I s su e 12 , Vo lu me 3 4 / Au gu s t 2 6, 201 1Earthquakes and Hurricanes The Week Ahead -> The “Keys”Tim McLaughlin - Employment Data, Housing Numbers, and Fed Minutes If you are not still in the midst of a massive cleanup effort fromthe earthquake that rocked the Northeast last Tuesday (I already Date Economic Release Prediction Lastpicked up the cup that knocked over on my desk), and if you havesome free time while you are shut in this weekend from the 8/29 Personal Income 0.3% 0.1%negative effects of Hurricane Irene, now is a great time to pull outyour laptop and run some numbers to see how truly affordable it is 8/29 Personal Spending 0.4% -0.2%to finance that home of your dreams, or refinance your existingresidence, if you haven’t already (that is, assuming you have 8/29 PCE Core (MoM) 0.2% 0.1%power to run the computer). Let’s analyze some of the numbers: 8/29 PCE Core (YoY) 1.4% 1.3% If you have a $300K, 30 year mortgage at say 4.99% (existing loan to Refinance or rate you would have gotten on a 8/29 Pending Home Sales (MoM) -0.3% 2.4% Purchase mortgage in 1Q11), your P&I payment would be ~$1,609. If you were Purchasing that same house today, or 8/29 Pending Home Sales (YoY) - 17.3% looking to Refinance that purchase from early 2011 or before, the P&I payment would be ~ $1,431, a savings of $178 a 8/30 S&P/CS 20 City (MoM) - -0.05% month, over $2,100 a year, and over $10,000 in just 5 years! A terrific opportunity to act now on both a Purchase 8/30 S&P/CS Composite (YoY) -4.83% -4.51% and a Refinance. 8/30 S&P?CS Home Price Index - 139.87 Or let’s say that you Purchased that same property in Q1 ($300K, 30 year mortgage at 4.99%), and now you wanted to 8/30 Consumer Confidence 53.5 59.5 refinance that mortgage into a 20 year mortgage at 3.99%. Your P&I payment would increase by $208 a month, BUT, 8/30 FOMC Meeting Minutes - - you would cut 9 1/2 years off the life of your loan (assuming you originally closed in early 2011), and on the 8/31 MBA Mortgage Applications - -2.4% life of the loan payments, the interest saved in switching from the 30 year to a lower rate 20 year mortgage example 8/31 Challenger Job Cuts (YoY) - 59.4% above would be over $134,400 life of loan (assuming full term payments vs. a loan that originally closed in 1Q11). 8/31 ADP Employment Change 103K 114K Let’s take another example which can apply to both 8/31 Chicago Purchasing Mgrs 53.8 58.8 Purchases and Refinances: Let’s assume you Purchased a house with a 30 year, $300K mortgage in August of 2008 at 9/1 Initial Jobless Claims - 417K 6.5% (yes, those were the rates in mid-2008). Your P&I payment would be ~ $1,896 a month. Now it is three years 9/1 Continuing Claims - 3641K later, and assuming no additional principal was paid, the loan amount would now be ~$289,252. If you Refinanced that 9/1 Total Vehicle Sales 11.95M 12.20M loan into a 20 year mortgage at 3.99%, you would cut 7 years of payments off your loan AND, additionally, you 9/1 Domestic Vehicle Sales 9.40M 9.62M would reduce your P&I payment to ~$1,752 a month, a monthly savings of $144 a month in addition to reducing 9/2 Nonfarm Payroll 95K 117K the payment by 7 years. This scenario can work on 15 year and 10 year mortgages as well in many cases. 9/2 Private Payroll 128K 154K Don’t let the shaking earth, the sideways rain, and the howling 9/2 Unemployment Rate 9.1% 9.1%winds get you down. The bright spot this weekend is we can helpyou analyze how to finance that new home at the cheapest rates in 9/2 Underemployment Rate - -years, or save money on your existing mortgage by Refinancing. 9/2 Average Weekly Hours 34.3 34.3We will take the time to do it right and garner your trust. Ask ushow…we can help…before the sun comes back on Monday! Mortgage Access Corp. d/b/a Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. NMLS Company ID: 2731. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania Department of Banking, Mortgage Lender 21042. Licensed Lender in AK, AR, DE, MD, D.C., GA, ME, MI, MN, WI, IA, IL, IN, LA, VT, FL, WV, RI, KY, NC, ID, MS, NE, WY, OK,TN, WA. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to transact business in CO, SC. Registered Mortgage Lender in TX. Licensed with the Financial Institutions Division in New Mexico, License # 01297. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Licensed Mortgage Broker and Lender Ohio. Licensed Loan Broker and Lender Rhode Island. Kansas Licensed Mortgage Company, License #MC.0001229. Licensed by the New Hampshire Banking Department, License # 8714-MB. Licensed Oregon Mortgage Lender License #ML2528. Weichert Financial Services arranges loans with third-party providers. Equal Housing Lender.