July 30, 2007

Trivia: The Cowell family was one of the wealthiest families in California. Henry and Harriet Cowell had no grandchildren and therefore the bulk of the family’s wealth eventually was given to the public domain. U.C. Santa Cruz and Henry Cowell State Park are two local examples.

Real Estate: The rising number of foreclosures in California has been big news but did you know that there were almost as many foreclosures in the 3rd quarter of 1996 (15,418) as there were last quarter (17,408)?
investment tool; it is not just a commodity. Show your clients how to convert wealth to capital.

Sales Corner: Treat a mortgage as an important Hot Tips: Several of our investors have adopted the new Interagency Guidance on Non-Traditional Mortgage Products, so be careful when qualifying your borrower at the interest only payments.

The Guidance defines non-traditional mortgage products as:

• Interest only products
• Adjustable rate mortgages with initial adjustments <60months
• Negative Amortization;
• Loans with a temporary buydown.

* Please call for more information.

www.SantaCruzHomeFinance.com

July 23, 2007

Trivia: ”The Mediterranean climate and salt water of Santa Cruz made it a natural location for turn-of-the-century therapeutic resorts. By 1864 hot saltwater bathhouses appeared on Beach Street offering rheumatism and neuralgia treatment.” This quote is from “Images of America Santa Cruz California” by Sheila O’Hare and Irene Berry.

Real Estate: People who keep statistics argue whether the median price or the average price is a better indicator. The average price is calculated by totaling the sales prices and dividing by the number of sales. The median price is that price where an equal number of sales occurred at a higher price and a lower price than the median. The median price of a single family home in Santa Cruz County in May, 2007 was $760,000 while the average price was $817,000. Quoted from Gary Gangnes’ website: ROR.com.

Sales Corner: Here is a tax tip that your real estate agents need to know: Home owners may only deduct the mortgage interest on their acquisition debt (the loan obtained when purchasing the property) plus the mortgage interest on an additional $100,000. If a home buyer pays cash for his principal residence, acquisition debt is zero; however, if he then refinances within 90 days after purchase, the new mortgage becomes acquisition debt. As principal is paid off over the years, acquisition debt decreases. Check with your tax advisor for details.

Hot Tips: Listed property? We have a heloc for you.
• Full Doc- no reserves required
• Stated – two months PITI on primary and second home
• Six months PITI ( investment properties)
• 50% DTI
• Get paid on line amount not draw amount
*Property must currently be listed to qualify for this product. Call for pricing.

www.santacruzhomefinance.com

July 16, 2007

Trivia: Beginning in 1864 The California Powder Works converted wood to charcoal, mixed it with sulphur and Peruvian saltpeter and produced blasting powder. This famous Santa Cruz firm supplied a high quality blasting powder to supply the needs of the Civil War and other wars for the U.S. Government. This powder was also used extensively to blast rock to make way for the transcontinental railroad. In 1924 the site was sold to the Masonic Lodge and became today’s Paradise Park.

Real Estate: The median price of a condo in Santa Cruz County hit a high in June of $545,000. The previous high was $550,000 in August, 2006. The highest median price was $572,500 which was reached in January, 2006,

Sales Corner: I saw Chris Gardner speak in Las Vegas a few weeks ago. He wrote his autobiography, The Pursuit of Happyness, which was a #1 bestseller and then last night I saw the movie (now a rental) which was #1 at the box office. He overcame incredible obstacles to become a top sales person at Dean Witter and then at his own company. Once again there was no secret to his success, he was dedicated, worked hard (making 200 calls per day!) and was passionate about his profession!

Hot Tips: Check out our JUMBO 30 year fixed rates!
• Competitive rates for your “A” borrowers (680+, housing history, reserves)
• Owner occupied and second home loans up to $2 million
• Consider a prepayment penalty to improve rates even more

www.santacruzhomefinance.com

July 9, 2007

Trivia: In the 1830s Isaac Graham established one of the first American communities west of the Rocky Mountains, Roaring Camp in the Santa Cruz mountains. He was a fur trapper and nephew to Daniel Boone. He was said to have created the first highway in the west; it is now known as Graham Hill Road!

Real Estate: The median home price of a single family home in Santa Cruz County fell in June to $761,000 (the high this year was $784,500 in May). This is probably a reflection of fewer high-end homes selling.

Sales Corner: Two of the most important words in business are “Thank you”. Think of someone to thank for something and call them or send them a handwritten note today.

Hot Tips: Check out our JUMBO 30 year fixed rates!
• Competitive rates for your “A” borrowers (680+, housing history, reserves)
• Owner occupied and second home loans up to $2 million
• Consider a prepayment penalty to improve rates even more

July 2, 2007

Trivia: In 1903 the City of Santa Cruz rejected the proposal to build a cement plant within the city limits because it was too “noisy and dusty”. The plant was ultimately built in Davenport in 1905. By the end of World War II (1945), the Davenport plant had become one of the largest suppliers of cement in the world, shipping 700,000 barrels of cement a day!

Real Estate: According to today’s Santa Cruz Association of Realtors’ website, the median home price in Santa Cruz County was $784,500 in May. That is down from the previously announced $790,000. The high for single family homes here in the county was $789,500 reached in November, 2005.

Sales Corner: ”Whether you think you can or think you can’t, you are right” was a famous (and noteworthy) quote by Henry Ford.

Hot Tips: Mortgage Credit Certificates (MCC) The MCC program is administered by the housing Authority of the County of Santa Cruz. The MCC is a FederalTax Credit program. An MCC provides a double bonus by possibly increasing the loan amount your borrower can qualify for and may increase their take-home pay. This program entitles the borrower to take a federal income tax credit of 20% of the annual interest they pay on their home mortgage. For more
information regarding the MCC program please give us a call.

www.santacruzhomefinance.com

June 25, 2007

Trivia: The Boardwalk’s original structure, Neptune Casino, was built in 1904 but was destroyed by fire in 1906. Within one year Fred Swanton rebuilt the Casino, which still stands today, 100 years later.

Real Estate: Median home prices in Santa Cruz County remained relatively flat from 1989 through 1996. With the exception of two years (2000 & 2005) of 20% per year appreciation, homes appreciated at 12% / year from 1997 through 2006. Santa Cruz County enjoys a “star” real estate market and is supported by a thriving and revived Silicon Valley. As Carole Rodoni puts it, “Silicon Valley is on a tear”.

Sales Corner: Tom Bass, a mortgage originator and speaker at the recent Strategic Equity Summit in Las Vegas lives by these “non-negotiable” actions that he says a successful mortgage originator must take every day: 5 hand written notes, 3 conversations and 3 emails with prospective and/or past clients.

Hot Tips: Try our 2-1 temporary interest rate buydowns
• Interest-only payment options available
• Seller or buyer or lender can pay
• Start rates like an ARM with long term stability of a fixed

June 18, 2007

Trivia: Around the turn of the century (1900) the Southern Pacific Railroad Company encouraged travel on its trains by advertising Santa Cruz as a land of “perpetual sunshine” and where it would take “small means to make a home”.

Real Estate: The median home price in Santa Cruz County hit its all time high of $790,000 in May. The previous high was $789,500 in November, 2005. Our median price is lower than Marin, San Francisco and San Mateo counties. We are clearly the best buy on the central coast.

Sales Corner: While we all would like to discover new ideas to help us close more transactions, that is not the panacea. The solution lies in just doing the basics well. What basics should YOU be doing but are not?

Hot Tips: 2-1 Buydown : A great alternative when rates have increased. It is a 30 year fixed loan that allows your borrower to have discounted payments for the first 2 years. This loan is ideal for first time homebuyers. It’s great for the borrower who wants the stability of a fixed rate but does not want the risk of an adjustable loan. Home buyers can ask sellers to pay the buydown fee. Call us for details.

www.santacruzhomefinance.com

June 11, 2007

Trivia: The farmers market downtown Santa Cruz was revived after the Loma Prieta earthquake but its roots go back almost 100 years. The Santa Cruz Free Market was located along the east side of Front Street and dates back to 1910! Meat, fish and vegetables were in abundance.

Real Estate: Did you know that Proposition 60 allows home buyers to transfer their property tax base when they buy another home within Santa Cruz County? One of the home buyers must be at least 55 and the new home must be purchased at a price that is within 110% of the home they are selling. The new home must be purchased within 2 years of selling the old home. Check with the County tax assessor for details.

Sales Corner: There was a recent article in the Wall Street Journal entitled, “Mortgage Brokers: Are they Friends or Foes for borrowers?” If you want a copy, give one of us a call.

Hot Tips: Offer the ultimate, flexible Fixed Rate Closed-End Second Mortgage
• Interest-only payment options available
• Loan amounts up to $500,000
• Owner-occupied, Second Home or Investment Property
• Full, or SIVA

www.santacruzhomefinance.com

June 4, 2007

Trivia: Around the turn of the century the 600 acre Pogonip site, originally part of the Cowell Ranch, was both a golf course and a polo grounds. Competition from the golf course at Pasatiempo shut down the golf course and the grounds became the Pogonip Social and Polo Club in the 1930s. It was one of the few clubs that allowed women to compete.

Real Estate: The Housing Authority of the County of Santa Cruz has just announced that it has received a new allocation for the Mortgage Credit Certificate (MCC) program. Home buyers must be first timers, buy a home or condo for less than $442,508 and make less than $81,300. This program gives the homeowners a tax credit of 20% of their mortgage interest! Call us for details.

Sales Corner: Sales requires contact; it is not a spectator sport. Person to person or voice to voice contact is imperative to succeed in sales.

Hot Tips: Try our Hybrid Pay Option ARM that provides a fixed note rate for five years along with a fixed payment rate for five years. The minimum payment rate is 3% below the note rate and removes the fear factor for borrowers who are concerned about rates or payments going up.

www.santacruzhomefinance.com

May 28, 2007

Trivia: During the 1940s Axel Erlandson’s “Tree Circus” became a tourist attraction on Scotts Valley Drive. It was an eclectic collection of 55 trees that had been pruned and grafted and formed into unusual shapes. This collection went through a period of decline and operated as “Lost World” from 1967-1973. Finally, in 1987, nineteen trees were moved to the Bonfante Gardens in Gilroy, where they can be seen today.

Real Estate: Five homes sold in Santa Cruz County for over $2 million in April of this year. It is the first time this many homes have sold for over $2 million since last summer. 35 sales were for over $1 million.

Sales Corner: Three top producing real estate agents spoke at last week’s WCR meeting and offered their advice and insights. They all agreed that to succeed in these times, a commitment to the basics is required. Here is what Jim from Alain Pinel Realtors in Los Gatos has committed to doing three days a week: 5 phone calls (which can take up to two hours) and 3 hand written notes to his database plus he hands out 5 business cards to someone new.

Here is another idea: At the end of the month, just before their first mortgage payments, call your clients to remind them that their first payment is due and ask them if they have received their first payment letter.

Hot Tips: Our jumbo 30 year fixed rates are hot and can be arranged to allow up to a 15 year interest-only period. These loans can be done with minimal income documentation for self employed borrowers as long as the LTV is at or under 80%!

http://www.santacruzhomefinance.com/

May 21, 2007

Trivia: The area west of Bay Street and south of Mission Street in Santa Cruz became known as the horse racing district. In the 1870s a mile long oval horse racing track was built between Swift and Fair Streets and was surrounded by a row of eucalyptus trees. The race track is gone now but the oval ring of eucalyptus trees still remains.

Real Estate: The median price of a home in Santa Cruz County moved up again in April to $777,500 (Santa Cruz Association of Realtors’ website). This is just below the all time high of $789,500 reached in November, 2005.

Sales Corner: The two most powerful words in business are “thank you” and the most powerful form of communication is a hand written note. Find an excuse to send a “thank you” card to someone you do business with or someone you want to do business with.

Hot Tips: You may be able to get stated/stated approval on conforming loan amounts with high credit scores. Certain cases also allow PIW (no appraisal-$50 waiver) with FULL DOC PRICING. This is an easy loan approval...we can run DU for you-just email a point file with a credit authorization.

http://www.santacruzhomefinance.com/

April 30th

Trivia: The railroad line from Santa Cruz to Alameda through the Santa Cruz Mountains was completed in 1880. It included six tunnels, some of which were one mile long and bored through solid rock. The trip from the San Francisco Bay Area became so popular that up to 12 steam passenger trains a day would stop at Felton and Roaring Camp! Even President Theodore Roosevelt enjoyed the trip.

Sales Corner: “Celebrate today!”
Dr. Hal Urban, author of four best selling books on the power of words, was the guest speaker at a WCR breakfast late last year and offered this:
1) Share some good news today.
2) Think of someone you are thankful for and tell them today.
3) Share something nice about someone today.

Hot Products: As guidelines tighten, lenders are keying in on appraisals. To help prevent last minute disappointments (especially in high LTV loans), use reputable and detailed-oriented appraisers. As you know, all appraisals must pass the scrutiny of the underwriter and virtually all high LTV loans will be reviewed by another appraiser.
http://www.santacruzhomefinance.com/

May 14th

May 14, 2007
Trivia: Before the Santa Cruz Small Craft Harbor was built in 1962, Seabright Beach was relatively narrow and extended east from the San Lorenzo River mouth for nearly one mile to Black Point. The Harbor’s jette created a barrier for the south moving sand which subsequently backed up and formed the present Seabright Beach, now 500 feet wide!

Real Estate: The average home price of a single family home in Santa Cruz has increased at an average rate of 9.7% per year over the past 27 years! This takes into account the last downturn in prices, which occurred between 1992 and 1994, when prices fell from $263,000 to $244,000. According to the Santa Cruz Assoication of Realtor’s website, in 2006, the average price of a home here was $830,000, just down from its high of $835,000 in 2005. For the first four months of this year the average sales price has been $860,000!

Sales Corner: Dr. Hal Urban, author of four best selling books on the power of words, was the guest speaker at a past WCR breakfast and offered this:
1) Share some good news today.
2) Think of someone you are thankful for and tell them today.
3) Share something nice about someone today.

Hot Products: Need higher Debt-To-Income ratios on jumbo loans? We can now go above 50% DTI ratios with DU approval!
www.SantaCruzHomeFinance.com

May 7th

Trivia: The boardwalk will be 100 years old on June 15; however, the Big Dipper is only 83 years old. The first ride and the original roller coaster was called the L.A. Thompson Scenic Railway and was built in 1908. The Carousel has 73 horses, all with real horsehair.

Sales Corner: Think and grow rich!
Napoleon Hill studied the common traits of successful people and reported in his book that they all agreed that to be successful it was important to: ‘Have a positive attitude: positive thoughts bring positive results.’

Hot Products: Rapid and aggressive changes in Mortgage Lending Guidelines are happening daily! Don’t be left holding the bag, call us to discuss the State of Lending so your clients can be well informed.

www.SantaCruzHomeFinance.com