30 easy ways to become a Money Magnet Starting TODAY!

 Learn to be a Money Magnet starting TODAY!

Worried about your lack of income, maxed out credit cards or extreme debt? The average American household carries over $10,000  in credit card debt, and that doesn't include student loans or home mortgages. It all starts with this moment and how you feel and relate to money. Respecting money and appreciating it can help bring more to you.

  

 

Here are 30 ways to save or make money starting today:

1. Talk about what you want to have versus what you haven't gotten. 
2. Take a potential mentor or advisor to coffee or lunch. But, don't overuse their time.
3. Read about finances and investing.
4. Ask for discounts every time you buy something. 
5. Use credit cards with the best rewards and switch to low interest cards.
6. Create clear financial goals.
7. Save 10 percent of everything you earn. Put it is a separate account.
8. Clean out your closet and donate used clothing.
9. Give money to a homeless person without expectation.
10. Write a thank you note to an organization, or person you appreciate and respect.
11. Start planning for the vacation you keep dreaming about.
12. Hang around financially abundant folks. 
13. Don't spend money to feel good. Learn to feel good about NOT spending money.
14. Put all your energy into faith that more money is on its way to you. 
15. Be grateful. 
16. Collect change from around the house. 
17. Sell stuff on Craigslist or eBay. 
18. Create products to sell online.
19. Switch phone providers. Or call your current one and ask for a discount.
20. Get rid of cable and use Netflix's or other similar services. 
21. Take advantage of rebates and coupons.
22. Ask for a raise.
23. Sell your old mobile phone and tech products. 
24. Freelance your talent and skills. 
25. House, baby or pet sit.
26. Let go of attachment to the outcome of your actions.
27. Focus on feeling secure in this moment.
28. Learn and forgive your past money mistakes.
29. Visualize yourself with financial abundance.
30.  Have faith more abundance is on its way.

Owing money can be frustrating, especially when you are worried about a steady income stream, but taking your attention off what's not working and focusing on an action plan can bring in money today.
Thanks for listening. To get more information on gaining wealth and success, email us for our comprehensive book on "How To Become a Money Magnet TODAY!"  Finances On Fire - eBooks

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The Effect of Rising Interest Rates in 2015.

The drum beats of rising interest rates is everywhere...

It is widely assumed by financial market pundits and economists that interest rates will rise in 2015. Based on economic growth indicators and comments made by the Federal Reserve, they suggest the inevitable need to raise rates. The unknown is the timing. Many say as early as 1st quarter, some suggest it will be delayed as international markets in Europe and Asia have been slowing and this could transfer to a slowdown in US markets which could prompt the fed to hold back a few quarters.

Of course we need to identify what "increased interest rates" means to the current homeowner or potential buyer. At the start of interest rate yield curve, short term rates are more directly effected by the federal reserve actions in short order. For the past few years, the fed has tried to keep the shortest term rates or "Discount Rate" close to zero. With an expected increase of this target rate to 1% initially, that will have the effect of increasing rates further out the "yield/rate curve". While short and long term rates do not move in a 1:1 ratio, they do tend to move together over time. So, the rate that we care about at Housing Matters is of course the transfer to mortgage rates. Nationally mortgage rates have been hovering around 4% for conforming, conventional, owner occupied, 30 year fixed 1st mortgages. The scuttlebutt being discussed is that these rates would rise  about 1% as the year progresses and the fed continues along their anticipated trajectory towards 1% or higher depending on inflation and continued economic growth.

       Homes | Loans | Financial Advisors

Of course, keep in mind that there have been a few notable contrarians on interest rates rising even as many thought 2014 was the year to increase.  Since it looks like 2014 will end with rates a little lower than the start, it shows that even when there’s consensus, there is contention among experts.

Therefore, barring any major economic upheaval, yes, mortgage interest rates will be gradually climbing. Given that, let's discuss a few points that will effect current homeowners and buyers.

1. Mortgage rates will increase!

Interest rates can't stay bound at such low levels. Assuming the current median California loan size of $450,000, and that loan with a rate/payment at 4% of $1,912 vs. a rate/payment at 5% of 2,218 for a difference of $305/mo. Does not seem like a lot, but if we look at the increase in terms of the underwriting effect using a 43% industry standard total debt to income ratio that 1% rate increase now requires an income increase of approximately $8,500 additional yearly income. Assuming this to be roughly 7-10% of the median income of potential home buyers, this means effectively, that a 1% increase in income in Ca. has the effect of reducing the pool of homebuyers by as much as 10% of those eligible at 4% rates.  

Following this line of analysis as rates continue up, one can easily see where if the fed continues to increase rates over a period of 2-3 years as they have in the past, this will significantly effect homeowners and prevent a large portion of potential buyers from entering the housing market until rates come back down or incomes increase significantly. Historically, the only two factors that most significantly increased home ownership are falling rates or falling home prices. And so the 10 year housing cycle in Ca. goes. If you are considering refinancing to lower a rate, convert from FHA to conventional loan type, or buying a home, the near future seems to be the best time to contact your mortgage lender and begin the process or get prequalified to be ready. 



Go to www.1californiahomes.com and view homes for sale in Carlsbad Ca. 92009

 2. Housing prices could stagnate or come down!

As interest rates rise, affordabilitly naturally declines in the short run. Short of a re-make of the loose lending guidelines and creative financing that partially supported the recent housing crisis, the main effect of higher financing costs is a slowdown in home price increases or potentially a decrease in prices. As buyers get skittish about housing costs and rate increases, they are less willing to continue to pay higher and higher prices for homes. Since housing like most consumer markets tend to actualize consumer concerns over time, the likely outcome is a decrease in prices should interest rates increase 2% or higher. This always of course begs the question of timing. Since home buying is such a personal decision based on many factors, Housing Matters suggests contacting your local realtor and asking about market conditions, financing, and their insight into local housing trends.

3. The cost of home buying and obtaining a mortgage is rising, and spooks buyers!

Dave Van Waldick, a 25 year Mortgage and Real Estate broker in Carlsbad Ca. says the cost of buying and owning a home, and obtaining a mortgage has increase significantly in the past seen years. He mainly attributes this to the huge new costs associated with new national and state regulatory requirements. The massive amounts of administrative and punitive actions placed on mortgage lenders and support services by the current administration and aggressive state regulators has increased closing costs over $1,000 per closed escrow whether a purchase or refinance. Mr. Van Waldick adds, "in addition to these direct and visible costs to consumers, the behind the scenes raising of Government Fee increases in the form of Guarantee Fees by both FHA and FNMA, as well as smaller fees by state regulators and licensing agencies, has placed a large and hidden burden on lenders which pass them on to borrowers in the form of higher rates and fees."  

These hidden fees likely add .25 to .50 percent to the typical mortgage rate from 5 years ago. Mr. Van Waldick feels these fees to be a form of hidden taxes not agreed to by the consuming public, voters in general, or even the bulk of elected representatives most of which don't have a clue as to the actions going on to raise these fees and costs to their constituents.   

The upshot of these three points being that, as interest rates look to be going up, and prices continuing upwards in the short run, these enormous fee increases to boot, the cost of home ownership to new buyers or refinance candidates is increasing at a fairly rapid clip.  Home buyers or refinance borrowers might want to contact their favorite broker or lender to discuss these matters and plan accordingly.

California Home Sales in September still 15% below average

An estimated 36,316 new and resale houses and condos sold statewide in September. That was down 2.4 percent from 37,228 in August, and up 0.8 percent from 36,027 sales in September 2013, according to CoreLogic DataQuick data.


Ocean view, 3 bedroom, 2 bath, 2,500 sq ft.

Last month’s slight year-over-year sales increase was the first in a year, and sales were the highest for the month of September in five years. September sales have varied from a low of 24,460 in 2007 to a high of 69,304 in 2003. Last month's sales were 15.5 percent below the average of 42,996 sales for all the months of September since 1988, when Irvine-based CoreLogic DataQuick's statistics begin.

California sales haven’t been above average for any particular month in more than eight years.  The median price paid for a home in California last month was $389,000, down 1.0 percent from $393,000 in August and up 9.6 percent from $355,000 in September 2013. Last month was the 31st consecutive month in which the state's median sale price rose year-over-year. In March/April/May 2007 the median peaked at $484,000. The post-peak trough was $221,000 in April 2009. Of the existing homes sold last month, 5.3 percent were properties that had been foreclosed on during the past year. That was down from a revised 5.4 percent in August and down from 7.1 percent a year earlier. Foreclosure resales peaked at 58.8 percent in February 2009.

Short sales - transactions where the sale price fell short of what was owed on the property - made up an estimated 5.9 percent of the homes that resold last month. That was the same as in August and down from 10.8 percent a year earlier. 


           Homes | Loans | Investment Advisors

The typical monthly mortgage payment that California buyers committed themselves to paying last month was $1,507, down from $1,523 the month before and up from $1,437 a year earlier. Adjusted for inflation, last month's payment was 36.0 percent below the typical payment in spring 1989, the peak of the prior real estate cycle.

It was 48.1 percent below the current cycle's peak in June 2006. It was 60.5 percent above the January 2012 bottom of the current cycle. 
Indicators of market distress continue to decline. Foreclosure activity remains well below year-ago and peak levels reached in the last five years. Financing with multiple mortgages is low, while down payment sizes are stable, CoreLogic DataQuick reported.

Source: CoreLogic DataQuick; DQNews.com
Copyright DataQuick. All rights reserved.

Why use Western Realty to buy or sell a home!

Western Realty Associates has been a locally owned brokerage for over 20 years. Our experienced agents will find you the right home in the La Costa - Carlsbad areas, and guide you through changing lifestyle choices. And if you are seeing todays market as a great income opportunity, we can help identify and analyze income property options that generate stable and predictable rents, and potential value appreciation through moderate remodelling activity all at the right price!



Another SOLD Home by Western Realty Associates!
Spacious 4 Bedroom on Aviara Golf Course.

At Western Realty, our lengthy experience in North San Diego county housing and financing, and deep understanding of real estate goes past the sales process. We look beyond the house and neighborhood and into the potential to make it your HOME. We use this knowledge to show our buyers how to measure the value of the home and it's features and benefits that meet your needs. Basically, how to change someone else's old home into your happy new home.

This knowledge, combined with our 10 point service guarantee (ask us!), is why to choose Western Realty Associates. It's a promise to always be there when you need us, to be hands-on at every stage of the process, and to constantly communicate what is happening. We are committed to helping you make smart and well-informed decisions.

In a complex real estate market, Western Realty Associates is up to the challenge.
Call us today to discuss your home buying, selling, or financing needs.

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Dave Van Waldick
Managing Broker / REALTOR®
Western Realty Associates
Off/Cell: 760-672-0145
Sales | Financing | Investments | Consulting
CA DRE# 01065844 / NMLS# 345616

"As Real Estate Experts, we provide an integrated suite of strategic home ownership solutions."
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Top things that make mortgage deals very difficult!

Periodically I see patterns of loans that just are not getting done and are too difficult to work on. This is just the tip of the iceberg of loan problems. To ensure you are getting the best mortgage advice from an experienced professional, I higly recommend working with a mortgage broker with minimum 5 recent years in the business and having done at least 100 loans of more. That ensures they have are knowledgeable and focused on the details that kill deals.

Currently, these issues are making some loans not worth trying. I highly recommend not working on them. In addition, t ties up processors and takes up excessive time and worse, do not close. If you see any of these indicators, please be very careful about originating them.

Problems:

1. Credit scores on ANY loans less than 640. That is Conventional, FHA, or VA. In know lenders they can do them. We have tried repeatedly and they can not deliver or the time lines are so long the deals die on their own.

2.       Manufactured homes. Forget it. They don’t get approved with most of the lenders today we have.

3.       One off deals. You know the type; 2^nd home, owned by a corporation, that assumed the note from the prior borrower and now grants it to the employee as a bonus.

4.      Commercial loans – While these can be done, the unique nature of each loan and difficulty of finding the right lender, precludes most mortgage brokers from being effective in this area. If you need a commercial loan, find an expert in that area. It will save you time, and increase the chances of a successful funding and satisfied client. 

5.       Hard Money loans – We can do them but they are expensive, and I have yet to have a borrower agree to the terms. Unless the borrower is a bona-fied short term investor, it is typically not worth the time pursuing these. Having said that, there are times when private party funds are exactly they right thing. Read my blog article here: http://www.mortgagedave.blogspot.com/2011/03/private-party-financing-ppf-when-to-use.html

6.       Broken income, non reported income, non-occupant co-borrowers, second homes in the same city to get owner occupied rates, etc. Forget all these. They are far too difficult and most of them end up dead. Waste of your time, and more importantly distracts our processors from deals that can close.

7.      Non ARMS length short sale transactions – IF you become aware of one of these in your deal, don’t do it. The short sale lenders and new investors are getting very good a detecting these and fraud now under NMLS and/or FHA is a federal offense “felony”. Not worth it for you or the company for a  few thousand dollars.

8.       Loan Amounts under $100,000 – Not enough “juice” in most of these. If they are out of state through don’t even try.

9.   High LTV refis – Most of the lender guidelines pretty much kill refinances where the LTV is over 90% except FHA/VA streamline refis.

10.   Be careful of condos. Be sure the project is FNMA or FHA/VA approved. No more spot approvals. Now some lenders will not do high rise (over 7 stories) or mixed use.


Rate Locks: In addition to these difficult deal killers, the other issue we fneed to be aware of keenly as I have mentioned before is rate locks. Rate locks generally should be ollow some general rules to insure they are likely to lead to a completed loan and satisfied client:

• Have a completed, signed application, and signed full set of disclosures and accepted GFE.
• Complete package of documents from borrower in the office (pay stubs, tax returns, bank statements, etc). You know the list.
• At least a preliminary DU / AUS approval from the lender where the loan is going. No sense locking a loan that is not getting approved.
• Borrower has paid for appraisal and it has been ordered it.
• Minimum 30 day locks. Due to unknown issues that often extended underwriting and close times, I would give everything and extra 10-15 days.

Lenders all track pull through and are not happy when brokers or Loan Officers fail to deliver on locks. If you work with good lenders and can not afford to be cut off.

Yes, I know there are many variations on all these issues. But, taking the time to analyze deals and properly pre-package them makes the financing move much better.  In addition, cances of sucessful transactions increase exponentially when we stick to what we know and are good at.

Dave Van Waldick
Mortgage Broker - 22 years and growing
Western Realty Finance
Home Ownership Financing ExpertsOff/Cell: 760-599-1261
NMLS#345616 / CA DRE# 01065844

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Think like an Investor! "Look where the puck is going to be."

Refinance now, or wait for the perfect rate?

People ask a lot these days what the best refinance rate is they can get. And, will the rates get lower? My crystal ball is no clearer than anyone else’s. One of my mentors at Wells Fargo Bank years ago claimed, “The best predictor of where interest rates will be is where they are right now”. True as it may be, it doesn't answer our question. Financial theory also proposes that market prices reflect all currently known information. As borrowers and investors in real estate, we must then make assumptions about what the future holds.