Now is the Time to Act

Now is the Time to Act

Have you delayed buying or refinancing a home in the hope of lowering your payments and/or interest rate on your mortgage? Your moment has arrived! The Federal Reserve has acted to boost the economy, and they have stabilized mortgage interest rates to an all time low. As a result, homeowners and Buyers are flooding the nation’s lenders with phone calls. Temprano Mortgage is a licensed mortgage company that seeks the best mortgage terms for you by accessing a network of investors that includes major banks, wholesale lenders, Fannie Mae and Freddie Mac. These investors provide Temprano Mortgage with daily/real time wholesale interest rates. Wholesale access enables us to provide you with the best loan options quickly enough to effectively serve you and your real-estate agent. Our focus is entirely on serving you, and providing you with upfront full disclosure, personalized face to face service.

The American people are now positioned to benefit from current market conditions and receive the financial relief we all were waiting for. Large lending institutions are rehiring staff to serve the public, but current staffing levels do not have the capacity to handle the volume of potential customers. If buyers and homeowners do not meet very specific and strict guidelines that enable these lenders to process your loan at lightning speed they are simply turning people away or putting their application process on a waiting list. Customer service suffers with long hold times for phone calls, and calls that are simply never returned. When you are able to speak to someone directly, emphasis on speed, will limit contact to a phone call, fax or email. Centralized operations will have you working with someone hundreds if not thousands of miles away. The positive experience of buying a home or lowering your monthly payments will result in headaches, frustration, lost time and ultimately in increased costs to you.

Using a licensed local mortgage professional can help consumers avoid the aforementioned issues associated with large lenders. Two critical factors set Temprano Mortgage apart and make us the best choice. Superior face to face service is what we build our business on. We will give you personal attention that makes you feel like an exclusive customer every time. At Temprano Mortgage we will shake your hand and build a comfortable relationship with you. A home purchase or refinance is typically the largest financial transaction in a person’s life. A transaction of this magnitude necessitates the undivided attention of a professional in order to be completed successfully in a timely manner. When you have questions regarding your loan you always have the option of visiting our office. You are working with people whose business depends on the reputation they maintain in the community. Positive word of mouth is how we grow. . The personal touch differentiates us from the national lending institutions. We are held accountable directly to you.

Seeing the documents in writing and meeting the person that you are trusting with the most money that you will ever spend is the only way to buy or refinance a home. Large national lenders need to maintain large office complexes, advertising budgets, and high paid executive staffs. Temprano Mortgage has very little overhead expenses, and we can pass the savings on to you.

In the early 20th century face to face lending was the standard, and the only manner that people knew of to apply for a loan. The tremendous growth in real estate of the 70’s, 80’s and 90’s made face to face lending relationships in the 21st century accessible to only the most affluent consumers. The economic challenges that our country faces today has once again forced consumers to realize that they are better served by face to face service. Temprano Mortgage makes its services available to all, and 1st time buyers comprise the majority of our clients.

Temprano Mortgage is located at 210 W Kings Highway in Mount Ephraim, New Jersey. We are a family-owned company providing residential mortgage financing in a friendly, up-front, full disclosure environment. We are committed to helping borrowers find the right mortgage product to fit their needs. We understand that every borrower is different, and we offer a variety of products to meet their individual requirements. Fannie Mae and Freddie Mac, in conjunction with the department of the treasury, are rolling out some fabulous new products in the coming weeks. We specialize in serving first time home buyers. Up front full disclosure, face to face relationships with a smile is our creed.

Our management team is unique to Southern New Jersey. It has stood out in the financial services industry for over a decade. Each member has served several of the largest financial & Real Estate retail operations in the United States. Wells Fargo, US Bank, PNC Bank, Banco Popular, USAA, Merrill Lynch, PHH, Cendant, Charles Schwab, Weichert Financial, GMAC, AIG, H & R Block, Century 21, ERA and Coldwell Banker are among the many institutions represented in their diverse resume. Let us put our experience to work for you and your clients. Temprano Mortgage provides its clients with an unparalleled level of service. Personalized up-front full disclosure service sets Temprano Mortgage apart from other mortgage providers. We will help you save time and avoid stress. Earning customers for life and transforming purchase contracts into successful closings is our focus. Immediate follow-up with you on every inquiry is our promise.

Contact us today and see how we can help you. Visit us on the web at http://www.tempranomortgage.com/

Andres Duenas
Sales Manager
Maurice M. Duenas
President
Temprano Mortgage LLC
210 W. Kings Highway
Mount Ephraim, NJ 08059
(856) 292-8372 office
(609) 707-5635 cell
(856) 861-0068 fax

http://www.tempranomortgage.com/
Licensed by the NJ Department of Banking and Insurance

Housing Stimulus 101

President Barack Obama's new 275-billion-dollar housing plan will help the ailing housing market. Those of us in the industry know that help is needed. Falling home values and foreclosed properties are two key elements that have crippled the housing industry. Does the plan outlined help everyone? Such a plan may be theoretically possible but the time it would take to put together a "perfect" plan to help everyone would certainly come at the cost of those that can be helped now. Almost certainly subsequent plans will be announced but this is a good start. The first step in saving a patient is to stop the bleeding. This plan is designed to stop the "downward spiral" in which the housing market has been trapped.

Critics of the plan fail to realize or admit that although the provisions in the plan do not help each and every individual homeowner, the plan does help everyone, either directly or indirectly. According to President Obama a foreclosed home negatively impacts the value of neighboring homes by reducing their value approximately nine percent. Underscoring the importance of the housing market, Obama warned on Wednesday that without concerted action, the housing crisis could make economic recovery impossible. Those of us in the housing industry should be encouraged by the action taken by the White House and realize that there is a light at the end of the tunnel. Since the speech in which President Obama outlined the plan, the media outlets have been talking about it but the message has been muddled. The information that has been communicated to the public has been confusing. I will attempt to outline the primary provisions of the plan.

More homeowners in good standing will be able to refinance. Currently homeowners must have a loan-to-property-value ratio (LTV) that is within strict lender guidelines in order to refinance. Since interest rates are at historic lows, nearly all mortgage holders would benefit from refinancing. However, because property values have fallen sharply in the past year and a half, many homeowners have seen their LTV rise over that time, even as they made regular payments on their mortgages. The proposal would raise the maximum LTV limit to 105% for homeowners whose mortgages are already owned by Fannie or Freddie, which allows roughly 5 million households to refinance into the current lower rates.

The second piece of the proposal involves motivating mortgage servicers to modify at-risk mortgages. The plan would pay servicers $1,000 for each modified mortgage and an additional $500 for mortgages modified before the borrower misses a payment. In order to help the estimated four million homeowners in danger of foreclosure, Mr. Obama will create a $75 billion program to subsidize loan modifications to reduce a family's monthly payment to as little as 31 percent of its gross monthly income. A mortgage lender would have to first make concessions to reduce a borrower's payments to 38 percent of monthly income. If the lender gets the monthly payments down to 38 percent of the borrower's monthly income, the government would then match, dollar for dollar, additional reductions to bring the payment as low as 31 percent of monthly income. This would enable homeowners to remain in their homes with an affordable payment. Additionally, the "pay for success" provision of the plan would pay servicers up to $3,000 over the next three years if the borrower successfully makes payments on the modified loan during that time period. These provisions are crucial to providing servicers the incentive to modify loans, rather than foreclose. Since servicers receive fees when homes go through foreclosure, without such payments servicers might have an incentive to foreclose on mortgages even if foreclosure is not in anyone’s interest. This provision in the plan would stem foreclosures, keeping more people in their homes while also preventing additional home value declines in neighborhoods with underwater mortgages.

An additional provision addresses how loan modifications are carried out. The purpose of this portion of the plan is to set clear guidelines for efficient loan modification. Uniform guidelines will make loan modification faster and cheaper for servicers. This provision will also prevent homeowners from ending up back in complex mortgages with terms and fees they do not fully understand. President Obama explained that the details of this part of the proposal would be in place within the next two weeks.

The next item in the plan addressed Fannie Mae and Freddie Mac again. Much needed help for Fannie and Freddie is pledged as part of the plan. The plan would expand federal support for Fannie and Freddie and increase the size of their mortgage portfolios in an effort to shore up confidence in the agencies and keep mortgage rates low. The Federal Reserve will work with the Treasury Department in order to buy back Fannie and Freddie securities. This component would try to increase the credit available for mortgages in general by giving $200 billion of additional financial backing to Fannie Mae and Freddie Mac. This provision is part of an overall effort to keep interest rates low for everyone.

The first-time homebuyer tax credit is addressed in the plan as well. The current tax credit of $7,500 will be increased to $8,000. Most importantly, under the new plan, it will not need to be repaid. The old provision called for the $7,500 to be repaid in a period of 15 years, in essence making it an interest free loan. A first-time homebuyer would receive 10% of the purchase price of the home up to a limit of $8,000. The new proposal does not contain a provision of repayment making it a true one time tax credit. The plan does have income limits of $75,000 for a single person and $150,000 for married couples. If a borrower exceeds these income limits he or she may receive a portion of the credit.

An additional component to the plan addresses bankruptcy rules. Obama's support for changing the bankruptcy rules is intended to help "borrowers who have run out of options," according to the White House. "My administration will continue to support reforming our bankruptcy rules so that we allow judges to reduce home mortgages on primary residences to their fair-market value - as long as borrowers pay their debts under a court-ordered plan," Obama said Wednesday in Arizona. This portion of the plan is the only one that needs additional Congressional approval in order to be enacted.

Lastly, President Obama pledged to work with the states in order to stem the tide of foreclosures. He also committed to provide 2 billion dollars in community grants as well. The President also stated that he is going to help get the word out regarding the provisions of his plan and to let borrowers and potential borrowers know that interest rates are at historic lows and with the help of this proposal will go down even more. This last part is indeed good news for all of us in the real estate and mortgage industry because we need to get people off of the sidelines and back purchasing homes and refinancing.

The plan will take effect March 4, when the administration publishes detailed rules explaining it. Those of us in the real estate and mortgage industry represent the tip of the spear. We must all work together to do what is right for our customers and help the industry bounce back. The old adage was "what is good for GM is good for America." It is evident that even more importantly, what is good for the housing industry is good for America.
Good Luck and God Bless America,

Andres Duenas

Sales Manager
Temprano Mortgage LLC
210 West Kings Highway
Mount Ephraim, NJ 08059

(856) 292-8372 (Office)
(609) 707-5635 (Cell)
(856) 861-0068 (Fax)

www.tempranomortgage.com

REAL ESTATE REBOUND 2009

Many people have compared the current financial crisis to the Great Depression. The situation is certainly serious but it is questionable whether or not things are quite so dire. The current unemployment rate of 7.2% marks a fifteen year high. However during the Great Depression it rose from 9% to almost 30%. We have learned from mistakes made by previous generations and we have financial tools at our disposal today that came about as a direct result of the difficult times during the 1930’s. One of the keys to helping the economy during Roosevelt’s presidency was massive government spending, mainly on the war bust also on the nation’s infrastructure.

The new administration also has plans for large government expenditures towards an unprecedented economic stimulus package and the creation of millions of jobs. The new administration has expressed plans to enable the United States to become “energy independent” within ten years. These expenditures, along with others that will be developed will help the economy recover.

The key to the recovery of the economy is the health of the real estate market. We are all too familiar with the declining statistics with regards to home sales. The news media has inundated us with nothing but negative messages and predictions of disaster. In order to move forward we must remain positive and remember that it is always darkest just before the dawn. We believe that the real estate market has hit bottom and that the market will take a turn for the better. Since the beginning of the year there has already been an increase in activity both for home purchases and refinances. In 1991 real estate bottomed out as well and then bounced back and thrived. The current struggles in the real estate market are similar to those seen in between 1989 and 1991. Fed chairman Ben Bernanke stated yesterday that the Federal Reserve Bank is prepared to utilize every tool available to help the ailing economy and the housing market. Several months ago former Fed chairman Alan Greenspan predicted that a bottoming out by the real estate market would be followed by a strong recovery in 2009.

The tide has begun to shift and the economic recovery will begin with prosperity in the real estate market. The mortgage industry is now seeing historic low rates for 30-year fixed- rate mortgages. The 30-year fixed-rate mortgage has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971. Refinance applications are soaring and people that were apprehensive about looking into purchasing a home are now beginning to get off of the fence. Three key components factor together to create purchase power: low home prices, historic low fixed interest rates, and more money in buyers pockets due to low gasoline prices. Those of us in the real estate industry need to have one message. It’s a great time to consider refinancing your mortgage and it’s a great time to be thinking “Buy a home- Now!”

Forget all of the doom and gloom we have heard over and over. The only way out of a problematic situation is to find a solution, take the steps deemed necessary to solve the problem and remain positive throughout the process. The new administration in Washington is going to work hard and be innovative in its approach to solving the issues that face our economy. We as real estate professionals must do the same. Many people are scared with good reason. It is our job to help people that are in the market for a home find the right property in the right location at the right price with the correct mortgage financing to fit their needs. No one wants to have someone purchase a home only to see that the property has been foreclosed upon down the road. This is precisely why Temprano Mortgage LLC opened its doors during a turbulent economic environment. People need mortgage and real estate professionals that not only know how to do their jobs but also know what not to do. Temprano Mortgage LLC is eager to be a resource to you in order to make the coming year the best ever professionally. Temprano Mortgage LLC is committed to helping borrowers find the right mortgage product to fit their needs. We understand that every borrower is different, and we offer a variety of products to meet their individual requirements. We make the process of securing a mortgage simple and straightforward by offering the latest in financial tools that enable the borrower to make sound financial choices. We specialize in serving first time home buyers. Up front full disclosure, face to face relationships with a smile is our creed.

Our management team is unique to Southern New Jersey. It has stood out in the financial services industry for over a decade. Each member has served several of the largest financial & Real Estate retail operations in the United States. Wells Fargo, U.S. Bank, PNC Bank, Banco Popular, USAA, Merrill Lynch, PHH, Cendant, Charles Schwab, Weichert Financial, GMAC, AIG, H&R Block, Century 21, ERA and Coldwell Banker are among the many institutions represented in their diverse resume. Let us put our experience to work for you and your clients. Temprano Mortgage LLC provides its clients with an unparalleled level of service.

Please visit us on the internet at www.tempranomortgage.com

Please contact us directly at our office at (856) 292-8372 or at (609) 707-5636 on my cellular phone. You can also email us at andresduenas@comcast.net.

Let’s make 2009 a great year!

Maurice & Andres Duenas
President
Sales Manager
Temprano Mortgage LLC
210 West Kings Highway
Mount Ephraim, NJ 08059
www.tempranomortgage.com
(856) 292-8372 (Office)
(609) 707-5635 (Cell)
(856) 861-0068 (Fax)
www.tempranomortgage.com