Robert's Blog

This one bothers me. It feels "anti FHA".  But it is what we have to look forward to.

On January 1, 2009 the guidelines for FHA Down Payments change.

Currently a buyer can put as little as 2.25% on the typical FHA transaction with the only caveot being a 3% down payment if the seller is paying all of your closing costs.

as of January 1: there is a flat down payment of 3.5%.

That may not sound horrible, but to put a $ number on that it will hurt. on a $250,000 purchase the down payment will have to be $3,125 higher than it does today. That is significant.

If you are currently in the market for a home and were looking to put a small down payment there are only a few short months left to get in under the old guidelines and save yourself thousands of dollars. the clock is ticking! 

With prices being down and interest rates at favorable levels 2008 is already the year to buy... this news just adds yet another reason

Have a great week

Rob

Robert Rauf

Real Estate Mortgage Network

This one bothers me. It feels "anti FHA".  But it is what we have to look forward to.

On January 1, 2009 the guidelines for FHA Down Payments change.

Currently a buyer can put as little as 2.25% on the typical FHA transaction with the only caveot being a 3% down payment if the seller is paying all of your closing costs.

as of January 1: there is a flat down payment of 3.5%.

That may not sound horrible, but to put a $ number on that it will hurt. on a $250,000 purchase the down payment will have to be $3,125 higher than it does today. That is significant.

The good news:  we have a few months left this year to get our buyers in with the old guidelines. It is important to pass this information along to your buyers so that they are aware of the change, or they are going to get blind sided. In many cases an extra few thousand dollars will make or break an FHA deal.

Knowledge is power. Be sure to keep an eye on this one. It is an opportunity to convert some of your tire kickers since the clock is definitely ticking.

Have a great week

Rob

Robert Rauf

Real Estate Mortgage Network

October 1 is a big date in the FHA world, The Down Payment assistance piece has been beaten to death on the Rain, so this is just a quick mention that if you have them, GET THEM CLOSED.

The next piece is yet another change in the FHA Mortgage Insurance Premium: MIP.

If you have some one buying with an FHA loan and you are close to having a contract this can be an important one to save your clients some money.  In July FHA changed its MIP to a more risk based premium. The benefit here was for our clients with good credit scores, or for "O.K." clients with a bigger down payment than typical for FHA.  On a $200,000 loan your buyers can save $1,000 in upfront MIP if they get a case number in September, and the monthly premium will be lower by about $8/month.

Effective October 1the Up Front MIP will be a flat 1.75% for Purchase transactions. The monthly factor will vary between .50-.55 depending on the down payment.

If you have a loan in process it is important that you be sure that there is a lender case number on the file, especially if the credit score is above 640!

Some times it is the little things that can make a big difference in you buyers pockets. I know I just saved one of my buyers a small fortune by getting it in under the wire.

Have a great week, and remember to pay attention to the details!

Rob

Robert Rauf

Real Estate Mortgage Network

I have definitely not been intentionally ignoring You!! I have been busy with the move to my new company (Real Estate Mortgage Network) Setting up the new office, making sure my clients know where I am, and to top it all off I have a spurt of business which is great news! Normally August/September can be a slow time with last minute vacations and kids back to school, but I guess there is some pent up demand, which is a GOOD THING!

Well, I have my head above water enough for a quick hello, and I will be back to active duty on Active rain soon.

The new job: GREAT!!!  I love coming to my office now. The past 12 months I did not like going to my office, it was not a good place to work, not conducive to productivity... and entirely too much negative energy.  I am Officially with REMN now for about a month, and each day is better than the next... Still busy getting set up and there are not enough hours in the day yet.. But I am HAPPY!!!

So keep in touch, throw me an email and yell at me if I dont post soon!  I may need the reminder that I am not playing in the rain!

Rob

Robert Rauf

www.RobertRaufHomeLoans.com

When I first heard that the Battleship NJ was coming to NJ as a museum I was excited and looked forward to visiting it. Since it has been docked in Camden I have gone twice.  One time with the family, and one time I actually got to sleep on it with my sons Boy Scout Troop.

Unfortunately I don't have any idea where "my" pictures of the NJ are, here is one I took from the website: The site has many photos of the ship including some shots of it firing its 16" guns

I am writing this post because of an article in the paper the other day. "Battleship New Jersey loses aid, cuts staff". The article discusses the budget cuts and the fact that the state aid is going to be 1/2 what it was for this coming year. In response the museum has laid off 8 staff members. (20% of the work force) and they are considering closing the ship to the public this winter. This would be a shame, the vast majority of the visits and overnights I am sure come from school groups and Scouting groups, which are most apt to visit the ship in the winter months.

If you have not been there I would recommend a visit. the sheer size of the ship is amazing. The thickness of the steel is hard to believe. How does so much weight float???  I think the turrets are 17" thick, and the bridge is like a bank vault about the same thickness. It is an impressive hunk of floating metal to visit! The NJ saw a lot of action through World War II right up to the more modern era, It is left in its retired state with cruise missle launchers and most of the old WWII anti aircraft guns removed. The NJ was never hit by a kamakazee plane since it had the ability to protect itself so well with ample weaponry.  If you are a history buff at all, this should be on your to-do list!

You can make a day trip with the family and visit the Camden Aquarium just next door, or run across the bridge to Philly and visit a few ships on the other side, one of them a ww2 Submarine.

And while you are there, Buy some NJ Stuff to support OUR Battleship!

Have a great weekend

Rob

Robert Rauf

Real Estate Mortgage Network

Kim Kelley always posts the best photos, it may be a view... and often a sunrise (she gets up way too early! They are a little crazy on the left coast) 

Now it is my turn to share a few shots... Of course, if you read any of my blogs you know... I always forget my camera.. so all of these photos are taken with my blackberry. make sure you scroll all the way down, 4 photos total. I left them big, I thought they looked better that way.

The first two are from a Thursday night Cat boat race I was patrolling for, I was happy I was not sailing as I watched the wind drop to almost nothing, but it sure made for a pretty sunset over the water...

here is one with out a boat in the way...

The next two are from This Past Tuesday night.  I race a J24 every Tuesday from the spring to the fall... and at regattas some weekends as well The photos of the sunset do not really do it any justice, the colors were amazing.

I couldn't decide which one I liked the best, so I posted both of them I took on Tuesday.

Have a great weekend!

Rob

Robert Rauf

Real Estate Mortgage Network

Crabbing in the Barnegat bay has been GREAT this year. I finally got out for the first time a week or so ago. I posted a blog on crabbing a month ago. I had not had a chance to go out myself until my sister came for a visit from Virginia. So Any Excuse to take a day off and use the Boat!

we got a late start, and went to my secret spot that has always paid off and it certainly did, in a few hours on the boat we had enough crabs for dinner.  The Vast majority of the crabs were big enough that we did not even have to measure them, I would say they were mostly over 6"... And all Males, very few pesty little ones (some times it feels like you keep catching the same tenacious little guy!)

Here is a picture of my daughter with a crab, one of the smaller keepers we caught ... She is going to hate me for posting this picture, but she was being her typical 16 yr old self... You know what they say about pay backs????  Thats my son in the back ground about to net his sister... and my nephew next to him

(Hmm. I should have cropped the photo, you will be able to tell my secret spot from this....)

Of course I did not have my camera, I never do and had to rely on my Blackberry for a shot.

Below is how they looked all ready for dinner. A little Old Bay Seasoning, and cooked up ready to eat

They still look ready to pinch, don't they?  I am truly lucky to live where I do. Ocean county offers so much and I know at times I take it for granted... but Luckily family shows up and you get to see through their eyes what you were missing!

So, go grab a net, some bunker and a few drop lines and catch yourself some dinner... and if you ask really nice, I will tell you where my secret spot is, there is a bit of local knowledge involved, and a little bit of a trick with the current that you also need to know... That secret I may just have to keep for myself!

Have a great week

Rob

Robert Rauf

Real Estate Mortgage Network

 White Water Rafting

Most of my posts are about NJ activities... This one is about PA, our neighbor to the west. One of the best parts of living where I do is our proximity to so many great places, Just a little over an hour to NYC or Philly, and in this case just a few hours to the Lehigh Valley.

This is the second time my son's Boy Scout troop went to White Water Challengers. 2 years ago we went and did not have a damn Release and it was in the spring so it was COLD!!! This year we went in August. It was warm, and we had a damn release.  The Army Corps of Engineers has been releasing water every other weekend, making for more entertaining White Water Rafting.

White Water Challengers is a good spot, I would recommend them.  You can camp on site, they have a buffet breakfast and dinner (not sure about lunch, since every time we have been there we have had lunch on the river, also provided by WWC).

In case you dont get wet enough in the rapids, there are ample flat spots  to have a water fight.                                         Above you can see my son looking back in fear of the next attack...

It would be a great family weekend that won't kill you in the pocket book.  I think our costs were about $80/person that included camping for 2 nights, 2 breakfasts, Lunch and Dinner and Rafting.   (We got a group price since we had 20+ people, so I am not sure of exact costs) Where else can you sleep for 2 nights and eat with entertainment for so little?

The Lehigh River is a pretty spot, and other than a bridge or two you do not see any development while rafting. WWC also has options to raft on a few other rivers, I have heard the Black River is a great spot... I will have to keep that one on the list.

The fun part of being one of my son's Scoutmasters is that I get to participate in the fun as well.

Our next trip is camping on Island Beach State Park, our first true beach camping experience. That should be a lot of fun.

Enjoy your week!

Rob

Robert Rauf

Real Estate Mortgage network

Paddling on Silver Bay

This past weekend I finally got to bring my dog out on the boat for the first time this summer. She just loves it. I think she is part fish and will swim all day if you let her.

Summer is a Golden Doodle.  (that's French for 'I paid a lot of money for a Mutt')  Her dad was a Golden Retriever her Mom a Standard Poodle. She is not supposed to Shed.. (she does just not like a typical dog) She has been a great dog, a true people person.

My initial intention was to run down to Tices Shoal which is on the bay side of Island Beach State Park, one of my favorite places.... because one of the goals was to go Kayaking at the same time, and the Sedge Islands on the southern end of the park make for great kayaking.  I also wanted to bring the new Kayak, but it's a little big to put on the boat, and my wife did not want to scratch it up I guess the KayakI built is just too pretty??? So we took two of the Ocean Kayaks we have that fit on the boat better, and They are indestructible...

Of course... Story of my life, we got a late start. Part the Wife's fault... She just had to go to the Gym that morning... Part my fault, while she went to the Gym, I played on the rain and did not get things ready to go!  So Rather than the long trip down the bay we opted for a closer location... Silver Bay in Toms River, Cattus Island Park another great place you can visit by water in Ocean County. It is in Toms River and has a decent beach for the bay, just not as secluded as the sedge islands.

As usual, No camera!  but always have my Blackberry! so these are a few shots courtesy of my BB.

Here she is Begging to go back in the water, She actually listens and wont jump in unless I let her... That is a good thing! 

Unfortunately I dont have may photos, since pictures always seem to be an afterthought. Memories always are better than a picture can capture. Also, something about my phone by  the water... just not a recipe for anything good!  I got her back in the boat because I was afraid of her getting tired and she was chasing the kayaks. She Swims well, but cant really keep up with a kayak!

I just noticed that my son is hiding.  I was paying more attention to the dog!

After this she swam into the beach and got to run up and down the beach and swim with another dog. She had a great day and slept the whole way home.

I had to throw in a last shot of my wife paddling. She kept paddling out and riding boat wake (waves) back in. The fun part about a kayak is they will actually surf waves.

She has such a genuine smile when she is paddling, that's why I built her the pretty kayak, so I can see that smile more often. I think it is the only time she lets go of all the things that bother her.

Ocean County has so much to offer, especially if you have a boat to go explore it. I really do love NJ and cant see myself living anywhere else.

Have a great week, I hope you enjoyed the few pictures.

Rob

Robert Rauf

www.RobertRaufHomeLoans.com

Real Estate Mortgage Network

Should you lock or float? This has been the year of playing it safe and lock with out looking back since the moves in the market have not been predictable. This week is more of the same.  The first issue is it is a holiday shortened week.  Whenever we have a holiday shortened week we see thin trading and moves are typically amplified by the lack of volume. I have always felt that it is the "junior" traders left to man the desks while their bosses are away, and these Juniors are afraid that their bosses will yell when they get back... So they are conservative and are more apt to sell than buy.  In the credit markets there is an inverse relationship between price and yield.  More sellers equals a lower price and a higher yield.

Here is what we have in store for this week:

• Monday 8/25: July Existing home sales; expected up 0.8%. While one month does not equate to an upward trend, it does suggest that we may have hit a bottom.  As I type this the report is already out at a much stronger than expected 3.1% due to Lower prices. The market took this in stride and is considered to be neutral.
• Tuesday 8/26: July New Home Sales; expected down 1.3%. Traders will look at this number and it is anticipated to be a hopeful sign that the problems in the housing world are fading. As typical, if the forecast matches we will see little move in rates if any. but a more positive number has the potential of raising rates.  Given that the Existing home sales number was strong, there is a strong likely hood that new Homes will be strong as well, Look out for this one, it has potential for rates to rise.
• Tuesday 8/26: August Consumer Confidence; anticpated 53.0. Investors dont really put too much weight in this report. It is more the consumers actions rather than what they are feeling that is more important.
• Tuesday (busy day!): FED, FOMC minutes from 8/4-8/5. It is expected to reinforce the feeling that the FED will not raise rates anytime in the near future. Most likely just another place holder on the calendar.
• Wednesday 8/27: July Durable Goods; expected up 0.1%. likely another yawner... the uptick is due to aircraft orders and Autos responding to fuel efficient needs.
• Wednesday 8/27: Treasury auction $31 Billion 2yr notes. The Treasury actions this week are the highlight of the Calendar. Extra supply in thin trading will likely cause lower prices and higher yields
• Thursday 8/28: Second quarter GDP; expected up 2.7% This is a large revision to previous estimates and it is much stronger than initial numbers, but it should already be priced into the markets
• Thursday: Initial jobeless Claims; expected to be down 2,000. Not a market mover
• Thursday: Treasury Auction $21 billion 5yr notes. More supply again... not good this week!
• Friday 8/29: Personal Income, Spending and PCE; anticipated Unchanged, 0.2% and =0.3%. If any traders are still in on Friday it will be the personal Consumption number (PCE) that will be looked at. A stronger number here is likely to see rates rise.
• Market closes at 2pm Friday for the holiday

The Treasury Auctions will be the days to watch. The added supply in a thinly traded week is a recipe for lower prices and higher rates. Keep in mind that markets are closed on Monday while Foreign markets are open. Yet another reason for conservative trading this week.

Enjoy your last week of summer!

Rob

Robert Rauf

Real Estate Mortgage Network