Delaware Mortgage Loans

Weekly Financial Market Update - June 30, 2008

John Thomas — Mon, 30 Jun 2008 11:38:37 +0000

THE MARKETS: June has been a negative month for the equity markets. For the month, the S&P 500 is down 8.7% and the Russell 2000 is down 6.19%. For the quarter, the S&P 500 is down 3.35% and the Russell 2000 is up 1.84%. The Dow Jones AIG Commodity Index is up 9.59% for the month and 27.8% for the year. This is a “long only” index which can be volatile and about which many investors are wary (”How high can it go?”). It has been having an extraordinary run during this bearish equity market.

CHARITABLE GIVING: According to the Giving USA Foundation, charitable giving in the United States reached a record $306.4 billion in 2007. Giving rose 3.9% last year. Charitable giving was 2.2% of gross domestic product for 2007. Individual giving was an estimated $229 billion, or 74.8% of the total estimated giving in 2007, an increase of 2.7% (a drop of 0.1% when adjusted for inflation). Corporate giving increased 1.9% to $15.69 billion, representing a decline of 0.9% when adjusted for inflation. Grants made by foundation rose 10.3% in 2007, or 7.3% when adjusted for inflation. Charitable bequests increased 6.9%, or 4% adjusted for inflation. In the last five recessions since 1973, giving fell an average of 1.3% adjusted for inflation.

MID-YEAR ADJUSTMENT ON MILEAGE DEDUCTION: The Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

“HEART”: On June 17, 2008, the Heroes Earnings Assistance and Relief Tax Act of 2008 (”HEART”) was signed into law. HEART had been unanimously passed by both the U.S. House of Representatives and Senate. Among the many provisions designed to enhance the financial well-being of armed service members serving in a combat zone were: 1) Military compensation (up to the maximum enlisted service member’s pay) earned in a combat zone will be excluded from a service members gross income; 2) A service member may also exclude compensation, for up to two years following service in a combat zone, earned while hospitalized from wounds, disease, or injuries incurred during service in a combat zone, and 3) The Working Families Tax Relief Act of 2004, allowed a service member to treat combat pay as earned income for purposes of the earned income credit. HEART makes this law, which expired on December 31, 2007, a permanent tax code provision.

This information has been provided by my good friend Doug MacGray. Doug is a certified Financial Planner and if you would like to speak with Doug, please give me a call (John Thomas) at 302-368-7132.

Delaware Mortgage Rates - Market Update - June 25, 2008

John Thomas — Wed, 25 Jun 2008 16:35:54 +0000

Here are the daily thoughts on floating or locking your Delaware Mortgage Rate.

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

The Bond market today is down so far in the morning waiting on the Fed Decision later today. The market will be extremely volatile awaiting the decision. We had some nice improvement on rates yeserday but some lenders came out this morning with some worse pricing.

New Home Sales for May came out today at 512,000, which was in line with expectations, but was down from April’s report. The median price of a home sold was also down by 5.7 percent from a year ago. The median home price was $231,000. The inventory of unsold homes was up to 10.9 months.

The durable goods order came in at expectations, which was higher than last month. With all of the volatility today, I would recommend locking in your rate if you haven’t already.

If you need help with a Delaware Home Loan for the purchase or refinance of a home, please feel free to call me (John Thomas) at 302-368-7132 Ext.12 or send me an e-mail to DelawareMortgages@yahoo.com

First Time Home Buyer Seminar - June 28th - Still Room Left!!!

John Thomas — Wed, 25 Jun 2008 16:18:31 +0000

There are still some seats available for the Free First Time Home Buyers Seminar on Saturday, June 28, 2008 at 10:00 AM. Please call John Thomas at 302-368-7132 Ext.12 to register or send an e-mail to DelawareMortgages@yahoo.com. The seminar is being held in Newark, DE and will last about 2 hours.

Delaware Mortgage Rates - Market Update - June 20, 2008

John Thomas — Fri, 20 Jun 2008 23:59:31 +0000

Here are the daily thoughts on floating or locking your Delaware Mortgage Rate.

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Little economic news on tap for today. Big news yesterday in China raising the price of fuel for its citizens. This helped bring down the price of oil yesterday. Stocks appear to be set for another drop today - this spells good news for bonds. Stocks Dropped because oil railed today after selling off yesterday.

Technically speaking - the FNMA 6.0% 30 year bond was on a bit of a roller coaster yesterday. If bonds are able to break above current resistant levels, look for a bit of an improvement in rates.

I recommended locking in yesterday because mortgage bonds sold off at the end of the day. Today we had some nice gains and I would recommend locking in those gains in case we price for the worse at the end of the day.

Lock your interest rate.

If you need help with a Delaware Home Loan for the purchase or refinance of a home, please feel free to call me (John Thomas) at 302-368-7132 Ext.12 or send me an e-mail to DelawareMortgages@yahoo.com

Delaware Mortgage Rates - Market Update - June 18, 2008

John Thomas — Wed, 18 Jun 2008 16:54:45 +0000

Here are the daily thoughts on floating or locking you Delaware Mortgage Loan Interest Rate.

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Stocks are trading lower because of a bad earnings report from FedEx and Morgan Stantley. This is more news supporting that we are in a recession or sliding into one depending on who you talk to about it. The rates have been higher lately because of the fear of inflation.

Mortgage Bonds are trading higher on the news which means rates could potentially get better. The market could change at a moments notice because of the volatility. I am recommending floating right now but would be ready to lock if stocks or bonds change their direction.

If you need help with a Delaware Home Loan for a purchase or refinance, please feel free to call me (John Thomas) at 302-368-7132 Ext.12 or send me an e-mail to DelawareMortgages@yahoo.com

Weekly Market Update - June 16, 2008

John Thomas — Wed, 18 Jun 2008 02:29:05 +0000

NOT MUCH MOVEMENT LAST WEEK: The markets did not move much: The Dow was up 0.80% and the S & P 500 was down 0.05%.

NEXT INTEREST RATE MOVEMENT WILL BE UP?: The Fed’s increased public anti-inflation discussion has led to market expectations of one or more rate hikes by the year end. The Fed funds futures market is pricing in 75 basis points by January. The Fed outlook has changed over the last several weeks. In the April 30 policy statement, the Federal Open Market Committee hinted strongly that it was finished with rate cuts, but the market expected that a weakening economy would force the Fed to cut at least once more. Since late April, economic data have been mixed, but not as bad as many feared. The price of crude oil has continued to rise, to a point where the Fed’s concerns about inflation are now dominant. IN EUROPE: At the European Central Bank (ECB), they have made it clear that inflation is their number one concern and they aren’t thinking about a cut in rates. Jean-ClaudeTrichet, the ECB Chairman, has strongly hinted that their next move is likely to be an increase in rates. If that happens, and the U. S. doesn’t match the increase, it will put added downward pressure on the dollar and likely cause oil prices to continue to go up.

ECONOMISTS LESS PESSIMISTIC: This past week, once again, the Wall Street Journal asked a panel of Wall Street economists whether we are in a Recession. 52% say yes. That’s the bad news. The good news is that this same group was asked the same question in April and 76% said yes. It looks like economist opinions are as volatile as the markets.

DEBT CAN BITE YOU AT ANY TIME, AND COMPOUNDING WILL KILL YOU: This past week, Prince Charles paid off a family debt more than three centuries past the statute of limitations. Charles paid 453 pounds and 15 pence ($885.04) which King Charles II failed to pay to the Clothiers Company in Worcester, England, in 1651! Charles II had commissioned uniforms for his troops to fight Oliver Cromwell’s forces that year. Prince Charles didn’t pay interest, and Clothiers did not insist on it. If interest was taken into account, he would have owed approximately $90,000 U.S.

SIZE OF PROFIT: According to Fortune Magazine, the average profit margin at the pump for a US gas station is 11 cents a gallon, approximately half the size it was just 1-year ago. The average net profit margin for the S&P Energy sector, according to figures from Thomson Baseline, is 9.7%. The average for the S&P 500 is 8.5%. Google’s net profit margin in its most recent quarter was 25%.

BANKS MORE PREPARED: According to the FDIC, US commercial banks and savings institutions set aside $37 billion in loan-loss provisions in the 1st quarter 2008 in anticipation of bad loans that may default. Banks set aside $9 billion for such loans in the 1st quarter 2007.

This is information is provided by good friend and business associate Doug MacGray. Doug is a certified financial planner. If you would like a referral to Doug please feel free to contact me (John Thomas) at 302-368-7132 Ext.12 or send me an e-mail to DelawareMortgages@yahoo.com

Delware Mortgage Rates - June 17, 2008

John Thomas — Wed, 18 Jun 2008 00:46:24 +0000

Here are the daily thoughts on floating or locking you Delaware Mortgage Loan Interest Rate.

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Building Permits and Housing Starts came in almost exactly where they were predicted to be. Producer Price Index (PPI) came in higher than expected, though core PPI came in exactly on target (good news). Capacity Utilization and Industrial Production both came in below expectations.

Technically speaking - the FNMA 6.0% 30 year bond fell yesterday to support levels. This morning it appeared to be taking a nice bounce with the core PPI news. Bonds are still in an oversold position leaving a lot of room on the upside. The Bond went up, down then back up today.

I am recommending floating right now, but be ready to lock at a moments notice because the market is still extremely volatile.

If you need help with a Delaware Mortgage Loan either for the purchase of a home or the refinance of your existing Delaware Home Loan, then please feel free to call me at 302-368-7132 Ext.12 or send me an e-mail to DelawareMortgages@yahoo.com

Demystifying Real Estate Investing

John Thomas — Sun, 15 Jun 2008 00:42:23 +0000

Demystifying Real Estate Investing

Overcoming the misconceptions that keep you from investing in real estate

Most people who aren’t investing in real estate are being stopped by doubt and fear. They may want to invest in real estate, but each time they consider taking action, they come up with an obstacle or a core belief that keeps them from moving toward their dreams.

According to The Millionaire Real Estate Investor by self-made millionaire and real estate investor Gary Keller, most successful real estate investors have had to overcome certain beliefs that later proved to be unfounded. Some of these beliefs center around the way they view themselves as investors, and the others are focused on beliefs about investing. By addressing these doubts and fears, and recognizing that they’re unfounded, you’ll eliminate the major barriers to becoming a real estate investor.

· Personal Myth #1: “I don’t need to be an investor. My job will take care of my personal wealth.” \

Truth: History indicates that few jobs pay enough to create true financial independence. Financial wealth building depends on another vehicle.
· Personal Myth #2: “I don’t need or want to be financially wealthy. I’m happy with what I have.”

Truth: Financial wealth offers greater opportunity to care for yourself and others, and that is something most everyone wants and needs.
·         Personal Myth #3: “I can’t do it.”
·         Truth: You don’t know what you can or cannot do until you actually try.
·         Investing Myth #1: “Investing is complicated.”
·         Truth: Investing is as complicated as you make it.
·         Investing Myth #2: “All the best investments require knowledge most people don’t have.”
·         Truth: Your best investments will always be in areas that you can or already do understand.
·         Investing Myth #3: “Investing is risky. I’ll lose my money.”
·         Truth: Investing and gambling are not the same thing. Investing, by definition, is not risky.
·         Investing Myth #4: “Successful investors can time the market.”
·         Truth: Timing isn’t about being in the right place in the right time. It’s about being in the right place all of the time.
·         Investing Myth #5: “All the good investments are taken.”
·         Truth: Plain and simple, every market, in every time, has its share of good investments.
There’s nothing more powerful for keeping you out of action than fear and doubt. By seeking the truth, rather than relying on unfounded beliefs that lead to fear and doubt, you can overcome your greatest obstacle and get closer to achieving your dreams.

If you’re interested in investing, but you have doubts about whether or not investing fits in with your current financial program, it’s best to consult with a qualified and reputable Mortgage Planner who can assess your financial situation and put you on a plan that targets your goals. As with any financial program, gaining clarity on the facts is always the best place to start.

Please feel free to contact me about discussing your situation. John Thomas - Certified Mortgage Planner - 302-368-7132 Ext.12 or e-mail DelawareMortgages@yahoo.com

Free First Time Home Buyer Seminar - June 28, 2008

John Thomas — Mon, 09 Jun 2008 02:41:03 +0000

There will be a Free Delaware First Time Home Buyer Seminar on Saturday June 28, 2008 at 10:00 AM. The seminar will last about 2 hours and each participate will be able to recieve a free copy of their tri-merge credit report. The seminar will cover all of the basics of buying a new home in Delaware. The seminar will cover Delaware FHA loans, Delaware VA loans, My Community loans, First Time Home Buyer Loan Programs and the Delaware USDA Rural Housing Program. Each participate will recieve a Free Audio CD on Credit Scoring, Credit Scoring Handbook, Homebuying Handbook, and an opputunity to meet with a mortgage planner to be pre-approved to buy a home at the seminar.You will also learn importance of credit in buying a home and learn valueable tips on how to improve your credit score. Learn what programs are available to help with down payment and closing costs. The new loan limits for conventional and FHA will be covered as well as changes to borrowing 100% financing.

The Seminar is being held at 256 Chapman Rd, Suite 105, Newark, DE 19702.

To register for the seminar, please call 302-368-7132 Ext 12 and ask for John Thomas. You can also e-mail me at DelawareMortgages@yahoo.com

Weekly Market Update - June 8, 2008

John Thomas — Mon, 09 Jun 2008 02:38:14 +0000

EQUITY MARKETS HAVE A POOR WEEK: Some modest positive news early in the weak was drowned out by rising oil futures prices and a radical jump in unemployment numbers. The Dow Jones Industrials were down 3.39% and the S & P 500 was down 2.83%.

REITS BOUNCING BACK: Real estate investment trusts (”REITs”) outperformed other major market benchmarks during the first five months of the year. The FTSE NAREIT all-REIT index was up 6.5%, for the period, while equity REITs rose 8.2%. Self-storage and residential REITs were the biggest gainers, posting returns of 21.1% and 15.6% respectively. The REIT gains have helped the group recover from last year. Equity REITs posted a return of -17.8% last year. This is a great example of the premise behind asset allocation. People who jumped out of REITs last year missed out on gains of 2008 when REITs have been a good counterbalance to equity investments.

12%?: One of the many things we as financial planners must assume in making projections are investment returns. In times like the present, clients will challenge even fairly conservative, long-term return assumptions. Evidently, however, there are still optimists out there. The governor of Pennsylvania, Ed Rendell wants to sell the toll-taking rights on the Pennsylvania Turnpike for an up-front payment, pay off some debt, and invest the remaining $10 billion with the state pension fund, set aside a bit for inflation, and pocket an average 12 percent each year, or $1.1 billion, to fix rundown roads and bridges.

MUNICIPAL BONDS GET A SHOT IN THE ARM: Markets hate uncertainty. Fortunately, the U.S. Supreme Court just took some uncertainty out of the municipal bond market. A federal appeals court had held that individual states may not exempt residents who own same-state municipal bonds from state income taxes. This case was accepted to the U.S. Supreme Court (Dept. of Revenue of Kentucky vs. Davis) which decided that states may continue to exempt their residents from paying taxes on that state’s municipal bonds. Clarifying the tax status of state municipal bonds for local residents removes an issue that had been weighing on the market for municipal bonds in addition to the general credit issues affecting the markets.

PERSPECTIVE, IT HAS BEEN WORSE: As of January 1, 1934, 44% of all US homes were in default on their mortgages. As of 3/31/08, 4.5% of mortgages were at least 30 days delinquent on the payment of their monthly principal and interest amount. PERSPECTIVE, IT HAS BEEN BETTER: As of 4/30/08, there were 4.6 million existing homes for sale in the USA. Just 3 years earlier (4/30/05), the number of homes on the market was 2.5 million (source: NAR).

LONG-TERM CARE STAT: According to a variety of sources, 6% of retirees will spend at least $100,000 (a present value amount) on long-term care expenses. 50% will spend nothing.

JUST ONE BAD EVENT AWAY: One of the thngs which got me interested in financial planning as an attorney was when I developed a debt work-out practice for individuals who were on the precipice of, but wanted to avoid, bankruptcy. I heard all the stories as to how these individuals found themselves in the state they were in. In short, people allowed themselves to be one bad event away from financial distress, and two bad events away from bankruptcy. Currently, 55% of all personal bankruptcies in the United States occurred at least in part due to illness, injury, death of a family member, or the birth of a new child (source: Health Affairs).

MARRY WELL: Republican Presidential candidate John McCain reported $387,000 of adjusted gross income (AGI) on his “married filing separate” 2007 income tax return. His wife filed an extension on her 2007 return but she reported $6.1 million of AGI on her 2006 tax return.

This information is provided by my good friend and business associate Doug MacGray. If you would like to schedule a free consulation with Doug, please call me, John Thomas, at 302-368-7132 Ext.12 or send me an e-mail to DelawareMortgages@yahoo.com and I will help you setup an appoitment with Doug.