The Mortgage Industry is still changing daily!

****We have moved but still close****

The Fed’s have once again lowered the prime rate (short term borrowing rate) to 5.25% and the question is will they drop more? I think they will continue because of the difficulties in doing loans and the continuing loss of employment. Fannie Mae and Freddie Mac are scared so they are making it more difficult for borrowers to purchase or refinance homes. Subprime is slowly coming back but it is expensive so the future is FHA! They will still allow borrowers to buy homes and refinance with less than perfect credit and the rates are great. This was the only loan available for 100% financing before subprime came out. It is here to stay and the loans are amazing.

• If you have ever thought about remodeling or paying off debts than you should consider a line of credit 2^nd mortgage. Some of you have great rates on your 1^st mortgage but your bills keep growing. Don’t refinance your 1^st mortgage, but take a line of credit with rates as low as 5.25%.

• Investment homes are the deals now. Many sellers are in trouble and you can pick houses up for what they were 5 years ago. With good credit, good income and 10% down you can have rates down to 6.25% with mortgage insurance. Something worth thinking about!

• My last mailer you received said 210 banks have closed in 12 months, but now we are at 247 over 15 months. Everyone remembers our parents buying their first home with 20% down and that is where we are headed. FHA still allows 100% financing but to avoid mortgage insurance you need 20% down. I might be getting a head of myself here but that is what I am seeing.

• Some other key notes are 95% construction loans/jumbo loans to $2.5 million and the rates are low (4.875%)/100% financing on purchases (owner occupied)/ 30 year fixed rates under 6% and we are still doing VA loans!

I do work 100% on referrals so please spread the word and hopefully I will continue

to grow with all of you and your friends. The 30 year fixed loan is the future so let’s try to plan your early pay off so you have retirement money. I do have other programs that pay off much faster. Stated income is still available, but expensive and I even do commercial loans! Don’t forget, I also have connections in just about everything you need (jobs, home repair, car’s, vacation homes, cleaning supplies, retirement, insurance and etc).

Please email or call me for anything. I am always available!

Sincerely,

Chad F. Olafson Washington License #510-MB-27420-27493