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30 yr fixed..........................
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5.875% best rate
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| 5/1 Adjustable...................... |
higher than 30 year fixed
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General levels are provided above. Rate can be guaranteed and locked upon our receipt of your application.
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So exactly what would your rate be? That's the most commonly asked question, and it's understandable. But also understand that each rate is a custom rate quote and will vary from borrower to borrower based on many factors. But do know one thing......if you've worked with us before, you know we give good value for our services, and we work on a lower profit margin; lower than the banks and the internet lenders can afford to do.
So here's what we need to know to give you accurate rate quote that can be locked and closed:
How much is the property worth? What would you like the loan amount to be? How long do you want the interest rate fixed for? What is your credit score? What is your debt/income ratio? Can you document your income? All of these factors matter. If we know where you stand on these we can be accurate with a quote. And if you've received a quote without the lender knowing or asking this information, it probably isn't accurate.
Waiting for the World to Change and Other Refinancing Mistakes
adapted from article by Janet Guilbault, California Mortgage Expert
We recently caught a rare glimpse of what lies beneath the surface of the current mortgage mess. There is a silent majority that has not walked away from their mortgage. They have stayed, paid, and prayed. And....they WANT to refinance. They have not yet figured out how to make that happen, soe they have remained silent. They wait for rates to drop even though that isn't the reason they need to refinance.
When the words "lower rates" were mentioned as part of the Fannie/Freddie takeover by the Federal Govt., phones rang. A half point drop brought refinance candidates out into the open....
The silent majority are unhappy with their real estate situations. They want to eliminate risk and enhance liquidity. For many, these things are important enough to make "better rate" a distant third choice as a reason to refinance.
Many risks are present today...the risks of adjustable rate mortgages and home equity lines, the risk of home values dropping, the risk of not being able to qualify due to tightened credit qualifying guidelines, and the risk that open credit lines could be frozen by the lender at any time.
In times of uncertainty, liquidity is a prime concern also.....as in loss of liquidity due to a home equity line being frozen or the inability to sell or refinance a home due to declining values, or restrictions on or ellmination of many mortgage products.
OLD SCHOOL THINKING: waiting for rates to drop 2% to refinance because that is what you've heard is the way to do it.
NEW SCHOOL THINKING: thinking through your goals and needs in refinancing and allowing your mortgage pro to lock in a low rate when a LOW DAY comes along.
New types of refinances are here....ones not just dependent upon lower rates. These are the cash in (vs. cash out) refinance, refinancing to a higher rate to gain a lower payment, and the refinance from a conventional to an FHA mortgage.
Getting a Mortgage Closed These Days
I recently saw on a mortgage post a great blog about how Realtors, in these tough market times, should be seeking out experienced, professional and effective mortgage brokers rather than the other way around. The points in the post also apply to those prospective borrowers looking
to buy a home or refinance existing mortgages.
All mortgage programs are pretty much the same today. The exotics are gone. All lenders have the same programs, but you must search out a lender that has the talent and experience to get your loan closed. It takes a well-packaged loan, a thorough loan interview, and then
the ability to correctly convey the borrower’s financial story to an underwriter to get approval.
There are so many things that can blow up your loan today. Some may seem very small. They aren’t.
Today, it’s not about programs and rates. It’s about knowing the loan programs and then the loan originator executing to achieve a successful closing. You need to be dealing with this type of originator.
Steve's Market Blog
Digesting.... That's what the bond/mortgage market is doing at the moment. The election is behind us. The myriad Govt. bailout and stiumulus programs have yet to take solid hold. And new programs to avoid foreclosures and another stimulus package for consumers are being developed. In the meantime mortgage rates are pretty steady but there's still room for them to come down. ST 11/11/08
5.875%....5.875%....5.875% This is a nice number. Happens to be the current 30 year fixed rate....Down from 6.375% just a week ago. Nice. I thought this would happen and yesterday the drop really accelerated. Not clear if tied directly to the election. Rate of decline has slowed today but I think a slow slide in rates should continue.....It seems to many that the biggest plus coming out of the change in Pres. is what is likely to be a pick up in consumer confirdence and attitudes. That should help everything from housing to employment to the stock market.... ST 11/05/08
What's it going to take to bring rates down? It's a little unsettling to see mortgage rates as volatile as they have been. A more stable pattern probably won't emerge untel we get to a period where no government initiatives are announced. These programs inject additional uncertainly into the market. And another event of uncertainty that we'll get past this week is the election. Keep looking for a decline in rates. It will come as the volatility calms down. ST 11/01/08
Doesn't anybody like to buy mortgages anymore? Boy, it seems like the money has dried up. As demand for FannieMae mortgage bonds falls, the yield (rate) on those bonds rises....and so do mortgage rates....Up to 6.375% today and up .5% in about a week. I still think better times are ahead on rates, but it's going to take a little longer than I thought to get there....ST 10/30/08
Go figure..... Fed meets tomorrow and is widely expected to cut the overnight rate by .5% to 1%. This will be great for those with home equity lines and variable rate credit cards....BUT, over the past two business days, 30 year fixed rate mortgages have spiked up by .5%. ! All of a sudden the yield spread between mortgage securities and Treasury bonds widened and it has filtered down to mortgage rates. 30 year 6.25% for now......ST 10/28/08
Where rates could head, and foreclosures.... Read an interesting analysis today. FannieMae bonds are still about 1.25% higher than their normal spread over Treasury bonds. Govt. now controls Fannie and the bonds should trade closer together. When that happens, and I think it will, mortgage rates could drop .75% or so just on that action. That would put mortgage rates about 5.25%. Something to lookforward to and get ready for.....You'll hear the headline tonight and read it tomorrow: Foreclosures are up 71%. That is, over the same time last year. This is true but probably not relevant. Mortgage foreclosures in Sept. vs. August werre DOWN 12%. That's significant and a good trend. CA was down 31% and MI down 22%. The month to month data is important and shows improvement and benefits the entire real estate market.... ST 10/23/08
Calmed down....and rates are dropping! 30 year down below 6% again. No dramatic news to cause this.....No new bailouts yet. It appears that the market is beginning to respond to the many government stimulus programs that have been put in place...... ST Oct 21
New homes and interest rates.... Oct. 17. News this morning that constuction starts for new homes fell to a 17 year low in Sept. And the media paints this as bad news. It isn't. We want fewer new homes built and the homes for sale inventory to burn off......Other good news: interest rates are falling ever so slowly. 30 year down to 6.125%....I expect this to continue....ST
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