Brett Menzie

The Fed, Rates, and Reverse

2009-06-24T16:33:00.003-06:00

Good afternoon,

Mortgage rates have been searching for direction in the past week leading into today's Federal Open Market Committee meeting (FOMC). From this meeting, we learned that The Fed has no intention of tightening credit policy and they continue to be committed to purchasing up to $1.25 trillion of agency mortgage-backed securities. What does this mean? It means short term we expect rates to hang right around where they are right now (there's always a chance for fluctuation). Long term we expect to see rates climb (that's what happens when economic indicators show a growing economy, and there have been some signs of this).

Rates
Currently, the national average for a 30 year fixed mortgage is at about 5.38%, which can still help many people qualify for the purchase or refinance they've been looking for. Plus, that $8,000 tax credit for first-time homebuyers is still available.

No Payments To Make
Lately we have been focusing much of our efforts on reverse mortgages. It has been exciting to help people get out of some financial pickles and dispell some of the myths about these HUD backed and FHA insured products. In fact, did you know you can make a home purchase with a reverse mortgage and never have a single payment?

Please call us to RSVP for our next Reverse Mortgage Seminar coming up on July 1st at 11:30am. Whether you're a consumer, agent, builder, financial planner or another profession, you can greatly benefit from this information.

Thank you
We are blessed to live in such a wonderful area with such great people to do business with. We appreciate you and continually wish you the best. We hope this information is informative. If you have any suggestions of topics to discuss in future emails, please let us know.

Warm regards,

Brett Menzie

An Optimistic Outlook

2008-06-09T10:18:00.004-06:00

I thought I would start this edition of my monthly update on a lighter note with a clean joke. Without further ado, I give you The Duck Hunter:

An avid duck hunter was in the market for a new bird dog. His search ended when he found a dog that could actually walk on water to retrieve a duck. Shocked by his find, he was sure none of his friends would ever believe him.

He decided to try to break the news to a friend of his, a pessimist by nature, and invited him to hunt with him and his new dog. As they waited by the shore, a flock of ducks flew by. They fired, and a duck fell. The dog responded and jumped into the water. The dog, however, did not sink but instead walked across the water to retrieve the bird, never getting more than his paws wet. The friend saw everything but did not say a single word.

On the drive home the hunter asked his friend, "Did you notice anything unusual about my new dog?"

"I sure did," responded his friend. "He can't swim."

I led with that joke because I wanted put a humorous spin on this post and illustrate how easy it is to be pessimistic. I was reading a report from the National Association of Realtors that showed data from pending home sales. The report said that pending home sales rose 6.3% in April from the previous month. Now isn't that something to be optimistic about? Rates are still near historic lows and are projected to go up. This news tells me two things, (1) now is the time to buy! & (2) now is the time to refinance!

Robert Brault was quoted as saying "the average pencil is seven inches long, with just a half-inch eraser-in case you thought optimism was dead."

We get excited when we think about all the good things that are out there. If you focus on the positive you will be rewarded with the positive. The negative will take care of itself, it needs no help or energy from us.

As always, you are welcome to call or email me with questions or a custom quote.

Make today the best day you've ever had!

*Brett Menzie*

Giveaway Alert!!!

2008-05-15T14:59:00.001-06:00

FREE $50 Lowe's® Gift Card

Goes to one lucky brettmenzie.com visitor! Contest starts May 15th, 2008 and lasts for 5 days. Just sign up for my monthly newsletter to be entered in the drawing: CLICK HERE FOR SIGN UP PAGE

(Pass this along to your friends... if I get a good response, these contests will continue on a regular basis)

Spring Lawn Care Tips - Pressure is on for Nice-looking Yard

2008-05-05T14:30:00.004-06:00

Last week, local television station, KSL, had some great spring yard tips. Without further delay, I give you the full story: (http://www.ksl.com/?nid=148&sid=3211738 - Paul Nelson)

With the weather warming up, the pressure is building on homeowners to have the best yards on the block. There are some simple things you could use to keep your yard nice, even though some of them may seem a little nasty.

If you're anything like me, every single front yard on your block looks better than yours. Luckily, we haven't had to do much work on them yet this season because of recent storms. But some gardeners say if you haven't fertilized your lawn already, you'd better get cracking.

Tina Cerling, with Western Garden Center, said, "Actually you can fertilize lawns until it gets really hot in the summer and then you should hold off, because otherwise it will burn."

Cerling says it doesn't matter if you use regular fertilizer or organic, even though the organic kind doesn't have as many chemicals. "They have much smaller numbers [of chemicals] but every bit of it gets used, and they make those numbers up with things like bat guano."

Out of all the guanos out there, bat guano appears to be the "money" guano. Cerling also says you shouldn't go nuts on the mowing. "The idea that mowing it shorter means you don't have to mow it as often is false. You want to leave it long and then that shades the roots, and the roots will grow deeper."

You know, I was looking for an excuse to never mow again, and there it is. Then again, you probably should mow because Cerling says some cities will come out and mow for you, then charge an arm and a leg. But mowing and fertilizer won't solve all your problems.

Down to Earth Landscaping owner Glen Barber said, "People do not treat for the bugs that eat your lawn." Barber says you can use simple stuff around your house to make your yard look nice, like dishwashing soap mixed with water. "The insecticidal soap that you buy from a nursery is very close to spraying Palmolive dish detergent on your lawn."

That keeps aphids away. He also says cayenne pepper and Tabasco sauce keep bugs out. You could also soak a pack of cigarettes in water, and then use that nicotine water to kill insects. Barber says there's enough nicotine in one pack to kill a human, so bugs shouldn't be a problem. But people on the east benches have to deal with another problem: deer.

"Coyote urine, it does work, it works very well. We use it. It's a natural deterrent because they think predators are in the area," Barber said.

Barber says there are some fertilizers made out of human waste that seem to work well. He says he can work with horse manure all day long, but he just can't bring himself to touch the human waste fertilizer.

Watching the Market

2008-04-11T15:36:00.006-06:00

The financial markets have been quite volatile this week and in fact ended down for the week. This is bad news for investments and great news for mortgage rates! Now is a great time to purchase or refinance for several reasons with the main one being that rates are still very very very low! (was that enough very's?)

Yesterday I learned that Countrywide has removed themselves from the business of VA Streamlines. This news should give you all the more urgency to get your finances in order and quit putting off that purchase or refinance because you were waiting for rates to bottom out. What programs will be cut next? Who knows. Much of that may have to do with who takes the Presidential office in January 2009. But let us not put off til tomorrow what we can do today.

If you like numbers as much as I do, follow the 10 year bond on the financial ticker at http://money.cnn.com/. The bond price and yield move in opposite directions. Today, the price was up by 18/32 to 100-7/32 and the yield was down to 3.47%. Assuming you have a full income documentation loan with a loan to value of 80% and a FICO of 720, you can generally be in the ballpark of 30 year fixed rates if you add 2% to the treasury yield. Lately though, that 2% has been more like 2.5% because of several factors that would take too long to explain.

So, if you are wondering when rates will fall, have a look at the 10 year bond and specifically the yield and that should give you a pretty good idea. Do not hesitate to call or email me and I would be more than happy to custom tailor a rate quote for your specific scenario.

Do you like great service? You can get it when I help you with your home financing needs. I submitted a loan to processing on Monday of this week and docs are ready today! 5 days is not too shabby.

I hope you learned something because after all, "knowledge is power".

*Brett Menzie* - "Your Loan Guy"

The Road To Financial Freedom

2008-03-08T20:15:00.002-07:00

Home Owner's Insurance

2008-01-18T16:48:00.000-07:00

After getting a bill today from American Home Mortgage forcing an insurance policy for an annual premium of $2164, I was a little upset because back in November 2007 I changed insurance companies from IDS/Ameriprise to Allstate. My Allstate premium was supposed to be $287 (the forced policy was nine times higher!).

This is what happened. I had my old insurance policy cancel on Nov. 27th 2007 and my new policy was to be effective on Nov. 28th 2007. I found out that insurance companies do their starting and stopping of policies when most of us are in bed... 12:01am. So, the moral of the story is I was charged a prorated one day policy premium of $6 for the lapse in coverage. Always have the two policies overlap!! I am sure glad I do not have to pay the $2164 though.

Let this be a lesson to us all. Afterall, "knowledge is power".

*Brett Menzie* - "Your Loan Guy"

Have You Come Across Extra Money?

2008-01-07T11:01:00.000-07:00

Wow, it's been two whole months since I last posted... I need to do better at this.

This morning I was reading an article on money.cnn.com titled "6 Money Dilemmas" by Janice Revell. Janice went through a list of dilemmas such as "should I pay my mortgage or invest, buy or lease a car", etc. It was interesting to note that she does not outright tell you what you should do, which I appreciate. I appreciate it because each person has a different situation and therefore may need a different approach.

In speaking of mortgages and investing she hit the nail on the head when she suggested that you might be better off investing if you are in it for the long term (which I hope all of us are). She says about paying off your mortgage the following:

"...by prepaying your mortgage, you are reducing your liquid assets. If you suddenly need money, it's easier to sell a mutual fund than it is to pull cash from your home, and you can always pay off your mortgage later with the money you invest now."

The coming months will be a great time to pick up a home at a great price. I can help you with your financing and even help you find a real estate agent that can fetch you a good deal! Just give me a ring or drop me an email. Get that money to start funding your dreams.

Afterall, "knowledge is power".

*Brett Menzie* - "Your Loan Guy"

Fraud Alert on Credit... DO IT!

2007-11-08T13:44:00.000-07:00

I wanted to offer a voice of warning and advice. I have taken the liberty to call (800)680-7289 and have a fraud alert put on my credit report for all three bureau's (this is actually TransUnion's number, but they pass on the information to Experian and Equifax). This will remain on there for 90 days. I urge you to do this for yourselves. I phoned the toll-free number again today with a renewal of the fraud alert. Basically, if there is an inquiry by a creditor made to any of the three bureau's, there will be a warning at the bottom of the report. This warning will instruct the creditor that accessed your credit report to call you at the number you previously specified in your initial setup when you called the toll-free number. They will simply verify your identity (to make sure you're the one seeking credit). I recommend renewing every 90 days as well. You can never be too careful.

Note: This will not prevent fraud, but will definitely help to curb it at least a little. You should receive a free copy of your credit report after calling this number (via mail). This fraud alert will occur immediately.

What a great tidbit of information, eh?

Afterall, "knowledge is power".

*Brett Menzie* - "Your Loan Guy"

NAMB FIGHTS!

2007-11-02T18:50:00.000-06:00

ATTENTION EVERYONE:

Mortgage brokers are facing extinction. The U.S. House of Representatives is considering a bill that will fundamentally change the way we are paid, outlaw YSP, and legislate underwriting guidelines into law. Additionally, we fear that all subprime lending will cease to exist due to excessive lender liability. It is important that you read this memo.

We are calling upon our members to respond as never before. To save our industry, we are asking you to learn about this threat and then contact your congressman.

TIME IS CRITICAL. The bill became public last week. The U.S. House of Representatives Financial Services Committee will vote next week.

LEARN. Step 1: We have scheduled an information teleconference on Friday, November 2nd at 7:00pm EST (5:00pm MST). This is a free call.

RESPOND. We have prepared sample letters for your use in writing to or calling your congressman. These will be sent to our entire membership on Friday. Important warning: The vote is now scheduled for Tuesday, November 6. Please respond before next Tuesday.

More information is contained below. However, please call in to our conference and respond so that we can preserve the way we do business and the subprime mortgage market.
______________________________________________________________________

Commentary: We urge you to read the balance of this memo before you listen to our teleconference.

On Monday, October 22, 2007, House Financial Services Committee Chairman Barney Frank (D-MA), along with Representatives Miller (D-NC) and Watt (D-NC), introduced H.R. 3915, the "Mortgage Reform and Anti-Predatory Lending Act of 2007."

The bill contains three sections. Title 1 will create a federal duty of care and outlaw steering. The anti-steering language will outlaw incentive compensation and YSP that varies with the terms of a loan. The section will allow indirect compensation if disclosed early in the process. This section also creates a minimum licensing standard for all originators and net worth or bond requirements of $100,000.

Title 2 creates an ability to repay standard and hardwires underwriting guidelines. Underwriting will include a verified ability to repay and take into account amortizing payments. Guidelines will also include taxes and insurance payments when calculating ratios. For refinancing, the act will define and require a net tangible benefit. For prime loans, there is a safe harbor. However, for subprime there is assignee liability and expanded rescission rights. Standards will also create a defense to foreclosure. Severe restrictions will be placed upon first-time homebuyer mortgages with negative amortization features.

Title 3 will expand the existing Section 32 of TILA by reducing the points and fees triggers and expand lender liability. Prohibitions include no balloon loans, no lending without regard to ability to repay, prohibit a pattern or practice of making such loans, restrict late fees, and prohibit the financing of any points/fees. Taken together, the expansive liability and prohibited terms and conditions will make Section 32 lending practically impossible.

This is a critical time. Do not miss this important teleconference!

Links:

NAMB Testimony by President-Elect Marc Savitt, October 24, 2007 HFSC Hearing

NAMB Press Release

Summary of H.R. 3915

Full Bill H.R. 3915

Below, you will find the Friday, November 2nd 2007 conference call put on by NAMB regarding H.R. 3915, a bill that could put mortgage brokers out of business (I have posted it because there were limited lines available for the Thursday and Friday conference calls). If passed, this would have a negative impact on the consumer; not to mention put a lot of small businessmen out of work. All information was borrowed from the UAMB and the NAMB of which I am a member, and if you want to keep your job, I suggest you join as well.

Please listen to the WHOLE conference call (1 hr 11 min) and then contact the proper representatives to take action!

This is the 1st of 3 parts of the conference call (27 min 35 sec):

This is the 2nd of 3 parts of the conference call (23 min 15 sec):

This is the 3rd of 3 parts of the conference call (20 min 44 sec):

Now what are you waiting for? TAKE ACTION! Pass this on to every mortgage, appraisal, and real estate professional you know. Heck, pass it on to the Account Executives as well! Let's not be pushed around like this.

Afterall, "knowledge is power".

*Brett Menzie* - "Your Loan Guy"

Credit, Seminar, and Rates

2007-11-01T15:05:00.000-06:00

The Fed met yesterday and cut the critical short-term interest rate by 0.25%. This came after a 0.50% cut made the last time they met. FYI, their next meeting is in December. As is usually the trend, Prime fell by the same margin to 7.5%, the lowest it has been since just before spring of 2006.

Investment Lending is having a seminar on November 6th @ 6pm at your American Fork offices (which by the way, we will be moving to Lehi December. Click here for the new address). We will be instructing on wealth acceleration, financing options, credit, and mortgage myths and facts. Please RSVP by calling 801-653-0171 and leave a message or email me (see my contact page of my website). Seating is limited so hurry and RSVP as my special guest! Here is the flier:

If you are struggling with your FICO (credit) scores, I can help. Please visit the credit page of my website to learn more about credit and how you can fix it and/or get a credit boost. My video on the homepage also gives a bit of instruction as to how a FICO is derived.

Afterall, "knowledge is power".

*Brett Menzie* - "Your Loan Guy"

Free Appraisal's in Utah!

2007-10-30T15:41:00.000-06:00

How do you get a free appraisal you ask? Just do one of the following: 1)Call the phone number in this attached photo AD, or 2)Listen to the MP3 AD attached.

Now if only everything could be that easy!

Countrywide and NACA Join Forces

2007-10-29T10:10:00.000-06:00

Here is my inaugural post on this blog. I was reading an article on cnnmoney.com that explained why the long time foes have now joined forces. NACA's (Neighborhood Assistance Corporation of America) CEO, Bruce Marks said "for the first time we're going to be looking at the interests of the borrowers first". It also said that foreclosures cost on average $50,000. This just makes it more clear that no matter how good of a person you are, no matter how much extra principal you paid when times were good, they (the lenders) just flat out do NOT care about you... they only care about having their money on time every month as agreed! This further illustrates why cash is king and you need to have your equity separated from your home. At the very least have a HELOC that you haven't drawn against yet.

The article cited a Countrywide client, Zena Collins of Maryland, when she said, "I'm still a little stunned. My payment was $2,200 with taxes and insurance at 11 percent. It will be $1,368 at 6 percent." In order to get anything remotely close to this, though, the borrower must attend a home buyer's workshop that covers mundane and misunderstood aspects of mortgages. This workshop lasts four hours. They must also spend 90 to 120 minutes meeting one-on-one with a counselor. This counselor will look at income, expenses, and help create a budget/spending & savings plan.

I guess it pays to be delinquent. Mind you, this is no free lunch. You can count on somehow someway the lender will get their money. Watch out for other lenders following Countrywide's lead (as the self-titled America's Wholesale Lender). By the way, in case you were wondering, I do NOT endorse being late on any debt payments. Our credit scores are just too precious to throw down the drain like that.

Afterall, "knowledge is power".

*Brett Menzie* - "Your Loan Guy"