Dear Friends and Clients,
For the 30th year, I’d like to extend the warmest of Holiday wishes to all of you, and your families, that we’ve had the pleasure to work with over the years. That’s right! If you would have taken out a 30 year mortgage when we opened our business in early 1986, you’d be close to having your home free and clear. It’s hard to believe that we’ve arranged funding on over $2 billion. Thank you all for your support and your referrals. We would not still be in business today without you.
This past year marked our first full year in our Pasadena office. It was quite a transition from 28 years in Arcadia. Due to the technology of the “cloud,” we were able to operate in a more mobile way. I was able to split time between Pasadena and my home office. Shelly Dunn, our office manager and processor, also spent more time in her home office. But thanks to email, text and the telephone, we found our business ran as efficiently, if not more so, as at any time in the past. Our automated phone system tracks us down whether we’re in the office, at home or on vacation. As I have said, we’re now “leaner and meaner.” I’m pleased to say, we had a very productive and profitable year in 2015.
This last twelve months didn’t produce much of a ripple in the mortgage industry. Interest rates stayed in a very narrow range for the entire year. Though most economists had predicted the Fed would tighten by mid-year, it didn’t happen. The economy, both domestically and globally, didn’t warrant higher rates. And with inflation non-existent, the Fed has had flexibility to delay their first increase in 7 years. However, based on recent employment numbers, there is a very good chance the Fed will push short term rates by the time you read this letter. But, I feel mortgage rates won’t move much as this has already been factored. If I had to guess, I’d say our rates may move to the mid 4% range in 2016, still historically low. I also think home sales should be strong as we’ll see more inventory coming on the market to satisfy some of the pent up demand we’ve seen in the past couple years.
There are a number of financing opportunities for many borrowers. Interest rates continue to be at or near historic lows which is great for buying and refinancing. Hybrid ARMS with 5,7 and 10 year initial rates are very competitive and provide the stability of a fixed rate for an ample period. Also, for those with home equity lines of credit (HELOCs) that are 8-9 years old, you are, in most cases, going to experience severe payment shock as these lines will recast after 10 years. This means the “interest only” payment you have enjoyed for several years will change to a fully amortized payment for the next 15 years. This can raise your payment as much as $1,000 or more per month. Now is a perfect time to consolidate your 1st mortgage with your HELOC and maybe even take a little extra to pay off some bills.
The “jumbo” market continues to expand, providing lower rates and more lenient underwriting. We can now lend 80% to $1.5 million, and 70% to $3.0 million at very competitive rates. We even have a program where we can lend up to $875,000 with only 10% down and no PMI. Give us a call with any questions.
For those who may still owe more than your property is worth, the HARP program may enable you to take advantage of the lower rates. There are certain guidelines and restrictions with HARP so give us a call and we can help you determine your eligibility. We also offer FHA, VA and Reverse Mortgage products. FHA can be ideal for those that need to use a co-borrower to qualify or who are limited with their down payment. And Reverse Mortgages are becoming more popular due to the changing demographics.
For those that worked with my partner, John Patterson, I’m happy to say that he is doing very well in his retirement. We speak often and get together a few times during the year. For those of you that worked with “JP” over the years, please feel free to give me a call. I’ve worked with a number of you already and look forward to hearing from you again.
In closing, I’d like to stress that we’re alive and well and in need of your loans and referrals. Our system is more efficient than ever and our rates are very competitive due to our much lower overhead. Please check out our website at www.CPCMortgage.com. On behalf of Fred Olson and Shelly Dunn here at CPC Mortgage, I’d like to wish everyone a Merry Christmas and the happiest of Holiday Seasons. Here’s to a very successful New Year for us all. I look forward to hearing from you in 2016!!