drink, music, carnival rides and activities for the kids. (Visit www.rosewhiteblueparade.com for more details.) And in Palo Alto, there’s the 30th annual Palo Alto Summer Festival & Chili Cook-off at Mitchell Park (600 E. Meadow Drive). The festival features live music, children’s activities, food vendors, drink (beer and margaritas) and — of course — a chili tasting. Things get under way at noon; for more information, visit www.cityof paloalto.org.

Earthquakes and fireworks – for the sports enthusiast!!!

There’s nothing quite as American on a Fourth of July weekend as “… soccer? Well, OK, maybe not so much, but soccer is now pretty ingrained in American sporting culture. And on Saturday, our very own San Jose Earthquakes make a one-time move from the friendly confines of Santa Clara University’s Buck Shaw Stadium to Stanford University’s much bigger stadium to host a night of soccer with the New York Red Bulls and a fireworks display. Tickets for the match, which kicks off at 7:30 p.m., are $15-$50 and can be had through www.sjearthquakes.com. Those bombs bursting in air will happen after the game.

Twinkie time

One of the biggest traditional fairs in Northern California — the Alameda County Fair — will be still be going strong this July Fourth weekend. There are rides, agricultural displays, contests, horse racing and fair food (think deep-fried Twinkies). And there’s some pretty good entertainment as well this weekend: Ozomatli (Friday), Evolution (Saturday), ConFunkShun (Sunday) and the popular blues festival on Monday. It’s all at the Alameda County Fairgrounds, 4501 Pleasanton Ave., Pleasanton. Tickets are $6-$10, and parking is $8. For more information, visit www.alamedacountyfair.com. And if you’re up for a road trip, you might consider the Marin County Fair, which opens Thursday and runs through Monday. It’s a more modern take on the traditional county fair (don’t look for deep-fried Twinkies), and you sure can’t beat the entertainment: Toots & the Maytals (Friday), Bill Kreutzmann’s 7 Walkers (Saturday), the Pointer Sisters (Sunday), the Preservation Hall Jazz Band (Monday) and the Shangri-La Chinese Acrobats (every day). On Monday, there’s a big fireworks display at 9:30 p.m. The fairgrounds are located on Civic Center Drive (off Highway 101), San Rafael. Tickets are $12-$14. Visit www.marinfair.org.

Michael Ramos
Realtor and Consultant for LIFE
Certified Distressed Property Expert CDPE.com
CSSN,CHS
Intero Real Estate Services
10275 N De Anza Blvd, Cupertino 95014
www.InteroRealEstate.com/Agents/MichaelRamos
Direct: 408-807-4673
Efax: 408-317-1765

Co- Founder of:
www.BayAreasBestReos.com

Ready Position is a term in the mortgage industry and is very possibly the best position to be in during a home purchase or refinance of your current home.

Once your offer is accepted on a purchase transaction this is the exact time you will want to be in Ready Position with a lender.

If you are sure you want to refinance with-in 60 days then getting in Ready Position is imperative.

In all actuality, there is never a bad time to be in Ready Position; let me explain how Ready Position works.

Ready Position is when income and assets have been verified with your Loan Specialist and already registered with the lender. Basically, you are positioned to lock in your interest rate at the drop of a dime.

This is done in 3 easy steps:

1) You have completed a Residential Mortgage Application (1003)
2) All disclosures, income and asset documents are provided to your Mortgage Planner.
3) Registration of your loan with the lender of choice is complete.

You are now in Ready Position! Why is this so important? Plain and simple: It puts you and your Mortgage Planner in complete control on whether to lock or float your interest rate. Sometimes rates come down but only for a short time frame. If you were in Ready Position you can lock in your interest rate while pricing is hot and before rates worsen again. More importantly, when you are cautiously floating and you learn mortgage rates are about to go up you can lock the interest rate in a timely manner before too much damage is done.

An experienced Mortgage Planner with a client in Ready Position will do the following:

1) Follow the market closely and lock interest rate at the most favorable time.
2) Cautiously float interest rate to possibly shorten lock period.
3) Lock in interest rate before a potential rise in interest rates
4) Has their finger on the trigger should anything happen that could prevent you from getting the best interest rate available to you.

Learning the hard way…

A short time ago, I had a client who refused to send in his paperwork in-turn prevented him from being in Ready Position. I think he was having a hard time choosing which lender to go with and trying to buy time. A few days later I see the bond market is rallying and rates are taking a hefty turn for the worst. I informed him right away of the situation and suggested he turn in his documents right away before there is more damage. He then of course gets upset and calls 10 other lenders hoping to get the deal I had originally quoted him all the while rates are continuing to worsen. He was already in contract for the purchase of his new home so he had to obtain financing but instead of locking in at 4.875% he ended up with 5.25%.

There were several ways my client good have prevented the amount of damage that occurred. First and foremost, he should have put himself in Ready Position to begin with. Once rates began to worsen, recognized he is not a Mortgage Planner and let a Mortgage Planner do the shopping for him. After getting a warning from me he should have quickly chosen a lender, any competent lender for that matter, and did what it takes to be in Ready Position as quickly as possible.

A common misconception by borrowers is they think they know the market, they can take their sweet old-time and shop around for the best deal. This may be the case when shopping for an automobile not a mortgage. With a car salesman you can play hard ball, see if the salesman is bluffing, walk away and hope they chase you down with a better deal. This is not the case when shopping for a mortgage. The market is a beast with large unpredictable swings; rates are changing all the time and only when you are in Ready Position with a trusted Mortgage Planner can you expect to get the best financing available.

Another common misconception is even if you are knowledgeable of the market and an excellent mortgage shopper it is still very tough. Lets say you contact a Mortgage Planner during what you believe to be the perfect storm. And you are right, there could not be a better time to lock in your interest rate so you send in all your paper work. It still takes several hours to fill out an application, run credit, submit file to processing, get a pre-approval and register your loan with a lender. Most likely, if it is that great of a day, every Mortgage Planner is slammed so guess whose file is sitting at the bottom of the pile? The time from which you decide to move forward to the time you are in Ready Position can be very costly.

Top reasons borrowers are not in Ready Position:

1) Procrastination in signing disclosures and collecting pay-stubs.
2) Borrower thinks they are a Mortgage Planner.
3) Paranoia that every Mortgage Planner is out to get them (very common).
4) Indecisiveness about refinancing at all.

Even when you are having a hard time choosing whether to move forward or not it is still a good idea to be in Ready Position. Why not get in Ready Position while making up your mind? Being in Ready position does not obligate you to close a loan or mean that you have made a concrete decision about obtaining mortgage financing. Once you are familiar with the concept it is truly the best way to go. I have several clients in Ready Position that aren’t even shopping for a mortgage but they like knowing if rates drop well below then their current rate my finger is on the trigger.

Only good things can happen when you are in Ready Position.

Cupertino, California – June 16,2011 – Michael Ramos of Intero Real Estate services in Cupertino has earned the prestigious Certified Distressed Property Expert^® (CDPE) designation as well as Certified Short sale Negotiator (CSSN) and Certified Hafa Specialist(CHS), having completed extensive training in foreclosure avoidance, with a particular emphasis on short sales. At a time when millions of homeowners are struggling with the possibility of foreclosure, the skills and education amassed by Ramos will help benefit Bay area residents and communities.

Short sales allow the distressed homeowner to repay the mortgage at the price that the home sells for, even if it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

Today, more than 13 percent of homeowners are delinquent on their mortgage or in the foreclosure process. This is occurring across all price ranges, and the fastest-growing category of homes in foreclosure is the luxury home market.

“The CDPE designation has been invaluable as I work with homeowners and lenders on complicated short sales,” said Ramos “It is so rewarding to be able to help families save their homes from foreclosure.”

Alex Charfen, co-founder and CEO of the Distressed Property Institute in Austin, Texas, said that agents such as Michael Ramos with the CDPE Designation have valuable perspective on the market, and training in short sales that can offer homeowners real alternatives to foreclosure, which can be devastating to credit ratings.

“These experts better understand market conditions than the average agent, and can help sellers through the complications of foreclosure avoidance,” he said.

The Distressed Property Institute provides live and online courses to train real estate professionals how to help homeowners in distress, with a strong focus on handling short sales.

“Our goal is to help as many homeowners as possible, by educating as many real estate professionals as possible,” Charfen said. Michael Ramos has demonstrated a commitment to struggling homeowners, a commitment that can provide much-needed stabilization to the community.”

For more information about CDPE Designation, visit www.cdpe.com.

For more information about the CHS and CSSN Designation, visit www.assetplanusa.com