CWC Financial Newsletter

CWC Financial

1505 Bridgeway, Suite 121
Sausalito, CA 94965
Local: 415-331-3744
Toll-free: 888 711-5454

U.S. Treasury Bonds

Maturity

Yield

Last
Week

Last
Month

5 Year	4.15	4.21	3.77
10 Year	4.50	4.53	4.15
30 Year	4.80	4.81	4.51

Treasury Market Summary:

Treasury Market Off on Light Trade: Treasuries headed lower and stayed there throughout the session, carving out less than 3 basis point ranges across the curve. The trade was thin and spotty for a number of reasons including the upcoming FOMC rate decision (up 25 bps, "measured" or not), a run of potentially inflationary economic data, quarter and week end activity and profit-taking (and, yes, basketball). The day's reports weighed on trade and the smack down that emanated out of GM filtered back out. Oil slipped from the highs and the dollar was generally better. Curve trading was reined in as well, with yield-spreads between maturities trading tight. BNP Paribas saying the curve has been a random trade this week and believes the longer-term charts still point to higher yields but this event is unlikely to occur before next weeks FOMC meeting and the release of the next round of price data. Tuesday, Mar 22 is shaping up to be a big day, Feb producer price index at 8:30ET and a Fed rate decision expected at 14:15ET. The market will be carefully examining the statement accompanied with the expected rate hike (please see 11:41 ET and 12:29 ET comment for more). An above consensus read in PPI may only provide limited selling power as the market will likely not jump to any inflation conclusions until CPI reads on Wed. Important housing data, durable goods, consumer confidence and Q4 GDP also add to the week's data load.

Economic Indicators for this week that could impact the mortgage or real estate markets include...

PPI	Mar 22
CPI	Mar 23
Existing Home Sales	Mar 23
Durable Orders	Mar 24
Initial Claims	Mar 24
New Home Sales	Mar 24

Using Mortgage Calculators Effectively

If you have a mortgage or will be getting one soon, you should have several mortgage calculator bookmarked on your Internet browser. These free tools can help you find the best mortgages and can help you manage all the complex financial details associated with mortgages. If you are new to mortgages, mortgage calculators with useful graphic components can help you figure out the ins and outs of mortgages. In general, a mortgage calculator will take information from you - such as the value of the house, the down payment, the term of the mortgage, the type of mortgage, the monthly payments, and other information. In exchange, mortgage calculators will tabulate specific information for you - such as how long it will take you to pay off your mortgage, how much interest you will pay, how much you will save by taking a specific mortgage, or some other information. Mortgage calculators can obviously be a useful way to compare mortgages and to make plans for your mortgage strategy.

Monthly payment mortgage calculators help you calculate your monthly payment on various mortgage types, rates and loan amounts.

Mortgage calculators allow you to anticipate how significant a financial responsibility your mortgage will be, allowing you to calculate the amount of money required each month to pay off your loan.

You can use a calculator to calculate how much you can borrow. You may have an idea of how much you want to borrow, and just want to use this tool to check, or you may not be sure, and are looking to calculate how much you can borrow for your mortgage on your existing income. Either way, the calculator will take your income into account, and reference it against the high and low amount that you can expect to be given by a lender.

You should use several mortgage calculators since they differ slightly and since some subtly give an advantage to the company producing them. Most mortgage calculators are offered by specific lenders, so using a few can reduce or eliminate any possible bias. Mortgage calculator also differ in the information they collect and process, so they may give slightly different results. If you are just starting to use mortgage calculators, you should give yourself some extra time to get used to using them. Be sure to try inputting different information to see how the results work. As you compare mortgages or mortgage types, be sure to print or jot down the results of each search with mortgage calculators. Note the mortgage calculators you used, the date, and the results you got. This will allow you to quickly compare and remember each search. As you work with mortgage calculators, keep narrowing down your results to the top five or so mortgage choices for you - otherwise you will end up with an unmanageable heap of paper and you will still be no closer to actually choosing a mortgage. When using mortgage calculator, also be sure to note the privacy policy of each site - some do make your email part of an email mailing list for advertisements, but there is always an option to opt out of this if you wish.

Even if you currently have a mortgage, mortgage calculators can help you decide whether it is time to refinance your home loan. Mortgage calculators can also help you figure out whether you will save much money by repaying your mortgage faster. No matter how you use mortgage calculator, be sure to keep the big picture in mind. You should not rely solely on these tools to make final decisions. They can help you get an idea of the big picture, but ultimately you must decide for yourself which mortgage choices are best for you.

One should consult with a qualified mortgage planning professional prior to implementing any mortgage planning strategies. If you are a tax, insurance, financial or real estate planning professional receiving this newsletter, please call our office and introduce yourself to us. We are always seeking to grow our referral network and expose more service professionals to our client base.