About Dean Rizzi

Visit my Website: http://www.drlending.com

Dean has a Bachelor of Science degree in Business Administration with an emphasis in Real Estate Finance. His educational background, combined with his dedication and successful track record, have given him a strong understanding of the mortgage industry and how it’s affected by the economy.

dean@drlending.com
Phone: (415) 694-5533
DRE#: 01125960

Here is a selection of recent posts by Dean Rizzi:

Lower Rates Aren’t In The Bag

June 24, 2009 · Dean Rizzi · 4 Comments

Last week’s drop in mortgage rates was a welcome relief, and you would think that more relief should be forthcoming. After all, inflation appears to be a dead issue, given recent data on producer and consumer prices. Inflation and interest rates are highly correlated: When one falls, the other usually falls in tandem.

But there is more to the story than inflation. All interest rates are determined relative to risk-free market interest rates, with short-term Treasury bills serving as a proxy. But most interest rates are not risk-free. Mortgages rates are certainly not risk-free, which is why they are higher than Treasury bill rates. What’s more, mortgage rates are heavily influenced by rates on mortgage-backed securities (MBS). MBS rates, in turn, are heavily influenced by yields on Treasury bills, notes, and bonds.

And there is the rub. Treasury securities prices tumbled last week after Read more

The Whole Picture

June 16, 2009 · Dean Rizzi · 6 Comments

Yes, mortgages rates have risen substantially over the past three weeks, and we can’t be sure when, or even if, they will come down. Mortgage rates are important, to be sure, but they are only part of the equation. Income and relative home prices matter too. On that front, average hourly wages continue to show incremental increases, while home prices continue to stabilize, and even rise, in many parts of the country.

Distinctions matter as well. Much has been made of the fact that lower interest rates mean more money in the pockets of borrowers. More money in the pockets of borrowers, in turn, means more money to spend to stimulate the economy. But let’s not forget that it’s a two-way street: The lender on the other end receives less income; thus, he has less income to spend. In other words, refinances with no equity extraction are really a wash in terms of aggregate demand for goods and services. Read more

It’s Getting Better All the Time

May 18, 2009 · Dean Rizzi · 7 Comments

It’s Getting Better All the Time

Federal Reserve Chairman Ben Bernanke has forecast an end to the US recession, which he believes will be kaput before 2010. Bernanke also told the Congressional Joint Economic Committee that the collapse in the housing market, which began three years ago, may have bottomed out, something we’ve been saying for the past month. Read more

VA Loan Questions and Answers

April 5, 2009 · Dean Rizzi · 4 Comments

Can I get a VA loan if I have had a bankruptcy in the last few years?
VA credit standards state that a veteran with a bankruptcy less than 3 years ago would generally not be considered a satisfactory credit risk unless: the veteran or spouse has obtained items on credit since the bankruptcy and has paid the obligations in a satisfactory manner for a continued period; and the bankruptcy was caused by circumstances beyond the control of the borrower, which would have to be verified. A bankruptcy discharged 3 to 5 years ago must be given some consideration in the underwriting of the loan. A bankruptcy discharged more than 5 years ago may be disregarded. These are the minimum standards that mortgage companies must follow when making a VA loan. In 95% of the cases, companies make the decision to approve a loan without VA’s prior approval. Keep in mind that mortgage companies also have money at risk in giving you a VA loan, so they may have stricter credit standards than those mandated by VA.

How large of a loan can I get? If my guaranty entitlement is $36,000, does this mean I am limited to a $36,000 loan? Read more

January home sales in the west are WAY up!

February 25, 2009 · Dean Rizzi · 1 Comment

I just caught this article off of Google AP. I’m passing it along because it gives more detailed picture of the January sales report. NAR reports existing home sales where down to their lowest levels in six years. However, if you look at the western region, they are up 32.1 percent from a year ago. Although prices are down, sales jumped 57% in the bay area!! Buyers are clearly taking advantage of the high inventory. What a great time for young families to get into that first home!

http://www.google.com/hostednews/ap/article/ALeqM5h78GtI74ZouhZ1bCfF7cOWPQWKzwD96IS94O1

Refinance Considerations

February 4, 2009 · Dean Rizzi · 7 Comments

When you’re making your decision, there are several things to keep in mind.

If your current interest rate is significantly higher than today’s lowest rates, you may be able to roll your loan costs into the loan and still get a lower rate than you have today, thereby reducing your interest payments and saving money immediately.

Second, if you are planning to stay in your home for at least three to five years, Read more

VA loans experience a revival. Why?

December 15, 2008 · Dean Rizzi · 6 Comments

There has been a surge in VA pre approvals over the past few months. The main reason for this increase is the availability of ZERO down financing with the VA and the fact that it comes with no monthly mortgage insurance premiums. It is virtually the only loan product left that will allow no money down. Below is some information on VA loans.

Advantages of VA Financing

No down payment is required for veterans with full entitlement on real estate purchases up to $729,000.
Liberal underwriting criteria.
Fully assumable.
No prepayment penalties.
Fixed rates & adjustable rates available.
All funds used may be gifted from a relative.

Who is the winner in today’s real estate market?

November 6, 2008 · Dean Rizzi · 3 Comments

The First Time Buyer….

They are buying homes today that don’t have inflated equity…
They don’t have to wait for their home to sell…
They have sellers willing to pay their closing costs and buy-down already good interest rates…
They are in the first “Buyers” Market in nearly 8 years… Read more