Pros and Cons of Bi-weekly Payments

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.

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.

Mortgage Update

After a shortened holiday week mortgage bonds are basically where we started on Tuesday. Next on the economic calendar building permits and housing starts come out mid-week, which are not a high impact, but moderate, for mortgage bonds and interest rate pricing.

You are receiving the weekly mortgage market updates sent out on Mondays. I highly recommend taking 5 minutes to start your day to keep yourself up to date.

This week we found that investors are coming back to the market with new programs for “expanded criteria”. Expanded criteria loans are for borrowers who do not fit into the typically 20% down, high fico, money in the bank, verifiable income profile. This is great news as we continue to see the credit markets shift. If you have any questions don’t hesitate to call.

What Are Closing Costs? Mortgage Rates 11-2007