Tony:  An extraordinary  life doesn’t just happen.  Visualization is one of the most powerful tools you can incorporate into your everyday life to help maintain the competitive edge you enjoy now or to take you to an even higher plane.  Like watching a move of your life, it’s “seeing” you living out your dreams, your purpose, your values, and your emotions — and it’s ALL in the present, as if it’s happening now.  Just as an extraordinary body requires a ritual in optimal diet and exercise, an extraordinary spirit demands a ritual in optimal emotion.  My emotion is gratitude and my ritual spending an hour each dat to expand my capabilities to not only enjoy life more fully, but to help others to do so as well.

When you devote yourself to practicing this form of visualization daily, you will see your life begin to change in the ways you envisioned.  Your visions will become your reality.  You will connect more deeply with people and you will take on the challenges that each day may bring with clarity, faith and resolve.  You will begin to visualize your best life as you condition your mind, body and spirit for daily success.

Q:  What inspired you  to create the Basket Brigade?

Tony:  Pain — Personal pain!  Lots of us have been in a position when the kindness of a friend or even a stranger lifted and nurtured us out of a challenging situation.  Sometimes this simple act of kindness inspires us to do more and to reciprocate the magical gift that was given to us.

I had an experience like that when I was 11 years old and facing a bleak Thanksgiving.  We weren’t starving, we always found a way, but we certainly weren’t going to have a real holiday dinner with the trimmings.  Then a miracle happened — there was a knock at our door and when I opened it there was this HUGE man standing there with a giant box of food in his arms that was crammed full of everything — stuffing, pies, sweet potatoes — he even had an uncooked turkey in a pan on the ground next to him.  Someone knew my family was in trouble and wanted to help.  This stranger wasn’t looking for appreciation or adoration for this good deed.

That day I had a revelation that changed the course of my entire life.  I’d always believed that no one really cared.  But that day I decided that if a stranger cared enough about me to make sure I had a Thanksgiving feast, then I would return the gift.  Someday I would do well enough to give another family in need a Thanksgiving feast.

When I was 17, I took the little money I had in my pocket and filled two baskets with enough food to give two families a great Thanksgiving.  A the first house, a tiny Latina woman answered the door, her five kids peering  wide-eyed from behind her.  Her husband had just left her two days before with no food.  She looked at me in total disbelief, then she burst into teas and pulled me down to her, kissing me all over my face.  And while I was reeling from that, her kids tackled me, hugging my legs.  She pulled back just enough to look into my eyes and said, “Gift from God. Gift from God.”  It was such a powerful moment pure, undiluted joy and it made me realize that my life had come full circle — a recipient had been blessed enough to become a giver.

The next year I fed four families, then I fed eight families the year after that.  When I founded the Anthony Robbins foundation 20 years ago, our Thanksgiving gifts became the International Basket Brigade.  Last year between Thanksgiving and Christmas we fed nearly two million people in 35 countries.

I invite you to give yourself the gift of giving back.  Find something that ignites your passion and give to others with no strings attached.  When we give like that we step outside of ourselves and contributing to those who can’t give us anything in return is the way we experience  the ultimate reward.  We remember how small our problems really are and from that place of strength and gratitude, we are able to experience a different quality of life and touch the lives of others.  Contribution makes us remember why we were made.

Tony Robbins.

Ignore your listing agent’s advice by “testing the market” with a too-high asking price. Home almost always sell faster and for more money if they’re correctly from the outset.

Let your emotional investment in the home dictate a pricing strategy. Instead, stay objective by focusing on data contained in your agent’s comparative market analysis.

Try to “recoup” the agent’s commission by overpricing property. Like testing the market with an inflated value, this approach usually forces a seller to slash the price after the home sits on the market too long.

Chase the market with stingy price cuts. If you’ve priced your home fairly and still haven’t gotten any offers, don’t hesitate to lower the price.  But make it worthwhile.  Small reductions simply keep your home “stuck” behind more competitively priced properties.

Hope this sheds some light for you on pricing blunders and how to avoid them.  I also have a free report titled “10 Steps To Sell Your Home in a Slow Market” you can have just by clicking the title. Happy selling!

The Senate could vote on the bill, HR 5623, as soon as tomorrow, although the death of Sen. Robert Byrd, D-W.Va., has slowed the pace of work in that chamber. Read full story here.

There is a buzz in the real estate and mortgage world that says that FHA is moving towards changing how they charge insurance premiums – again!  And the proposal I am hearing is going to reduce the number of  people who are eligible for the FHA Program, as well as make the program less attractive.

Let’s start by explaining that, contrary to the public’s consensus, the FHA is not a lender, they are a government owned insurance company.  They collect premiums from borrowers and insure lenders of repayment, if those borrowers default on their mortgages….this insurance allows lenders to loosen their underwriting standards and approve many more applicants.  Presently, they charge these premiums in two different ways:

1. The UFMIP (Up Front Mortgage Insurance Premium) for most FHA loans is levied at 2.25% of the loan amount.  The good news is that while it is a closing cost, the UFMIP can be (and usually is) financed….added on top of the base loan amount.  So, for example, on a $200,000 base loan amount has a $4500 UFMIP; therefore, the total loan amount is $204,500.  Because it is financed in the loan amount, our borrower is paying $24.17 in their monthly P&I payment to cover it (at a 5% note rate).
2. The second insurance charged is the MMIP (Monthly Mortgage Insurance Premium).  Currently, for most FHA loans is calculated by multiplying the principal balance of the loan by .55% and dividing by 12.  Because the principal balance is constantly being reduced as payments are made, the MMIP adjusts downward annually until such time as the principal balance is reduced to 78% of the purchase price (which will be a minimum of 5 years, but typically 12-14 years).  In our $200,000 example the MMIP is $91.67.  This amount, too, is added to the mortgage payment.

As you know, a major factor in approving borrowers is that borrower’s ability to repay the loan which is determined by dividing their debt by their income.  Any increase in payment makes it harder to qualify.  In our example, our borrower’s qualification includes a total of $115.84 to cover the FHA insurance premiums.

Now look at the proposed changes.  FHA wants to reduce the UFMIP to 1% and increase the MMIP to 1.55%.  On its surface it doesn’t look tragic, but let’s look at our example $200,000 loan.   Our total loan amount is now $202,000, which means the monthly impact of the $2000 is $10.74 (as opposed to the $24.17).  BUT, our MMIP has been increased to $258.33 (a whopping $166.66 more)!  In total, our borrower’s mortgage payment will go up $153.23!!!!

What’s the real impact?  The same borrower that qualifies for a $200,000 FHA loan, based on their income, will only qualify for $172,000 loan.  They will have to look in different neighborhoods and/or sellers will need to reduce their prices further to keep the same buyers interested in their home.  It has the same effect as interest rates going up more than 1%….I shudder to think what the cumulative effect will be if this happens AND rates go up.

I am asking you to call your elected officials and tell them that they need to stop the FHA from implementing this….NOW!!!

PS- I recognize the FHA needs to increase revenue to cover losses on bad loans, but I suggest they increase the UFMIP (when I started in the business it was 3.8% and no MMIP, for example) because our borrowers need not come up with more cash to close, as it is financed, and it has a much lower impact on people’s ability to qualify.  PLUS, the FHA gets more money now and doesn’t have to wait to collect it monthly over years.

This blog post was brought to us by our good friends over at kcmblog.com and Dean Hartman, the Chief Planning Officer at Continental Home Loans.

Certain state laws provide for a “redemption period” after a foreclosure or tax sale has occurred, during which time the prior owner may reclaim the property upon payment of all amounts owed. Unexpired redemption periods create an unacceptable title defect on the subject property, and do not conform to the existing policy that requires the property to have “good and marketable” title. As such, Fannie Mae is clarifying the Selling Guide to state that properties with unexpired redemption periods have unacceptable title defects. Therefore, these mortgage loans are not eligible for delivery to Fannie Mae until after the expiration of the redemption period. The purchase of additional insurance, a redemption bond or similar coverage during the redemption period does not remedy the title defect and the mortgage loan remains ineligible for delivery to Fannie Mae.

Good Luck! And happy hunting for those foreclosures!

When HR 3548 – Tax Credit Extension for First Time Home Buyers and Repeat Buyers was extended, there was a special rule included for members of the Armed Forces.

Who Qualifies:

• Member of “uniformed” services
• Member of Foreign Service of US
• Employee of Intelligence Community
• Extended Duty (defined as “official orders outside the United States for a at least 90 days during the period of 12/31/08 to 05/1/2010

What They Get:

• Tax Credit Date Extended
• Sign contract by April 30th, 2011 and fund/close by June 30th, 2011

Thanks to all folks serving our country. This is the least we can do for your service, especially  if you are trying to become a home owner!

What list am I speaking of?  It’s an article from Forbes online:  America’s Worst Selling Housing Markets.

The one’s that did make the list are as follows:

1. Milwaukee
2. Denver
3. Los Angeles
4. St. Louis
5. San Francisco
6. New York
7. Cincinnati
8. Cleveland
9. Atlanta
10. San Diego

Couple notes on the list from Forbes. The cities were ranked according to the biggest increases in inventory and the largest decline in home sales during the fourth quarter of 2009. Two cities, Nashville and Detroit, were excluded because there wasn’t enough sales data. New York and San Francisco made the list primarily because they don’t have large numbers of single-family homes compared to condominiums.

This spring, concentrate on these important fix-ups:

• Inspect gutters  and downspouts and check to see that splash blocks are properly positioned. To see if the weight of snow, ice and leaves has twisted your home’s gutters out of shape, pour a large container of water into each one. If water pools in one spot or flows away from the downspout, the gutter may need repair or replacement.
• All homes settle a bit each year, which can stress the foundation. Look carefully for hairline cracks and repair them immediately with the proper sealant.
• If your home is a brick exterior, inspect the bricks and mortar for any signs of wear or damage. If your home has wood or vinyl siding, look for loose panels and trim. Inspect the soffit and facia below the gutters for rot and insects.
• Examine all doors and windows for warping and re-caulk all seams every two years.
• On the roof, look for missing, loose or cracked shingles. Areas of mold or evidence of moisture accumulation may mean that water is not draining properly toward the gutters.
• Decide if your deck needs a fresh coat of stain or preservative and tap in any protruding nails.
• Inspect all visible pipes for leaks, drips or corrosion. Also look for water stains on the ceilings and walls that could indicate roof or window leaks.

Most of this routine maintenance can be done yourself. However, if you find yourself in need of a handyman whether it be lack of expertise or time, send me an email and I get you a referral. You can also use Angie’s List to find a reputable handyman.

Zeus Has Unleashed the Cracken on MBS

I know, cheesy headline but c’mon. Look at the chart above. See that last big Red Bar on the right? That represents the price drop in the 4.5 FNMA Mortgage Coupon. Too technical? Just know that if a price of a bond goes down, the yield or interest rates that is passed on to borrowers is higher. So, the more and bigger the red bars you see, the worse rates get.

This is a significant argument that the FED MBS purchase program that was announced in Nov 2008 had a definite impact on mortgage rates. Most experts agree the FED intervention affected rates by over 1% If that’s true, then rates could be headed up over 6% in short order.  They spent $1.25 trillion on the program, affected the range by 1.75 (6.25% – 4.5%) and rates changed up to 5 times per during the program term Nov 2008 to March 2010.

Do You Know When to Lock Your Rate?

During the timeline outlined above, rates were on a nauseous roller coaster ride. The above chart is a snapshot of the market in real time. Most consumers don’t have access to this info, but a good loan officer does, at least they should. If you are out rate shopping in Oregon or Washington for a home loan, I am an active loan officer and if you have questions about rate volatility, when to lock or other mortgage related questions, give me a call or send me an email.

“Unleash The Cracken”! — Zeus

The Refinance Index decreased 1.3 percent from the previous week and the seasonally adjusted Purchase Index increased 6.8 percent from one week earlier. This is the highest Purchase Index since the week ending October 30, 2009. The unadjusted Purchase Index also increased 6.8 percent compared with the previous week and was 9.3 percent lower than the same week one year ago. While both conventional and government purchase indexes saw increases this week, the government purchase index and the government share of purchase applications are at their highest levels since October 2009. The government share of purchase applications is currently 47.2 percent. The four week moving average for the seasonally adjusted Market Index is up 2.2 percent.

The four week moving average is up 5.4 percent for the seasonally adjusted Purchase Index, while this average is up 0.9 percent for the Refinance Index. The refinance share of mortgage activity decreased to 63.2 percent of total applications from 65.0 percent the previous week. This is the lowest refinance share recorded in the survey since the week ending October 23, 2009. The adjustable-rate mortgage (ARM) share of activity increased to 5.2 percent from 4.8 percent of total applications from the previous week.

The plain and simple? Looks like the market is turning to being driven by purchases. We know this because the refinance index failed to make much progress in the first quarter 2010, even as mortgage rates held below 5.00%.  It’s also entirely likely that the ‘fence sitters’ are getting nervous about rates rising coupled with the expiring home buyer tax credit are giving them the proverbial ‘kick-in-the-butt’ they so desperately need.