February 3, 2022

I hope you are having a great week so far and I am going to stray from my usual Mortgage update to something I feel is a possible tax saving venture for most homeowners.

As a rule, I tend to stay out of politics and what occurs within our state government. However, this is an issue that directly impacts not only your clients but every individual that owns real estate in California. The passage of Proposition 19 last February significantly reduced the ability for parents and grandparents to pass along their property tax basis to their children and grandchildren when transferring real property. Proposition 19 was purposely written in a misleading fashion, attacking “rich Hollywood celebrities” and somehow promising more funding for firefighters. Tax advocates such as the Howard Jarvis Taxpayers Association were too busy focusing on Proposition 15 (the repeal of Proposition 13 on all commercial/industrial property, on the ballot at the same time) to spend any time or energy counterbalancing the Realtor Associations.

Proposition 19 passed with a razor-thin 51% of the vote, despite no organized opposition during the election period. Howard Jarvis is now attempting to place a revised Proposition on the November 2022 ballot, restoring the parent/grandparent exclusion from reassessment. They are well on the way towards reaching the required 1 million signatures, but further help is needed!

Here are two important ways you can get involved:
Go to the website link below and volunteer with HJTA to gather a few dozen signatures, hand out a few flyers, etc. You can fill out a simple request form online, and they will send you all materials necessary. Simply reaching out to a few neighbors, friends, and family members CAN make a difference! Several options to help are shown on this website: https://reinstate58.hjta.org/
We can send you the petition forms if you want to sign for yourself and a few others. Each petition form can accommodate six registered voters, one sheet per county where people are registered to vote. The forms must be original (not printed off the web or emailed) and then mailed back to HJTA with the return envelope we provide. Please send us an email, and we will send you everything that you need.
We will be dropping petitions off at your offices over the next couple of weeks and we would love your signatures.

Interest rates were down a tad yesterday and up a little more than a tad today! Interest rates are still in the wonderful range, and please let your clients know that in the past 50 years, interest rates have spent 12 months under 3%, 16 months between 3%-3.5%, 55 months between 3.5-3.99%, and 517 months over 4%.
30-year Government Loans (FHA / VA) are in the low 3’s
Conventional Loans up to $647,200.00 – mid to high 3’s
High Balance Loans $647,201.00-$ 970,800.00 are in the mid to high 3’s and low 4’s.
Jumbo loans above $970,801 are in the high 3’s. We can do low 4’s with as little as 10% down. We can do 1-year findings on these too!
5/1, 7/1, 10/1 Arms are in the high 2’s and low 3’s!
Bank statement loans – They are available with 10% down again! low 4’s to low 5’s depending on down and credit score.
Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the mid 4’s.
0 down loans are in the low 4’s – 620 credit score min right now! Mid 3’s for the most part up to $670,000.00 Price.
0 down Jumbo to 1.2 Mil – 700 credit score – call for a quote
Private Money lenders – hard Money Loans – 35% down!
No Ratio Loans 30% down
Debt Service Coverage loans with as little as 25% down
Bridge Loans – are typically 4.99 – 5.99% with limited fees – But they get you where you need to go!
Interest rates are subject to change without notice! Above are LA County Loan Limits.

I will be around all weekend, and I hope to hear from you! My cell is 661-714-6258, and my office line is 661-260-2970 xt. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!