Tacoma's #1 Mortgage Expert

** Current Rates 5.00% as of 4/16/2009

While yesterdays .5% cut by the Federal Reserve won't necessarily translate into lower interest rates on 30 year fixed rate loans, it will lower the rate on most home equity lines of credit.  Most home equity lines of credit or HELOC's are tied to the Prime Rate, which is currently at 4.00%. TIP: If you have a home equity line of credit, the first thing to look at is what your current lender is adding to or subtracting from the prime rate to calculate your interest rate. This is called the "Margin." 

For example if you have a Prime + 2% Home Equity Line of Credit, your rate would be 4.00% + 2.00% = 6% vs a lender that has a Prime -.75% or 4.00% -.75% or 3.75%.  Most borrowers who took out a 2nd mortgage or piggy back loan, depending on how much you put down are paying Prime + 1.00% or 2.00%.  This is a great time to shop around for lenders who are offering a promotion on their home equity lines of credit or HELOC's.  Another way to take advantage of this recent rate cut is to move a portion of or all of your Line of Credit into a fixed rate.  Most lenders will allow you to do this, but the rate will be a little higher than your current rate.  But with rates at a all time low, it's probably a good time to do it.  Call your current lender to see what rate they are offering.  Otherwise shop around for a lower Home Equity Line of Credit. 

If you have any questions on your current home equity loan or mortgage related question, feel free to call my direct line at 253-472-1500 for a free consultation. 

Tacoma's #1 Mortgage Expert - Kevin Tinsley
O: 253.472.1500 | F: 866.421.1788
7403 Lakewood Dr W, STE 2
Lakewood, WA 98499

If you have a mortgage in the $417,000-$567,500 range you may be interested to know that interest rates have fallen below 6.00% (6.039APR).  Here's an example of a loan All Tech Mortgage closed last week:  $563,000 loan amount, 46% LTV, 756 Fico Score, Rate/Term refinance at 5.875% (5.938 apr) with No Points or Loan Fee.  The only costs associated with this refinance were third party fees, title escrow, recording fees etc. 

Based on the media reports you would think getting a mortgage would be close to impossible, but that's simply not the case.  One of the borrowers on this refinance transaction, commented how lucky they were to be getting a loan in this environment. 

Here's the good news, as long as you can verify your income, have good credit and low loan to value, there's plenty of mortgage money available.

For more information on home loans in Tacoma, Call Tacoma's #1 Mortgage Expert - Kevin Tinsleyat (253) 472-1500 or visit us on-line at www.alltechmortgage.com or www.kevintinsley.com

7403 Lakewood Dr W, STE 2 Lakewood, WA 98499
Evening & Weekend Appointments Available 
O: 472-1500 | F: 866-421-1788
Same Day Tacoma Home Loan Approval Guarantee!

Interest rates continue to improve for a second day in row.  All Tech Mortgage is quoting a 30 year fixed rate loan at 5.875% with No Points or Loan Fee! (6.063 apr).  For loans higher than the conforming limit of $417,000 up to $567,500 we have a 5.875% 30 year fixed rate loan with only a .50% loan fee.  It's a great time to lock in those conforming jumbo's before the maxium loan amount drop in January. 

The final interest rate will be determined by several factors including down payment, credit score and duration of the lock.  I have wholesale agreements in place with several of the top National, Regional and local lending institutions.  If you would like a good faith estimate emailed to you, please send your request to kevin@alltechmortgage.com. 

Compare our loan programs to Bank of America's No Fee Mortgage Plus, Wells Fargo or other local banks and you will find our rates and fees are more competitive, plus you get to deal with me throughout the entire lending process!

Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $8,340. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.

All Tech Mortgage Inc. 7403 Lakewood Dr W, STE 2 Lakewood, WA 98499  Tacoma's #1 Mortgage Expert.

How Does a Wall Street Bail-Out Bill Affect Main Street?

Large and small companies across the globe rely on access to money markets to finance their daily operations, including inventories, and payrolls. Lenders routinely make loans to these companies, and to each other, to make it all happen. When lenders have confidence in these markets, and investors have confidence in this system, we have a functional marketplace that, for the most part, is sustained by competition. When confidence in this system is shattered, however, like it has been recently, credit becomes expensive and scarce to all parties, and small and large companies alike can choke to death waiting for the short-term capital it needs to fund its long-term success. This directly affects you and your family. It means a slower economy. It means more lay-offs and less new job creation, which often means lower home values. It also fuels volatility in the financial markets that, as we've seen, can wreak havoc on your savings, retirement, and other investment accounts.   

It is estimated that some $70 trillion in total global investment capital is available, which would be great news if our financial systems were functioning with confidence - and that's what the Rescue Bill is basically about. Like it or not, the US Government has been given unprecedented power to invest $700 billion in our financial systems in two main ways. First, as much as $250 billion to purchase stock in US banks, providing the banks with badly needed money. Second, through the purchase of certain assets to help stimulate more liquidity in the credit market. Another initiative will provide government guarantees for the short-term loans banks make to each other to run their daily operations. More importantly, these actions are in concert with similar practices by other governments and central banks. 

None of these actions will solve our problems completely or save us from recession, but here's the good news. It is a positive step in the direction of stabilizing the markets. The other good news is that several other measures were tacked on the bill to help build your confidence in the markets. Unfortunately, there just isn't enough space in this short newsletter to cover them all. We will briefly highlight a couple of them, but our best, most practical financial advice is to create your own plan for the future with your financial professionals. Don't make any rash decisions without speaking to the experts you trust to handle your investments. If you need help finding a financial professional you can trust, we'll gladly provide a referral. Just give us a call. We'll review your mortgage and create a plan that fits your individual financial goals and needs. 

Changes in FDIC Limits
As part of the Rescue Bill, Congress also increased FDIC deposit insurance from $100,000 to $250,000 for all of an individual's accounts at a single institution. For one year, joint accounts, retirement accounts, and trust accounts are insured separately. This means a married couple can insure up to $1 million at a single bank, by making a few simple adjustments. Changes also affect revocable trusts, allowing the same amount of insurance for beneficiaries, such as your children. That means, a married couple with three kids could create enough qualifying individual and joint accounts to protect up to $1.5 million. It's important to note that the FDIC has never failed to pay a single dime of insured money when banks have failed, so you won't have to make a run on the bank or hide your money in your mattress anymore. Small businesses will also benefit from new increases, as well as the confidence that comes with this kind of insurance... 

New and Extended Tax Incentives
Within the 451 page Rescue Bill are nearly 100 tax code changes that directly affect individuals and business owners, including education deductions, sales tax, energy credits, and even new disaster aid. Other tax breaks, which were due to expire, were extended, including property tax deductions, the Mortgage Debt Forgiveness Act, and the shield for the Alternative Minimum Tax (AMT). The property tax provision, set to expire in 2008, has been extended to 2009, and allows up to $500 ($1000 for joint filers) in deductions in addition to the standard property tax deduction - even if you don't itemize! The Mortgage Debt Forgiveness Act, extended to 2012, was designed to protect those who already lost their homes due to foreclosures from facing an additional tax penalty for qualifying cancelled or "forgiven" debt of up to $2 million. And, finally, the Rescue Bill also saves about 23 million Americans from the dreaded AMT, a kind of extra tax that some people have to pay on top of their regular income tax created by the Tax Reform Act of 1969.

These are just a few of the potential tax benefits created or extended by the Rescue Bill. As always, there are specific qualifying standards, and so it is essential to speak with a qualified tax professional about these and other tax benefits that could help you lower your tax bill and increase your confidence in today's tumultuous financial markets.

Kevin Tinsley, Tacoma's #1 Mortgage Expert - Your Home Loan Choice

National Breast Cancer Awareness Month (NBCAM) organization is comprised of several national public service organizations, professional medical associations, and government agencies working in partnership to build breast cancer awareness, share information and provide access to screening services. NBCAM, and www.nbcam.org, are a year-round resource for patients, survivors, caregivers and the general public.

Since its beginning more than 20 years ago, NBCAM has been dedicated to increasing awareness of breast cancer issues, especially the importance of early detection. NBCAM has evolved along with the national dialogue on breast cancer. Many strides have been made in breast cancer awareness and treatment, but even more still needs to be accomplished. We are focused on encouraging women to take charge of their own breast health, by practicing regular self-breast exams, making sure to schedule an annual mammogram, adhering to prescribed treatment and knowing the facts about recurrence.

October is National Breast Cancer Awareness Month, All Tech Mortgage donate $100.00 in your name,  for each new home loan in October.  As a father of three girls and husband to a great wife, I want to see a cure for this deadly disease!

Kevin Tinsley Tacoma's #1 Mortgage Expert

Global Banks Unite in Unprecedented Rate Cuts

Ben Bernanke and the Fed brought financial aid to the streets, lowering the Federal Funds Rate and Discount Rate by 0.50%. In an unprecedented emergency move, central banks across the globe joined in lowering interest rates.

This move follows Washington's passing of the $700 billion Rescue Plan. From Wall Street to Main Street, a common concern has been heard by Washington. "We need money... no, let me rephrase that...we need cheap money."

Rates Could Rise From Here
Home loan rates have benefited from the weakness in the financial markets. Fixed rate mortgages remain very attractive. However, the Fed lowers short term interest rates to shore up financial markets. This could cause home loan rates to rise in the coming weeks and months if confidence returns to the stock markets.

ARM Holders Take Notice!
Anyone that has an Adjustable Rate Mortgage (ARM), take note. The London Interbank Offered Rate (LIBOR) has soared from uncertainty in financial companies...And six million home loans in the United States are tied to LIBOR which determines the interest rate at the time of adjustment.

If you know someone with an ARM, let them know potential trouble lies ahead and the time to act is now.

What Should You Do Now?
Call me. We can go over your situation to determine how you can benefit from the actions. I look forward to hearing from you.

Kevin Tinsley Tacoma's #1 Mortgage Expert

The Federal Reserve along with other central banks around the world made a concert unprecedented coordinated interest rate cut of 1/2%.  Trying to stabilize the financial markets, the Federal Reserve is pulling out all the stops trying to jump start our economy.  The immediate reaction to the interest rate cut in long term interest rates was negative.  As a matter of fact we had several of our wholesale lending partners reprice their loans throughout the day.  Interest rates increase anywhere between .25% - .5% in discount points.  Looking ahead, I would expect interest rate for home loans to vary in a range of 5.25%-6.00% over the next few months.  Also, we have not experienced any shortage of lenders making loans.  Contrary to the media reports, we are closing loans everyday!

Kevin Tinsley Tacoma's #1 Mortgage Expert

Wild Markets, The Fed, and Opportunities

Uncertainty in Financial Markets Could Cause Dramatic Rise in Existing ARMs at Next Adjustment
If you or anyone you know has an Adjustable Rate Mortgage, this is an important point to consider. Many ARM loans are tied to the London Interbank Offered Rate (LIBOR). In fact, there are six million loans in the United States that use LIBOR to determine the interest rate and as the name suggests, many banks use this rate to lend money to each other.

But, today, banks lack confidence that the money they lend will be paid back. In light of what has happened with Lehman Brothers, IndyMac Bank and others, as well as AIG, banks are requiring much higher rates on LIBOR to offset the added risk.

The Federal Reserve Left Rates Unchanged but...
The Federal Reserve met yesterday leaving the target rate unchanged at 2.00% but just like LIBOR the actual rate being charged by banks to each other is closer to 6.00%. This again suggests that those with ARM loans should consider a refinance into historically low fixed rates.

What Happened?
Financial companies have been under attack. IndyMac was the largest bank to falter in twenty years. What brought IndyMac down was their exposure to defaulting loans. This sapped investor confidence and drove down the stock price until they filed for bankruptcy.

Following IndyMac, we saw Fannie Mae, Freddie Mac, Lehman Brothers and Merrill Lynch succumb and were either forced into conservatorship, to close their doors, or to sell themselves. AIG, the world's largest insurance company was also impacted, forced to make a deal with the U.S. government to stay in business.

What You Can Do Now?
I'd be happy to go over your loan situation and help you understand how the recent events may affect you, and how you can best be protected. Additionally, chaotic times like these often present opportunities. I look forward to hearing from you.