Join Creekside Mortgage, Inc as we honor our veterans on Saturday November 9th at 11am. As a sponsor, we will be celebrating 27 years of the Lough Lagacy Veterans Parade at Fort Vancouver. The parade will begin with an Air Force fly over and a twenty-one gun salute from Howitzers. That’s just the beginning too! If roaring jets and cannon fire aren’t enough then look for us in the ‘67 red Chevy or the Abrams tank if the Chevy is unavailable that day. We will be fourth in line passing out free American flags and candy!
The parade route is a little over a mile long and will be entirely on the Fort Vancouver National historic site. The parade will start at the east entrance of the park and proceed along Evergreen Boulevard, then south along Fort Vancouver Way and finally along East Fifth Street where it will end at the Southeast entrance.
Rain or shine we will be marching in one of the largest veterans parades on the west coast, so be sure to arrive early and be prepared for the weather by bringing something to keep you warm and dry.
We are looking forward to seeing your smiling faces as we honor our Clark County Veterans in this year’s parade, and once again look forward to serving your needs when you choose to purchase or refinance your home.
The market has made a big turn since the crash that started back in 2007. In fact, home sales have recovered nearly half what they had lost. Over the past few months, the home market has largely been in favor of sellers, but is it starting to change?
According to the National Association of Realtors (NAR), the pending homes sales index fell over 5% in September. The index represents the number of homes that are likely to be sold within the next two months.
With home sales showing signs of slowing down, and interest rates having moved back down, is it time to move?
While no one should answer that question for you, there are experts that you can go to for advice. The decision is very individual and there is no market situation that would ever lead to the same answer for everyone. So here are some questions you should ask yourself before deciding to move.
What is the status of your finances as a whole?
Have you had problems meeting all your financial obligations? I know this may seem obvious, but you would be surprised at how often this is an issue. It can be a hard pill to swallow, but does your current financial struggles suggest actually downsizing? Or maybe a simple refinance will ease the burden?
On the other hand, are you managing your finances in a way that you are aggressively paying off debt and/or adding to your savings? If this is the case, the next question is definitely for you.
How are your family’s physical space needs going to change in five years?
Do you have young children? If so, they are likely going to need additional room as they get bigger and more involved in sports and hobbies.
Or are you getting closer to becoming empty nesters or nearly empty nesters? If this is the case, maybe it’s time to look into a home that is easier to manage by a smaller workforce than the whole family.
Is there a renovation that could fix your troubles?
Are some of the things that bother you about your current home fixable through a remodel? Many times people just need some change in their lives and a remodel can fill that need and improve your living conditions.
Remodels are one of the best ways to invest your dollars. Often times the money invested in a remodel increases your home’s value enough to give you a 100% return on investment. One of the best ways to get cash for a remodel is a VA 95% cash out refinance.
Obviously what you decide to do depends mostly on your individual circumstances. There are many people and organizations out there that can help you make that decision, or at least give you some insight.
Creekside Mortgage, Inc is a company of United States Veterans who are dedicated to helping other Veterans, Military families, and people just like you realize their homeownership goals. Call us today at 1.800.920.5420.
We have all heard of the stock market and watched during the news as reporters give a brief synopsis of the current state of the economy. However, this does not always reflect the situation for home buyers or home owners. What many are not accustomed to hearing about is the Bond market and why prospective home buyers or home owners looking to refinance should pay particular attention to the Bond Market.
The Bond market is exactly what the name states, debts are packaged, sold, and traded as security bonds. The Federal Reserve uses the bond market as a tool to improve the economy. In fact, The Federal Government buys $85 billion worth of bonds a month to help grow the economy. When the economy shows improvement the government no longer sees a reason to buy $85 billion in bonds a month and begins a pull back strategy. The impact of this move is seen in interest rates for home loans. When the government decides to no longer purchase bonds, it increases the risk for lending institutions, which translates into an increase in interest rates.
Recently a jobs report came out with bleak news on the state of employment. This translates to weak economic growth, so the likelihood that the government will continue to purchase bonds to help stimulate the economy is good. Consequently a weak economic outlook improved the Bond Market which also affected the rates of mortgages. Indicators such as unemployment statistics, new jobs, home sales, and business growth are just some of the systems monitored that indicate the state of the economy. Hence, if the economy needs some aid the Federal Reserve continues to buy bonds. With an increase in stability of the bond market from the Federal Reserve, the interest rates of home loans decreases.
Last week Kerry Greenwald, owner of Creekside Mortgage, Inc predicted rates would go down and continue this way until the first quarter of next year. Rates are now at their four month low and if you are looking to buy or refinance a home; now is looking pretty good.
Housing Market in General
After months of rapidly inflating sales and home prices, the market began it’s adjustment in September. Home sales dropped 1.9% in September from their 5.39 million in August to 5.29 million.
Economists have been anticipating this adjustment, as with the old saying, what goes up, must come down. The reduction was anticipated because of the rapid increase in sale prices for homes. It was moving so fast that the mortgage industry was having a hard time keeping up with it. For example, appraisers could not appraise homes at the most current market values because they have to look at the previous 6 month average of comparable homes. When prices move up too quickly, homes that sold six months earlier were still selling at the pre-inflated price, and thus lowered home appraisals.
More evidence of a buying slow down is that the total time on the market for all homes changed from 43 days in August to 50 days in September.
While all this chaos has been happening, the VA loan program has hit a new high. The VA loan program backed nearly 630,000 VA loans this fiscal year. Just so you get an idea of how that’s changed, take a look at the chart.
Veterans and military families across the nation have been taking advantage of this amazing program for over 70 years. Despite softer requirements, like a minimum 620 credit score and no required down payment, the VA loan continues to have the lowest foreclosure rate of all the loan programs currently available.
Over the last several months, we’ve seen some very dramatic roller coaster rides for the economy and mortgage interest rates. Between the Federal Reserve threatening to begin pulling out of the bond market and the political battle over the Affordable Care Act, the debt ceiling, and keeping the government fully funded; the market has been having a tough time staying reliable.
Now that the government is temporarily funded, we are hopeful we can get some consistency and dependability for interest rates and the housing market. One thing that could really throw a wrench at that is the fact that the whole debate over the debt ceiling is going to come up again as it expires in the first part of 2014.
If the debt ceiling begins another political battle (and it probably will), it could result in more unsettling feelings about the future for our economy. This would result in economic uncertainty, which usually drives interest rates down.
Yes, as the economy worsens, rates actually tend to improve. This happens primarily because unreliable market conditions lead investors to buy bonds instead of stocks. The bond market has a direct impact on interest rates, so as the bond market improves, so does interest rates. It may seem like an unusual relationship, but it’s one that is time proven.
Kerry Greenwald, owner at Creekside Mortgage, made the prediction that economic conditions would drive rates down from now until the end of the year and possibly into the first quarter of 2014. While we hate the circumstances that cause the rates to go down, it does provide excellent opportunities for homebuyers to jump into the market.
Creekside Mortgage, Inc is a Veteran owned and a Veteran operated company. We serve military families and Veterans primarily through the VA loan program. If you or someone you know has questions about getting a mortgage, give us a call at 1.800.920.5420.
As a team of United States Veterans, Creekside Mortgage is proud to announce the addition of United States Navy Veteran Joe Kuziel!
Joe graduated from the US Army Special Operations Combat Medic Course and then served in the Navy as a Reconnaissance Corpsman for the 2nd Force Recon Co during Operations Iraqi Freedom and Enduring Freedom. Joe was a Parachutist and a Diver.
After his 5 years of military service, Joe studied at the University of North Carolina Wilmington, where he graduated with a degree in Chemistry. As a student, Joe used his diving experience to be a scientific diver for the North Carolina Aquariums. One day Joe was approached by a friend to help the short staffed cheerleading team, and Joe reluctantly agreed to join. After a short time Joe’s reluctance turned into enthusiasm and he quickly learned to love cheerleading!
He went on to use his chemistry degree to teach science for 3 years at the Jr. High and High School levels.
In July 2013, Joe moved to Vancouver where he now resides with his two dogs Leela and Shera an australian shepard and “GerBoxer”. Joe enjoys hiking and snowboarding.
We are thrilled that Joe has agreed to come aboard and help the Creekside Mortgage team. He has already proved to be an invaluable strength. If you ever need to contact Joe, you can reach him by email at email@example.com or by phone at (360)571-5626.
The Shutdown and Debt Ceiling
Tuesday marked 8 straight days of the government shutdown, and with an unpredictable end and a looming national debt default, the market is hunkering down and bracing for a big economic storm.
October 17th is the deadline for the two political parties to come to terms and make a decision on the debt ceiling, and it doesn’t look too good. With the two main political parties having reached an impasse, the market is showing that it has little faith that a resolution will happen soon and that it will be good for the economy. Stocks have been falling at a fairly consistent rate since September 18th. But some worry the market’s reaction isn’t big enough to push the politicians “into gear” to finally reach an agreement.
With all this economic uncertainty, mortgage interest rates have had very interesting reactions. While the stock market has been declining steadily, interest rates have been improving, up until monday. Now it appears that rates have started making a switch and are moving higher. It’s unclear what will happen with rates, but until politicians can come up with a solution that will be beneficial for the economy, rates may likely continue to rise.
The Mortgage Industry
Despite the government shutdown, mortgages are still funding everyday - and on time! VA, FHA, and conventional loans are being processed almost the same way they have always been and most of the time you won’t even notice a difference.
In some cases, if you have unusual circumstances that would require your lender to talk to representatives in FHA offices, your loan will most likely be delayed because they are working with a severely reduced staff.
Unfortunately, USDA loans are at a complete standstill until the shutdown is over. In fact, you cannot even access the website. But USDA loans make up such a small percentage of the total amount of loans, that it has little impact on the mortgage industry.
Overall, it’s a bad time for your stocks, but a great time to buy a home or refinance if you haven’t done it in the last year. Rates are the lowest they’ve been since the spike that started in May, and the amount of homes available for purchase is growing everyday.
This month several people in our office have committed to a no sweets challenge until Halloween! We were so impressed by this goal that we wanted to share it with all of you, and invite you to join us.
While it’s completely up to you for how strict you want to be, below you will find some guidelines we are planning on following.
-As a basic rule of thumb, avoid all processed sugars
-Halloween candy, cakes, and desserts are not okay until October 31st
-All fruits and vegetables are Okay
-Sugar free candy is Okay
If you’d like to share any tips, stories, or thoughts, please leave a comment below. Goodluck!
What will happen with mortgages in light of the Government shutdown?
The stock market suffered Monday as it anticipated the government shutdown. Then what the market feared, actually happened, and the result, the market improved as of Tuesday morning, mortgage interest rates had remained mostly unchanged.
So what actually happened? The government furloughed certain federal agencies and contracted organizations. What does this mean? Simply put, the government slowed down, and told a percentage of employees not to come to work today.
We’ve had a few people ask us what does the government shutdown mean for closing a loan. To keep it short and to the point, the answer is that like interest rates, the loan process continues mostly unchanged, even for VA and other government loans. At it’s worst, you may notice some minor delays when requesting documents from some government organizations.
When we take a step back and examine this government shutdown, and its effects, you should see things pretty much continue as normal. That being the case, we hope you don’t hesitate to begin or continue your pursuit of a home purchase or refinance. Over the past couple of weeks, we’ve seen a fairly steady reduction in mortgage interest rates. This makes it a perfect time to buy or refinance.