Happy Halloween! Great Talking Points, Weekend Hours, Move Your Clocks, New Change for VA Refis, Reminder FHA Downpayment moves to 3.5 as of 1/1/09

Happy Halloween! Hope that your day is blessed with lots of treats and no tricks :). As you know, the Feds cut the Fed Funds* and Discount** Rate on Wednesday. So what does it mean? Well, it depends (sounds like mom doesn’t it). Depending on the reaction of the market will depend on whether we see interest rates go up or down. We always first see an over-reaction (it always happens :)), which is what we are seeing where bonds are falling (not good for long term mortgage rates) and stocks are rallying (good for your 401K) and then visa versa, but we will need to give it a few days in order to see the true effect. Stay tune to Monday’s report for more information. Fed Funds and Discount Funds (the two factors that were cut Wednesday) are 1) Fed Funds*- The rate in which the banks borrow from each other over night and 2) Discount Rate**- The rate in which the banks borrow overnight from the Fed. In putting Wednesday in historical numbers, the Fed Fund has only been 1.00% only one other time for the past 20 years, so this is pretty big. This weekend is the end of Daylight Savings time. On November 1st be sure you change your clocks back an hour before you go to bed. Daylight Savings ends on November 2nd at 2:00 AM. Week End Hours…….Did You Know We Are Available? Did you know that we are available on the weekend? Our office is open Saturday from 12:00 noon- 5:00 PM. In addition, if you have an urgent need (like a prequal J), then our office number gives out the phone number to the Underwriter on the Team who is on call. Our office can be reached at 972-278-3400. Linda Did You Know- Great Talking Points · The annual gift exclusion rises to $13,000 in calendar year 2009, an increase of $1,000 from this year. All US citizens can make gifts of cash or other property worth up to $13,000 in 2009 to an unlimited number of people without gift tax consequences (source: IRS). · There are 14 individuals on the official presidential ballot other than Republican John McCain and Democrat Barack Obama (source: Official Ballot for General Election). · The national average price of gasoline peaked on 7/16/08 at $4.11 a gallon. By last Friday (10/24/08), the national average price of gasoline had fallen to $2.78, a drop of $1.33 a gallon. Since every 1 cent reduction in the price of gasoline saves Americans $3.4 million a day, a drop of $1.33 a gallon equates to a $447 million daily savings for US consumers (source: AAA, Wall Street Journal, Fortune). VA Guideline Change- Good News! Did you know that VA will now allow an LTV of up to 100% on a VA Refi based on the current appraised value? This is a 10% increase from the previous threshold of 90%. So what does this mean? If you or one of your clients have a VA or FHA or Conventional loan that you would like to refinance to a VA loan (must be a veteran), we can refi it with the loan amount equal to the appraisal. In the past the loan could not be more than 90% of the appraised value. Reminder of FHA Down Payment going to 3.5 (from 2.25%) as of January 1 2009. A great marketing piece and/or reminder to send out to your buyers is that FHA’s required down payment requirement will go from 2.25% to 3.5% as of 1/1/09. On a $150,000 house, this is an additional $1875 in total funds needed. Until 1/1/08, FHA’s required down payment is 2.25% + .75% of their closing cost (for a total of 3% total required investment). After 1/1/09, the buyer will need a minimum of 3.5% required investment. Remember that there are 22 ways in which a buyer can obtain their funds to close. If you would like a copy of that list, send us an email and we will be glad to forward it to you. Words of Wisdom I attended a conference the end of last week. The venue was religious in nature and the subject was “Prosperity with a Purpose”. I wanted to share some of “nuggets” that I walked away with…. It was an awesome conference and I came away with assurance that despite our economy, God is in control! Note that it is not my intent to offend anyone with different religious views, but for those whose faith has wavered in this time, this is from my heart: · God does not change His purpose because of the economy. · An expert woodcarver always sharpens his axe before he starts on a masterpiece. A wise person does not feel as though he is wasting time sharpening his axe. What do we need to do to make certain that we are purposely sharpening our axe? · Two ways to get wisdom- Mistakes or mentors. If you want to be better than you are, then there is a wisdom shortage. Question: What, where, is there a wisdom shortage in my life and business and what do I need to do about it? The difference between winners and losers is information and acting on that information. · During times of down economy it is especially important to remain spiritually sensitive and listen for God’s direction. What He is speaking now may not be the same as in the past. He is the God of the now. Be careful that I do not box God in and limit God. God is bigger than my box. · The greatest danger will be the temptation and tendency to fall away from God’s guidance. We have the tendency to device our own plans and not wait or listen to God and the Holy Spirit for guidance. Don’t make moves out of fear. Don’t be fearful that God will not come through for us and make bad decisions and have wrong actions. In addition, don’t compromise biblical principles. · We must be consistent with our sowing because we cannot reap if we do not sow. · Call clients personally and ask for business. Leverage relationships and stay in touch. · Pray for favor (Proverbs 4:7)- Wisdom is the principal thing. 8 Points to Remember 1) God first! 2) Don’t Give Up- Proverbs 21:5 Never quit. 3) Watch the attitude- Stay positive, but be transparent. 4) Watch Your Confession- Make it positive with team and partners- Proverbs 18:21- Death and Life are in the power of the tongue. Our tongue is creative or destructive. Speak blessings over your business every day. Realize the power of the tongue. 5) Be a good steward. Don’t let money control me- I need to control it. Pray for wisdom in efficiencies in personal and business. Be a good example to those I lead in managing money. Work to be out of debt. 6) Stay with your gifting. The temptation will be to go outside my gifting but don’t do that. 7) Think bigger! Romans 12:2- Lord give me a bigger vision and direct me on how to make it happen! 8) Sow seeds- don’t let the economy direct my giving. · Anytime fear is tolerated, faith is contaminated. · Find the wisdom in my difference. What sets me apart? · At some point, we are going to have to do something, take some action, step out, and get serious about exercising our faith. Batteries not included. Some obedience is required! · Prepare and work like it all depends on me. Pray like it all depends on God. Have a blessed weekend. When we can be of assistance to you and your buyers, call us at 972-278-3400. Linda