0 How Low Can Housing Prices Go?

As the bubble continues it's long grinding deflation we are seeing a classic 'buyers-strike', the spring buyers haven't appeared despite historically low interest rates and home prices continue to be discounted over asking prices of just 2-3 months ago.

Here is the national home purchase application index. It measures the applications in process to buy a new home. The survey is pretty solid in that about 50% of large lenders are surveyed every week. If this was an EKG, the patient is dying, get the paddles stat!

The spike you see in Q1 2010 is the end of the home buyer tax credits and a major push by the FED to push mortgage rates down. As the tax credits expired on a Federal and state level the number of new buyers started to disappear. Then during Q3 2010 and Q4 2010 we had excellent fixed mortgage interest rates

This prompted another group of buyers to get an application in and start the home buying process. Then because of inflation, Federal government budget issues, and prospects for a better national economic environment(b.s.), mortgage rates moved back up again from the best levels in history. The amount of inventory that will be coming onto the local real estate market is huge:

These are foreclosed homes currently owned by Fannie, Freddie and FHA. They may or may not be on the market yet. Some are in need of repair, some are listed etc. As with all goods/services, supply and demand will lead the market to adjust prices. I fully expect much lower(10-25%) prices in some former bubble states. If people are concerned about jobs and unemployment is around 9-10% you can't expect any stability in housing, in the golden state unemployment is 12.3%, ouch.

Now with the recent wallet shock of $4 gas on the household and business budget it's going to be a tough spring selling season. Blockbuster closing hundreds of stores, Borders doing the same it doesn't broadcast confidence to people as they go about their daily lives.

Buyers... remember it's an asking price. Bargain accordingly. Here is your jumbo mortgage rate chart as well:

Detail: How Low Can Housing Prices Go?

0 Job Market Improvement Boosts Jumbo Loan Rates

ADP reports:

Private-sector employment increased by 297,000 from November to December on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The estimated change of employment from October to November was revised down but only slightly, from the previously reported increase of 93,000 to an increase of 92,000.

This month’s ADP National Employment Report suggests nonfarm private employment grew very strongly in December, at a pace well above what is usually associated with a declining unemployment rate. After a mid-year pause, employment seems to have accelerated as indicated by September’s employment gain of 29,000, October’s gain of 79,000, November’s gain of 92,000 and December’s gain of 297,000. Strength was also evident within all major industries and every size business tracked in the ADP Report.

This latest report came in very strong vs estimates of about 100k new jobs added in this period. This has resulted in an small early morning rally on Wall St. Stocks  are slightly higher but the biggest change is a rise in the 10Y Treasury from 3.33% to 3.45% as of 12:11 EST. We have seen a boost in mortgage rates across the board. Market based jumbo loan programs are up about .125%-.25% from yesterdays best levels. The plane is boarding don't be late before the captain shuts the door on 5% fixed jumbo loan rates.  

Detail: Job Market Improvement Boosts Jumbo Loan Rates

0 Bond Market Doesn't Like Tax Cuts: Mortgage Rates Spike

Bond Market Revolt

The US Treasury bond market reaction to the Fed’s QE policies and to this disgrace of a budget proposal was swift and severe. I have a picture of it for you right here.



That is what the bond market thinks of Ben Bernanke’s plan to spur inflation but hold down treasury yields.

The ovals show today’s bond-market reaction to the budget deficit that Bernanke will no doubt monetize as part of QE III and QE IV when this round of “quantitative easing” blows up in his face.


Conforming Mortgages Went From 4.00% to 4.50% in the last few weeks. This is not helping housing or the economy at all.

Jumbo Mortgage Rates have moved from 5.00% to 5.375% in the last two weeks in particular.

Interest rates are ultra-low by historical standards by any measure but we can clearly see what will happen if enormous deficits, high unemployment and a weak dollar are not addressed soon by the FED, Congress and ultimately by the american people.

Detail: Bond Market Doesn't Like Tax Cuts: Mortgage Rates Spike

0 How the Mortgage Bubble Really Topped Out.

Part of the trillions in bad loans were the option ARMs(pick-a-pay) This nice FED produced map brings a lot of clarity via time series spread of complex mortgages shown in a recent Chicago Fed publication. Nothing like a good real estate crash to bring things to a halt CLICK IMAGE FOR LARGER VIEW:

http://chicagofed.org/webpages/publications/working_papers/2010/wp_17.cfm

Detail: How the Mortgage Bubble Really Topped Out.

0 Rainy Day Savers Rewarded With Lowest Jumbo Mortgage Rates In History

It has been a tough couple of years — almost the proverbial perfect storm — for clients needing to refinance a jumbo loan.

The Great Recession(depression?) has cut home values, turning some jumbo loans upside down for borrowers. Falling values and tighter credit have made refinancing difficult and qualifying new borrowers even tougher unless they were very prudent over the last few years. Socking away money for the proverbial rainy day.

Low and no down payment and adjustable rate schemes are history. ARMs are available but clients want fixed. Why gamble with future rates when fixed is at historic lows?

But the storm may have completely passed. Across several states luxury home values have stabilized and insanely tough credit standards are being moved down to the 700 FICO score level or better, interest rates are at historic lows again, new creative loan plans are emerging and pent-up demand for high-end housing is eager to enter the market.

Cloud Computing Technology specialist David Sparks was surprised when we informed him he would be able to refinance his $1.5 million post modern-style house in Santa Monica and tap into the equity for an additional $75,000 so he could remodel his kitchen.

Sparks, refinanced his expensive adjustable-rate mortgage into a 30-year fixed jumbo mortgage at 5.125 percent.

In 2009, the average rate on a 30-year jumbo mortgage was 6.86 percent compared to 5.25 percent in November, the lowest in history. That represents a significant savings for borrowers.

For example, a homeowner with a 30-year fixed jumbo mortgage balance of $900,000 at 6.25 percent pays $5,541 a month. The same balance refinanced into a 5.00 percent jumbo loan reduces the monthly figure by $710.

The jumbo mortgage market is alive and well for well-qualified borrowers, with well-qualified being the key word if you are still paying close attention. And creditworthy consumers are waiting much longer to close their jumbo mortgages while banks pore over financial documents and complete due diligence. 

Borrowers face considerably more scrutiny than they did before the epic financial meltdown that started in 2008. With 10% of jumbo mortgages at least 60 days late the focus of underwriting is finding and lending to rock solid borrowers who have survived the financial storm by being prudent with their finances.

It used to be that high-earning borrowers with excellent credit and ample cash reserves could sign a new multi-million dollar jumbo mortgage or refinance an existing loan on their posh digs with no questions asked.

Of course, that was before the economy tanked and the housing market went belly-up, making lenders skittish about financing any type of mortgage, especially since they had to hold the loans they made on their balance sheets. Return of capital became the most important element of any loan. Those that qualify are being rewarded for their prudence.

Most client’s refinancing are saving 1-2 thousand dollars a month because they are dropping their interest rates over 1%. The majority of jumbo mortgage loans funded over the last quarter were 30Y fixed. Maybe running with the herd is right once in awhile. The latest chart should really demonstrate how much money is on sale for SOLID borrowers.

And above all please get a jumbo loan that makes sense for your short and long term financial plans. If your ready to start the conversation, contact one of our seasoned advisors by visiting our main site here. As always, have a prosperous day. 

Detail: Rainy Day Savers Rewarded With Lowest Jumbo Mortgage Rates In History

0 Jumbo Mortgage: Prudent Borrowers Rewarded By Lowest Jumbo Rates Ever

Solid, ultra low interest rate jumbo mortgage loans are being actively funded by remembering the lending philosophy we relied on before the risk could be passed onto some unsuspecting pension fund via a CDO created by a trader at a Wall St Bank. With trillions in mortgage loan losses across the nation, major changes were needed. Regulatory reform passed Congress last week, but it wasn’t hard for the jumbo mortgage market to fix our own problems.

Normalcy has returned. The jumbo loan environment has settled into a prove it, we double verify it, and we fund it environment for well qualified borrowers. The recent national statistics show about 14% loans with a principal balance of 1m+ are at least 60 days late. This is up sharply in the last six months from the 9.78% figure that we ended 2009. Hopefully these default figures will flatten out and fall as the better jumbo loans of 09-10 perform much better than the loans closed in 04-08.

Against this backdrop jumbo loans are being funded only on a portfolio basis (Wall ST jumbo loan packaging is dead) to solid clients under the philosophy that the borrower and the amount of equity in the property should have an ample margin for the known/unknown risks a borrower/lender may face down the road. With regulators, taxpayers, shareholders and all stakeholders demanding sound lending the industry has delivered. I believe this only benefits the luxury market although it pushes out the marginal borrower and may result in some property value declines as the available buyers have thinned out a bit.

Sound lending has returned and borrowers are being ‘rewarded’ for their financial strength and prudence. Remember it’s a ‘prove it’ to us world now.

First and foremost, lenders are pulling copies of your tax returns directly from Uncle Sam. The idea here is to make sure that you haven't altered the copy of your last two years' tax returns that you provided when you signed your loan application. Lenders want to know if you might have exaggerated how much you earned.

Lenders also are going to great lengths to verify employment and liquid assets. We are seeking confirmation in writing from your H.R. department about what you earn, your position and how long you've worked there.


It's the same for your bank or brokerage accounts. Rather than being satisfied solely with the copies of the statements you provided, lenders are going directly to your financial services company to secure another set of those statements to make sure the numbers line up or that you just lost 200k betting that the latest iPhone signal problem would crush Apple’s stock price.

Lenders are no longer taking the appraiser's word for how much the property you want to buy or refinance is worth, either. Now, we are employing automated valuation models as well as an additional appraisal from a separate vendor to be certain the value estimate is on the money. This is especially true in highly distress markets or for very unique custom homes. After all, the bank is ‘buying’ the home and the borrower is signing to pay it back over 15-30 years.

Next in the line of close scrutiny is your credit score, but not just the score pulled when you applied for the loan. Now, our industry is pulling a second score shortly before closing to make sure that you haven't taken out a luxury car lease/loan, bought a houseful of furniture on credit or done something else that might change your ability to make your house payments.

Having passed all these double checks, a well qualified client with 20%+ equity, a 740 FICO or better, borrowing $1m on a primary residence could lock in the following jumbo loan rates in the majority of states:

5/1 ARM 3.625%
7/1 ARM 4.50%
10/1 ARM 4.90%
15Y Fixed 4.50%
30Y Fixed 5.125%

With a bit more equity and a higher FICO score these jumbo loan rates are even lower. I think people need to strongly consider locking in the lowest fixed jumbo mortgage rates we have ever seen. Most client’s refinancing are saving 1-2 thousand dollars a month because they are dropping their interest rates over 1%. The majority of jumbo mortgage loans funded over the last quarter were 30Y fixed. Maybe running with the herd is right once in awhile. The latest chart should really demonstrate how much money is on sale for SOLID borrowers.

And above all please get a jumbo loan that makes sense for your short and long term financial plans. As always, have a prosperous day.

Detail: Jumbo Mortgage: Prudent Borrowers Rewarded By Lowest Jumbo Rates Ever

0 Millions Of Luxury Homeowners Gambling With Their Jumbo Loan

Ten's of millions of luxury homeowners have adjusted from an ARM with a fixed rate period into a fully adjustable jumbo loan. Following the large drop in LIBOR rates since 2007, floating with the 6-month or 1 year LIBOR index has been an excellent risk homeowners took the last few years. Even if they were not aware of the relationship of their mortgage payment and the workings of the global short-term money market.

In the last few weeks it has become crystal clear that Europe is having a massive government debt crisis which started in Greece and is spreading throughout the European Union. This crisis is causing major moves in all the various LIBOR indexes and the action in Europe will translate into higher mortgage payments in the US whenever someone reaches their semi-annual adjustment period.


The underlying rate trend in these indexes in the last few weeks is a steady march higher as governments, banks and corporations are going to market to borrow hundred of billions of Euros. This is pushing LIBOR rates up for the 6- month and 1 year about .25% within the last two weeks. All the LIBOR indexes are at the highest levels in over a year despite massive liquidity being pumped into the system by the EU Central Bank and the FED.

Now we aren’t in the danger zone yet for US based jumbo mortgage loans that are floating considering that the average margin to the 1Y LIBOR is 2.50% arriving at a current floating rate of 3.25%. But a plausible scenario of a consistent flow of gov/corp borrowers, an improving global economy over the next year could push LIBOR rates consistently higher. Any real growth in the economy will be meet with higher interest rates and this will be reflected on the hundreds of billions of dollars worth of jumbo loan mortgages that are sitting with rates of about 3.25-4% now.

We think homeowners that are floating against the LIBOR indexes without a plan to sell soon or get another ARM this year or a fixed jumbo mortgage are gambling with their mortgage payment. Not having a solid plan is a very dangerous proposition given the huge debt crisis that continues to unfold around the world. I am a firm believer in having full coverage auto insurance given the cost of coverage vs the financial risk of an accident. Millions of American’s are just waiting for a financial accident when they get their new rate increase notice. Most ARMs adjust every six months with a 30-60 day notice of the new interest rate and payment. The jumbo loan trend has only been down for the last few years as the world almost fell into a financial black hole during the 07-08 meltdown.

I think with the economic recovery gaining speed that it is only prudent to lock in another ARM or a fixed jumbo mortgage while we are at the lowest rates in history. Avoiding an interest rate increase that for millions would come as a nasty surprise. If you need to refinance your jumbo mortgage within the next few years it’s prudent to explore your jumbo loan options now. As always, have a prosperous day.

Detail: Millions Of Luxury Homeowners Gambling With Their Jumbo Loan

0 Jumbo Loan Borrowers: How to Think About Buying Your Dream Home.

The enormous social pressure and the expectations that come with it lead to misunderstandings and confusion. Here's my advice to someone in the market:

• In an era where house prices rise reliably (which was 1963 to 2007), it was almost impossible to overpay for a house. It was an efficient market, and rising prices cover many mistakes. Investing in houses in the USA was a no-brainer. More leverage and more at stake just paid off more in the end. In 2006 many subprime and ALT-A lenders would allow nothing down up to a 1m jumbo loan with a 720 FICO score. Needless to say these loans defaulted at a 40%+ rate as people walked away when values dropped. The old mantra of buying as much house as possible with as little down payment as you could doesn’t work if values fall in the future.
• A house is not just an investment, it's a place to live. This is the only significant financial investment that has two functions.
• The psychology of down markets is irrational. Rising house prices might be efficient (many bidders for a single item lead to higher prices), but when there aren't so many bidders, irrational sellers (see #2) don't lower their prices accordingly. So, inventories get longer and it's easy for the prospective buyer to think that a certain price is the 'right' price because so many people are offering houses at that price. Just because someone offers a price, though, doesn't mean it's fair in a given market.
• Along the same lines, anchoring has a huge impact on housing prices. If someone offers a house for $1.7m and you think it's worth $1.2m, you don't offer that. No, of course not. The price is a mental and emotional anchor, and you're likely to offer far more because you are falling in love with a view, a certain floor plan or a special neighborhood.
• The social power of a luxury home is huge. When you buy a luxury home or a country estate, you are making a statement to your in-laws, your family, your neighbors and your business/social contacts. Nothing wrong with that, but the question you must ask yourself is, "how big a statement can I afford?" How much are you willing to spend on personal marketing and temporary self-esteem? This is a big social pressure faced by newly-wed couples, lawyers and doctors as they come out of school landing that deep six figure position.
• If buying a bigger house (or even a house with an extra living room or a 4 car garage) is going to keep you in stuck in the office 90 hours a week till the end of time, is it really worth it?
• By the time you buy a house, you probably have a family or have plans to bring some little owns into your life. Which means that this is a joint decision, a group decision, a decision made under stress by at least two people, probably people that don't have a lot of practice talking rationally about significant financial decisions that also have emotional and social underpinnings.
• If you have a steady career, matching your mortgage to your income isn't dumb. Given the recent environment with bonus money being cut and profit sharing taking a dip having a jumbo mortgage payment that is less than ¼ to 1/3 of take home pay can bring about a lot of piece of mind.
• Real estate brokers, by law, work for the seller (unless otherwise noted). And yet buyers often try to please the broker. You'll never see her again, don't worry about it. [Let me be really clear about what I wrote here, just in case you'd like to misinterpret it: When a prospect sees an ad or goes to an open house, she is about to interact with a broker. That broker, in almost every case, is hired by the seller and has a fiduciary responsibility to the seller to get the very best price for the house. There are exceptions, like buyer's brokers, but those brokers, as I said, note that they are representing the buyer--how can you represent someone without telling them? Many brokers like to pretend to themselves that they are representing both sides, and while that's a nice concept, that's not the law.
• You're probably not going to be able to flip your house in two years for a big profit. Maybe not even ten years. So revisit #2 and imagine that there is no financial investment, just a house you love. And spend accordingly.

I'm optimistic about the power of a house to change your finances, increase your net worth, to provide a foundation for a family and our communities. I'm just not sure you should buy more house than you can COMFORTABLY afford merely because houses have such good marketing.

And above all please get a jumbo loan that makes sense for your short and long term financial plans. As always, have a prosperous day.

Detail: Jumbo Loan Borrowers: How to Think About Buying Your Dream Home.

0 Jumbo Loan Borrowers: Risk Major Rate Increase

Cross-Posted with www.freerateupdate.com. The source for mortgage rate news.
Ten's of Millions of homeowners have adjusted from an ARM with a fixed rate period into a fully adjustable jumbo loan. Following the large drop in LIBOR rates since 2007, floating with the 6-month or 1 year LIBOR index has been an excellent risk home owners took the last few years. Of course now we hear solid information that job losses have stopped and we are in the midst of an economic recovery. The underlying rate trend in these indexes is a push higher on each piece of good news around the world regrading the stabilization of consumer retail sales, auto sales, and the home purchase market. Any real growth in the economy will be meet with higher interest rates and this will be reflected on the hundreds of billions of dollars worth of jumbo loan mortgages that are sitting with rates of about 3.50-4% now.

We think home owners that are floating against the LIBOR indexes without a plan to sell soon or get another ARM or better yet a fixed jumbo loan are living without interest rate insurance. I am a firm believer in having full coverage auto insurance given the cost of coverage vs the financial risk of an accident. They are just waiting for a financial accident when they get the new rate increase notice. Most ARMs adjust every six months with a 30-60 day notice of the new interest rate and payment. The jumbo loan rate trend has only been down for the last few years as the world almost fell off a cliff during the 07-08 meltdown. I think with the economic recovery gaining speed that it is only prudent to get some jumbo mortgage interest rate insurance and lock the lowest rates in history. Avoid an interest rate increase that for millions would come as a nasty surprise. If you need to refinance your jumbo mortgage within the next few years it’s prudent to explore your jumbo loan options now. As always, have a prosperous day.

Detail: Jumbo Loan Borrowers: Risk Major Rate Increase

0 Jumbo Loans: Post Steroid Lending Era

Cross-Posted with www.freerateupdate.com. The source for mortgage rate news.

The value of luxury homes has been declining for 3-4 years now depending on the particular city. We won’t go into specific markets here as that is better explained on a granular level by the Case-Shiller Research and individual neighborhood analysis of 750k-4m luxury homes by your local luxury realtor. Above 4m is rarified air and is declining but has much different dynamics such as what the NFL/NBA/MLB contracts will look like in 2012 and if the hedge fund industry will continue to pay the large performance bonus numbers of the recent past. You get the idea.

Luxury home prices shouldn’t be declining some could say because:

• Financial markets the world over have recovered nicely from the March 2009 lows.
• Unemployment is running less than 4% for seasoned, highly skilled, well educated professionals (doctors, engineers, lawyers, etc). The rest of the working economy is running north of 10% unemployment if you believe the official stats.
• Jumbo loan borrowers didn’t do the crazy exotic financing that imploded in subprime and pay option ARMs weren’t very common in the 1-4m market.

I agree in theory but what is often misunderstood by jumbo mortgage borrowers is the crazy lending that was done during the bubble years of the last decade that pushed values up almost daily. They don’t know the huge impact on luxury home prices of removing the steroid juiced lending of Bear Stearns, Lehman et al. The thousands of banks/brokers that sold their ultimately toxic/destructive jumbo loan programs that ended up in bundled securities that investors curse the day they bought.

Everybody knows we have had massive government bailouts and are in a recession. But they didn’t know that their home was appreciating rapidly during the bubble because everything was being bid up in their neighborhood, city and nationally with juiced money from casino like investment banks. Most clients I speak to thought their neighbors had better paying careers or had been better investors/savers. No, they were outbidding and buying on the juice of Wall St casino money. Also the move up buyers with equity in their starter home that are ready to buy in the gated community are on the endangered species list in most cities.

With the steroids that powered crazy out of your mind lending removed, the puffed up and totally juiced real estate market of 10-30% annual price gains in some markets is gone and never to return. Hopefully. The inventory of homes for sale priced at $750,000 to $1 million is now 20 months, vs. 11 months for homes in the $100,000 to $250,000 range, the National Association of Realtors reports. With all these forces at work the body of luxury real estate is shrinking back to normal based on the fundamentals of ability to pay and put a healthy down payment of hard earned money into a home purchase.

Did you know that at the height of the insanity most people could borrower a million dollars with a strong FICO score and a reasonably believable stated income?  No money down and little document verification! Those are the luxury foreclosures that litter Florida, Arizona, Nevada, California etc.

The return to sanity with the jumbo loan lending of the banks and credit unions left standing has resulted in substantial equity requirements, fully documented income, a verified chunk of savings/investment assets and a requirement of 1-2 full appraisal reports of what the home is worth now based on sales of similar properties in the last 30-60 days.

I feel for the luxury homeowners that have “…lost hundreds of thousands of my equity.” But the money wasn’t real unless they cashed it out at the top via a refinance/HELOC or a sale. The casino lending is gone and hopefully won’t return again. The most critical element in getting the best and most competitive jumbo mortgage rate is EQUITY.

My crystal ball is in for repair so don’t be mad if I am not perfectly correct on this prediction but we believe that jumbo loan rates will be higher within the next year and luxury home values will continue to slowly decline in most cities across the country as the effect of steroid lending wears off and return to the stability of real local economic fundamentals. If you need to refinance your jumbo mortgage within the next few years it’s prudent to explore your jumbo loan options now. As always, have a prosperous day.

Detail: Jumbo Loans: Post Steroid Lending Era

0 Luxury Homeowners Default at Record Rate

Cross posted on www.FreeRateUpdate.com

Retail sales came out basically flat, car sales have stabilized(aside from Toyota) and job losses seem to be slowing down. But this long running recession is not finished with exacting pain on jumbo mortgage borrowers.

A record 9.6% of homeowners with a jumbo mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with previously stellar credit records and six figure incomes. And the wave of foreclosures isn't expected to crest until the end of next year as the walk aways from 2004-7 purchases work their way along the lengthy foreclosure process which had been delayed by various state and federal foreclosure moratoriums.

The seriously late payment rate on prime jumbo loans has doubled from this time last year, and now represents the largest share of new foreclosures. U.S. prime jumbo mortgages backing securities at least 60 days late rose to 9.6 percent in January from 9.2 percent in December, the 32nd straight increase for “serious delinquencies,” according to Fitch Ratings.

The worst of the trouble continues to be centered in California, Nevada, Arizona , Florida; recently Oregon and Washington State have been added to the list of hard hit markets. These states account for 46 percent of new foreclosures in the country. There were no signs of improvement. The pain, however, is spreading throughout the country as mid-level and high end job losses take their toll. Aside from job losses lost bonus income and pay cuts were cited by borrowers as factors in their inability to stay current on their jumbo mortgage payments.

With continued economic weakness and property values in most cities declining we highly recommend our fix it and forget it strategy. Lock in a jumbo loan term that meets your specific personal and financial goals. We tend to favor the 7/1 ARM Jumbo Mortgage at 4.50% or the fixed jumbo loan at 5.625% with a 30Y term. These represent an excellent value considering that in three decades we haven’t had jumbo mortgage rates lower than these levels. As always, make it a prosperous week.

Detail: Luxury Homeowners Default at Record Rate

0 FDIC Warns Banks to Expect 2-3% Rate Increase

Homeowners waiting for "the right time" to refinance/purchase should move up the timeline rapidly. The FDIC, Federal Reserve and other federal bank/credit union regulatory agencies are warning the banking industry today to prepare for an increase in rates from 2-4% over the next 1-2 years.This is a serious wake up call to people considering refinancing or purchasing a new home, especially for jumbo loan borrowers. The greatest increase would be immediately seen in fixed jumbo mortgage products such as the 30Y and 15Y fixed jumbo loans which have become the loan structure of choice over the last year.

Given the historical fixed mortgage rate, dire fiscal position of the US Government forcing the US Treasury to borrower roughly 1.5 Trillion in 2010 and the recent warnings from various regulatory agencies; we firmly believe 2010 may offer the best fixed jumbo mortgage  refinance opportuntity homeowners are likely to see over the next decade. For those purchasing a home this year strongly consider going with a fixed rate mortgage. Obviously, financial advice isn't one size fits all but you can always error on the side of caution and lock in some of the best fixed mortgage rates in history.

Detail: FDIC Warns Banks to Expect 2-3% Rate Increase

0 Happy New Year! It's a BLUE MOON....

Happy New Year. 

May You Have a Prosperous 2010. It's twenty ten.  

BTW, look at the Blue Moon Tonight. They only occur once every 19 years.

Below is from Dr. Oz via www.huffingtonpost.com:

Mehmet Oz, M.D.

Vice-Chair and Professor of Surgery at Columbia University, author, radio and TV show host

 Here are my suggested resolutions for 2010: Have more sex, get more sleep, and never let yourself feel hungry. Sound hedonistic? These three resolutions will save and lengthen your life, and they are very realistic and noble goals. New Year's resolutions were never so much fun -- it's all in how you see it. Let's think about it for a minute, shall we?

Like millions of others, you are waking up on New Year's Day with the best of intentions. It's a new year and time for a clean slate. Resolutions come in all shapes and sizes and they are as varied as the people who make them. I get very excited about New Year's resolutions -- not because I have a long list, but because New Year's is a teachable moment. Everyone is looking themselves in the mirror in a rare, private moment of honest reflection. I was being purposely provocative instructing you to have more sex in 2010, but the act of making a resolution isn't flippant or funny -- it's actually sacred. Unlike any other time of year, I can have a heart-to-heart with my family, my friends, my patients, my audience and most importantly myself (I am right there with you!) and decide what needs to be changed for the better. Like all of you, I make a list. And like all of you, each year I fail at a considerable portion of that list. But over time I have seen the success column grow longer than the failure column. You can too.

I believe resolutions are so important that I devoted my show for the entire first week of January to creatively incite a revolution in your resolutions. The first salvo is that changing your life doesn't have to be a painful effort leaving us demoralized and depressed. Food, sex and sleep, three critical components of a healthy life, are a solid starting point for any resolution list.

The most common intention that we wake up with on January first is to lose weight. That's appropriate since a whopping 60 percent of us need to! What if I told you the best way to lose weight is to make sure you never let yourself feel hungry? Sound counterintuitive? It is. But you have a hormone named Ghrelin made in our intestines and stomach that lets you know when it's time to eat. It's the nasty hormone that makes your stomach growl and overwhelms your willpower. If Grhelin starts growling, you are going to overeat and likely eat the wrong foods. You have to always keep your Grhelin levels in check by lightly snacking on nuts, apples or other sensible foods. Keep the lion in its cage by feeling full and you will lose weight because you don't have an uncontrolled urge to overeat.

On our January fourth episode we'll show you exactly how to lose weight, but we will also caution you that your waist size is the better indicator of your health. If you aren't sure whether you need to lose waist, here is an equation you can use: your waist must be half your height or roughly between 32.5 and 37 inches for a woman and between 35 and 40 inches for a man. For years I bet you have focused on the scale. Now, focus on the waist size - it's all in how you see it.

Now, instead of seeing your New Year's resolution as a diet, what if we broke it down into specific steps and played with the language a little bit? For instance: "My New Year's Resolution is to never have anything in the house with these five items listed as the first five ingredients on the label: simple sugars, syrups, enriched flours, saturated fats, or trans fats. If you make your resolution about dumping out the bad food and bringing in the great substitutions that we show you on January fourth, you'll feel you have a bit more control of the situation and you'll forget the D word (Diet! Ahem.) See it differently and it will feel different. For a list of tips, recipes and a 14-day-plan visit www.doctoroz.com.

Still want to hear about that resolution to have more sex? Let's save the best for last and talk about sleep first. I want you to go into your bathroom at home, shut the door and have a conversation with yourself in the mirror. Take a good look at that person staring back at you and tell her that she is worth nurturing with seven hours of sleep per night. I am adamant about this. Sleep is one of the most important and most overlooked health drivers. You simply must give your brain time to re-organize its files and your tissues time to repair themselves. I do understand the pressures of parenting and working - I have four children and I have worked many long hours in the hospital over the years. I empathize with the stress life brings -- and I feel infinitely more prepared to handle it when I am well rested. I have more energy. I think more clearly, my mood is better and my appetite stays in check. The benefits of sleep are too numerous to list and it comes down to a question you've heard me ask before: Are you willing to admit that your life is so far out of your control that you can't get enough sleep each night? If, after proper planning, you aren't able to fall asleep it could signify a serious illness that mandates a consult with your doctor. I want you to stop seeing sleep as a luxury where you can cut corners. It's all in how you see it -- so see it differently and put it on your resolution list!

Now for the other resolution that involves your bedroom: sex. Stop seeing sex as something that is only for younger people or budding romances or those with enough time. I really need you to see this one differently because it's a hugely important part of being healthy. I want you to make a New Year's resolution that you will have sex several times a week with your partner. Believe it or not, that's actually a lot of work for many people out there. It's a lot of work because right now we are in the middle of a sexual famine in America. We simply aren't having enough. Why is this an issue? Because a loving, healthy sexual relationship is an indicator that things are great all over, and a lack of one means the opposite. Sex is an indicator of many things, and if you aren't having it at least once (and ideally more) a week for 30 minutes, it could mean something is dangerously wrong. Physical issues that get in the way of a healthy sex life are depression, heart disease, diabetes, and obesity to name a few. All of these can pose grave threats to your overall health. If none of these factors apply to you but you and your mate still aren't wearing out the lock on the bedroom door then it's time to examine your relationship. Sex is an expression of intimacy and is often a valuable indicator of the health of your relationship. Looking at the reasons you are struck by a sexual famine can be painful, but they will be well worth it, and may just save your life or relationship. So make a resolution to have more sex, and embrace all the obstacles along the way - the outcome will be blissful.

So join me in the resolution revolution - I bet you didn't think that food, sleep and sex could make up such a great resolution list. It's up to you in what order you want to start, and it probably depends what time of day you read this. Tune in the week of January 4 and we can go over each one in more detail. Happy New Year. Now if you'll excuse me, I have a resolution to keep, and I am not saying which one....

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Detail: Happy New Year! It's a BLUE MOON....