Most of my friends know i’m a die hard NY Jets fan.

I’ve always believed that Jets fans are born Jets fans. You don’t wake up one Sunday morning and say to yourself, “Gee, I think i’m going to start rooting for the NY Jets.” Most of the time it’s heriditary, your Dad or Grandfather is a Jets fan so you automatically become one.

On Sunday, not only did the NY Jets lose the game they played against the Jacksonville Jaguars but they also lost their 1st and 2nd string quarterbacks. In an odd series of events, Chad Pennington — the weak armed wonder, tears his rotator cuff then on the next Jets possession, Jay Fielder — the aforementioned weak armed wonder’s backup tears his rotator cuff.

Prognosis — Pennington likey out for the season, Fieldler likely out for ten weeks. A once promising season with Superbowl aspirations has the look of the New York Jets circling a different kind of bowl.

Enter Vinny Testaverde. Brooks Bollinger, the third string quarterback now becomes the first string and the Jets resigned Vinny Testaverde, my favorite Jet of all time, to be his backup. In the NFL world of self centered egotistical prima donnas, Vinny has always been a class act. He entered the league in 1987 as a heralded QB out of Miami. After stints with Tampa Bay, Cleveland, and Baltimore, he led the NY Jets to the AFC Championship game in 1998. He’s left the Jets in 2004 to join Bill Parcells in Dallas only to get cut earlier this year.

Will he come and save the day, I doubt it.

It’s just good to see my all time favorite New York Jet back in uniform. My number two all time favorite Jet, Boomer Esiason. I guess i’m a sucker for Long Islanders!

This CNN article, entitled FBI warns of mortgage fraud ‘epidemic’ examines mortgage fraud.

The effective mortgage rate of the Option Arm Mortgage has three main features: Margin, Index, and Caps. The Margin is the fixed portion of the effective mortgage rate. It remains the same for the duration of the loan. The Index is the variable portion. This is what makes an ARM adjustable. Margin + Index = Interest Rate.

It’s important to understand that there are many different indices: The 11th District Cost of Funds (COFI), the Monthly Treasury Average (MTA), The One Year Treasury Bill, the Six Month Libor, etc. Each index has its own strengths and weaknesses; some are slow moving, others are more aggressive.

The third and final component of effective mortgage rate is Caps. Caps limit how much the rate can fluctuate over time. Annual Caps limit changes to the annual rate, whereas Life Caps provide a worst case scenario over the life of the loan.

Consumers are often baffled by the home appraisal process. They may feel their home is worth a certain dollar amount, and therefore, the appraised value doesn’t make sense to them. It is important to know that appraisal guidelines are dictated by the lenders. In many states, the lenders must disclose the purpose of the appraisal, as each situation carries its own set of rules.

In essence, lender guidelines force appraisers to put a fair market value on a home based upon comparable sales in the area where the home is located, as the home must be bracketed according to size and value. For example, there is no set amount associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, and the local marketplace supports the value of a pool at $15,000, that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at full value in newer homes since they required investing additional money onto the cost of building the home. On the other hand, the amount invested in upgrading or remodeling an older home is rarely reflected in full in the final appraisal. The reason is the home had value in its original condition, and again, the value of the upgrades must be supported by comparable examples within the same marketplace.

These comparisons must be drawn from current market activity within the last six months. Some lenders may want to look at both closed and pending sales to see if there is any room for negotiation. This is a safeguard to prevent appraisers from over-valuing the home in question. It is further stated in the guidelines that appraisers can only place a value on homes that have closed escrow. However, when property values rapidly increase within a marketplace, appraisers are generally permitted to make concessions and put more weight on the evidence provided by comparisons to pending sales and listings. This allows for a “real time” appraisal.

Although there is no formal standard to speak of, most lenders give the appraiser a 5% margin of error. If the file is reviewed and the appraiser is off by 8%, there is a good chance the value will be cut by the full 8%. It is in the best interest of both the appraiser and the homeowner not to push the value up higher than the market will support, otherwise the property evaluation may be exposed to a strict appraisal review.

As a loan executive, I make it a point to follow lender guidelines at all times, and work within the systems they provide. This promotes a good relationship with the lender, and smooth closure for my borrowers. As always, you are welcome to contact me if you have any questions.

Check out this neat site: www.housingmaps.com

It combines two internet favorites: craigslist real estate and google maps.

Live Strong!

For the month of September, i’ll be discussing the Option Arm. Other names for this product include: 1% Start Rate, Pay Option Arm, Power Arm, 12 MAT, 1 Month MTA, MTA Loan, COFI Loan and Pick a Payment Loan.