Daily Intent

The long awaited, public wide reaching Homeowner Affordability and Stability Plan, also known as HASP, is being rolled out by Countrywide / Bank of America today.  Part of the government’s “Making Home Affordable” Plan meant to prevent foreclosures and offer refinance options to eligible customers, this plan is expected to help millions of homeowners stay in their homes.

The details are as follows.  The loan products offered are 30yr, 20yr, 15yr, and 10yr Fixed loans along with 5yr, 7yr, and 10yr ARM loans.  The refinances are available to customers currently without mortgage insurance and have a strong payment history.

As long as your mortgage amount is no more than 105% of your appraised value you will eligible.  You may not even need to pay for a new appraisal.

The last thing to make note of is the interest rates.  They will be competitive with the current market rates which are currently in the high 4%s.

This all is going to be a huge positive for the public.  I know many of you have called me with questions pertaining to this program.  Now is the time to begin working through the numbers to make it happen.

Buzzword: Fox-Trot Economy
“A term coined by investment strategist Jeffery Saut that describes a period in which ‘fast-fast’ growth economic figures are expected to be followed by periods of ’slow-slow’ figures.  The term refers to the fox-trot dance steps - two fast steps followed by two slow ones.”  Investopedia.com

…take note gents.  There are many weddings coming up this Summer.  Throwing in the Fox-Trot every once in awhile is a sure hit.

  Six Points to Ponder:

   1. Homeownership and Affordability Stability Plan will be rolled out today.  Those that have lost significant equity in their home, now have options.  Up to 105% Loan to Value.
   2. Markets, after performing fantastically of late, now seem to be retreating slightly.  The Dow is just shy of 8000.  S&P 500 at 817 and the Nasdaq to 1576.  Oil settling in at $51.  Unemployment numbers reach 8.5%.  Corporate profits a concern going into the day.
   3. Obama’s world focus: opening up the American - Cuban travel borders, reaching out to Muslims.
   4. GM and Segway hook up: The Personal Urban Mobility and Accessibility, or PUMA, project is under way.
   5. Easter and Passover are this weekend.  Will typical travel levels hold up this year?
   6. The University of North Carolina Men’s Basketball team claimed another National Title.  Michael Jordan, fittingly, was named to the NBA Hall of Fame.  The Masters is this weekend.

Positives:

    * Many have been unable to qualify for a refinance because of home equity issues.  The HASP will be an extremely helpful tool for these families to better their overall economic situation.
    * Trips getting easier to Cuba, a colorful and intriguing city, is both exciting and sad.  The charm of the city is the 1950s feel to it all.  This will be lost over time.
    * The USA doesn’t have issues with the Muslim religion Obama proclaimed.  His hopes to mend broken relations is appreciated and respected. 
    * Segway has another product coming out!!!  If you haven’t cruised on a Segway you are missing out.  They may look goofy / nerdy, however they are a ton of fun.  I’m a bit skeptical of the name for the new project…PUMA?!  This is a close relative of the “cougar”, a phrase oft used for…

Negatives:

    * 8.5% as the most recent unemployment figure is an understatement.  The rate, were it to be calculated as it were during the Great Depression, would be near 15%.  Those with work, have much for which to be thankful.
    * The Bull Market is coming back to reality.  The economy is weak, companies are still laying off employees, Americans are saving at a 5% savings rate, which is excellent for long term stability, but terrible for the economy moving forward in the short term.  Many statistics still point to slower economic times ahead.

Local:

Santa Barbara Bike Moves
Where: De La Guerra Plaza 9:30pm
When: Tonight.
Cost: Free is good.
Why:  Fun.  Community.  Feel like a kid again.

A great site to find out about fun things to do and see around Santa Barbara is http://lovemikana.com/   Check it out.

Live and Be Well,

Jeff Bochsler