Clarion Mortgage Capital, Inc.,

has discontinued originating loans

and ceased operations on July 31, 2011.

 Clarion sold the notes they originated and did not service the notes they sold. Since Clarion ceased operations the files are no longer available. You can have your title company run a search for the new lender or ask your client where and to whom they are sending their mortgage payments. If you came to this site trying to find the owner of your note that was originated by Clarion Mortgage you are out of luck. If you are looking to refinance your note with Clarion Mortgage I can help you!

I am now with Tandem Mortgage. We are a full service mortgage lender in California. You can reach me at craigd@tandemhomeloans.com or (818) 326-1915. I'm available to answer all your questions.

For real estate information go to www.mortgageloans-101.com.

To start your loan application go to https://tandem12.startmyapplication.com/smaweb/index.jsp

and hit the "Apply Online" button.  

Facts about Adjustable Rate Mortgages

 i.      ARM’s save borrowers monthly and annually throughout the entire fixed term.  (No Surprise here – see Example #1 & #2 below)  

 

                                                           ii.      Over 85% of ALL borrowers either sell or refinance in approximately 6 years (according to published Freddie Mac data).  Just look at your borrower’s credit reports.  The refi’s don’t lie. 

 

                                                         iii.      ARM’s pay down the principal quicker.  Again, ARM’s pay down the principal quicker.  It’s true.  With a lower interest rate – the borrower pays less interest (Shocker, I know).  Therefore, more money goes towards principal.  (See Example #3 below) 

 

                                                          iv.      ARM loans adjust S L O W L Y .  Even after the Fixed term of the ARM has passed, the benefits of an ARM last well beyond the fixed number of years.  The “Cap Structure” for a 7Yr ARM is 5/2/5 (see ARM Basics at bottom of email).  This means the following:  After the fixed number of years have passed, 1) The first adjustment can be no higher than 5% (Initial Cap), 2) Every adjustment after the first cannot exceed 2% (Periodic Cap), 3) The max amount a rate can adjust up over the life of the loan is 5% (Lifetime Cap).  Each adjustment (if applicable) would occur on an annual basis. 

 

That being said, let’s use the following comparison:  30 Yr $400k l/a @ 4.125%  -V-  7 Yr $400k l/a @ 3.625% (see Example #1) 

 

If the rate increased by .25% every year after the first 7 fixed years and maxed out at 8.625%,the 7 Yr ARM @ 3.625% would be more attractive than the 30 Yr @ 4.125% through the first 15 years and 9 months 15 years of benefit. (see Ex #2, #3 & #4)  How many people refinance more than once every 15 years?! 

 

1.     Ex #1:  30 Yr, $400k l/a @ 4.125% rate –v- 7 Yr, $400k l/a @ 3.625% rate 

 

                                                                                                                                      i.      Monthly Savings:  $114.39 

b.     7 Year Payment Savings:  $9,608.76 

c.      Principal paid down an additional $4,011.77 

TOTAL 7 Yr Savings $13,620.53 

Total 15 Yr 9 Mos Savings= $73,684.68 

Are you a first time home buyer?

If you are looking forward to purchase your dream home but worried about the large down payments then the Federal Housing Administration or FHA can certainly come to your rescue. The FHA is designed to offer mortgage insurance against the loan made by the qualified and approved FHA catalyst lenders in the United States and its territories. This reduces the risk of loss in case the borrower fails to repay its loan. These days FHA loans have been extremely popular due to its easy availability of loans especially for first time home buyers.

 

 Let us look at some of the advantages of FHA loan

 

• One of the biggest advantage of FHA loan is that it can reduce the down payment to as low as 3.5% on the purchase price. This is an advantage for borrowers who are unable to pay the traditional 20% of down payment. In addition, this loan includes your closing costs and other fees too. This eventually reduces your overall cost and helps you buy your first home easily.

• You can even take up a loan to purchase your dream home immediately, fix it as well as include all the costs in one loan only. This will help you keep track of your down payments considerably.

• For senior citizens, FHA loan can prove to be a boon for them as it can help them to convert a small portion of equity into cash and have a low loan balance.

• Another advantage of FHA loan is that it provides same interest rate to all its borrowers.

• People having low credit, undergone a bankruptcy, or low bank balance can still be qualified for FHA loan. You get qualified for a loan as long as you do not have any negative history on your credit report.

  You can contact Craig Daniger from Catalyst Lending to talk about an FHA loan and can help you get the loan and turn your dream of buying a new home for your family into reality.

First-time homebuyers overestimate costs of homeownership

Potential first-time homebuyers are vastly overestimating the costs of homeownership, according to a recent survey by NeighborWorks America, a nonprofit support network for homeowners. Some survey respondents overestimated the costs of basic home repairs and maintenance by several thousand dollars.

The survey reports the actual costs of home maintenance and upkeep to be anywhere between $2,000 and $6,000 a year nationwide. Home maintenance costs include:

repairs;

  • landscaping;

  • property improvements;

  • utilities;

  • pest control; and

  • regional necessities, such as air conditioning or heating costs.

Causes for homebuyers’ overestimations

Where do these inaccurate estimates come from?

Lack of financial education may be causing potential homeowners to shy away from what they view as an impossible investment. California is one of few states that omit financial education almost entirely for their residents – leading to a high rate of financial illiteracy among California’s potential homeowners. Apparently, one semester of high school Economics does not a financially savvy citizen make.

This lack of education on how the economy works extends to mortgage rates, down payment assistance programs and household finances for first-time homebuyers, knowledge that reduces uncertainty otherwise surrounding a decision to purchase a home. Real estate agents need to fill in the knowledge gap with clients by discussing:

  • the actual costs of a home purchase transaction;

  • mortgage rates and mortgage insurance premiums (MIP) coupled with the down payment amount;

  • tax breaks for first-time homeowners;

  • down payment assistance programs; and

  • actual costs of home maintenance and upkeep.

Despite first-time homebuyers’ educational shortcomings, they are correct in assuming California homeownership costs are higher than most other states – the California price premium. California’s coastal area properties and urban homes, for example, are more expensive to purchase and maintain.

However, information is critical for first-time homebuyers to become comfortable with the idea of owning a home. Buyers who overestimate costs out of ignorance are susceptible to being taken advantage of by mortgage lenders and accepting more onerous financing terms– confirming the buyer’s misinformed assumptions and costing them more money than necessary.

Real estate agents, with their unique position as gatekeepers to entry into the real estate market, can combat these overestimations by counseling first-time homebuyers. An agent’s ability to define the necessary costs of homeownership and guide buyers through the process of selecting a mortgage makes them a valuable educator.

The public’s dependence on a sales transaction agent is an opportunity to positively affect the housing market by setting realistic expectations for enduring homeownership. Otherwise, misinformed homebuyers will avoid the market or wish they had, making life difficult for agents.

Re: “NeighborWorks America survey finds student debt, mortgage market confusion, and a declining marriage rate are weights holding back the housing market,” from NeighborWorks America

Courtesy First Tuesday

 

Credit Repair Company Alert!

SOS sucks!

I recently had an unfortunate interaction with the Score Optimization Systems (S.O.S)

credit repair company. The worst $795 ever spent. They do not back up their guarantees. They would not refund our money. For four months they held up my borrowers and did not perform. They ended up having the credit bureaus dismiss our challenges as frivolous. I had to switch to a new repair company to do what they could not. If you get a call from Gene Schwalen do yourself a favor and hang up. Please call me for the full story. 

Contact Craig Daniger