Mortgage rates are extremely low and offer outstanding value to homebuyers and those needing to refinance their current mortgage.

A drop in rates provides a tremendous boost to your purchasing power and a low monthly mortgage payment. Whether you are buying or refinancing, these historically low mortgage rates can potentially save you thousands of dollars over the life of your home loan.

If your mortgage is on your mind, please call me right away to discuss your options. Rates continue to be volatile, and this opportunity might not last long. Do not wait until next week. Whether you are looking to buy or refinance, I am here to help you save money! Call me today and let’s get started on your loan.

If you know a friend, family member, work colleague or neighbor who could benefit from low mortgage rates, please forward this email to them. I am here to help with professional advice and personal service!

According to the ICSC-Goldman Sachs index, retail sales rose 0.2% for the week ending April 24. It was the sixth consecutive gain. On a year-over-year basis, retailers saw sales increase 5.5%, the best showing on record, topping a 4.7% increase for the week ending April 3.

The Standard & Poor’s/Case-Shiller 20-city housing price index fell a seasonally adjusted 0.1% in February. Following a 0.3% increase in January, it was the first decline after eight consecutive monthly gains.

The consumer confidence index rose to 57.9 in April from a slightly revised 52.3 in March. Economists had anticipated a reading of 53.5. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending April 23 fell 2.9%. Purchase volume increased 7.4%. Refinancing applications fell 8.8%.

Initial claims for unemployment benefits fell by 11,000 to 448,000 for the week ending April 24. Continuing claims for the week ending April 17 fell by 18,000 to 4.6 million.

Upcoming on the economic calendar are reports on construction spending, pending home sales and factory orders on May 4, and consumer credit on May 7.

New home sales rose 26.9% in March to a seasonally adjusted annual rate of 411,000 units from an upwardly revised rate of 324,000 units in February. Economists had expected a pace of 330,000 units. It was the biggest monthly increase in 47 years.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 1.4% in March after a revised 0.4% gain in February. It was the 12th straight monthly increase and the fastest pace of growth in 10 months.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending April 16 rose 13.6%. Purchase volume increased 10.1%. Refinancing applications jumped 15.8%.

The producer price index, which tracks wholesale price inflation, rose 0.7% in March, following a 0.6% decrease in February. Economists had expected a 0.4% rise. The increase was largely due to a sharp rise in vegetable prices after a cold snap damaged crops in Florida.

Existing home sales rose 6.8% in March to a seasonally adjusted annual rate of 5.35 million units from 5.01 million units in February. The inventory of unsold homes on the market rose 1.5% to 3.6 million, an 8-month supply at the current sales pace, down from an 8.5-month supply in February.

Orders for durable goods — items expected to last three or more years — fell 1.3% in March after a revised 1.1% increase in February. Excluding volatile transportation-related goods, orders posted a monthly increase of 2.8%.

Initial claims for unemployment benefits fell by 24,000 to 456,000 in the week ending April 17. Continuing claims for the week ending April 10 fell by 40,000 to 4.6 million.

Upcoming on the economic calendar are reports on the housing price index and consumer confidence on April 27, and gross domestic product on April 30.

A seller does not have to be behind on a home loan to seek a short sale. If sellers wish to pursue a short sale, they must owe more than what the home is worth, demonstrate the house cannot be sold for the amount owed, and suffer from a legitimate financial hardship that makes the mortgage unaffordable.

The next step in the short sale process is to assemble a short sale package. This package will include such things as a financial statement showing monthly expenses, income documentation, bank statements, tax returns, a listing agreement, purchase agreement, an estimated HUD statement and a financial hardship letter.

If the home is sold as part of a short sale, there will be a difference between the amount owed and what the bank collects. This is called the shortage or the deficiency. Sometimes this deficiency may be negotiable. Some banks will seek a promissory note for the deficiency, meaning that the seller may be responsible to pay the difference between what the home sold for and what is owed to the lender. Some lenders might choose to file a collection or a judgment for the amount owed. The seller should be certain that any amount of debt, or release from debt, is received in writing. If the deficiency is forgiven, the lender can write off the shortage with the IRS, which means the seller may be responsible for paying taxes on the amount of the deficiency. However, the Mortgage Debt Relief Act of 2007 generally allows taxpayers the potential for relief from tax on mortgage debt forgiveness.

A short sale will affect the seller’s credit score. To minimize the effect on a credit score, sellers should avoid making late payments on their mortgage and work with the bank to report the sale in the best possible manner.

We are not a law firm, nor an accounting firm, nor a credit repair organization. For advice regarding potential tax liability or credit scores, please consult a tax attorney or an accountant.

Click here to visit my website and apply on line: http://www.RennoLending.com

]]> http://scvmortgageblog.wordpress.com/2010/04/23/short-sale-the-basics/feed/ 0 Santa Clarita's Direct Mortgage Lender, The Renno Lending Team of Prospect Mortgage, LLC. http://scvmortgageblog.wordpress.com/2010/04/05/new-california-tax-credit/ http://scvmortgageblog.wordpress.com/2010/04/05/new-california-tax-credit/#comments Mon, 05 Apr 2010 16:03:28 +0000 Santa Clarita's Direct Mortgage Lender, The Renno Lending Team of Prospect Mortgage, LLC. http://scvmortgageblog.com/2010/04/05/new-california-tax-credit/ ]]>

California has initiated its own homebuyer tax credit. The bill — AB183 — was signed last week by Governor Schwarzenegger. The credit is for 5% of the purchase price, with a maximum credit of $10,000. That’s a dollar-for-dollar reduction against income tax payments that would otherwise be due. Homebuyers must claim the tax credit in equal installments over three consecutive years, beginning with the year of purchase. Purchasers are required to live in the home as their primary residence for two years or forfeit the credit.

To be eligible, first-time homebuyers can purchase a new or existing home. Repeat or move-up homebuyers are eligible for the credit only if they buy a new home.

Buyers of existing homes must close escrow between May 1 and December 31, 2010. The credit is available to buyers of new homes who sign purchase agreements between May 1 and December 31, and close escrow by August 1, 2011.

Separate from the California tax credit is the federal tax credit. The federal homebuyer tax credit will expire soon. If you want to take advantage of this tax credit, you must act fast. The tax credit is available to buyers who sign purchase agreements on a new or existing primary residence home between December 1, 2009, and April 30, 2010. Buyers have until June 30 to close the mortgage loan on their new home.

Call me today to learn how the California or federal tax credit may benefit you. We can get started on a loan application for you today!

The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor. We are not a law firm, nor a CPA firm.

The Commerce Department said wholesalers cut their inventories by 0.2% in January following a downward revised 1% drop in December. Meanwhile, sales at the wholesale level rose 1.3% in January, marking the 10th straight monthly gain.

The trade deficit unexpectedly fell 6.6% to $37.3 billion in January from a revised $39.9 billion gap in December. Economists had expected the trade deficit to widen to $41 billion. Exports slipped 0.3% to $142.7 billion. Imports fell 1.7% to $180 billion.

Initial claims for unemployment benefits fell by 6,000 to 462,000 in the week ending March 6. Continuing claims for the week ending February 27 rose by 37,000 to 4.558 million.

Retail sales rose 0.3% in February, following a revised 0.1% increase in January. Economists had anticipated retail sales to decline 0.2% in February. On a year-over-year basis, retail sales increased 3.9%.

The Reuters/University of Michigan consumer sentiment index for March’s preliminary reading fell to 72.5 from February’s final reading of 73.6. One year ago, the mid-March reading was 57.3. During the economic expansion that ended in December 2007, the index averaged 88.9.

Upcoming on the economic calendar are reports on the housing market index on March 15, housing starts on March 16 and the index of leading economic indicators on March 18.

Click here to visit my website and apply on line: http://www.RennoLending.com

]]> http://scvmortgageblog.wordpress.com/2010/03/15/economic-update-03152010/feed/ 0 Santa Clarita's Direct Mortgage Lender, The Renno Lending Team of Prospect Mortgage, LLC. http://scvmortgageblog.wordpress.com/2010/03/09/what-goes-into-a-mortgage-application/ http://scvmortgageblog.wordpress.com/2010/03/09/what-goes-into-a-mortgage-application/#comments Tue, 09 Mar 2010 16:37:58 +0000 Santa Clarita's Direct Mortgage Lender, The Renno Lending Team of Prospect Mortgage, LLC. http://scvmortgageblog.com/?p=353 ]]>
]]> http://scvmortgageblog.wordpress.com/2010/03/09/what-goes-into-a-mortgage-application/feed/ 0 Santa Clarita's Direct Mortgage Lender, The Renno Lending Team of Prospect Mortgage, LLC. http://scvmortgageblog.wordpress.com/2010/03/08/economic-update-03082010/ http://scvmortgageblog.wordpress.com/2010/03/08/economic-update-03082010/#comments Mon, 08 Mar 2010 17:22:50 +0000 Santa Clarita's Direct Mortgage Lender, The Renno Lending Team of Prospect Mortgage, LLC. http://scvmortgageblog.com/?p=350 ]]>

Last Week in the News

The Institute for Supply Management reported that the monthly index of manufacturing activity was 56.5 in February after reaching 58.4 in January. Nevertheless, it was the seventh straight month of expansion. A reading above 50 signals expansion. 

The Commerce Department reported that total construction spending fell 0.6% in January after falling 1.2% in December. Economists had expected a decrease of 0.7%. 

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending February 26 rose 14.6% to 629.9. Purchase volume increased 9% to 214.5. Refinancing applications jumped 17.2% to 3,054.3. 

The monthly index of non-manufacturing activity rose to 53 in February from 50.5 in January. A reading above 50 signals expansion. Economists had anticipated a reading of 51. The reading was the highest since October 2007. 

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 7.6% in January after a revised 0.8% increase in December. 

The Labor Department reported productivity rose at an annual rate of 6.9% in the fourth quarter. Labor costs fell at an annual rate of 5.9%. 

Factory orders rose 1.7% in January, slightly below the 1.8% increase economists had anticipated. It was the fifth straight gain and follows a 1% increase in December. 

The unemployment rate held at 9.7% in February. Employers cut 36,000 jobs in February, far fewer than expected. The four-week average for continuing jobless claims fell 134,000 to 4.5 million. 

Upcoming on the economic calendar are reports on wholesale trade on March 10, international trade on March 11 and retail sales on March 12.