I am writing to keep you up to date on the current mortgage industry
changes.

As you are probably aware, the industry is in a state of change and rates
are fluctuating daily as a result.
We have all heard interest rates are supposed to be coming down through
future federal reserve actions. Rates on the other hand are continuing to
rise due to lenders making significant guideline changes. These range from
raising minimum credit scores to shrinking Loan to Value ratios in order to
qualify for a loan. In addition, they are not allowing customers to state
their income unless credit scores are above 680.

The MTA (12 month average of Treasury) is beginning move downward which
means an Option Arm mortgage may be the answer. With this type of loan you
have options. You have the opportunity to make the minimum payment and save
your money in a compounding account, you can pay interest only and enjoy
savings or you can pay the fully amortized rate which at this point is lower
than traditional jumbo fixed rate mortgages. You control the payment each
month, not the bank.

If you are currently in any of the following situations, you may want to
consider refinancing to an Option Arm mortgage where you can enjoy the
savings and ride out the current market conditions.

- have been in an option arm mortgage for a year or longer the minimum
payment is adjusting or will adjust in the near future
- are currently in a 3-1,5-1 or 7-1 arm paying interest only and have 1.5
years or less before it adjusts
- are currently in any loan above 8% fully amortized rate