Clinton Greenspan Economy

Clinton's sex scandal, uncertainty in the Asian markets, terrorist attacks, with retaliation and counter retaliations, devaluation of Venezuela's currency, the Japanese yen, and the Russian ruble, are all playing a bigger part in our own personal lives then ever before! What is this world coming to? It's very hard sometimes to stay positive with all of these unknowns surrounding us in our daily lives. It almost seems unreal and very distant from anything having to do with us personally and individually, and yet that is the furthest thing from the truth! We truly are in a Global community with Global con-sequences!

The world is truly small and it's getting smaller by the day! It seems that everything someone does, somewhere in this world, truly does affect us in our own little hometowns where we live after all. Who would have ever thought that a girl named Monica Lewinsky, living in Washington DC somewhere, could cause major political and social problems around the world, and in our personal lives, changing the course of history, just because she didn't do her laundry? (Ha)

So many things going on right now and no one knows what the outcome is going to be! Even Alan Greenspan, who seems to have more control than anyone else in this country, doesn't know what is about to happen. He has probably been the one key person who has directed the economy and it's success, especially in these last 6 years. It is only specu-lation and hopefulness on his part, as to what will happen, but up until this point he has done a tremendous job and has called the shots right! The problem for us in the mortgage industry is that it appears that every time Greenspan says anything, or even sneezes, the market reacts to his statements and for awhile, about 8-10 trading days, the interest rates make a change in one form or another. 

How amazing for any one person to wield that kind of power without being the Head of State, or President, and yet Greenspan has been so successful in doing it! In spite of what Clinton might be doing at any given time, Greenspan has successfully kept the US economy going, and going well. Who said you had to be President to make a difference in this world? One person can, and does, make a difference while doing a good job!

With all of the fragile economic problems around the world, the United States appears to be the best place for the rest of the world to put it's capital investments. It's been called the "Flight to Quality." We have seen tremendous amounts of money pour into safe US Treasury securities, both from overseas and from our own investors. That has caused the US Treasury yields to be pushed far into record low territory. However, it appears that because of the unrest and instability around the world, and even here in our own back-yard (Clinton's recent and on going moves), the mortgage lenders still have not, as of yet, lowered the interest rates where they should be, given the present yield of the 30 year Treasury, and past experience. However, "If" the low yield continues to hold steady, who knows, maybe we will see the rates go as low as we saw them back in August of 1993. Again, no one knows! If I knew, I would be rich today and not doing loans for a living.

30 year fixed conforming loans are still averaging around the high 6's with some form of point structure, even if it is a half a point or so. It really depends on when the lock occurs and for how long the lock lasts. It still amazes me how continually low and steady these rates have been. If they do go much lower, I'm gearing up for another onslaught of app-lications, and even looking forward to it! There are still many of you out there who have not taken advantage of these low rates. Give me a call and I will get it done for you. 

For those of you looking for an equity line or second mortgage, I usually have you call your bank or credit union first to get a quote and see if they can do it cheaper or with better rates. Sometimes I am able to beat or improve their rates, sometimes I can't. It varies with the program and the amount that you are borrowing. Our lenders don't want any loans under $10,000. Most of the equity loans or seconds I am doing are around $40,000 to $60,000 right now.

You need to make sure that you know what you are getting with these loans. Is it a second or an equity line, which is like a credit card on your house? The equity lines will allow you the ability to pay interest only on the amount you are using at the time. Pay it off and leave the line in tack for further use. The rates on the seconds and equity lines have "everything" to do with what your FICO score is and the loan-to-value on your house, so I have to pull up a pre-screen credit report and have a comp-run done before I can even give you a quote. Many of these types of loans have pre-payment penalties on them and putting one on your house could affect your ability down the road to refinance into a better loan. Give me a call and we will talk about what you are trying to accomplish in your financial needs and home loans. 

My father had a heart attack and surgery with recurring ambulance trips back to the hospital a number of months ago and until just recently, there has been major concern for his health. I'm still trying to find some of the papers I've lost with phone numbers and messages on them, due to my "mush-brain" mentality during those months. For those of you caught in the crossfire of my mental lapse, please forgive me and give me a call back now. I'm sorry for those of you I didn't get back to during that time..