Refinances and purchases are really picking up the market this week. With these low rates there’s no telling how busy you’re going to be!
Mortgage Update
· Check out my jumbo rates!!!
· Check out my 5 Year Fixed $$$$$ as well.
· Get your buyers off the fence with today’s Low Rates.
QUICK TIP 1: VA loans allow up to 4% towards sellers paid closing costs while FHA allows up to 6%!!
QUICK TIP 2: USDA loans allow for the buyer to finance closing costs and repairs if the appraised value comes in higher than the purchase price. You can use up to the appraised value.
These three programs will help you get more buyers!!
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Showing posts with label Refinance. Show all posts
Showing posts with label Refinance. Show all posts
Friday, March 27, 2009
Monday, February 23, 2009
The Homeowner Affordability and Stability Plan
President Obama unveiled his plan to help stabilize the housing market and keep millions of borrowers in their homes.
The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. In addition, the plan includes a third initiative to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.
Many of the plan’s details are still being worked out and will not be announced until March 4, here is an overview of the plan’s main components.
Refinancing Initiative
Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. Therefore, the refinancing initiative in the new plan provides refinancing help for homeowners with less than 20% equity in their homes or who owe more than their home is worth. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac, and who owe up to 5% more than their home is worth.
According to the plan, “credit-worthy” or “responsible” homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost refinancing may help reduce their mortgage payments by up to thousands of dollars per year.
As with the rest of the plan, details about this initiative will be released at a future date—including what, if any, credit score requirements will be included.
Stability Initiative
This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.
The goal of this initiative is simple: “reduce the amount homeowners owe per month to sustainable levels.” To accomplish this, lenders are encouraged to lower homeowners' payments to 31 percent of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.
Homeowners who are current on their mortgages but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.
Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify. This initiative also includes a number of additional elements and incentives that benefit homeowners and lenders alike, including:
Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
Supporting Low Mortgage Rates
As part of the Homeowner Affordability and Stability Plan, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability. This portion of the plan will use using funds already authorized in 2008 by Congress for this purpose.
The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.
Again, the government plans to unveil the final details of the plan on March 4, 2009. For now, you can download a sheet of common Questions and Answers produced by the government at: www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf
I will continue monitoring the plan as new information becomes available. If you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.
The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. In addition, the plan includes a third initiative to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.
Many of the plan’s details are still being worked out and will not be announced until March 4, here is an overview of the plan’s main components.
Refinancing Initiative
Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. Therefore, the refinancing initiative in the new plan provides refinancing help for homeowners with less than 20% equity in their homes or who owe more than their home is worth. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac, and who owe up to 5% more than their home is worth.
According to the plan, “credit-worthy” or “responsible” homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost refinancing may help reduce their mortgage payments by up to thousands of dollars per year.
As with the rest of the plan, details about this initiative will be released at a future date—including what, if any, credit score requirements will be included.
Stability Initiative
This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.
The goal of this initiative is simple: “reduce the amount homeowners owe per month to sustainable levels.” To accomplish this, lenders are encouraged to lower homeowners' payments to 31 percent of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.
Homeowners who are current on their mortgages but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.
Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify. This initiative also includes a number of additional elements and incentives that benefit homeowners and lenders alike, including:
Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
Supporting Low Mortgage Rates
As part of the Homeowner Affordability and Stability Plan, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability. This portion of the plan will use using funds already authorized in 2008 by Congress for this purpose.
The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.
Again, the government plans to unveil the final details of the plan on March 4, 2009. For now, you can download a sheet of common Questions and Answers produced by the government at: www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf
I will continue monitoring the plan as new information becomes available. If you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.
Tuesday, October 7, 2008
What is the expected impact of HOPE for Homeowners (H4H)?
What is the expected impact of HOPE for Homeowners (H4H)? Per HUD.gov
The Congressional Budget Office estimates that as many as 400,000 homeowners could avoid foreclosure through this program over the next three years.
What is the value of the HOPE for Homeowners program to lenders?
Only FHA approved mortgagees can originate H4H loans. H4H loans may benefit lenders by helping them avoid foreclosure expenses. Although the lender will likely have to write down their existing loan in order to originate an H4H loan, it is still less expensive than foreclosure and disposition of property.
Why should existing lien holders accept the short payoff that is required under the terms of the law?
HUD understands that it will be a challenge to encourage lien holders to accept short payoffs in order to participate in this program, especially when there are other loss mitigation tools available that may provide a more suitable solution. However, in instances where those tools are ineffective, we believe that the holders of these mortgages should accept the short payoffs in lieu of the tremendous losses associated with foreclosure. Similar challenges exist with subordinate lien holders but by offering them the opportunity to have an interest in FHA’s share of future appreciation in the property, we hope to entice these lien holders to participate as well.
What advice should loan servicers/lenders give borrowers who are facing difficulties fulfilling their obligations on their existing mortgage(s)?
The H4H program is another loss mitigation option to keep borrowers in their homes on sustainable and affordable terms. Lenders should provide information to borrowers on possible options include contacting a HUD approved counseling agency. Borrowers may call 1-800-569-4287 or visit www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
When can I start originating H4H loans?
The program is effective from October 1, 2008 to September 30, 2011.
Eligibility and Underwriting issues
How does the H4H program differ from FHA Secure?
Under H4H:
• Any type of first mortgage as long as it was originated on or before January 1, 2008.
• All existing lien holders must waive prepayment penalties and late charges, as well as extinguish all liens against the property.
• Existing first lien holders are required to accept the proceeds of the H4H mortgage as payment in full.
• Borrowers will be required to share both the initial equity created with the H4H loan, and future appreciation.
• The maximum loan amount is $550,440, nationwide.
How does the appreciation sharing piece work?
To entice subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share its future appreciation entitlement with them. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share.
Are there special underwriting requirements for the H4H program?
Yes, in addition to standard underwriting procedures, the underwriter must:
• Determine that the borrowers existing total monthly mortgage payment is in excess of 31% of their gross monthly income in March of 2008.
• Determine the borrower’s total monthly mortgage payment on the new H4H loan is less than the borrower’s total monthly mortgage payment on existing loans.
• Determine that the DTI’s are at or below 31/43. However, if the borrower has successfully completed a 3 month trial modification, ratios can be expanded not to exceed 38/50.
• Review income as reported on the transcript or copy of the borrower’s income tax returns for the previous two years.
How is the total monthly mortgage payment on the existing loan(s) calculated for the purpose of qualifying the borrower for the H4H program?
The total monthly mortgage payment is defined as the fully indexed, fully-amortizing Principal, Interest, Taxes and Insurance (PITI) payment. This includes homeowner’s association dues, grounds rents, special assessments, and all subordinate liens as of March 1, 2008.
Can I add a non-occupying co-borrower to help qualify?
No, however you may add a non-occupying ,co-signer who does not have any ownership interest in the property.
What if there is currently a non-occupying co-borrower on the loan?
The non-occupying co-borrower will need to quit claim their interest in the property prior to the occupying co-borrowers applying for the H4H program.
What loans are eligible for refinance under the H4H program?
Any type of mortgage is eligible for refinancing under the H4H program, including conventional (prime, Alt-A, subprime), or government backed (FHA, VA, or Rural Development), fixed or adjustable rate mortgage.
The loan must have originated on or before January 1, 2008, the borrower must have made at least six (6) payments on the existing mortgage, and the total monthly mortgage payment exceeds 31% or the borrower’s March 2008 gross monthly income. The borrower may be current or delinquent at the time the new H4H mortgage is originated.
What properties are eligible?
The property to be refinanced must be the borrower’s primary and only residence in which the borrower has an ownership interest.
Only 1-unit properties are eligible, including condominiums, cooperative units and manufactured housing permanently affixed to realty.
Does the borrower have to be delinquent on their existing loans to be eligible for the H4H program?
No, the borrower may be current or delinquent at the time of application for the H4h mortgage.
What must the existing lienholders do?
Existing first mortgage lien holders must waive any and all prepayment penalties and late payment fees, agree to accept the proceeds from the H4H mortgage as payment in full, and release their outstanding mortgage liens.
Existing subordinate lien holders must waive all prepayment penalties and late payment fees as well as release their outstanding mortgage liens.
Will I have to get a new appraisal or can I use an AVM?
In all cases a new FHA appraisal must be ordered specifically for the H4H transaction and the appraisal should be no more than 3 months old at the time of closing.
What are the rates for the Upfront Mortgage and Annual Insurance Premiums (UFMIP)?
The Upfront Mortgage Insurance Premium (UFMIP) is 3% and the Annual is 1.5%
Can the UFMIP be financed?
Yes, however the maximum LTV under the H4H program is 90% regardless of whether or not the UFMIP is financed.
Will there be additional disclosure requirements?
Yes, the originating lender must provide the HOPE for Homeowners Consumer Disclosure and Certification form at the time of initial application for the Program.
Are there additional lender certifications?
Due to the statutory requirements and the unique nature of the program, lenders and underwriters will execute a certification assuring HUD that they have underwritten and closed the loan in accordance with the H4H program guidelines.
What is the maximum LTV for the H4H program?
The maximum LTV for the Program is 90%, including any financed UFMIP.
Who can pay closing costs?
Standard FHA policy regarding closing costs is applicable, including the 1% cap on origination fees.
• Borrowers may pay closing costs from their own assets,
• They may be financed into the mortgage provided the 90% LTV limit is not exceeded,
• The servicing lender, originating lender and/or a third party (e.g. a Federal, state or local Program) and/or
• The originating lender my pay the borrower’s closing costs and prepaid items through premium pricing.
Is subordinate financing allowed to pay closing costs, like under FHASecure?
No. Subordinate financing is not allowed in the first 5 years of the mortgage except in when necessary to ensure maintenance of property standards.
Will Wall Street be receptive to purchasing these new loans?
These loans can be securitized in Ginnie Mae FS Pools, making them attractive to Wall Street and other investors.
The Congressional Budget Office estimates that as many as 400,000 homeowners could avoid foreclosure through this program over the next three years.
What is the value of the HOPE for Homeowners program to lenders?
Only FHA approved mortgagees can originate H4H loans. H4H loans may benefit lenders by helping them avoid foreclosure expenses. Although the lender will likely have to write down their existing loan in order to originate an H4H loan, it is still less expensive than foreclosure and disposition of property.
Why should existing lien holders accept the short payoff that is required under the terms of the law?
HUD understands that it will be a challenge to encourage lien holders to accept short payoffs in order to participate in this program, especially when there are other loss mitigation tools available that may provide a more suitable solution. However, in instances where those tools are ineffective, we believe that the holders of these mortgages should accept the short payoffs in lieu of the tremendous losses associated with foreclosure. Similar challenges exist with subordinate lien holders but by offering them the opportunity to have an interest in FHA’s share of future appreciation in the property, we hope to entice these lien holders to participate as well.
What advice should loan servicers/lenders give borrowers who are facing difficulties fulfilling their obligations on their existing mortgage(s)?
The H4H program is another loss mitigation option to keep borrowers in their homes on sustainable and affordable terms. Lenders should provide information to borrowers on possible options include contacting a HUD approved counseling agency. Borrowers may call 1-800-569-4287 or visit www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
When can I start originating H4H loans?
The program is effective from October 1, 2008 to September 30, 2011.
Eligibility and Underwriting issues
How does the H4H program differ from FHA Secure?
Under H4H:
• Any type of first mortgage as long as it was originated on or before January 1, 2008.
• All existing lien holders must waive prepayment penalties and late charges, as well as extinguish all liens against the property.
• Existing first lien holders are required to accept the proceeds of the H4H mortgage as payment in full.
• Borrowers will be required to share both the initial equity created with the H4H loan, and future appreciation.
• The maximum loan amount is $550,440, nationwide.
How does the appreciation sharing piece work?
To entice subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share its future appreciation entitlement with them. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share.
Are there special underwriting requirements for the H4H program?
Yes, in addition to standard underwriting procedures, the underwriter must:
• Determine that the borrowers existing total monthly mortgage payment is in excess of 31% of their gross monthly income in March of 2008.
• Determine the borrower’s total monthly mortgage payment on the new H4H loan is less than the borrower’s total monthly mortgage payment on existing loans.
• Determine that the DTI’s are at or below 31/43. However, if the borrower has successfully completed a 3 month trial modification, ratios can be expanded not to exceed 38/50.
• Review income as reported on the transcript or copy of the borrower’s income tax returns for the previous two years.
How is the total monthly mortgage payment on the existing loan(s) calculated for the purpose of qualifying the borrower for the H4H program?
The total monthly mortgage payment is defined as the fully indexed, fully-amortizing Principal, Interest, Taxes and Insurance (PITI) payment. This includes homeowner’s association dues, grounds rents, special assessments, and all subordinate liens as of March 1, 2008.
Can I add a non-occupying co-borrower to help qualify?
No, however you may add a non-occupying ,co-signer who does not have any ownership interest in the property.
What if there is currently a non-occupying co-borrower on the loan?
The non-occupying co-borrower will need to quit claim their interest in the property prior to the occupying co-borrowers applying for the H4H program.
What loans are eligible for refinance under the H4H program?
Any type of mortgage is eligible for refinancing under the H4H program, including conventional (prime, Alt-A, subprime), or government backed (FHA, VA, or Rural Development), fixed or adjustable rate mortgage.
The loan must have originated on or before January 1, 2008, the borrower must have made at least six (6) payments on the existing mortgage, and the total monthly mortgage payment exceeds 31% or the borrower’s March 2008 gross monthly income. The borrower may be current or delinquent at the time the new H4H mortgage is originated.
What properties are eligible?
The property to be refinanced must be the borrower’s primary and only residence in which the borrower has an ownership interest.
Only 1-unit properties are eligible, including condominiums, cooperative units and manufactured housing permanently affixed to realty.
Does the borrower have to be delinquent on their existing loans to be eligible for the H4H program?
No, the borrower may be current or delinquent at the time of application for the H4h mortgage.
What must the existing lienholders do?
Existing first mortgage lien holders must waive any and all prepayment penalties and late payment fees, agree to accept the proceeds from the H4H mortgage as payment in full, and release their outstanding mortgage liens.
Existing subordinate lien holders must waive all prepayment penalties and late payment fees as well as release their outstanding mortgage liens.
Will I have to get a new appraisal or can I use an AVM?
In all cases a new FHA appraisal must be ordered specifically for the H4H transaction and the appraisal should be no more than 3 months old at the time of closing.
What are the rates for the Upfront Mortgage and Annual Insurance Premiums (UFMIP)?
The Upfront Mortgage Insurance Premium (UFMIP) is 3% and the Annual is 1.5%
Can the UFMIP be financed?
Yes, however the maximum LTV under the H4H program is 90% regardless of whether or not the UFMIP is financed.
Will there be additional disclosure requirements?
Yes, the originating lender must provide the HOPE for Homeowners Consumer Disclosure and Certification form at the time of initial application for the Program.
Are there additional lender certifications?
Due to the statutory requirements and the unique nature of the program, lenders and underwriters will execute a certification assuring HUD that they have underwritten and closed the loan in accordance with the H4H program guidelines.
What is the maximum LTV for the H4H program?
The maximum LTV for the Program is 90%, including any financed UFMIP.
Who can pay closing costs?
Standard FHA policy regarding closing costs is applicable, including the 1% cap on origination fees.
• Borrowers may pay closing costs from their own assets,
• They may be financed into the mortgage provided the 90% LTV limit is not exceeded,
• The servicing lender, originating lender and/or a third party (e.g. a Federal, state or local Program) and/or
• The originating lender my pay the borrower’s closing costs and prepaid items through premium pricing.
Is subordinate financing allowed to pay closing costs, like under FHASecure?
No. Subordinate financing is not allowed in the first 5 years of the mortgage except in when necessary to ensure maintenance of property standards.
Will Wall Street be receptive to purchasing these new loans?
These loans can be securitized in Ginnie Mae FS Pools, making them attractive to Wall Street and other investors.
Friday, September 5, 2008
Interest rates are at a 4 month low
It’s shaping up to be a busy month! Interest rates are at a 4 month low and I’m continuing to watch the bond market for you. See the article attached as well as the newsletter for an industry update. Make it a great month and if I can help you are someone you know with a purchase mortgage or refinance. Attached is a free appraisal flyer for you to use or give to a friend.
Has the Housing Bubble Popped?
http://www.mortgagenewsdaily.com/09052008_Housing_Bubble.asp
Make it great!
Oh by the way, I’m never too busy for any of your referrals.
Has the Housing Bubble Popped?
http://www.mortgagenewsdaily.com/09052008_Housing_Bubble.asp
Make it great!
Oh by the way, I’m never too busy for any of your referrals.
Monday, August 25, 2008
Rates Get Better
I mentioned on Friday that interest rates were on a roller coaster ride late last week. Fortunately, I noticed that mortgage bonds were overbought midweek and got my clients locked in saving most of them 0.125% on their 30 year fixed mortgages. This saved them anywhere from $25 and $40 per month. I look forward to helping your clients too. This weeks newsletter explains what happened last week.
Wednesday, March 26, 2008
100% financing
Are you tired of your clients hearing NO, NO, NO, I can’t find anyone to qualify me on 100% financing, interest rates are too high, I don’t have enough money for a down payment or closing costs, or I am in a declining or soft real estate market and cannot meet my lender’s new qualifying guidelines?
If you are tired of hearing these objections, then I can help you sell more homes because I can turn these frustrated clients into buyers.
Call me today to discuss the benefits of FHA financing for your clients. I have a privately funded down payment assistance program that has been approved by the FHA to help get families into homes.
This program allows:
Down payment and closing cost assistance to the buyer
Lower interest rates
No declining or soft market policy
Easier to meet with low or no credit scores needed
No asset reserves required
This program is restricted to primary residences only
Full documentation, but also allows non-occupant co-borrowers to help qualify.
The maximum loan amount 500K.
The responsibility of executing this program correctly will be based on the ability of the buyer, seller, and lender all working together to accomplish our goal. I will be more than happy to school all who are involved in the transaction to help accomplish this goal.
If you are tired of hearing these objections, then I can help you sell more homes because I can turn these frustrated clients into buyers.
Call me today to discuss the benefits of FHA financing for your clients. I have a privately funded down payment assistance program that has been approved by the FHA to help get families into homes.
This program allows:
Down payment and closing cost assistance to the buyer
Lower interest rates
No declining or soft market policy
Easier to meet with low or no credit scores needed
No asset reserves required
This program is restricted to primary residences only
Full documentation, but also allows non-occupant co-borrowers to help qualify.
The maximum loan amount 500K.
The responsibility of executing this program correctly will be based on the ability of the buyer, seller, and lender all working together to accomplish our goal. I will be more than happy to school all who are involved in the transaction to help accomplish this goal.
Monday, March 24, 2008
Bear Stearns bailout
I hope you had a relaxing Easter weekend. This weeks update covers the news about last weeks Bear Stearns bailout. Ever thought about the Pros and Cons of buying a car versus leasing one? This week’s update covers it all! Also, just in case you didn’t get a chance to read why new mortgage rates go up after a Fed cut see the attached article.
I’d like to address one topic today. Have you ever noticed in the Desert Sun that many of the articles are written by the Associated Press? Ask your clients who wrote the articles they are reading and quoting and ask them if it’s a nationally related article or a local article. You may be surprised!
I’d like to address one topic today. Have you ever noticed in the Desert Sun that many of the articles are written by the Associated Press? Ask your clients who wrote the articles they are reading and quoting and ask them if it’s a nationally related article or a local article. You may be surprised!
Monday, March 17, 2008
St. Patrick’s Day
I’m sure you’re off to a very green St. Patrick’s Day! Last week the financial markets were pretty green for you too with mortgage rates dropping by as much as 0.25% for most programs. But be careful! With inflation numbers down reported last week the Fed could cut Fed rates by another 0.75% in tomorrows meeting. These rates are tied to the Prime rate, consumer loans, and credit cards, but the Fed rates are what the Fed lends to banks overnight! With a Fed cut, inflation could rise and when inflation rises mortgage rates are likely to go up. I recently sent out an article explaining this. If you’d like to look at it again please let me know. Make it a great week!
Oh by the way, I’m never too busy for any of your purchase or refinance mortgage referrals! Have a safe and fun St. Patrick’s Day!
MMG Weekly For the week of Mar 17, 2008 --- Vol. 6, Issue 12
"JUST WHEN I THOUGHT I WAS OUT...THEY PULL ME BACK IN." Al Pacino in the 1990 film, The Godfather III And if Bonds and home loan rates thought they were out of the days of volatility...they got pulled right back in, as last week brought daily price swings of almost historic proportions. For the week overall, fixed home loan rates improved by about .25%.
What led to the dramatic action this week? The bipolar emotional state of the markets began deeply depressed on Monday, but then were filled with joy Tuesday, when the Fed made an interesting move by announcing the creation of the new Term Securities Lending Facility (TSLF). The TSLF will provide borrowing banks with $200 Billion to draw on to help inject liquidity into the credit markets, and further, will accept some mortgage-backed securities as collateral, which effectively may help to "upgrade" the value and perception of battered Mortgage Bonds.
But in the meantime...struggles are still being played out related to the downgrade and losses experienced by companies holding massive amounts of mortgage-backed securities. Headlines hit on Thursday about The Carlyle Group, which manages a portfolio of mortgage-backed securities, not being able to meet a margin call and being forced to sell off large amounts of mortgage paper into the markets at great financial losses. Then on Friday, the news broke that financial brokerage and investment banking giant, Bear Stearns had suffered enormous losses, and their lack of liquidity endangered them from going out of business...or "sleeping with the fishes". The new aforementioned TSLF is designed to help this type of liquidity problem, but it will not go into effect for a few weeks, and Bear Stearns would not last that long. Coming to the rescue with loans were both the NY Fed and JP Morgan Chase. These sure are exciting times.
One bright spot for the financial markets was a low consumer inflation reading. The Overall and Core Consumer Price Index (CPI) figures were reported unchanged, far cooler than the expected increases of 0.3% and 0.2% respectively. These tame inflation numbers give the Fed a green light to cut the Fed Funds Rate by another .75% at Tuesday's meeting...but read on to understand exactly how this cut may impact YOU.
IF THE IDEA OF KEEPING BUSINESS IN THE "FAMILY" CONJURES UP IMAGES OF MICHAEL CORLEONE AND OFFERS THAT CAN'T BE REFUSED - YOU'LL WANT TO READ THIS WEEK'S MORTGAGE MARKET VIEW TO LEARN SOME TIPS ON RUNNING A SUCCESSFUL FAMILY BUSINESS, WHERE YOU LIKELY WON'T HAVE TO WORRY ABOUT EITHER GUNS OR CANNOLI'S.
Forecast for the Week
So if you love all the excitement, drama, intrigue and crazy volatility of late...you'll love the week ahead, as it is loaded full with market movers. We'll get the latest readings on the health of the manufacturing and housing sectors, but the main event will take place on Tuesday when the Federal Reserve announces its latest interest rate decision and Policy Statement.
The Fed is expected to cut the Fed Funds Rate by another .75%. However, as we've seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut...which results in higher home loan rates. This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases...and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on.
So a word to the wise - if you or someone you know has been ready to move forward on a purchase or refinance, there's no time like the present. Be sure to get in touch with me, so I can explain your options and help plan a great strategy for your home loan.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 14, 2008)
The Mortgage Market View...
BUT DON'T EVER TAKE SIDES WITH ANYONE AGAINST THE FAMILY AGAIN...EVER
These lines spoken by Michael Corleone to his brother Fredo could very well apply to small family businesses, which are critical to the nation's economy. In fact, according to the National Federation of Independent Businesses, more than 1.2 Million businesses across the country are owned and operated by spouses. While these thriving ventures in capitalism are great for the economy, they can cause a lot of stress on your family relationships. That's why experts recommend you follow a few simple suggestions to keep the business--and your family life--running smooth!
Only Fools Rush In. Starting a family business is a huge commitment. Although it sounds romantic, it's a lot of work to...well...make it work. Before you jump in, consider what type of business is truly right for you; how the business will impact your financial plans; and how you'll still make sure you have time in your schedule to enjoy non-business related family time. Because, as The Don says, "a man who doesn't spend time with his family can never be a real man".
Put It In Writing. The first step to making your dream a reality is putting together a business plan. The Small Business Administration has a great website that can help you write your business plan. You'll also need to apply for a business license, tax identification number, and even business loans. Again, you can find the most requested business documents on The Small Business Administration website.
Clarify Roles and Responsibilities. To help avoid frustrations and arguments in the future, make sure everyone agrees on who will be responsible for what. Give yourselves titles and draft job responsibilities...then make sure everyone is happy with their role, and that all of the important everyday duties are covered. Make sure you determine who will pay the bills, who will negotiate contracts, who's in charge of the marketing plan, who does the hiring, and so on. You don't want to risk overlooking something or arguing about it later.
Protect Yourself. More important than having Luca Brasi as your bodyguard is making sure you plan your finances and stock away plenty of money to hold you over, especially during the start up phase. Most experts recommend having three to six months worth of living expenses in savings, depending on whether one or two people in the family will be relying on the business as their main income. You'll also want to meet with a financial planner to make sure your retirement and other financial plans stay on track - and if you need a referral to a great financial pro, just let me know.
Set Boundaries... and Stick to Them! It's easy to let the business take over your family life. Little by little the business successes and setbacks slip into family conversations... it's only natural. But don't let them take over completely. To alleviate this problem, make sure you set up regular "business meetings" where you can talk about key issues and exchange ideas about the business. In addition, establish some off-limit times where you'll devote yourselves to each other and your family life. After all, even family businesses need some time "away from the office."
Starting a business with your spouse or family is an exciting time. The key is to harness that excitement while staying cool-headed enough to make smart personal and financial decisions. If you or someone you know needs help with these important details, please don't hesitate to call. I'll be happy to discuss your needs and put you in touch with other professionals that can help.
Oh by the way, I’m never too busy for any of your purchase or refinance mortgage referrals! Have a safe and fun St. Patrick’s Day!
MMG Weekly For the week of Mar 17, 2008 --- Vol. 6, Issue 12
"JUST WHEN I THOUGHT I WAS OUT...THEY PULL ME BACK IN." Al Pacino in the 1990 film, The Godfather III And if Bonds and home loan rates thought they were out of the days of volatility...they got pulled right back in, as last week brought daily price swings of almost historic proportions. For the week overall, fixed home loan rates improved by about .25%.
What led to the dramatic action this week? The bipolar emotional state of the markets began deeply depressed on Monday, but then were filled with joy Tuesday, when the Fed made an interesting move by announcing the creation of the new Term Securities Lending Facility (TSLF). The TSLF will provide borrowing banks with $200 Billion to draw on to help inject liquidity into the credit markets, and further, will accept some mortgage-backed securities as collateral, which effectively may help to "upgrade" the value and perception of battered Mortgage Bonds.
But in the meantime...struggles are still being played out related to the downgrade and losses experienced by companies holding massive amounts of mortgage-backed securities. Headlines hit on Thursday about The Carlyle Group, which manages a portfolio of mortgage-backed securities, not being able to meet a margin call and being forced to sell off large amounts of mortgage paper into the markets at great financial losses. Then on Friday, the news broke that financial brokerage and investment banking giant, Bear Stearns had suffered enormous losses, and their lack of liquidity endangered them from going out of business...or "sleeping with the fishes". The new aforementioned TSLF is designed to help this type of liquidity problem, but it will not go into effect for a few weeks, and Bear Stearns would not last that long. Coming to the rescue with loans were both the NY Fed and JP Morgan Chase. These sure are exciting times.
One bright spot for the financial markets was a low consumer inflation reading. The Overall and Core Consumer Price Index (CPI) figures were reported unchanged, far cooler than the expected increases of 0.3% and 0.2% respectively. These tame inflation numbers give the Fed a green light to cut the Fed Funds Rate by another .75% at Tuesday's meeting...but read on to understand exactly how this cut may impact YOU.
IF THE IDEA OF KEEPING BUSINESS IN THE "FAMILY" CONJURES UP IMAGES OF MICHAEL CORLEONE AND OFFERS THAT CAN'T BE REFUSED - YOU'LL WANT TO READ THIS WEEK'S MORTGAGE MARKET VIEW TO LEARN SOME TIPS ON RUNNING A SUCCESSFUL FAMILY BUSINESS, WHERE YOU LIKELY WON'T HAVE TO WORRY ABOUT EITHER GUNS OR CANNOLI'S.
Forecast for the Week
So if you love all the excitement, drama, intrigue and crazy volatility of late...you'll love the week ahead, as it is loaded full with market movers. We'll get the latest readings on the health of the manufacturing and housing sectors, but the main event will take place on Tuesday when the Federal Reserve announces its latest interest rate decision and Policy Statement.
The Fed is expected to cut the Fed Funds Rate by another .75%. However, as we've seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut...which results in higher home loan rates. This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases...and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on.
So a word to the wise - if you or someone you know has been ready to move forward on a purchase or refinance, there's no time like the present. Be sure to get in touch with me, so I can explain your options and help plan a great strategy for your home loan.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 14, 2008)
The Mortgage Market View...
BUT DON'T EVER TAKE SIDES WITH ANYONE AGAINST THE FAMILY AGAIN...EVER
These lines spoken by Michael Corleone to his brother Fredo could very well apply to small family businesses, which are critical to the nation's economy. In fact, according to the National Federation of Independent Businesses, more than 1.2 Million businesses across the country are owned and operated by spouses. While these thriving ventures in capitalism are great for the economy, they can cause a lot of stress on your family relationships. That's why experts recommend you follow a few simple suggestions to keep the business--and your family life--running smooth!
Only Fools Rush In. Starting a family business is a huge commitment. Although it sounds romantic, it's a lot of work to...well...make it work. Before you jump in, consider what type of business is truly right for you; how the business will impact your financial plans; and how you'll still make sure you have time in your schedule to enjoy non-business related family time. Because, as The Don says, "a man who doesn't spend time with his family can never be a real man".
Put It In Writing. The first step to making your dream a reality is putting together a business plan. The Small Business Administration has a great website that can help you write your business plan. You'll also need to apply for a business license, tax identification number, and even business loans. Again, you can find the most requested business documents on The Small Business Administration website.
Clarify Roles and Responsibilities. To help avoid frustrations and arguments in the future, make sure everyone agrees on who will be responsible for what. Give yourselves titles and draft job responsibilities...then make sure everyone is happy with their role, and that all of the important everyday duties are covered. Make sure you determine who will pay the bills, who will negotiate contracts, who's in charge of the marketing plan, who does the hiring, and so on. You don't want to risk overlooking something or arguing about it later.
Protect Yourself. More important than having Luca Brasi as your bodyguard is making sure you plan your finances and stock away plenty of money to hold you over, especially during the start up phase. Most experts recommend having three to six months worth of living expenses in savings, depending on whether one or two people in the family will be relying on the business as their main income. You'll also want to meet with a financial planner to make sure your retirement and other financial plans stay on track - and if you need a referral to a great financial pro, just let me know.
Set Boundaries... and Stick to Them! It's easy to let the business take over your family life. Little by little the business successes and setbacks slip into family conversations... it's only natural. But don't let them take over completely. To alleviate this problem, make sure you set up regular "business meetings" where you can talk about key issues and exchange ideas about the business. In addition, establish some off-limit times where you'll devote yourselves to each other and your family life. After all, even family businesses need some time "away from the office."
Starting a business with your spouse or family is an exciting time. The key is to harness that excitement while staying cool-headed enough to make smart personal and financial decisions. If you or someone you know needs help with these important details, please don't hesitate to call. I'll be happy to discuss your needs and put you in touch with other professionals that can help.
Monday, March 3, 2008
Fed Chair Ben Bernanke
Good Morning! Hope you’re off to a great week!
Last week in mortgage news we saw rates improve by about 0.25% to 0.375%. This was a result from Fed Chair Ben Bernanke and some bad news for the economy from several reports. Up and coming… the Economic Stimulus Package… do you know what to do with your tax rebates? See the tips below!
Oh by the way, if you have a family member or friend from work interested in buying or refinancing a home, I am never too busy for your referrals. Please call or email me their name and I’ll be happy to follow up with them!
Make it a great week!
-Sean
Last week in mortgage news we saw rates improve by about 0.25% to 0.375%. This was a result from Fed Chair Ben Bernanke and some bad news for the economy from several reports. Up and coming… the Economic Stimulus Package… do you know what to do with your tax rebates? See the tips below!
Oh by the way, if you have a family member or friend from work interested in buying or refinancing a home, I am never too busy for your referrals. Please call or email me their name and I’ll be happy to follow up with them!
Make it a great week!
-Sean
Friday, February 29, 2008
Core Personal Consumption Expenditure Index (PCE)
Happy Friday! Attached is my weekly rate update check it out!
This week was a step in the right direction as far as mortgage pricing was concerned. We’ve seen rates come back down about 0.25% across the board when compared to last week. 30 year fixed conforming rate is at 5.75% with 1 point.
Today, the Core Personal Consumption Expenditure Index (PCE), the Fed's favored gauge of consumer inflation, was reported in line with estimates for the month of January. When inflation is high mortgage rates go up.
Still no word from HUD regarding conforming loan limit changes; HOWEVER, as soon as I hear what they are I will be sure to send you a special alert!
Make it a great weekend and remember I am never too busy for ANY of your purchase or refinance mortgage referrals!
This week was a step in the right direction as far as mortgage pricing was concerned. We’ve seen rates come back down about 0.25% across the board when compared to last week. 30 year fixed conforming rate is at 5.75% with 1 point.
Today, the Core Personal Consumption Expenditure Index (PCE), the Fed's favored gauge of consumer inflation, was reported in line with estimates for the month of January. When inflation is high mortgage rates go up.
Still no word from HUD regarding conforming loan limit changes; HOWEVER, as soon as I hear what they are I will be sure to send you a special alert!
Make it a great weekend and remember I am never too busy for ANY of your purchase or refinance mortgage referrals!
Monday, February 18, 2008
Interest rates are still at a 4 year low!!
This week’s update talks about why mortgage rates are going up after the Fed cut interest rates. Inflation is definitely a concern as the Fed continues to lower interest rates. Take a look at the 4 month bond graph in the middle of the update. Remember that mortgage pricing takes direction from Bond pricing. As bonds go up mortgage pricing comes down.
Also, interest rates are still at a 4 year low!! If you need to refinance or are looking to purchase… Call me to get prequalified and see what options you have!
Let me know if you have any questions about the information provided.
Make it a great week.
-Sean
Sean La Rue's Weekly Newsletter
Also, interest rates are still at a 4 year low!! If you need to refinance or are looking to purchase… Call me to get prequalified and see what options you have!
Let me know if you have any questions about the information provided.
Make it a great week.
-Sean
Sean La Rue's Weekly Newsletter
Thursday, February 7, 2008
Economic Stimulus Plan
Good Afternoon!
Attached is my weekly rate update.
Yesterday, the Senate approved, 81-16, an amended version of the Economic Stimulus Plan, which you can read by clicking the link below. Dallas Fed President Richard “Loose Lips” Fisher was speaking in Mexico City and mentioned inflation rising. Remember, if inflation is an issue, mortgage pricing will respond by increasing rates. As a result, this week interest rates are up about a .125%. The good news… we are still at 40 year interest lows!!
Part of the Economic Stimulus Plan is for to increase conforming loan amounts from $417,000. What’s this mean? For places like Coachella Valley, who have large inventory over the $417,000 price threshold, and for loan amounts between $417,000 and $625,000 now will be considered conforming loans and will decrease by 1.25%!! On a $625,000 loan amount that means a decrease by $505.06 per month on a 30 year fixed and $585.94 per month for a 5 year interest only!! THAT’S A BMW PAYMENT!! Check it out, do the math!! Now’s the time to get buyers off the fence so show them the money! Higher-end homes will be selling and I WANT to be doing your loans!!
Call me to find out how I can help your clients buy or refinance their home. I’m NEVER too busy for ANY of your referrals!! Make it a great weekend!
Click to see the Economic Stimulus Plan http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05140:
Attached is my weekly rate update.
Yesterday, the Senate approved, 81-16, an amended version of the Economic Stimulus Plan, which you can read by clicking the link below. Dallas Fed President Richard “Loose Lips” Fisher was speaking in Mexico City and mentioned inflation rising. Remember, if inflation is an issue, mortgage pricing will respond by increasing rates. As a result, this week interest rates are up about a .125%. The good news… we are still at 40 year interest lows!!
Part of the Economic Stimulus Plan is for to increase conforming loan amounts from $417,000. What’s this mean? For places like Coachella Valley, who have large inventory over the $417,000 price threshold, and for loan amounts between $417,000 and $625,000 now will be considered conforming loans and will decrease by 1.25%!! On a $625,000 loan amount that means a decrease by $505.06 per month on a 30 year fixed and $585.94 per month for a 5 year interest only!! THAT’S A BMW PAYMENT!! Check it out, do the math!! Now’s the time to get buyers off the fence so show them the money! Higher-end homes will be selling and I WANT to be doing your loans!!
Call me to find out how I can help your clients buy or refinance their home. I’m NEVER too busy for ANY of your referrals!! Make it a great weekend!
Click to see the Economic Stimulus Plan http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05140:
Monday, February 4, 2008
Do Not Call Registry Reminder
Hope you had a wonderful Super Bowl weekend! I know I enjoyed most of the commercials. In this week’s update I’d like you to educate yourself on a new practice the medical industry is trying to implement called a MedFICO. This is interesting information and can be found in this newsletter. Stay tuned with more information regarding the upcoming conforming loan limit increase from $417,000 up to $625,000.
Do Not Call Registry Reminder (I just did it myself and took 30 seconds)
REMINDER...12 days from today, all cell phone numbers are being released to telemarketing companies and you will start to receive sales calls.
YOU WILL BE CHARGED FOR THESE CALLS!
To prevent this, call the following number from your cell
Phone: 888-382-1222.
It is the National DO NOT CALL registry list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.
HELP OTHERS BY PASSING THIS ON TO ALL YOUR FRIENDS. It takes about 20 seconds
Oh by the way, I’m never too busy for any of your purchase or refinance mortgage referrals!
Make it a great week!
Do Not Call Registry Reminder (I just did it myself and took 30 seconds)
REMINDER...12 days from today, all cell phone numbers are being released to telemarketing companies and you will start to receive sales calls.
YOU WILL BE CHARGED FOR THESE CALLS!
To prevent this, call the following number from your cell
Phone: 888-382-1222.
It is the National DO NOT CALL registry list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.
HELP OTHERS BY PASSING THIS ON TO ALL YOUR FRIENDS. It takes about 20 seconds
Oh by the way, I’m never too busy for any of your purchase or refinance mortgage referrals!
Make it a great week!
Friday, January 4, 2008
Getting back to work
Happy New Year!
Hope you had a great week getting back to work. Check out today’s rate sheet attached in PDF format. Mortgage Bond pricing is at the best levels since September 2005. This result comes from a Jobs report that showed only 18,000 news jobs created when expectations were 70,000. With the unemployment rate up a tick to 5.0% from 4.7% the weaker economic news is stirring the markets and improving bond pricing. If you have buyers or past clients interested in purchase or refinance money NOW is a great time. Let me help you get them pre-qualified and provide them the information needed to decide on the best loan program for their situation.
I am NEVER too busy for any of your referrals! Have a great weekend.
Hope you had a great week getting back to work. Check out today’s rate sheet attached in PDF format. Mortgage Bond pricing is at the best levels since September 2005. This result comes from a Jobs report that showed only 18,000 news jobs created when expectations were 70,000. With the unemployment rate up a tick to 5.0% from 4.7% the weaker economic news is stirring the markets and improving bond pricing. If you have buyers or past clients interested in purchase or refinance money NOW is a great time. Let me help you get them pre-qualified and provide them the information needed to decide on the best loan program for their situation.
I am NEVER too busy for any of your referrals! Have a great weekend.
Friday, December 14, 2007
8 Day Loan Close
This week the mortgage market proved to be volatile when we got news Tuesday about the Fed cut. With the Fed fund and discount rate cut by .25% this has pulled money out of bonds and into stocks this is driving mortgage pricing slightly higher today. Over the next week or two, rates should again stabilize and turn lower. Mortgage applications are at a two year high this week as refinancing has become a popular choice for many homeowners. If you have a friend or client interested in refinancing out of a pay-option ARM or Interest Only payments and wants a 30 year fixed mortgage I’d be happy to meet with them. I’m never too busy for any of your referrals! Have a great weekend!
-Sean La Rue
P.S. Need help getting a deal closed? This week I closed a loan in 8 days from loan application to funding! Call me to get your deals closed…
-Sean La Rue
P.S. Need help getting a deal closed? This week I closed a loan in 8 days from loan application to funding! Call me to get your deals closed…
Sunday, December 2, 2007
Refinance Your ARM Mortgage
Now that some of the dust from the credit crisis has settled, many borrowers are in serious need of a mortgage review. We take our job as mortgage planners very seriously and would welcome the opportunity to do a 10-minute mortgage review to determine if there are other options you should consider regarding your home financing.
If you currently have a 3-, 5-, 7- or 10-year fixed-rate or adjustable loan OR you have purchased in the last few years, it would be well worth your while to give us a call to review the options available to protect your financial future. It could be time to secure a longer-term fixed-rate option so that you are shielded from future market fluctuations. Also, if property values decline due to credit tightening, it may impact your ability to secure new financing.
Give us a call to discuss your options today. We value our relationships and want to ensure that we are doing everything possible to help our borrowers make the right lending choice for their future.
Many analysts still believe that the credit crunch is far from over and that additional tightening may occur. So it is critical for you to be proactive TODAY in order to protect your financial future!
We are here to help and would welcome your call.
If you currently have a 3-, 5-, 7- or 10-year fixed-rate or adjustable loan OR you have purchased in the last few years, it would be well worth your while to give us a call to review the options available to protect your financial future. It could be time to secure a longer-term fixed-rate option so that you are shielded from future market fluctuations. Also, if property values decline due to credit tightening, it may impact your ability to secure new financing.
Give us a call to discuss your options today. We value our relationships and want to ensure that we are doing everything possible to help our borrowers make the right lending choice for their future.
Many analysts still believe that the credit crunch is far from over and that additional tightening may occur. So it is critical for you to be proactive TODAY in order to protect your financial future!
We are here to help and would welcome your call.
Wednesday, November 28, 2007
Lowest Rates in 25 Months
Lowest Rates in 25 Months
We couldn't have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years. That's right. For those of you who have been patiently waiting, here's your chance to save anywhere from $5,000 to $7,500 or even more on the mortgage financing you've been looking for. Do not miss this great opportunity to cash in on the lowest rates since October 2005.
Here's why you should act now:
Monday saw the lowest 30-year fixed interest rate in over two years. However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn't stop, climbing over 0.50% in the months that followed!
Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.
The amount that a borrower could be forced to pay, even if they've never been late on a payment, could be as much as 2.00% in points or an interest rate that's 1.00% higher than the going rate.
On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.
Choosing to wait could cost you money both in the form of higher market rates and points. This could well be the greatest holiday present you could treat yourself to this year, but only if you act fast!
Call me today for a FREE loan evaluation to determine what we can do to help you improve your financial situation before these great rates disappear.
We couldn't have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years. That's right. For those of you who have been patiently waiting, here's your chance to save anywhere from $5,000 to $7,500 or even more on the mortgage financing you've been looking for. Do not miss this great opportunity to cash in on the lowest rates since October 2005.
Here's why you should act now:
Monday saw the lowest 30-year fixed interest rate in over two years. However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn't stop, climbing over 0.50% in the months that followed!
Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.
The amount that a borrower could be forced to pay, even if they've never been late on a payment, could be as much as 2.00% in points or an interest rate that's 1.00% higher than the going rate.
On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.
Choosing to wait could cost you money both in the form of higher market rates and points. This could well be the greatest holiday present you could treat yourself to this year, but only if you act fast!
Call me today for a FREE loan evaluation to determine what we can do to help you improve your financial situation before these great rates disappear.
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