California to Retrain Laid-Off Mortgage Workers

Just saw an interesting news today - California Governor Arnold Schwarzenegger has announced a re-training program to assist many of the people who got displaced by the mortgage market meltdown. As a mortgage professional, I can certainly feel the stress many people are going through, and I am glad to see that the government is taking some measure to assist those in need.

For those of us who are still committed to the industry, I do see tremendous opportunities both in terms of continually improving the kinds of services we provide (a cleansing process) and the type of quality products we will be able to offer to those who are financially ready to take on more assets and liabilities.

It's the best time to invest!

Mortgage Industry Embraces CMPS Institute Certification

I invite you to read this interesting article about the CMPS institute. In this changing market, where a lot of people have been misadvised, it is important while you choose your mortgage consultant to make sure you are working with a highly qualified person.

Certified Mortgage Planning Specialist (CMPS) is a certification I obtained by going through an extensive training, based on five main key areas:
* Financial Market and Interest Rate Analysis
* Cash Flow & Debt Analysis
* Real Estate Equity Management
* Real Estate Investment Planning
* Mortgage & Real Estate Taxation Concepts

As a CMPS professional, I will be pleased to help you not only with your transactions, but also how to integrate the mortgage into your overall financial planning and maximize your real estate investments.

Multi-Unit investment seminar

On Feb 12 I hosted a seminar with Mario Pinedo on the topic of Multi-unit investing. We had a great turnout, with a large and diverse audience. With the amount of interest and the kind of feedback we have received, it was evident that that this is timely topic that interests a lot of people. This is the time for true investors to take advantage of the current market condition and build wealth for the long term.

Our seminar started with going over the different investment opportunities, and how to evaluate properties. We then reviewed issues around financing: type of loan programs, various lending guidelines, and most importantly, how to choose the right program with the right payment for the right reason.

Multi-unit investments can seem complicated. There are indeed a lot of components and moving parts to deal with in order to ensure the success of the investment. That is why I always believe in having a team working together, whether it is for my personal investments or my clients'. With the right realtor, he/she will be instrumental in helping you identify areas of opportunities and specific properties that match your criteria. An experienced mortgage planner with investment background can help you strategize on the financing options and ensure that they are in sync with your overall financial goals.

The important thing to remember is that it's a great time to be investing right now, and I do have time to help you and your families and friends.

Conforming Loan Limit Going Up

Yesterday the US Senate passed an expanded version of HR 5140 an economic stimulus package that includes a temporary increase in the conforming loan limits from $417,000 to as high as $729,750 in high cost areas.

So, how do you know whether you are in the "high cost areas"?

1. You must know the formula. If 125% of the local area median home price exceeds $417,000, the temporary loan limit would be that 125% of the median home price with a cap of $729,750.

2. You must know the median home price in your area. According to HR 5140, the Secretary of Housing and Urban Development will publish the median house prices within 30 days. In the meantime, you can check the Wall Street Journal who had published median house prices recently, and you can reference this information to get an idea of which areas will exceed the $417,000 limit.

What does all mean to you? Well, if you currently have a mortgage with a balance between $417K and $729,750, depending on where you are located, you can potentially refinance your mortgage into a conforming loan. Why is that interesting? Well, because the spread in rates between a conforming and jumbo loan is about 1.25%. For some folks, this can mean huge savings in their monthly mortgage payments.

Call or email me for a free mortgage review to determine how this new law that's about to pass can pontially benefit you.