Reality Check

Reality Check
Courtesy of Sean La Rue
To All Customers:
With a never ending stream of babble from the news media about low 4% interest rates for everyone in America, the one thing we can tell you for certain is that the government is not going to pay for it. If there is anything in this “mysterious” stimulus package to lower mortgage rates, it will only be some kind of assistance to help sell housing inventories; not to help lower the rates further for those making regular payments, trying to refinance.
Mortgage rates are derived from bonds which are traded on the “free market”. Mortgage rates are now trading in a range between the upper 4% and low 5% range. This range is lower than it has been in the 37 years Freddie Mac has been keeping records.
Trillions of dollars have been pulled out of the stock market and investors are sitting on the sidelines waiting for the market to stabilize and it will happen! When the money starts pouring back in, fixed rate mortgages will shoot up, 1%, 11/2% or more. Who knows? But they will go up and maybe overnight.
When considering mortgage refinancing, do not expect to get the same rate as your neighbor, friend or relative, unless your financial profile, credit score, loan to value, property type, property usage etc., are identical.
If you’re shopping rates, know that any published rate is obsolete before the ink dries; any quoted rates without a rate lock are probably meaningless. The bond market is in constant motion, just like stocks.
Unlike many of our competitors, we monitor the bond market live. We see directional changes as they happen and get lock alerts from our service provider.
Those of us that have been in the mortgage industry a while have lists of customers that tried waiting out an extra 1/8% to ¼% and completely missing the market lows. We see it every time rates dip.
Don’t miss out. Call me today and start saving money now.

Mortgage rates were all over the board

Mortgage rates were all over the board last week because the Fed meeting was optimistic. With this happening the Stock market was stronger taking money out of bonds. Today, however, mortgage bonds finished higher by about 25 bps which is helping with mortgage pricing. We are sitting on a level of support which means I am floating interest rates right now hoping save my clients more money.
The S&P 500 is testing a strong ceiling of resistance this morning. Stocks have enjoyed a strong move higher over the past couple of months and could improve more if prices break through the ceiling. If not, the Stock Market may be in for a decline.

In other news, Warren Buffet said he is very optimistic about the future of the economy and is seeing signs of a turnaround in the residential real estate market. That makes now the perfect time to benefit from today's affordable home prices and historically low interest rates. After all, as the economy moves higher, both interest rates and housing prices will follow suit.

I am never too busy for any of your referrals!!

Quick tip:

Agents,

I hope all the father’s out there had a great and relaxing day yesterday. The summer is finally here and I could certainly tell this weekend by the heat. The heat is certainly turning on for the bond market as well as interest rates are getting a little bit better today.

Quick tip: When applying for an FHA loan for a married couple you must run the spouses credit report and count total household debt even if they are not going on the loan. Call me with questions.

Make it a great week!
Oh by the way, I’m never too busy for any of your referrals.

Happy Father’s Day!

Happy Father’s Day!

If you like real-time updates follow me on my www.twitter.com/seanlarue. I’m constantly updating it and getting the latest information out to you. This week’s rate sheet is attached.

Quick Tip:
If you’re in escrow on a property, and the buyer is using an FHA loan advise your seller not to transfer title in any way, shape, or form during the escrow process. FHA has a 90 day flip rule in place that prevents a sale if the title is passed from one person to another… even changing it from a single owner to joint ownership. This does not apply for REO properties. If you don’t follow this rule it will stall your escrow. Call me with questions.

Mortgage Hotline:
Tune in to AM 970, 1140, or 1250 on Sunday 11:00am to 12:00pm to here me talk about your credit report. What you need to know about getting your score up or keeping your score up. Also, I’ll be talking about the 203k rehab construction loan and some of the details and opportunity that lies within. You can also listen online at www.knewsradio.com

I’m never too busy for any of your referrals and I’m looking forward to hearing from you.

Up-tick in the market

At the end of this week we saw an up-tick in the market. After 10 straight days of climbing interest rates we finally saw a reversal lower. Hopefully this realization that interest rates will not always be in the 4%’s will get your buyers off the fence. I know it’s been working with my clients. Today’s rate sheet is attached.

If you missed the radio show last week tune in this Sunday from 11:00am to 12:00pm to AM 970, 1140 or 1250 or at www.KNewsRadio.com and click on the stream live button at the top of the page. Jason and I are hosting The Mortgage Hotline and will be speaking about loan modifications, purchase mortgage and refinances. We’ll also be taking calls from listeners fielding their questions. Thanks for listening!

I am never too busy for any of your referrals. Let me be your residential mortgage specialist!

Real Estate Professionals

Sean La Rue (www.SeanLaRue.com) is kicking of his debut radio show on K-News AM 970, 1140, 1250 in Coachella Valley this Sunday and every Sunday from 11am-12pm!

The name of the show is The Mortgage Hotline.

Be sure not to miss it. We will cover everything on real estate from how to save your home to how to buy and sell in today’s market.

You can listen to a live stream at www.knewsradio.com from anywhere in the world! Just click on the live feed at the top of the page. You can also view our Bios and show info under on-air staff.

You can also interact with us live while we are on the air at twitter www.twitter.com/mortgagehotline or you can text us live on the air. Text to number 40404 and put @mortgagehotline in the subject area of the text and your question, comment.

My co-host Jason Baker, of CTC Financial, and is one of the leading experts on loan modifications in the valley.