Money Matters – Yelling for Yellen!

Good Morning. After being grilled for two hours yesterday from the Senate Banking Committee, Janet Yellen has passed her first hurdle in becoming the next and first female to lead the Federal Reserve.

In her prepared remarks, she stated that “the US economy is performing far short of its potential.” She continued with a similar tone in the questioning session by stating a very similar line to Chairman Bernanke…No asset bubbles, weak demand, continued unemployment and a fragile recovery, all of which was music to the markets ears!

Given the recent testimony, it’s apparent that market fears of eminent tapering are overstated as it’s fairly certain that nothing will be done until after she’s sworn in regardless of all the political noise and non-sense. I am still of the opinion that Fed easing will not start in a substantial manner for some time to come.

Lastly, the recent unemployment report while much better is still far short of a full recovery. I expect the numbers will be adjusted downwards in the coming months as they are greatly skewed by the Government shut down. Digging in to the numbers, its also clear that the types of jobs being created are not what the economy needs for long term sustained growth.

Rates are currently very attractive and it’s a great time to commence the loan process as lenders will have full allocations for the first of the year and eager to close your loan which gives us tremendous leverage in negotiating the best terms.

Deal of the Month:
A client was referred to us and our conversation started with…”I have checked with multiple sources and no one is willing to give me a loan of 75.00% of the purchase price which is what I really need to buy a $5,750,000 home.” Not only were we able to deliver but the terms and pricing were more competitive than most lenders were quoting at lower leverage ratios. “Thank you for helping us buy our dream home” Is how it ended!

P. Jacob Yadegar

Empyrean Funding Inc.
Your Mortgage Loan Specialist
Commercial and Residential
310-571-3681 fax

Your Referrals are the lifeblood of our business!

Lowest Interest Rates In Forty Years

Tips for planning your financial future in the turbulent market. 


Seven trillion dollars has been lost as a result of the recent turmoil in the financial markets. The recent loss must compel individuals to plan their financial futures to insure financial comfort in the latter years of life. While many are skeptical about the current financial markets, the reduction by the Federal Reserve of the key interest rates has created opportunities that warrant some thought. 

There are two steps every household on the Westside should consider.

The first thing that one must do is to take advantage of the lowest interest years in nearly 40 years. Although the Federal Reserve decided not to drop key rates in their last meeting on August 13, the interest rates charged on home mortgages, which are tied to 10 year treasuries have come down significantly.

One of the most common misperceptions is that mortgage rates are tied to Federal Reserve rate
changes. Although this is partially correct because any monetary policy of the Fed does have an overall effect on rates, mortgage rates are more substantially affected by the 10 year treasuries. The yield on 10 year treasuries has fallen to an all time low as investors in the stock market have moved their money out of stocks into safer treasuries.

Consequently bringing mortgage rates down as well. Restructuring your finances can substantially improve your financial position by consolidating bills such as credit cards, car loans and boat loans into a home loan to take advantage of the lower mortgage rates. In addition, consolidating will convert debt that is usually not tax-deductible into a home mortgage that usually is.

Consolidation of debt will likely produce an increase in your cash flow because the payments on your new loan will be lower than the prior combined payments. Secondly, you must begin a disciplined campaign of saving and investment. Although the current market turmoil causes many to lose sleep, it is important to go back to basics when it comes to investing. We must forget about the days of double-digit portfolio gains within an eight hour market time frame and revert back to sound solid investing.

Start by taking the savings from your new mortgage and investing those savings in mutual funds that have a proven track record of performance. The only magic to investing is discipline. Discipline yourself not to review your portfolio on a daily basis because the market swings are discouraging. Discipline yourself to save money and to invest it consistently with a long-term approach. With the lowest savings rates of any consumer in the world, we must begin to discipline ourselves to save and invest for our futures.

These two simple steps will start you on your way to a sound and solid future.