This Week; Treasury will auction $99 Billion of notes beginning Tuesday through Thursday. The 10 yr note yield fell to 1.70% last week, a key resistance level and matching the lowest yield on the 10 year set last September. April existing and new home sales along with April durable goods orders are the key reports this week. Stocks should rebound from their worst week since September and U.S. futures rise as China signaled it would support the economy and German and French officials prepared to meet before a summit. Commodities snapped a three-day drop while Treasuries and the yen declined. The Bank of Japan, which starts a two-day meeting tomorrow, expanded its asset-purchase program in February and April. Last week, two bond-buying operations failed to attract the central bank’s target for sell offers. The European Union summit starts Wednesday. Concern Greece will exit the euro erased about $4 trillion from global stock markets this month. Europe’s debt problems continue to dominate US bond market as money from around the world is piling in to safety in treasuries

Bill Nickerson

Vice President Mortgage Network

179 Great Road Suite 214, Acton MA 01720

978-399-1313

Bill's BLOG

Providing Mortgages Since 1991

NMLS # 4194

Commercial   Residential     Reverse FHA/VA

5 days left! 5 days till all your dreams of margaritas, and salsa, and piñatas come to life in a congregation of mariachi music, sombreros, and tortilla chips.  5 days till Cinco de Mayo and here is an update!

Golf at the International, Quail Ridge, Concord Country Club, a Red Sox themed bike, auto detailing, skis, ski passes, Red Sox tickets, cigars, babysitting, a Band!  Yes, a Band and the opportunity to rent the Team Lick bus chauffeured by our very own Captain Apgar.  The band could play in the bus.  Imagine the possibilities. 

We have raffle items including gift certificates for food, beverages, oil changes, Pedal Power gift bags, Nashoba Valley shwag, and it is still coming. If you can't come, you can buy raffle tickets or bid on Silent Auction items and still win stuff.

It is really shaping up to be a fun night and we'd love to see you.  If you need a babysitter, Esme Wessel is auction off some babysitting that you could bid on and win before we even get started!  It is like we are traveling back in time!  That is how good this party is going to be!

To review -

When:          Saturday, May 5^th 2012 - 6:00pm to 11:00pm

Where:        The Outlook Restaurant at the Nashoba Valley Ski Area

                          79 Powers Road, Westford, MA 01886

What:          Dinner, Music, Raffles, Silent Auction items, Piñatas, and a whole bunch of Margaritas

Cost:            $50 per person gets you dinner and a drink

So get you and your friends and family and favorite gringos with their checkbooks to the Outlook Restaurant on May 5^th!

Go!

Sincerely,

Bill Nickerson

Loan Officer NMLS# 4194

Mortgage Network, Inc.

179 Great Road

Acton MA 01720

978-399-1313  office

877-367-4416 fax

978-273-3227 cell

Massachusetts Licensed Lender & Broker MC2668

WEBSITE   EMAIL    BLOG        

This Week; the big data is on Friday with the February employment data. Early estimates are for the unemployment rate to remain at 8.3%, non-farm jobs up 207K and non-farm private jobs up 220K. Monday the Feb ISM services sector report will draw attention, estimates call for the index to decline slightly to 56.0 from 56.8 in Jan; a weaker index reading will aid the bond market somewhat. Interest rates were literally unchanged last week with the key 10 year note very comfortable in its four month long range between 2.10% and 1.90%. Europe’s debt crisis is still out there but has settled a little with Greece getting the funds necessary to avoid defaulting later this month. Attention in Europe will now increasingly focus on Spain as it refuses to adopt the stringent austerity programs forced on Greece.

The bond and markets are in narrow trading ranges, they will likely continue there until another new fresh fundamental comes along. We continue to believe interest rates have seen their lows, however we are not expecting any significant increase in rates in the near future. Last week Bernanke made it clear the Fed was not thinking about another easing move at the moment, that kind of roiled the equity markets momentarily. The differences of opinion remain between the Fed and private forecasters. The Fed remains concerned the economy is not on solid footing, while private investors continue to bid up equity prices on belief the US economy is slow but solid.

In all, mortgages will be trading around 4.00% plus or minus an 1/8^th on any given day based on these forecasts.

For more information, feel to call or email me anytime.

Have a Wonderful Day!

Bill Nickerson

Vice President    Mortgage Network Inc

179 Great Road, Acton MA 01720

www.billnickerson.net      bill@billnickerson.com

978.273.3227

New Mass Housing Program

Features

No Mortgage Insurance

MassHousing recently launched a new mortgage program that features Low Down Payments, as little as 3% down with No Mortgage Insurance!  This product provides financing (purchase or refinance) up to 97% of the appraised value of the home without the hefty mortgage insurance payments that are typically associated with low down payment programs.

This special program is available for owner occupied; one to four family properties including condominiums on both purchase and refinance transactions. With a low fixed rate, down payment can be a gift on single family homes.  The MassHousing Mortgage with No Mortgage Insurance is a great choice for low and moderate income homebuyers.

Call me to learn why this innovative program is an attractive alternative to an FHA mortgage!  Remember, this program allows for the same low down payment options as FHA with no mortgage insurance and in-house condo approvals!!

Features

o   As little as 3% down on single-family homes and condos

o   As little as 5% down on 2, 3 and 4-family homes

o   No mortgage insurance required

o   Income limits as high as $123,660 in many cities and towns

o   Fannie Mae loan limits apply, borrower up to $417,000

o   Approved community second mortgages allowed

Advantages

o   Gift funds can be the source of the down payment on single family homes

o   The interest rate will never increase

o   Competitive fixed rates

o   Safe, fixed-rate limited cash-out refinance option

Call me anytime with questions about this new program or for a consultation with your clients regarding this innovative financing option! 

Sincerely,

Bill Nickerson

Loan Officer NMLS# 4194

Mortgage Network, Inc.

179 Great Road

Acton MA 01720

978-399-1313  office

978-268-5023 fax

978-273-3227 cell

Massachusetts Licensed Lender & Broker MC2668

WEBSITE   EMAIL    BLOG        

For the first time in over a month, the Best-Execution rate for 30yr fixed mortgages rose from a rounded average of 3.875% to 4.00% today.  The underlying borrowing costs associated with 3.875% didn't rise by a significantly painful amount, but the small increases across the board, combined with one huge move by a huge lender, was enough to bring the average rate closer to 4.0% than 3.875%.   

You may well wonder what the heck this all means.  So we'll go into more detail tonight for enquiring minds.  Our methodology for determining daily Mortgage Rates is somewhat complex, and involves an objective component based on lenders raw prices as well as subjective impression from our network of originators.  We look at the rate sheet offerings from most major lenders and calculate the buy-ups and buy-downs between each rate (incidentally, rates tend to be offered in .125% increments, which is why we're always conveying best-execution in .125% increments whereas the actual daily average is reflected on the Mortgage Rates page). 

Sometimes, the "sweet-spot" is obvious from looking at lenders raw pricing.  For example, For each .125% lower in rate, you'd have to pay more and more in terms of closing costs (which could be referred to as "discount" or "origination" or "points" among other things, but I'd greatly like to stay out of semantics debate and instead focus on the spirit of the matter.  Bottom line: it costs more money up front to pay a lower rate over time, whatever a lender wants to call that fee).  If it cost 0.4% of the loan amount to move down from 4.125% to 4.0%, another 0.5% to move to 3.875%, but a whopping 1.2% to move to 3.75%, it's clear that this lender's Best-Execution is at least 3.875%.  In some cases, some clients may opt to pay big buydowns if they understand the longer time it will take to breakeven on the extra upfront expense in terms of monthly payment savings from an .125% lower rate. 

Other times, the gaps between rates are fairly close together for several rates near Best-Execution.  This makes the process of deciding that lender's Best-Ex rate much more subjective.  In these cases, we assume scenarios with the best combination of lowest closing costs but not at the expense of monthly interest savings that could be recouped in less than 5 years.  This almost always means a loan with no origination fee.  But when the range of options are similarly viable, we involve the community to get a consensus not only of what they're quoting, but also which options their clients are choosing.  This is combined with the objective measurements taken from lenders, and each lender's best-ex rate goes into calculating the average.

All that to say that this average moved up from 3.92% to 3.98% today.  3.92 rounds down to the closest eighth whereas 3.98 rounds up, thus, the 4.0% Best-Execution today.  But keep in mind that 3.875% is still very much "out there," meaning, deals can be viably structured with 3.875% rates just as easily today as they could have been on Friday, as long as you can afford the increased closing costs.  Also keep in mind that different lenders are continuing to price in the effects of the Tax-Cut-Extension at different times and in different ways.  One large lender priced it in with today's rates and the difference in closing costs would be substantial if you didn't know where they were coming from.  But the tax cut extension calls for a 10bps increase to a fee that lenders have to pay the government on each loan.  That 10bps fee is like 0.1% interest rate increase, almost as much as the .125% increments we just discussed!  So just like moving up and down by .125% increments in rate affected the costs by .4, .5 and even 1.2% of the loan amount, you can see how a difference of 0.1% being priced in overnight could have a drastic effect on closing costs on a particular loan depending on the lender and the initial rate.

Courtesy Mortgage News Daily

Before I talk about bathrooms, I would like to thank Bill Nickerson for this opportunity to introduce myself to you. My name is Ken Howell and I am the co-owner of Synergy Total Home, a residential contractor located in Acton. Together with my partner Julius Dunworth, we have more than two decades of experience transforming our customer’s houses into the home of their dreams. I would welcome the opportunity to speak with you about any project you have been considering. Now let's talk about bathrooms.

With the decrease in housing sales in recent years, homeowners are looking at ways to improve their current homes. One area that continues to be a popular area to remodel is bathrooms. That shouldn't be surprising, every house has at least a couple baths and some have more. At Synergy Total Home, we love doing bath remodels and our customers love the results. Let's look at some bath remodeling tends for 2012:

1.    Large, open custom showers:  Large showers made with designer tile are a big request right now. People like the rich look of tile and the custom appearance it offers. Adding to the open feeling are clear glass doors that are hinged rather than sliding. In addition, people want their baths to be a relaxing spa like retreat and one way to accomplish that is with multiple shower heads.  We do many custom showers with a fixed shower head and a handheld wand.

2.    Jacuzzi's are out, soaking tubs are in: How many of us have a jacuzzi that we never use?  The answer is most of us. And how about all the room some of them take up. Today more people are opting for simpler soaking tubs. A soaking tub is typically larger than a standard tub but still takes less space than a jacuzzi. Add a few candles and you are set for a relaxing evening.

3.    Bring in the light:  Our customers view their master baths as a sanctuary from a stressful world. They want them to bright and cheerful, even sun filled. Many of our customers are requesting more windows or even skylights were possible. Many glass options are available to ensure privacy.

4.    Big fan, little noise: Exhaust fans continue to be a popular request not to mention being required by code in most circumstances. But while people may want what the fan can do they don't really want to hear it doing it. Ultra quiet fans are what most people opt for. Properly installed these fans are almost impossible to hear. Fans are also available with lights and heat.

5.    Water closets: For those that have the space a separate water closet is a big advantage. Let's face it, we may love our spouse but we all need privacy now and then. Sometimes it requires relocating the toilet but with PVC pipes it’s not as complex as it may seem.

That's the first five; I will cover the second five in Bill's next newsletter. In the meantime, if you have any questions please contact me at

978 369 1006 or send me an email at kghowell65@msn.com. You can also check out our website at www.synergyrestorations.com

Article courtesy of:  Ken Howell, Co-owner of Synergy Total Home

This Week; of course it is still most about Europe, the saga that won’t go away, and likely not for years. Treasury rates ended last week at 1.87%. Mortgage rates continue to decline in the MBS market but lenders that buy the loans have not been pricing to the MBS market, holding prices lower than the market itself. The increased fees to finance the 2.0% social security tax cut financed by home buyers and re-financers is causing disruptions in pricing. Some lenders have used the fee increase to increase gains from originators by setting prices much lower than MBS markets trade---over and above making the price adjustments for the fee increases. Watch your lenders and compare MBS prices we report to how your lender is treating you.

This week a few key economic reports that will get traders’ attention; PPI, CPI, Philly Fed business index, Housing starts and permits as well as Dec existing home sales and weekly jobless claims all on tap (see economic calendar). US interest rate markets continue to hold well, at the same time the long end including mortgages is struggling to keep a positive bias. Europe’s travails and this week’s economic data should define whether rates will move lower. That said, with rate increases due to Congress using Fannie, Freddie and FHA to finance the social security tax cut, mortgage rates are not likely to fall much more even if US treasury markets improve somewhat. We remain skeptical on the longer term outlook for rates, rates are likely to increase a little this year with the economy improving. The wild card now is the Fed (Europe is always a wild card on a day-to-day basis); last week there were some that were floating the idea of another easing move from the Fed, still a minority view however. On the 24th and 25th the FOMC meets, likely there will be discussions on the subject.

Have a Wonderful Day!

Bill Nickerson

Vice President    Mortgage Network Inc

179 Great Road, Acton MA 01720

bill@billnickerson.com

978.273.3227

From the KCM Blog:

It used to be that there was logic applied in the world of mortgage lending. An appraiser determined the value of a home by the axiom, “what a reasonable buyer would pay a reasonable seller”. An underwriter weighed the plusses and minuses of a file (after analyzing the income, the assets, the credit profile and the appraisal) and made a judgment call based on their experience.

Loans with sizable down payments used to be more flexible with how income was documented or what quality of credit was required. Even the decision of what made up “good credit” has been reduced to a FICO score. Determining the risk of a loan affected its approval or denial. Further, loans deemed riskier were given less favorable terms (higher rates and/or costs or larger down payments).

But today, everyone has tried to quantify everything and put everything into a matrix. Credit scores are numerical, and the number determines eligibility and cost. Gone is the concept of explaining why you have defects in your credit. We don’t care why, we just look at your score. Appraisers now are being scored and their data being scrutinized to a level most would find mind-boggling. Amenities that make a home worth more for a particular buyer (like a pool or upgraded basement) are virtually ignored. Underwriters have primarily become fact-checkers and quality control as a computer software program underwrites the vast majority of mortgages today.

Gone is common sense. It has been replaced by numerical formulas and a cover-my-behind, justify-everything-with-data mentality. Basically, the pendulum has swung too far. It used to be that lending was too easy (see the subprime debacle), but now we have eliminated too much of the human element. We need common sense back.

·         People who have saved 30% for a down payment know what they can afford monthly. Don’t they?

·         People who had a medical challenge two years ago that is not likely to reappear should not have a twenty year credit history destroyed. Should they?

·         People aren’t likely to overpay for a home with so much inventory and all the media exposure about falling prices. Are they?

·         Bring back some common sense when we need it most!

From the KCM Blog:   http://www.kcmblog.com/2011/12/08/common-sense-isn%E2%80%99t-common-practice/

Bill Nickerson

Vice President Mortgage Network

179 Great Road Suite 214, Acton MA 01720

978-399-1313

Bill's Blog

Providing Mortgages Since 1991

NMLS # 4194

Commercial   Residential     Reverse FHA/VA

This Week; it will continue to be on what happens in Europe with the debt issues. It is not going to fall off the front page for our markets for many months; on Friday the leaders in Europe are scheduled to meeting on Friday. Markets are hoping there will be some kind of plan that emerges to deal with the debts of Spain and Italy but after two years of trying it is a leap of faith to expect anything substantive coming from the meeting. Not much in the way of key economic readings this week; Monday the Nov ISM services sector index and weekly jobless claims on Friday are the only serious data points.

Technically and fundamentally the US interest rate markets remain in narrow trading ranges; the 10 yr note still unable to hold under 2.00% but does find support anytime the yield climbs to 2.12% as it did last week. Mortgage rates and prices trading a even narrower ranges; the price on the 3.5 FNMA coupon has held in a 50 basis point price range now for almost a month. The week will continue to work off how equity markets, stock indexes higher---bond and mortgage prices lower. We remain skeptical that US interest rates will decline much from these levels, the larger outlook is that rates will begin to slowly increase from present levels.

For more information about mortgages and the housing markets, please call or email me anytime.

Bill Nickerson

Vice President Mortgage Network

179 Great Road Suite 214, Acton MA 01720

978-399-1313

Bill's Blog

Providing Mortgages Since 1991

NMLS # 4194

Commercial   Residential     Reverse FHA/VA