Carol's Real Estate Blog

05.01.08 2:57 pm
Approved by Carol Allen
Subject: NM State Housing Report 2008
Article by: University of NM
*Santa Fe the fastest growing metro economy in the state
*Educational and health services, government, information (Film), proffesional and
business services industries are driving growth.

The average sales price of a home is up nearly 5% from a year ago to $ 433,500.00, although sales are down slightly prices are not. People wanting to move to Santa Fe often are having difficulty selling elseware which effects purchasing here.

Mortgage rates on loans up to $ 417,000 remain in the 5.5 to 6.00% range for a 30 year fixed rate and loans above that to $ 2,000,000 or more may run 1% higher.

Spring is here and the market seem to be starting to take off so please call for the latest mortgage information and a pre-approval letter (505) 660-4214

---

            
03.03.08 6:30 pm
Approved by Carol Allen
Subject: The City Different
Article by: Richard W. Cooke, VP Quest Mortgage
The City Different

Santa Fe has once again lived up to it’s reputation as the “City Different” as we watch from our mountain tops seeing other markets go through some difficult times! Santa Fe hasn’t seen much of an affect at all, albeit we have seen property values settle into a 3 percent appreciation range as opposed to the more normal 7-10 percent annual rate.

There has been a good deal of higher end sales throughout the Winter months leading into, what looks to be a fantastic spring market here. Any slowdown effect that may have happened was minimal and seemed to be the result of out-of-state buyers concerned about selling their homes elsewhere. Most of them were not deterred and went ahead, afraid of losing their dream home, securing a mortgage without a pre-payment penalty paying it down later.

Interest rates for 30 or 15 year fixed rates are in the 5 to 6% range depending on the loan size are certainly no deterrent and close to historic lows.

Despite publicity to the contrary “Stated Income” style loans for self-employed and other borrowers with good credit are readily available through most of the 50-60 mortgage lenders I deal with. Creative options for borrowers wishing to pay down their fixed rate loan or adjustable, without penalty and resulting in a lower monthly payment are just an example and a great alternative if you are waiting to sell another property.

We are looking forward to another great Spring market and looking forward to seeing you and being of service here in Santa Fe your “City Different”

Richard W Cooke, VP Quest Mortgage (505)660-4214

---

            
03.03.08 6:23 pm
Approved by Carol Allen
Subject: The City Different
Article by: Richard W. Cooke
The City Different

Santa Fe has once again lived up to it’s reputation as the “City Different” as we watch from our mountain tops and watch other markets go through some difficult times! Santa Fe hasn’t seen much of an affect at all, albeit we have seen property values settle into a 3 percent appreciation range as opposed to the more normal 7-10 percent annual rate.

There has been a good deal of higher end sales throughout the Winter months leading into, what looks to be a fantastic spring market here. Any slowdown effect that may have happened was minimal and seemed to be the result of out-of-state buyers concerned about selling their homes elsewhere. Most of them were not deterred and went ahead, afraid of losing their dream home, securing a mortgage without a pre-payment penalty paying it down later.

Interest rates for 30 or 15 year fixed rates are in the 5 to 6% range depending on the loan size are certainly no deterrent and close to historic lows.

Despite publicity to the contrary “Stated Income” style loans for self-employed and other borrowers with good credit are readily available through most of the 50-60 mortgage lenders I deal with. Creative options for borrowers wishing to pay down their fixed rate loan or adjustable, without penalty and resulting in a lower monthly payment are just an example and a great alternative if you are waiting to sell another property.

We are looking forward to another great Spring market and looking forward to seeing you and being of service here in Santa Fe your “City Different”

Richard W Cooke

---

            
12.11.07 10:33 am
Approved by Carol Allen
Subject: Mortgagematters - Excess/ Excessive reaction
Article by: Richard W. Cooke, VP Quest Mortgage
Are you confused by what’s happening in the residential mortgage finance markets? You’re not the only one. I think that Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke were initially just as confused about the capital-markets meltdown that began in August as is the average citizen.

Well, let me offer a simple explanation for a very complicated problem: Excess leads to excessive reaction. It’s just that simple. Huge amounts of money chased higher yields available in the “scratch & dent” mortgage sector. Billions of dollars of loans were made to borrowers with damaged credit and others who just couldn’t afford the payments once their mortgage loan rates adjusted.

Making loans to borrowers with dinged credit or to borrowers whose income didn’t merit the loans didn’t seem to be an unreasonable approach to many borrowers, lenders and mortgage security investors. After all, as long as housing prices continued to rise, what was the real risk? If a borrower got into financial trouble, he could just sell the property, pay off the mortgage, and walk away with cash in his pocket. Let me see a show of hands. How many of you believe that what goes up never comes down?

Why did so much money go into bad credit? Again, the simple answer is that credit spreads in high- quality mortgage assets had compressed. Because there was very little difference between short­term and long-term rates, lenders who borrowed “short” and lent “long” couldn’t generate the interest-rate spread to which they had become accustomed. But there was a place where spread could be increased: the sub-prime lending arena.

There were plenty of borrowers with impaired credit and/ or insufficient income who wanted to ride the homeownership bandwagon. And, coincidentally, there were a large number of investors in mortgage securities who wanted interest-rate spread regardless of the quality of the loans underlying the securities, so the alchemic environment was ideal. Insert real- estate brokers, mortgage lenders, rating agencies, and investment bankers between these two constituencies and the chemical chain became complete.
Hundreds of billions of dollars poured into mortgage- backed paper from foreign central banks, hedge funds, commercial banks, investment banks, pension funds, insurance companies, etc. NINA loans (no income, no asset), POA loans ( negatively amortizing pay option ARMs), and Piggyback HELOC loans (home equity lines of credit representing much of a borrower’s down payment) proliferated.

I kept waiting for a NINJA loan to pop up - no income, no asset, no job.

The politicians want us to believe that real-estate brokers and mortgage brokers were responsible for the present environment of high loan delinquencies and foreclosures by duping consumers into buying and financing homes they couldn’t afford. Sure, some of that occurred, but the vast majority of consumers who participated in creating the current situation entered home purchase and financing transactions with their eyes wide open.

Real- estate booms, high- tech booms, stock-market booms, and every other type of boom are caused by two primary factors: an excess of greed and a colossal disregard for basic economic principles.

And the market has a painful way of reacting to excess: excessive reaction.

The shame is that perfectly innocent individuals and companies wind up paying a price, whether they had anything to do with the basic excess. Strong borrowers all over the country see their home values decline as the real-estate market weakens; some lenders are victims of the excessive reaction, despite having never made a sub-prime loan; responsible consumers, out of fear, curtail their spending, thereby damaging the overall economy; and on and on.

The present environment that was precipitated by excess in the housing and housing finance industries will eventually pass. Let’s try to remember the lessons that were conceived this time around.

Joseph Badal is senior executive vice president, chief lending officer, and a member of the board of directors of Thornburg Mortgage, a leading single-family residential mortgage lender focused principally on the jumbo segment of the adjustable- rate- mortgage market. A Santa Fe headquartered National Lender.

---

            
12.10.07 3:05 pm
Approved by Carol Allen
Subject: How to find the lowest mortgage rates in New Mexico
Article by: Richard W. Cooke, VP Quest Mortgage

First a little about me, I have been financing real estate in New Mexico, Colorado and Arizona for over 20 years. In today's market experience is indispensable as guidelines and lenders change almost daily.

Being a Mortgage Banker and Broker allows me to shop over 50 top lenders for you, getting the best Rate and program tailored to your specific needs.

Ask any potential lender for a "no/no" which means "no points and no origination fee" rate quote, keep in mind rates can change from one day to the next. Also, ask for detailed closing costs and a total to close, they should provide a "Good Faith Estimate" form which outlines all fees and the rate. Once you have the no discount and no origination fee rate and closing cost estimate, I can guarantee to meet or beat any competitor and provide you with unmatched service as well!

---