Loan Application Loan App Checklist Mortgage Calculators Contact Us Customer Login

Mortgage Blog

We just got the email today, that our refinance rate will be higher next month. So if you plan to refi, then we still have two more weeks.

And also, our rental refi rate was pretty good. I did a lot of loans with rental rates around 3.625% to 3.75%(APR 4.62%), not bad for the rentals. Actually this is one of our niche market.

And one more thing, we will start posting rates after August.

Posted in:General
Posted by Eric Fang on May 21st, 2019 4:40 PMLeave a Comment

Subscribe to this blog
The biggest story in the financial markets and around the globe is the ongoing US/China trade negotiations.

At the moment, there is no resolution and it appears there will be no resolution for at least several weeks as the US and China are not expected to talk again until the G-20 Summit June 28-29.

The uncertainty surrounding the talks helped home loan rates improve this week, and are at lows seen in January 2018.

The US, China and the entire globe would benefit from a deal and should it happen, Stocks will likely recover all of their recent losses and then some. At the same time, should the story drag on and escalate as higher tariffs are instituted -- it would have a negative effect on global economies and Stocks may suffer as home loan rates improve further.

Looking at the US economy, it continues to do very well. Walmart posted incredibly strong corporate earnings this past week. Seeing they have $500B in annual sales -- if Walmart is doing well, the US economy is doing well.

In housing news, April Housing Starts and Building Permits came in higher than expectations, providing further evidence of confidence in the sector.

Bottom line: The backdrop to housing could not be much better. The economy is strong and home loan rates are historically low. Today presents an incredible window to consider buying or refinancing a home.

Posted in:General
Posted by Eric Fang on May 17th, 2019 6:54 PMLeave a Comment

Subscribe to this blog
May 16th, 2019 10:27 PM
Still in the middle of the recovery from the last 3 marathons. Started running slowly Monday and Wednesday. And I planned to do 3 miles tempo run, but slowed under 8 min/mile for the 3rd mile. And I think the watch is smart, it asked me to recovery for another 26 hours.

So far closed 23m loans for this year, and have 10m loans in the pipeline. Not bad after one month of vacation and 4 marathons under the belt for the 1st half of this year.

Finished reading a lot of books on the travel. Did not update the reading list yet.

Quoted a few good rates yesterday. 30 Yr fixed 3.875% for Conforming and Jumbo loans. The Jumbo rate was gone today. 15 Yr fixed is still good.

Posted in:General
Posted by Eric Fang on May 16th, 2019 10:27 PMLeave a Comment

Subscribe to this blog
May 8th, 2019 12:30 PM

Posted in:General
Posted by Eric Fang on May 8th, 2019 12:30 PMLeave a Comment

Subscribe to this blog
May 6th, 2019 9:41 AM
Just finished Vancouver with 3:43:57. So I ran 3 marathons for the past 3 weekends in 3 different countries(04/21 Nanjing China; 04/28 Big Sur Marathon; 05/05 Vancouver). Too many loans this weekend. I know I normally have lots of request when I ran the marathon. I can see those emails from my Garmin watch, though I was not distracted. Life back to normal.

I updated my marathon completion list: http://www.ericfang.com/MarathonCompleted

Posted in:General
Posted by Eric Fang on May 6th, 2019 9:41 AMLeave a Comment

Subscribe to this blog

The economy data is very good, and Apple beat earnings again. And it seems like that the rate might go a little bit higher. But still the rate is very low, even compared the rates with end of last year.

I become a rental purchase/refinance expert now. This year, I completed one rental purchase in Las Vegas, and am working on another rental purchase in TX. 

For out of state loans, I prepared pre-approval for Austin, Seattle and Boston. Yes, the rates are pretty good.

Also, we can do rental refinances if you have more than 4 financed properties. The rate is still around 4% for 7/1ARM(APR 4.7%) with no closing cost if the LTV is good, like less than 50% for cash-out, less than 60% for no cash-out.


Posted in:General
Posted by Eric Fang on April 30th, 2019 5:07 PMLeave a Comment

Subscribe to this blog
April 26th, 2019 3:40 PM
Good news is typically bad news for Bonds and home loan rates. That has not been the trend of late, and certainly not this past week. 

Durable Goods Orders is a report which shows buying demand for products with a life cycle beyond 4 years -- think cars, washing machines and planes. And that buying demand of long-lasting goods is up at the highest levels since last summer, highlighting that the US economy continues to grow, and consumers and businesses feel confident in investing. 

Adding to the good-news week were continued strong corporate earnings reports, and future guidance from the likes of Amazon, Microsoft and Facebook. 

Finally, the first look at 1st quarter GDP showed the US economy grew at a blistering 3.2% pace -- way above economists' expectations of 1.9%. The US economy is reaccelerating. 

In the face of all the good news, home loan rates held steady and remain near one-year lows. 

Posted in:General
Posted by Eric Fang on April 26th, 2019 3:40 PMLeave a Comment

Subscribe to this blog
he economic data coming out of the US this week showed that not only is a recession highly unlikely anytime soon, but the economy is actually reaccelerating from the slowdown seen last Fall. 

Back in October and November, the Fed was very hawkish and suggested that three rate hikes would come in 2019. This caused angst and fear that economic conditions would slow to a recession. It also led to a sharp decline in Stocks and consumer confidence. 

Fast forward just a couple months to January 2019, and the Fed completely reversed their position, and signaled there is no rate hike coming in 2019 or anytime soon. This new "wait and see" position from the Fed has set off a rally in Stocks and a surge in consumer confidence. 

It has also sparked confidence and certainty in the business climate, thereby giving corporations reason to hire and retain employees. 

And that was clearly evident this week as we saw yet another decline in Initial Jobless (Unemployment) Claims and the rate at which people are being fired from their jobs. 

Posted in:General
Posted by Eric Fang on April 24th, 2019 7:49 AMLeave a Comment

Subscribe to this blog
The economic data coming out of the US this week showed that not only is a recession highly unlikely anytime soon, but the economy is actually reaccelerating from the slowdown seen last Fall. 

Back in October and November, the Fed was very hawkish and suggested that three rate hikes would come in 2019. This caused angst and fear that economic conditions would slow to a recession. It also led to a sharp decline in Stocks and consumer confidence. 

Fast forward just a couple months to January 2019, and the Fed completely reversed their position, and signaled there is no rate hike coming in 2019 or anytime soon. This new "wait and see" position from the Fed has set off a rally in Stocks and a surge in consumer confidence. 

It has also sparked confidence and certainty in the business climate, thereby giving corporations reason to hire and retain employees. 

And that was clearly evident this week as we saw yet another decline in Initial Jobless (Unemployment) Claims and the rate at which people are being fired from their jobs. 

Bottom line: the economic resurgence has put upward pressure on rates this past week, but they remain near 12-month lows. 

Posted in:General
Posted by Eric Fang on April 24th, 2019 7:48 AMLeave a Comment

Subscribe to this blog
Have to focus on my loans now. I took one vacation to Spain the end of March. Then another two weeks in China from August 9th to April 22nd. And now I am available.

While I was in China, I ran a marathon there, NiuShounShan Marathon. The finish time was 4:14:24. My slowest one.

Posted in:General
Posted by Eric Fang on April 24th, 2019 7:22 AMLeave a Comment

Subscribe to this blog
April 1st, 2019 9:40 AM
That is the best way to describe the current home loan rate environment. This past week we saw mortgage rates experience their largest one-week decline in 10 years!!!

What caused the sharp decline in home loan rates? Recessionary fears, and the likelihood the Fed's next move on rates may be a cut and as soon as this year.

The Treasury's Two-Month Bill yielded 2.40% this past week and the 10-Year Note yielded a low of 2.34%. This "inverted yield curve", where short-term Bonds yield more than long-term Bonds, elevated the recession talk.

Bond yield curve inversions are not always accurate, and the lead time to a recession can be as much as three years.

It will be more important to track how the 2-Year Note, presently yielding 2.23%, performs against the 10-Year Note in the weeks and months ahead, because a sustained inversion between them would be a more serious recessionary signal.

The financial markets were spooked this week when potential Federal Reserve Board Nominee Stephen Moore said if he were brought onto the Fed, he would immediately vote for a .50% cut to the Fed Funds Rate. This surprise statement brought uncertainty to the financial markets, which led to Stocks moving lower and Bonds moving higher in price.

Bottom line: Inflation is not a threat, and was evidenced in last Friday's PCE reading of just 1.8% year-over-year. Plus, the idea that the Fed may now cut rates next means this complacent "wait and see" attitude may continue to keep home loan rates at low levels for the spring home buying season, and more.

Posted in:General
Posted by Eric Fang on April 1st, 2019 9:40 AMLeave a Comment

Subscribe to this blog
March 22nd, 2019 7:37 AM
On all the loan programs. And yes, we will have lower rates for the next 3-5 years. Why take 30 yr fixed? It is the time for ARMs now.

Posted in:General
Posted by Eric Fang on March 22nd, 2019 7:37 AMLeave a Comment

Subscribe to this blog
March 20th, 2019 11:05 PM
A client asked me today. And I said that the rate will start going down, and it will go down for the next 3-5 years. I hope I am right again this time.

Some good rates, 15 yr fixed 3.625% conforming; 30 yr fixed 4% now. Some 10/1 ARM rental 4.25% percent. Let's put APR 4.76% for 30 yr fixed or ARM. Those rates are for no closing cost at all.

Posted in:General
Posted by Eric Fang on March 20th, 2019 11:05 PMLeave a Comment

Subscribe to this blog
March 17th, 2019 11:01 PM
I like to read tour books, especially those who shared their stories.

Last week, I read a book in Chinese. It talked about his travel experience in Italy, India and Alaska etc. And he introduced a "Tour packager" concept. This was the first time that I hear about some people who can prepare your itinerary for you, especially the activities in Alaska. I think that was indeed a good idea. I think I would try next time for a 2-3 weeks vacation there.

For the mortgage industry, we call ourselves consultant sometimes(or just call myself as "sales"). Today, I have a past client asked me about how to purchase a rental property with the equities in his portfolio. And at that moment, I think I am also a mortgage packager or planner?

Sometimes, we indeed need some planning. I have a lot of very successful real estate investors, we do the planning together, and borrower purchased and managed the properties, and I prepared and found the best rate and programs for them. And it went so well that some of them already retired early.

For me, I do not want to retire too early. I like working hard, training hard(for my marathons) and travel a lot. And by the way, I finished one half marathon today, the finish time is !:35:15. Not bad for limited training.  

Posted in:General
Posted by Eric Fang on March 17th, 2019 11:01 PMLeave a Comment

Subscribe to this blog
March 15th, 2019 9:50 PM
We talked about more borrowers are changing 30 yr fixed to lower ARM rates for the primary. And I did lots of those kind of loans this year, especially when the interest rate is at one year low.

And the past week, we have some clients are refinancing the 30 yr fixed rental to the ARMs as well. The new favorable programs are 7/1 ARM or 10/1 ARM loans, and the rates can be around 4.25% for 10/1 ARM, 4% for 7/1 ARM with no closing cost and APR around 4.76%.

Posted in:General
Posted by Eric Fang on March 15th, 2019 9:50 PMLeave a Comment

Subscribe to this blog
Volatility has disappeared in the financial markets and a sense of calm and complacency has emerged. Why?

Well thanks to the Fed, and inflation and higher rates not being a threat -- both Stocks and Bond prices are moving higher.

For 2019, home loan rates have been stable at one-year lows (look at the chart below), and everyone's stock portfolio is increasing in value. What's not to like?

Complacency will change to volatility at some point, and what we are watching is rising wages and how that may increase inflation in months to come.

Should that happen, we could experience a real shock to the US Bond market and the present complacent interest rate market will be over -- and in a hurry.

But for now, complacency is the theme as we head into the Spring housing market...meaning good times for us.

Posted in:General
Posted by Eric Fang on March 15th, 2019 9:47 PMLeave a Comment

Subscribe to this blog
March 15th, 2019 9:45 PM
Dozens of factors go into play in the housing market. The stock market dips, and home prices change. A factory opens or closes and sends homeowners into a frenzy. While mortgage experts can track a few obvious factors over time, there are also more subtle trends that affect housing. Modern startup culture is one of these.

Most people associate startups with Silicon Valley. The home of Google and Facebook is also where thousands of other startups thrive. However, the demand to live there has made housing in San Francisco and the surrounding areas almost impossibly expensive. Housing prices in San Francisco are 76 percent higher than five years ago, but even well-paying tech jobs only pay 20 percent more than the average. Both startup employees and regular non-tech workers struggle to live in the city.

These exorbitant costs are driving startup founders to explore other markets. Parts of the Midwest are now known as the Silicon Prairie, with towns like Lincoln, Nebraska, leading the way as a hub for tech workers. In the South, Birmingham, Alabama, has risen up as a tech hub, recruiting graduates from across the state.

Unlike traditional industries, most startups are only reliant on talent to operate. Unlike the logging or oil industries, which are based on where trees grow and crude oil is found, these "startup hubs" just need to recruit the best and brightest who have great ideas and sufficient funding to start a company. When college graduates with a tech focus don't want to live in tiny apartments in California or New York, they turn to other options closer to home.

When a city is perceived as a "tech hub," its housing situation changes dramatically. More people continue to move to the area, increasing the demand for homes. These jobs are predominately white collar, upper-middle class, and attractive to young workers who may be looking to buy their first homes.

In 2018, Mobile and Birmingham, Alabama, had some of the highest year-over-year home costs, with Mobile's home prices increasing 21 percent and Birmingham's increasing 7.1 percent. Similarly, home prices in Lincoln, Nebraska, are up 10 percent year over year.

Startup culture doesn't just affect Silicon Valley. The changes made in California have had impacts all across the country and in unsuspecting industries. The home builders in Birmingham and Lincoln can attest to that.

Posted in:General
Posted by Eric Fang on March 15th, 2019 9:45 PMLeave a Comment

Subscribe to this blog
March 11th, 2019 6:11 PM
One borrower called me that he got the 7/1 ARM rate of 3.375% with a banker, and checked with me about my rate. After talking to him, I found that he needs to transfer 500k to that lender, then my rate would be 3.125% for his case.

Right now, the rate is very complicated with the "relationships". If you can transfer 75k or 100k, your rate would be better. Or if you have 500k, then your rate will be around 0.25% better. So when you talked to the loan agent, maybe you can disclose how much extra assets you have the relationship with the lender, so that you can get better rates.

And any rate of 3.125% to 3.375% rate are good rates. By  the way, the APR is around 4.7%.

Posted in:General
Posted by Eric Fang on March 11th, 2019 6:11 PMLeave a Comment

Subscribe to this blog
March 10th, 2019 5:18 PM
Please click the link below, Bond Investors Are Daring to Whisper About a Return to Fed QE:  https://www.bloomberg.com/news/articles/2019-03-09/bond-investors-are-daring-to-whisper-about-a-return-to-fed-qe


Posted in:General
Posted by Eric Fang on March 10th, 2019 5:18 PMLeave a Comment

Subscribe to this blog
"It's a small world after all" 

If inflation moves lower or is expected to move lower -- rates must go lower as well. That's the situation right now. 

The financial markets and interest rates also follow inflation on a global scale. Why is this important to homeowners? 

If disinflation or the rate of inflation moderates in places like Europe, interest rates in those countries move lower and tend to drag US interest rates lower as well. 

This past week we watched home loan rates revisit one-year lows upon news that the European Central Bank or ECB downgraded their economic outlook and inflation expectations. 

The ECB said they now expect 2019 economic growth to come in at a paltry 1.1%, down sharply from a previous forecast of 1.7%. Moreover, ECB officials said inflation, which is already very low, could move lower still. 

Again, if inflation moves lower in large countries around the globe -- we tend to see improvement in long-term US interest rates...that is the current trend. 

Interest rates don't buy houses, jobs do!

The Bureau of Labor Statistics reported that just 20,000 jobs were created in February, well below expectations of 175,000. This was a disappointing number, but the unemployment rate fell to 3.8% and wages grew by 3.4% year over year...the highest level in a decade. Overall the labor market continues to expand and wages are rising -- all good news for housing. 

Posted in:General
Posted by Eric Fang on March 8th, 2019 11:55 AMLeave a Comment

Subscribe to this blog
March 7th, 2019 3:20 PM
Just read something online, the mid-career crisis exists for almost everybody. Here is why: There are multiple factors in mid-career crisis:

The narrowing of options, the inevitability of regret, and the tyranny of projects successfully completed and replaced.

I felt the same way for the last 1 and half years. Though a lot of people said that I should not work hard, I am still kind of workaholic.  I do a lot of running, reading and travels, still working make me happier. I told my friends sometime ago, I would like to work till the age of 76. I do not know how come I got the number of 76. Maybe by that age, I could finish 100 marathons. That's how I figured out I would work, and run , at the same time.

Finished most part of the book Click. I think I plan to finish by this weekend. And I know, I need to prepare my business tax return as well.

Posted in:General
Posted by Eric Fang on March 7th, 2019 3:20 PMLeave a Comment

Subscribe to this blog
March 1st, 2019 2:27 PM

Some people recommended this book to me: My Years with General Motors. I was reluctant to read it at the beginning. First this book was first published in 1963. I think this was way too old.  After reading this book, I found that MIT business school was renamed to Sloan Business School in the honor of Alfred Sloan. Also, I knew a lot of history about the auto industry. And a lot of auto company names are actually the last name of the funders, like Lincoln,  Chevrolet, Pontiac etc. They are the auto models now.

Back to the running, got 8 miles done, still the speed workout were killing me yesterday, so I had to slow down today.

As for the loans, this week and the next week is big for me. I will close more loans for the two week, so the total volume will be added up over 12million after next weekend.

I may decide to sent out a newsletter after this weekend. I will do two hikings. One for Saturday, one for Sunday.


Posted in:General
Posted by Eric Fang on March 1st, 2019 2:27 PMLeave a Comment

Subscribe to this blog
Yes, I completed two purchase loans in Las Vegas. And I just prepared a pre-approval for Seattle as well. And I just started 2nd loan application with income in China. And those rates are pretty good.

Finished only 5 books in Feb. Is it because it has only 28 days, or I was quite busy with those loans? Any way, I closed 10M this year. So far so good, though this is nothing compared with my volumes a few years back. Here is the book list: http://www.ericfang.com/2019BookList

Started my interval training this morning. It was only 5X600m repeats:

 

WORKOUT LAPS/SPLITS

LapDist (mi)TimeAvg (min/mi)Max (min/mi)Avg HRMax HRAvg SPMMax SPMGain (ft)Loss (ft)kCal
1.1.009:129:128:3112613617919250110
2.1.008:378:378:1113714318118800114
3.0.151:178:478:151351401831880016
4.0.422:295:545:031501682142220735
5.0.412:336:174:581521672072180036
6.0.422:356:105:041501682082180036
7.0.402:376:295:061501682052169636
8.0.462:566:205:0514017120522451236
9.0.888:319:418:2513714417718201193
Totals:5.1440:507:564:581401711922241330512
But I think I ran faster now. First I had first leg with pace of less 6 min per mile (for 0.4 miles). Normally I trained with a lady, she was faster than me all the time. BUt this morning, I ran first segment faster than her. And we tied on 5th segment. I think both of us were tired. But I think I improved a little bit for the last a few weeks.

But during the training, my friend told me not to training too hard and get injury since this is a very precious opportunity to run in Berlin. Do not get injury and I could not run there. Yes. Should be more careful.

Test

Posted in:General
Posted by Eric Fang on February 28th, 2019 10:20 PMLeave a Comment

Subscribe to this blog
Some of my clients finished the 2018 tax returns, and they would like to refinance again after that. They found that they could not deduct too much interest from the primary home mortgage. So instead, they cash-out mortgage on the rentals(which were already paid off), and will use the interest to offset the mortgage interest.

If you have the similar situation, please just try and find out this is a good solution for you.

Posted in:General
Posted by Eric Fang on February 26th, 2019 3:41 PMLeave a Comment

Subscribe to this blog
February 25th, 2019 1:15 PM
What a week I had. Hiked to Sunol Rose Peak Saturday from 7:45am to 5pm. The total distance is about 20 miles, and with 4000 feet elevation. Not tired after reaching the parking lot. Will do it again in the future.

Finally completed the book Eat, Play and Love. I was a little bit surprised at the donation story at the end of Bali, Indonesia. It did make sense based on the human nature. But was shocked a little bit when the medical practitioner asked more donations when the author tried to collect a donation of $18k to help build a house. Though the plan did not go through, still shocked about it.

Plan to finish reading the book The Road to Little Dribbling: Adventures of an American in Britain this week. I think I should have more interesting books on the shelf. Will read more this week.

And will start bumping my running mileage to over 50 miles this week. And a little bit more intense. Yes, my body needs get used to it.

Posted in:General
Posted by Eric Fang on February 25th, 2019 1:15 PMLeave a Comment

Subscribe to this blog
February 22nd, 2019 12:53 PM
Had a very good run this morning. Here are the splits for 9 mile tempo run:

 

WORKOUT LAPS/SPLITS

LapDist (mi)TimeAvg (min/mi)Max (min/mi)Avg HRMax HRAvg SPMMax SPMGain (ft)Loss (ft)kCal
1.1.009:239:237:591221411791881222105
2.1.007:217:216:521451521891962834104
3.1.007:167:167:061491531901964141105
4.1.007:227:226:471501561892009396106
5.1.007:127:126:471531571901984731105
6.1.007:137:136:561551591901965649106
7.1.007:187:186:551551591901961233107
8.1.007:157:156:551561611922001412106
9.1.007:067:066:571581611931961215106
10.1.007:127:126:531571611921983639106
11.0.181:247:486:56160163188196151021
Totals:10.181:16:077:286:471491621892003513641,077

Finished up to 298 pages of The Road to Little Dribbling: Adventures of an American in Britain. 78 more pages to go. I think I should be able to finish the end of this week. Maybe next Monday since I will go hiking of 20 miles this weekend.

Finished story 59 for the book Eat, Play and Love. Page 443 of 804. I will finish this book next week as well.



Posted in:General
Posted by Eric Fang on February 22nd, 2019 12:53 PMLeave a Comment

Subscribe to this blog
The highlight of this past week was the Fed Minutes from the January Fed Meeting. The Minutes are a detailed record of the Fed's monetary policy setting meeting, so the markets gain insight into the psyche of the Fed as it relates to interest rates, the economy and more. 

What the markets heard loud and clear from the meeting Minutes was PATIENCE -- meaning, the Fed is in no rush to hike interest rates and they will watch the incoming economic data to determine when they might hike again. There is now a low probability for another hike in 2019. 

What are the most important reports the Fed is watching which can influence rates?
  • Gross Domestic Product
  • Inflation (big report next week -- more on that below)
  • Jobs Report
  • Consumer Confidence
  • Retail Sales
In response to the Minutes, mortgage bond prices and thus home loan rates are hovering near the best levels in a year. 

Posted in:General
Posted by Eric Fang on February 22nd, 2019 11:37 AMLeave a Comment

Subscribe to this blog

Posted in:General
Posted by Eric Fang on February 21st, 2019 8:57 PMLeave a Comment

Subscribe to this blog
February 21st, 2019 2:07 PM
Locked a few loans last week, and a few more in the pipeline. Some fixed loan, most 7/1 ARM.

Did not run much recently. There are always some glitches. And I know I will run more in March.

Finished walking in SF for 16 miles last Saturday.  Plan to hike another 20 miles this weekend, 31 miles on March 1st. Hiking is not bad, at least it is good for controlling the weight.

I started reading Eat, Play and Love. this week. Loved it. So I think I can finish it by this weekend. But I should finish The Road to Little Dribbling: Adventures of an American in Britain since there are only less than 100 pages now.

I enjoy reading books, and should write some reading comments in the future when I have time. At this moment, just keep reading. My reading list is: www.ericfang.com/2019BookList

Posted in:General
Posted by Eric Fang on February 21st, 2019 2:07 PMLeave a Comment

Subscribe to this blog
We can still get you 4.x 7/1 ARM rate(APR 4.76%) for Rental properties even if you have more than 4 financed properties. We are one of the main lenders who can do this kind of loans, and also it is ok if this property is out of California.

Please call me email me if you have any questions.

Posted in:General
Posted by Eric Fang on February 15th, 2019 3:29 PMLeave a Comment

Subscribe to this blog

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog: