Short-Term Interest Rates on the Rise

Costa Mesa, CA -- (ReleaseWire) -- 09/25/2006 -- Interest rates have been on the rise and many homeowners who have adjustable rate mortgages may soon see increases in their annual rate adjustments.

Concern is growing in Washington and among many mortgage lenders regarding whether consumers with Adjustable Rate Mortgages will be able to handle the payment increase they'll experience when their loan resets to the new minimum payment required. CNBC reported last week that over $1 TRILLION in mortgages are scheduled for adjustment in 2007 alone.

Federal Reserve Chairman Alan Greenspan made it clear in 2004 that the Federal Reserve would be increasing short-term interest rates at a "measured pace." With the US Dollar at its weakest point in seven years, oil prices unstable and the evaluation of other economic indicators, the Fed Funds Rate was hiked seventeen consecutive times from 1.0% to 5.25% from June 2003 to June 2006 in an effort to curb inflation. On September 20, 2006 the Federal Open Markets Committee voted once again to keep the rate at 5.25%, even though they state that some inflation risks remain.

Consumers with revolving debt accounts tied to the prime rate have seen the effect through rising interest rate charges, as the prime rate always rides 3% above the current Fed Funds Rate.

Mortgage interest rates are affected indirectly by these changes. An increase in the Fed Funds Rate has an impact on financial markets as a whole, but mortgage rates may go up or down based on the perception investors have of current economic statistics and their reaction to the Federal Reserve's after-meeting statements.

In general, when economic data indicates we have a slow-down occurring in our economy, investors tend to sell off stocks and reallocate that money to the safe haven of bonds and mortgage-backed securities. The purchase of mortgage-backed securities drives interest rates down. When economic data says there is growth in the economy, the stock market typically rallies and mortgage-backed securities sell off to fuel that stock market rally. This drives mortgage interest rates up.

Our current market reflects the reaction of investors reading between the lines on comments made by the Fed, and mortgage interest rates have been going up. This will have an affect on homeowners with adjustable rate mortgages (ARMs) tied to indexes that are based on short-term interest rates. This includes the 11th District Cost of Funds, 12-Month Treasury Average (MTA), London Inter Bank Offering Rates (LIBOR) and others.

This doesn't mean that everyone with an adjustable mortgage is in trouble right away. Some indexes are more volatile than others. COFI moves much slower than other adjustable rate indexes, while the LIBOR fluctuates with more volatility. But remember, when an ARM adjusts, the new interest rate is a sum of the borrower's fixed margin plus the current rate of the index the mortgage is tied to.

If you have an Adjustable Rate Mortgage that is scheduled to reset in the next 12 months, you could see your minimum payment increase anywhere from 50% to over 100%. If you have a Home Equity Line of Credit (HELOC), the interest rate has increased 4.25% in the last two years, more than doubling the required payment for some homeowners. If you have an Option Arm, you could see your interest rate increase to over 8.0%.

Consumers who foresee paying an interest rate that is significantly higher may want to consider refinancing to take advantage of the stability and current low interest rates of a fixed rate mortgage. The fixed rate mortgage interest rates are the lowest they have been in six months.

This is also a good time for borrowers who started out in an adjustable rate loan due to a poor credit score to transition into a fixed rate loan if they can. Once a track record of making mortgage payments on time and in full has been established, this should have a positive effect on the credit score and there's a good chance the borrower may now qualify for a loan with a lower interest rate.

As with any decision to refinance, it is important to take the terms of the existing loan, the cost of the new loan, and the borrower's long-term needs into consideration. A qualified mortgage professional should help weigh out the options by providing a clear assessment of available loan programs for the consumer. To find a qualified ethical mortgage professional, contact the National Association of Responsible Loan Officers (www.narlo.com), or Certified Mortgage Planning Specialists Institute (www.cmpsinstitute.org).

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Costa Mesa, CA -- (ReleaseWire) -- 08/07/2006 -- The Pacific West Association of REALTORS® (PWR), the largest REALTOR® association in California, is pleased to announce that Kim DeBroux has been recognized as a Community Leader for local community involvement.

Kim has been involved as President of the Newport-Balboa Rotary Club, President of the Newport-Mesa Schools Foundation, Board of Directors of A Light In the Window, Past President of the South Coast Metro Rotary Club, member of the Costa Mesa, Irvine, and Newport Beach Chambers of Commerce , and various citizen committees for the Newport-Mesa Unified School District including recently the Superintendent Search Committee.

"Building stronger communities takes time, effort and dedication, and PWR is proud to salute and honor REALTORS® involved with our Community Leader program," said PWR President Phil Schaefer. "Our REALTOR® members have shown what it takes to get involved and contribute to building better communities."

PWR CEO Nancy Gilmore states that "homebuyers and sellers have consistently shown a preference for REALTORS® that not only are knowledgeable about the region and community, but who contribute to making the area a better place to live. We certainly agree and are grateful to these members for their community service."

Kim DeBroux is President of Western Pacific Real Estate and Home Loans and is a member of the National Association of Realtors, California Association of Realtors, National Association of Responsbile Loan Officers, and is a Certified Mortgage Planning Specialist. Her office is in Costa Mesa and she can be reached at (714) 444-1100 or via email at Kim@goWesternPacific.com.

"I think it's wonderful that our association puts so much value on the community work we are doing and has chosen to honor us in this way. I don't think any of us is involved in the groups and projects we work on for the "glory", but it is nice to be recognized for all the time we commit to the organizations we feel strongly about in the community" says Kim.

About the Pacific West Association of REALTORS®
The Pacific West Association of REALTORS® (PWR), established in 1996 through the merger of several Southern California real estate associations, is dedicated to developing and promotion programs and services that enhance professionalism in real estate. PWR members subscribe to a strong Code of Ethics that underscores integrity and competency. Active throughout Orange County and South Los Angeles communities, PWR serves as an industry advocate and resource for its 15,000 members. For more information or to contribute to PWR's Charity Foundation, please visit www.pwr.net.

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Costa Mesa, CA -- (ReleaseWire) -- 07/21/2006 -- Kim DeBroux, a mortgage broker with Western Pacific Home Loans, has passed the qualifying exams to earn the Certified Mortgage Planning Specialist (CMPS) Designation granted by the CMPS Institute, Ann Arbor, Michigan, a training and certifying organization created to help mortgage professionals integrate financial planning concepts into the mortgage process.

CMPS designees can offer clients strategies that encompass mortgages, debt, home equity and real estate investment.

"My focus is to help my mortgage clients build and protect wealth by better managing their home equity and personal cash flow," says Kim DeBroux, Western Pacific Home Loans.

Many homeowners have become frustrated and confused with the myriad choices in today's mortgage market and the lack of both ethics and financial knowledge among many mortgage providers. The CMPS Institute is a joint effort by leaders in the mortgage and financial planning industries to raise professional standards among mortgage professionals and integrate sound financial planning advice into the mortgage process.

Life expectancy is higher than ever before, health costs are skyrocketing, pensions are shrinking, social security is not secure and corporate America has gone through one bankruptcy after another. Today's mortgage market can be a dangerous place for some consumers with certain real estate markets experiencing signs of a "bubble" and "exotic" mortgages representing a greater market share than ever before. These signs point to the fact that home owners and buyers need expert advice on how to manage their mortgage, cash flow and home equity.

This trend toward expert mortgage advice is growing in popularity. At the CMPS Institute more than 125 mortgage professionals are taking certifying courses each month. "A mortgage professional who dedicates the time and effort to learn about these financial concepts is much more qualified, committed and equipped to serve the complex needs of today's home owner and buyer," says Gibran Nicholas, Chairman of the CMPS Institute.

The CMPS curriculum incorporates five essential skill sets including:

· Financial market and interest rate analysis
· Cash flow analysis
· Debt analysis
· Real estate equity management
· Real estate investment analysis

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Costa Mesa, CA -- (ReleaseWire) -- 07/20/2006 -- Kim DeBroux announced today a large investment in increased education for home buyers byjoining the National Asociation of Responsible Loan Officers.

By joining NARLO, Kim DeBroux has agreed to adhere to the strictest Code of Professional Conduct in the mortgage financing industry. In addition, the association has a complete consumer mediation service available to any consumer who seeks financing from an NARLO member. This ensures consumers always have a somewhere to turn for independent information about their home financing; NARLO's goal is to ensure consumer protection.

"As a responsible mortgage broker, I am proud to stand with others around the country to provide increased consumer protection and education." Said Kim, "A family home is typically their largest investment, responsible loan officers provide the critical information they need to make informed financing decisions."

Prior to her opening Western Pacific Home Loans, Kim DeBroux held management positions with Ocean West Funding, and Househunters Real Estate Trading Co. Kim Kasell DeBroux has a bachelor's degree from the University of Southern California and is very involved in giving back to the community through her work with local Rotary clubs, local charities and volunteer work.

Kim has been helping families finance their homes over the last seven years throughout the Orange County area. Western Pacific Home Loans currently specializes in providing mortgage solutions to families who have had credit challenges.

Kim DeBroux is available for interviews by phone and can be reached at 714-914-1078.

Recent headlines indicate that many home buyers do not understand the scope of their home financing or worse, are not treated fairly by their mortgage lender. The National Association of Responsible Loan Officers was created to educate consumers about their home financing options and ensure they understand the financing options available to them. By participating as members of NARLO, loan officers are financing the most aggressive public education effort in the mortgage financing industry.

Kim DeBroux is a member of NARLO

A complete member directory is available at www.NARLO.com/directory

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