President Donald Trump has already signed into law a $100 billion-plus bill to boost testing for the coronavirus and guarantee paid sick leave for millions of workers.
Congress is rushing to compile the sweeping economic rescue package, the biggest undertaking since the 2008 recession and financial crisis, in a matter of days.
The payments would be $1,000 per adult and $500 per child so that a family of two parents and two children would receive $3,000, Treasury Secretary Steven Mnuchin told Fox Business Network. The goal is to get that money out in three weeks, he said.
Families will receive an additional identical payment six weeks later if the national emergency still exists. Officials have previously said the money is expected to be allocated by income level, to exclude the super-wealthy.
Details on Trump’s economic rescue plan are still being worked out and is expecting to cost over $1 trillion, lawmakers said. The first set of checks to the American public will start being deposited on April 6, with a second wave in mid-May. The emerging package will also aid businesses to help keep workers on payroll and is additionally expected to include medical supply relief. President Donald Trump has invoked war-time authority to ramp up output of vital medical supplies and erect temporary field hospitals under the Defense Production Act.
Do you agree with this course of action to give financial relief to American families?
What does this mean exactly and how will this affect mortgage rates?
The Federal Reserve announced it will drop interest rates to zero and buy at least $700 billion in government and mortgage-related bonds. This is part of an emergency action plan in response to the risks COVID-19 poses to the United States economy.
Mortgage rates have already dropped to 50-year lows in response to global concerns regarding the outbreak. The rate the government lends money to banks has now been cut to 0%. By cutting rates to 0%, the Fed is encouraging banks to lend at lower levels in efforts to help stimulate our economy.
Last week, mortgage rates actually increased slightly because the demand for refinancing was so high. Lenders needed to slow down the number of people applying for home loans and give themselves time to work through the backlog of applications that accumulated as rates fell.
The Federal Open Market Committee (FOMC) lowered the federal funds rate in an emergency reduction with a target range between 0-0.25 percent. It is the first time the U.S. central bank has reduced rates at an unscheduled meeting within 13 days of each other. In addition to cutting rates, the Fed also declared it would buy Treasury debt and mortgage-backed securities at a pace of $500 billion and $200 billion respectively.
While Fed officials spoke confidently about the U.S. economy’s ability to remain resilient against the COVID-19 slowdown, many experts have cautioned that a recession could be on the horizon.
Experts say the best way to recession-proof your finances begins by boosting your emergency savings. It is highly recommended to keep between four and six months worth of expenses liquid and accessible. Consider opening a high-yield savings account to get the biggest return on your fund. Prioritize paying off your high-cost debt.
Take advantage of the low interest rates and lower your monthly payments by refinancing your mortgage. It is imperative to save for your future.
Call Focus Capital with any questions or concerns, we are here to help you in these uncertain times: 1-888-758-3004
The name Zombie Lien is derived from a financial situation that was dead and buried only to come back to life.
A Zombie Lien can take place during a foreclosure when a title is not transferred out of the homeowner’s name and although the homeowner is not aware this happened they still have the legal obligation to pay certain debts and expenses like property taxes, HOA dues, and maintenance on the property. Debts associated with these responsibilities can go unpaid for years and then come back to haunt unsuspecting people who were unaware the foreclosure process was not completed.
One would think the bank would be legally required to inform the homeowner, but it is the responsibility of the homeowner to ensure everything was handled properly at the time of a foreclosure. These situations when a bank falls through often occur in low-income areas where the bank does not want to assume responsibility for the upkeep of the property and wants to save on taxes and other costs. Or, the bank decides not to follow through with the foreclosure because they already have too much inventory, the costs of foreclosing don’t justify completing the foreclosure, or maybe the paperwork was simply lost. In any case, people move out of their home during a foreclosure and assume the situation is in their past without realizing the nightmare can continue to haunt them.
Take steps now to make sure you, or anyone you know who could be affected, are not a victim. Confirm the title has been transferred out of your name after the bank held a foreclosure sale. To do so, go to the county recorder’s office in which the property is located and confirm a new deed has been recorded.
The average 30-year fixed-rate mortgage clocked in at 3.37% on Friday, according to Nerdwallet. This is down 38 basis points over the month, the lowest 30-year rate on record for the survey.
The dip has made buying a home significantly more affordable for the average buyer. Rates have also opened the door for major savings on refinancing. There are over 11 million high-credit homeowners right now eligible to take advantage of these low rates and save on their mortgage rates by refinancing.
Major California cities like San Francisco, San Jose, San Diego, Los Angeles and Sacramento rank extremely high for refinance savings.
Buyers and homeowners in hopes of even lower rates should act now while the rates are so low. We recommend you lock in and not look back. Our Focus Capital Loan Officers have over 50 years of combined experience in residential loans with a specialty in refinancing. We know you will want to take advantage once you discover how much you can save on your mortgage payment.
Contact us today: 1-888-758-3004
Parent PLUS loans are federal student loans issued directly to parents that can never be transferred to the responsibility of the student. These loans are intended to supplement school, state and other federal financial aid offered. A parent fills out a promissory note from the school and funds are sent directly to the school and this loan type stays in name of the parent.
You can borrow more with a Parent PLUS loan versus a traditional undergraduate student loan. While federal student loans are generally capped for dependent students at $31,000 for the entire undergraduate degree, Parent PLUS loans are capped by the total cost of attendance minus other sources of financial aid.
Parent PLUS loan rates may be a shock to families. While undergraduate loans to students are currently issued at a rate of roughly 4.5%, rates for Parent PLUS loans are roughly 7.1%. An origination fee is an additional charge on top of the interest rate. The current fee is over 4%. Once issued, interest rates don’t change except for a one-time .25 discount for direct debit.
After a six-month grace period from graduation, the repayment of your Parent PLUS loan begins. The first day after you miss a student loan payment, your loan becomes past due. If you are delinquent on your Parent PLUS loan payment for 90 days or more, your loan servicer will report the delinquency to the three major national credit bureaus. If you continue to be delinquent, your loan can risk going into default.
The consequences of defaulting on a student loan will impact your finances and ability to borrow. These consequences include the following:
The entire unpaid balance of your loan and any interest you owe becomes immediately due
You can no longer receive deferment or forbearance, and you lose eligibility for other benefits, such as the ability to choose a repayment plan
You lose eligibility for additional federal student aid
It may take years to reestablish a good credit record
You may not be able to purchase or sell assets such as real estate
Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan
Your wages may be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
Your loan holder can take you to court
You may be charged court costs, collection fees, attorney’s fees, and other costs associated with the collection process
Your school may withhold your academic transcript until your defaulted student loan is satisfied
Are you a parent enrolled in a Parent PLUS loan?
Ok, so you’ve made the decision to put your home up for sale or refinance your mortgage. After looking at websites like Zillow and Realtor.com, you have an idea of what your home is worth but feel it should appraise for much higher. The truth is that you’ll never have full control over what your home will appraise for, but you can take steps to increase your chance of pricing where you need to.
A property’s appraisal value is influenced by recent sales of similar properties and by current market trends. The home’s amenities, the number of bedrooms and bathrooms, floor plan functionality, and square footage are also key factors in assessing the home’s value. The appraiser must do a complete visual inspection of the interior and exterior and note any conditions that adversely affect the property’s value, such as needed repairs.
By preparing for the appraisal ahead of time, you’ll have a better chance of getting favorable results. After all, you want the most money for your home, right? Here are six simple ways to be sure that you get the best appraisal possible so you can enjoy all of the hard work you’ve put into your home.
- Be sure to have any safety equipment installed and working properly. These include smoke alarms, carbon monoxide alarms, and home security alarms, among other things.
- Clean & remove the any clutter. A clean home looks newer and more attractive to appraisers and buyers alike. Clear out the clutter. Wash down the walls and shampoo the carpet. Clean windows, shutters, and screens. Power wash decks, driveways and the exterior of your home.
- Pay attention to the yard. Mow your grass and trim your trees and shrubbery. Consider having dead trees removed, if possible, before your appraisal. Add some color with flowers, and in the winter, be sure to clear all ice and snow from walkways and driveways. Remove clutter from both the front and backyards, including stray toys, bicycles, and lawn furniture. Be sure to thoroughly weed flowerbeds and add mulch where applicable. Houses with high curb appeal receive better appraisals.
- Do some sprucing up. Install new light switch covers, shiny doorknobs or faucets. Replace old light bulbs to brighten a room. Repaint the walls and hang new curtains. Small things don’t add a lot in an appraisal, but they add up—and they also give the entire home the appearance of being modern and updated. Outdated décor can have a negative impact on an appraisal, while a more modern appearance can have a positive impact.
- Mind the $500 rule. Things like damaged tile floors, old wallpaper, a broken door, or an outdated bathroom vanity—usually take hits in $500 increments. As a general rule, it is safe to assume that small issues will take $500 hits in the total home value. If the appraiser finds several of these problem issues, the result can be thousands in lost home value. As a rule of thumb, fix problems immediately that would cost less than $500 to fix. This way you will recover that cost in your appraisal.
- Inform the home appraiser of any home improvements that have done on the home. Be sure to tell the appraiser about any improvements made in the home. New additions, replaced HVAC units, siding, gutters, a new roof, remodeled kitchens and updated bathrooms will all positively reflect on your appraisal.
Faster. Easier. Different. The tagline says it all. Focus Capital exists for the sole purpose of providing mortgage lending solutions for everyone – and we do it better than others. Creating new kinds of lending opportunities is exactly what’s needed now, especially at a time when demographics are rapidly changing and it’s becoming increasingly difficult for potential home buyers to secure lending options.
By re-defining “alternative lending” by creating disrupting solutions in the mortgage industry, Focus Capital provides expert services for clients looking for jumbo, super jumbo, non-prime, and other loan options for purchase and refinance transactions.
A History of Lending Solutions
With over 50 years of combined experience has allowed Focus Capital to specialize in delivering custom solutions for our clients by providing a variety of elite services in the areas of retail, wholesale, and private lending. We offer a host of residential and commercial loan programs and we’re confident that we can create a lending option that’s uniquely tailored to your individual needs.
Our industry tools equip buyers with knowledge and strategies that not only help them accomplish their buying goals, but enhance their borrowing experience as well. We partner with established banks and financial institutions that we know will be able to assist our clients and our experience over the years has given us the opportunity to develop meaningful business relationships while building trust within our network of partners.
Focus Capital works directly with borrowers to structure their loans in the shortest time possible while relying on our team of expert in-house underwriters and mortgage professionals to expedite the lending process.
We make finding a loan easier than ever, utilizing cutting-edge technology, market savvy, and high-touch services that have been perfected through years of industry experience. Focus Capital always aims to personalize the lending process for our clients while streamlining it.
We pride ourselves in exploring all available options and working hard for our clients. Simply put, we go where others won’t. We find and create lending solutions that are tailored to each buyer’s circumstance. The result? Fewer steps, lower cost, and long-term opportunity.
The Bottom Line
Today’s mortgage and lending services demand ingenuity and flexibility to deliver solutions designed for emerging markets. Focus Capital strives to provide the highest level of service with a personalized platform that delivers creative financing and streamlined lending solutions to every client. We think the lending process should be easy, accessible, and affordable for everyone – and that’s exactly what Focus Capital consistently strives for.
Ready to experience an alternative lending solution that’s tailored to your buying needs? Contact Focus Capital today!