Posts Tagged 'Mortgage Rates'

President Obama:7-9 Million Homeowners should take advantage of Low rates

President Obama speaks to the nation on today’s low Mortgage Rates. Check it out here: http://www.msnbc.msn.com/id/30135793/

The rates on mortgages have been all over the board but they have remained low. If you have not talked to your mortgage professional about your loan you may be missing the boat. Don’t wait for the perfect moment because it does not exist. The math will tell the truth.

Consult your Mortgage Professional Now!

As Always thank you for Reading,

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Mortgage Locks: Certainly Uncertain! 3 Tips on locking your Mortgage.

When is the best time to lock in my mortgage rate? After all rates are at 3.95% are they not? Heck I think I should wait because the stimulus package is going to help me out and lower the rates to zero. My friend said that they got 4.5% yesterday and I want that rate. I heard that the fifteen year fixed mortgage is 4%. I read in the news that my loan can be modified to as low as 2% and I would like to do that right now can you help me.

OK, I am getting a little redundant but the point to all of the above ranting is simple. Rates are all over the map and they are custom tailored to the individual, the property, and the time that you are acquiring your loan. It is a common question to ask your professional is today the day that I should lock? If they state that absolutely without a shadow of a doubt today is the best day Run!

Larry Baer of Market Alert has this to say: The Market is always right! You and I are some of the time.

In layman’s terms that means to me that you will never be able to time the market and there will always be a rate lower than yours and there will always be a rate higher than yours. Here are three tips that will help you in your decisions to lock your mortgage:

1) If you like it, Lock it – I am a huge proponent of this tip alone. It is your mortgage and your payment that you have to live with for the next thirty years. If there is a payment that you are comfortable with and you like the rate then lock and never look back. Rates are changing by the minute. A swing is rate of a .5% for the worse on 200K is about $62 a month. We tend to think about how much it could go down but I encourage you to remember that we are at historically low interest rates and any rate is a good rate.

2) Don’t Share your business with Friends and Relatives – I am not saying not to be excited about your new home purchase but I am saying to be selective about your excitement. Comparing rates and down payments and programs is certain to hurt someones feelings. As I said before there are always lower and higher rates than your own. If you are the higher rate you wonder why and second guess a good thing and if your lower your celebration has caused others to second guess their dealings. How often do we share our retirement funds or down payment options, or income and credit? That is right we keep the information that tailors our mortgage to ourselves and shout out our rate. Only you and your family have to be excited about your finances and the rest of the world can remain in the dark.

3)  Ask your Broker or Banker about Float Down Policies or Rate Renegotiation Prior to Locking – Many of the wholesalers have taken a proactive approach to the market changes. They do not want to lose your business because that costs them money. In order to keep the loan active they are  sometimes willing to renegotiate the terms of your lock. Other wholesalers have a float-down policy in place. They will allow for a float-down of the rate to current market. There is almost always a cost to do this so consult with your Mortgage Broker or Banker on how this applies to your Mortgage.

Just Remember that your Mortgage is yours. It has to work for you and noone else. It is important to be educated and confident in your choices. Choose a Mortgage Professional that makes you feel comfortable with those decisions. You have made a great choice to buy in the current market environment. Take control of that choice be proactive in your education and trust your choices.

As Always thank you for reading,

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Oh Where Oh Where will interest rates go?

Seems to me the big talk on the town is what are the rates today and when are the 4% rates coming to town? The answer is I don’t know when the low rates may come or if they even will. The Stimulus Bill has been passed and many expect that to push rates to the all time low 4%. I am not saying that it could not happen but rates today were 5%. What we are waiting on is a 1% drop in rates. That is a big drop.

For rates to drop to this level several things have to occur. Not only does the FED have to buy Mortgage Backed Securities in Bulk but they would also have to deliver verbiage that would make the investor happy. Yes, I have seen the FED control monetary policy verbally. There is a lot of power in the statements the government makes and they have a large affect on the appetite of our investors.

The one thing that I would like to impress upon my buyers the most is that rates trade within a range. There is a high and a low end of this range. Frequently throughout the day or the weeks the rates will trend up and down inside this range until something significant moves the range. Of late the range has been the low to mid fives. These are awesome rates and one should be happy to have a mortgage in the fives. Briefly, I saw the range drop to 4.5-5% but that was very short -lived.

As a buyer you must be aware that the locked rate is attached to the collateral or in your case the property that you would like to purchase. While you are looking interest rates can change several times within a range or even have a range change. Please be in contact with your loan officer to make sure that you know this range and that you  are comfortable at the high end of the range. By doing this you are insuring against a rate moving causing the home you want to be pushed out of your price range. Plan for the worst of the range and your home buying experience will be pleasurable.

No one really knows where rates are headed as “noone” has a true grasp of what is going on right now. The best one can do for themselves is prepare. If you like the home and you are comfortable with the rate and the payment then the time is right for you. Trying to time the market is a guaranteed disappointment. There will always be something that could cause you to say “Iwish I had………”

Timing the market is buying when the time is right for you.


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