It is Good to Know - July '11

IT IS GOOD TO KNOW
From Manny Kagan

 

 

 

July 14th, 2011

 

Wherever you go, no matter what the weather,
always bring your own sunshine.

Anthony J. D’Angelo

 

Since the last “Good News from Doctor Manny” newsletter, the mortgage industry has gone through some big readjustments. As I mentioned in my last e-mail to you, we now operate two companies – a branch of Bay Equity – a mortgage bank for residential loans, and Pacific Bay Financial, which now originates only commercial mortgages.

It is my commitment to continue share information with you that will help you navigate through both the mortgage industry and the maze of life. I’ve changed the format and titled it, “It Is Good To Know”.

Change in loan limits is around the corner. Most of the mortgages made today are sold to Fannie Mae and Freddie Mac. These agencies set yearly loan limits, which are divided into conforming and agency jumbo limits. In turn, they have limits depending on the number of units in a building. The same rules apply to FHA loans. FHA loans have higher limits for an agency jumbo and allow a lower down payment. Loan limits are calculated based on the medium price range all over the country. The limits have been kept high in the last few years, but are about to change. The target day to lower loan limits is October 1st, 2011. If you want to refinance or buy a property with a loan amount greater than $625,000.00 DO  NOT WAIT.
Please read the full story in the attached article from The Wall Street Journal.

 

Credit score is a king. Yes, you do need cash for a payment. Nevertheless, your credit score can affect your interest rate, loan amount and loan-to-value. A 740 score will give you better terms than a 739 score. Depending on the circumstances, one’s credit score can be improved. Recently, a client found a house to buy and had limited time to close. When we ran his credit report, his score was low because his ex-wife did not pay his son’s doctor bill, and the bill went into collection. It took an extraordinary effort to negotiate with the collection company, pay the debt and correct the score to close the transaction on time. You can check your credit score on line, but there may be a fee. Be aware that when checking your score, mortgages, car loans or credit cars will have different formulas, and therefore scores will vary. Click here to read an interesting article on July 6th in the San Francisco Chronicle about this.

 

Interest rates for commercial properties are down. Recently we refinanced an apartment building with a 3.9% rate, fixed for 5 years and another building with an adjustable rate of 2.75%. We can refinance all types of buildings, even with a brick foundation. Although interest rates are low, different buildings will have different rates.

 

I am reading The Healing Code, a book written by Alexander Lloyd, Ph.D., N.D. and Ben Johnson, M.D., D.O., N.M.D. In the book, the authors bring evidence that 95% of all our diseases come from the accumulation of stress. Alexander Lloyd’s wife suffered from depression. While he spent 12 long years trying to find a solution to help her, one day he came upon what he now calls The Healing Code. Dr. Ben Johnson is the head of a clinic that works with cancer patients. He was diagnosed with Lou Gehrig’s Disease. After hearing Dr. Lloyd’s lecture, he tried the Healing Code and healed his “incurable” disease. In the book the authors share The Healing Code and many “miracle” stories from their patients. This book is available on Amazon for $15.00, in my opinion, money well spent.

 

Please check out my daughter’s latest episode on her webseries, “Tamar’s Healthy Delectables”, where she shows you how to make raw oatmeal. My wife Elfa has been making it for us for breakfast, and it is so delicious, you would never know how healthy it is. Click here.

Anthony J. D’Angelo, whose quote I’ve used, has sparked revolution in higher education. I found a lot of interesting facts about his life on line.