FHA 30 FRM @ 3.75% + 1.0 rebate

Great deal for buyers;

http://screencast.com/t/xhjr3rgndw

Wild-arsed-guess time…. how low do *YOU* think the 30 FRM will go?
Assuming 10-day lock at “par” (meaning no discount points considered.)

Dave Donhoff
Leverage Planner

We’ve gone from the mid & high 4%s, to the 3%s, SO FAST… I do believe there will be some momentum on this. That means if you actually were to get the ball rolling on refinancing *NOW* you may actually be prepared & approved in enough time to actually CAPTURE a 3% rate.

http://screencast.com/t/HkyY9fxRrjBa

Opportunity of a lifetime (potentially of several generations!)

Dave Donhoff
Leverage Planner

Are you watching the news today? (Or are you intentionally hiding under a rock in denial?) The global markets are in meltdown stages, and the “slippery slope of abandoned hope” is just getting warmed up;

Stocks pile on losses; Dow drops 500 points amid economy worries

http://www.msnbc.msn.com/id/44000197/ns/business-stocks_and_economy/

U.S. Stocks Decline as Dollar Rises, ECB Cites Inflation Concern

http://www.bloomberg.com/news/2011-08-04/u-s-stock-index-futures-decline-s-p-500-may-fall-for-eighth-day-in-nine.html

Global stocks routed as fears rise
http://www.theglobeandmail.com/globe-investor/markets/markets-blog/global-stocks-routed-as-fears-rise/article2119831/

So then… why are *OUR* clients giggling? Because they get the best of both worlds; When the markets go up, they get tax-free returns matching the climb, dollar for dollar, to a very nice market cap/ceiling in the range of 13-15%, tax-free… but when the markets crash, they never lose a single dime!

Some of our clients opened accounts longer than the recent 12 months… They’ve gained tax-free returns, but they will not (and can not) lose a dime of their principal.

Some of our clients opened accounts as recently as last month… at the market “top”… and *THEY* will ALSO not lose a single dime of principal, despite having had the same upside market opportunity as our earlier clients.

THE MORAL OF THE STORY:
There is never a wrong time to move out of loss-vulnerable accounts, and into tax-free principal-protected accounts.

HOW have we done this? With Indexed Universal Life strategies. Watch this for more info;

http://youtu.be/YKnXGHzYaO8

There is an old saying; The SECOND BEST time to plant a shade tree is immediately! The best time was 20 years ago.

Don’t let today’s opportunity to grab market opportunity *WITH* protection against future losses pass you by!

David Donhoff, Advisor
David@LeveragePlanners.com
425-223-4520 Desk
425-652-1001 Cell

This is the sharpest “falling UP a cliff” rally in FNMA Mortgage Backed securites that I have *EVER* seen, in career memory. In the course of the last 7 trading days, we’ve rocked over 330 basis points. That *could* ultimately reflect in a drop in retail mortgage rates (as the industry digests the drops) as much as 1.5%-ish lower than just last week’s rates… assuming this surge finds a stable resting place to maintain for a while.

2011-08-04 FNMA 12 month chart

http://screencast.com/t/wUHc9QLUq31C

2011-08-04 FNMA 3 month chart

http://screencast.com/t/3RHRIAd0jbo

30 FRM Conforming ($417k or less)
4.0% @ 0.50% discount point
4.125% @ 0.125% rebate

http://screencast.com/t/apTNohch

5 yr ARM Conforming ($417k or less)
2.375% @ 1.25% rebate
(No lower rate with lesser rebate is available)

http://screencast.com/t/tOiqByQm4HN1

(that’s roughly a 44% DISCOUNT off the 30 FRM!!!)

5 yr ARM Interest-Only Conforming ($417k or less)
2.375% @ 0.75% rebate
(No lower rate with lesser rebate is available)

http://screencast.com/t/7aRTLi6hotOa

(that’s roughly a 42% DISCOUNT off the 30 FRM!!!)

Remember… a 40+% discount is accumulated savings *ANNUALLY*. That’s a full year’s interest worth of 30 FRM in savings each 2.5 years. Paying for 3 years on a 30 FRM will have been the equivalent of lasting 5 years on the 5 yr ARMs. All savings can accrue to more safety reserves, liquidity, and working capital during firesale opportunity times. It also accumulates as “reverse subsidy” reserves should the interest-rate markets turn around and start climbing… giving you a “glide path” of total interest costs *LESS* than the 30 FRM (when using the discounted 5 yr money) for a minimum of 7-8 years in a catastrophic case… much longer in more average rate growth scenarios.

Cheers,
Dave Donhoff
Leverage Planner