Archive for February, 2008

Charlotte Mortgage Rate Trends

I have been advising clients that Charlotte mortgage rates are beginning to trend upwards. However, many people still believe that because the Fed rate was just cut, we will see a dramatic drop in the 30 year fixed rate mortgage pricing. This is just not true.

The Fed Rate cut directly impacts short term lending. This includes rates usually tied to prime rates, such as credit cards, home equity lines and even some short term ARM mortgages. Longer term mortgage rates such as a 30 year fixed conforming loanare typically driven more by the bond market. As the price and yields fluctuate on the bond market, so go the 30 year mortgage rates. The longer term bond markets, including the 10 and 30 year bonds are usually the ones to watch.

Currently Charlotte mortgage rates are near 40 year lows. Thinking that they will have some dramatic drop may be a dangerous gamble for some. I have some clients right now that want to float their rate, against my advice. I have warned them that they may wake up tomorrow and find a steep increase in the rates… it has already done that once in the past 30 days!

So in order to help people see what is happening, I am going to create a “Rate Watch Experiment.” Over the next few days I will track and post to the website what changes are happening to Charlotte mortgage rates. You may notice changes 3-4 times a day, which in today’s market is normal. I am hoping that by doing this, the general public in Charlotte (and beyond) will get a better idea of what to expect with mortgage rates.

For more information, follow the Rate Watch Experiment.

Refinancing in Charlotte

Considering a mortgage refinance? You may be looking at just the right time. Charlotte Mortgage rates are low… very low. Charlotte mortgage rates are in the upper 5% range on 30 year fixed mortgage loans. If you have above a 6.5% rate, refinancing now could save you thousands of dollars.

Check out this example:

Old mortgage of $250,000 with a rate of 6.875% would have a P&I payment of $1642 a month. A new mortgage of $250,000 with a rate of 5.875% would have a P&I payment of $1478 a month. That is almost $170 a month less each month, and over the next 10 years it would save over $17,000! If applied directly towards the principal each month, you could easily cut almost 7 years off the length of your mortgage!

A debt consolidation mortgage could save your even more! Imagine what you could accomplish if you could cut $500 a month or more off your monthly budget! You could quickly get out of debt, pay off your home faster, take your dream vacation or build a solid savings cushion! The sky is the limit.

Let the experts of the Carolina Mortgage Connection help determine what is the best mortgage options for your needs. We will take the time to listen to you and your goals. We will then customize the perfect mortgage program to accomplish your goals as quickly as possible.

Call us at 877-411-9327 or Apply Online.

Misleading News Headlines

I have written about the misleading nature of the current news media for some time now. The news media today is no longer worried about providing real news. They are more worried about eye catching headlines and the ability to keep you around long enough to sell more advertising.

Case in point… Fox News at 10am in Charlotte NC, last night. Now I really don’t watch a lot of news as I consider a lot of it to be misleading and unreliable. But as I was doing the dishes, it was background noise. Then the teaser… “Coming up next, find out what pop idol Miley Cryus,  better known as Hannah Montana, was caught doing that makes you wonder if there are any stars your children can look up to!”

Immediately, I wonder… what did she do? There were rumors of pregancy, but I doubted it could be that. Drinking, drugs, partying, sex? What in the world would this young lady that seems to have her head on straight have been caught doing? Maybe at worst she was smoking…

“Welcome back to the News at 10. Pop Star Miley Cirus (Hannah Montana) was caught doing something that makes you wonder about teen idols.” Again… what did she do? This must be something big… they are teasing the hell out of it.. sure sounds big…

She was caught.. are you ready for this? Driving without a seatbelt! OHHHHH NOOOOO! The horror.. the shame! What in the world will we do now? How could our young girls ever look up to such a horrible example???

Or better yet, how in the world can we as intelligent people continue to count on the news media for… well, news?!?!

I share this to emphasize what is going on in the housing and mortgage markets today. Yes, there are issues and yes things need to be addressed. But if you listen to all the talking heads in the news media, the real estate and mortgage markets sound like they have crashed and burned! Why in the world would you consider buying a home in this market???

Simply put, NOW IS THE BEST TIME TO BUY A HOME IN CHARLOTTE NC! The rates on a 30 year mortgage are still around 6% or less for most Charlotte home buyers and there are so many homes for sale in Charlotte! You could not ask for a better time to make your Charlotte home purchase!

What about refinancing? NOW IS THE BEST TIME TO REFINANCE YOUR CHARLOTTE MORTGAGE! If you have a rate over 6.5%, or an adjustable rate mortgage, you really need to get a free mortgage analysis right away! With Charlotte mortgage rates so low, you could save thousands of dollars!

or Call 877-411-9327

Earlier this month, NY Times reporter Gretchen Morgenson wrote an article entitled “Lenders Who Sold and Left”. This was a great article that highlighted some of the excess and abuse that has come from the fallout of the subprime mortgage collapse. Read the rest of this entry »

Special Contribution Article

Eastover, located southeast of Charlotte’s Center City, formerly two dairy farms, (also formerly Myers Park Eastover), was developed by E. C. Griffith in 1927.  From the days of Earle Sumner Draper, the Southeastern US ‘premier’ urban planner to present day, Eastover has been the home of some of Charlotte’s most elite.  From cotton brokers to bankers to attorneys, the facilitators of Charlotte’s growth have resided in Eastover.  E.C. Griffith sought to create Eastover as a competitor to Myers Park.  Charlotte was headquarters to 770 textile mills, consuming more cotton than any other sector of the world.  In 1927, the piedmont North and South Carolina, officially surpassed New England in cotton cloth production.  Read the rest of this entry »

First Time Home Buyers!

Its time to buy your first home in Charlotte!

Charlotte mortgage rates are low and home selection is high. Government loans such as Charlotte FHA mortgages can make buying your first home in Charlotte easy! And with the new Charlotte FHA HUD Repo Program, you can buy a HUD home with only $100 down! That’s virtually a No Money Down loan for First Time Home Buyers! And you thought that didn’t exist any longer!

We have access to the best mortgage rates and programs for Charlotte First Time Homebuyers. Many of these programs are 100% mortgage loans. With FHA mortgages and VA mortgages, many home buyers in Charlotte can really get into a home with little to no money out of pocket!

If you have been dreaming of buying your first home in Charlotte, now is the time to get qualified. With great mortgage rates and first time home buyer programs still available, you can no longer afford to throw money away on rent. And with the Charlotte real estate market still going strong, you couldn’t ask for a better place to own a home!

First Time Home Buyer Programs in Charlotte, NC

Fed Rate Cuts

Will They Work?

Check out this cartoon. Click on the image for a full size…

It explains how things really happen…

Thanks to Eleanor Thorne for sharing this.

Best Charlotte Mortgage Rates

So who has the best mortgage rates in Charlotte? Ask that question and “We do” will be the answer everyone gives! So how can this be? How can everyone have the “best mortgage rates in Charlotte?”

Well, honestly we all have access to the same lenders and programs. Some banks are limited to just their own programs, so limiting yourself to just a bank may not be in your best interests. But mortgage lenders and mortgage brokers in the Charlotte area have access to basically the same mortgage loans and rates.

So what makes one better than the other?

Professional Mortgage Services

You want to deal with a professional when looking into a mortgage. You don’t want to get caught up in the fly by night broker or loan officer. As you can see, the mortgage industry has had enough of that, and many people are suffering because of it. You need a Charlotte mortgage professional you can trust!

Beware the Rate Quoter

If the mortgage person you are talking to starts off by talking about this rate and that rate, buyer beware! You are not dealing with a mortgage professional! Professional mortgage lenders in Charlotte will take the time to get to know you and your needs. They will build trust and security with you, so that you know they have YOUR best interests at heart, not their own. The idea is that by getting to know your needs, wants and goals, they can help find the right mortgage product to fit your unique and individual needs.

But I just want a Rate Quote!

Experts say you should shop around when it comes to finding the best mortgage rates. I agree, but only to a point. I do think you need to do your homework. In most cases you can get a general idea of what rates should look like by looking online. However, that being said, please keep in mind that rates shown online may be designed to get you to call… the old “Bait and Switch” type of advertising. Even some of the better websites, such as BankRate.com, that show “current mortgage rates“, are actually showing “advertised rates” by lenders paying to be on their website! In most cases these advertised mortgage rates are without any adjustments for credit, loan size, PMI, or any other criteria that may go into what makes up a rate for someone.

When it comes to comparing mortgage rates, first find a lender you feel you can trust. Interview them… see if they interview you! If they talk more than they ask, beware. They are selling to you, not listening to your needs. Once you find a lender you feel comfortable with, get their take on the best mortgage programs that would fit your needs. If what they offer does not seem to fit, talk to them some more. Maybe they missed something. If they cannot come back with another option, then it may be time to look for another lender.

With mortgage rates changing so often lately, “shopping” for a mortgage may actually cost you. Finding a professional you can trust and following their advice can save you hundreds and thousands of dollars.

So who has the best mortgage rate in Charlotte? Your trusted mortgage professional does!

or Call 877-411-9327

Charlotte Jumbo Mortgages

Loan Limits Rise

Both the Senate and House have passed the economic stimulus plan, which includes an increase in Conforming Mortgage Loan Limits to $625,000 through December 31, 2008. President Bush should sign this bill by early to mid next week and many hope that conforming loan limits will increase immediately. Others assume it will not go into effect until July. Either way, the limits will increase and they do we will let you know.

Unfortunately, FHA Mortgage Reform was eliminated from the bill and there are no permanent FHA loan limit changes. However, since FHA loan limits are a function (or percentage) of conforming loan limits we should see a temporary increase in FHA loan limits.

This is great news for the Charlotte mortgage market! Borrowers with loans between $417,001 and $625,000 could qualify to refinance their jumbo mortgage loans into new mortgages without the jumbo mortgage rate hits! Add that to the best mortgage rates in Charlotte already avalible, and jumbo home owners can really make out!

At the same time, more people buying Charlotte real estate could qualify for low FHA mortgage rates! And with the low mortgage insurance rates offered by FHA, a whole new group of home buyers can enjoy the best Charlotte FHA mortgage loans ever!

If this news affects you, get qualified Now for the better programs coming! Once they are in place, you can be among the first to refinance your Charlotte Jumbo Mortgage Loan or buy your home with the new Charlotte FHA Mortgage Loans!

Apply Online or call 877-411-9327

Charlotte Jumbo Mortgage Loan Limits Increase!

Charlotte FHA Mortgage Loan Limits Increase!

Update: Well, it seems that politicians in their infinite wisdom have made some changes to the final draft of this bill. Based on some of what we are seeing right now, Charlotte may not benefit from this jumbo loan limit increase after all. Some areas in the country will see limits increase to over $700,000! But since Charlotte is still such a strong market, we may not see the increases once thought. Once the President signs this into law, and the legal eyes of all the lenders finally get done, we will see how this impacts Charlotte jumbo loans. However, jumbo rates are near an all time low, so it is still a fantastic time to refinance your jumbo loan, or purchase that dream home you have been wanting! As soon as further information becomes available, I will pass it on to you.

Mortgage Rates are Volatile 

As you might know, I’ve been lamenting lately about the wild swings in mortgage interest rates and the difference between where rates SHOULD be and where they REALLY are.

Some of the problems are tied directly to the fact that with so many homes across the country empty or in foreclosure - and so many borrowers delinquent on mortgages - mortgage backed securities are NOT SEEN as the “safe haven” they were for the last 15 years.

Every few weeks the treasury department auctions US Treasuries to fund government debt.  The treasury bonds are generally purchased by large funds wanting to have a balanced weight in their portfolios (your 401Ks and IRS accounts).  This afternoon the Treasury held an auction for 30 year treasury bonds, and were surprised that there were virtually no bidders.  It was the worst auction results EVER for the treasury department with 90% of the bonds purchased by dealers not funds managers.  This gives the government very little options as they will obviously have difficulty issuing additional bonds to cover the new $600 per person bail out stimulus plan being debated in the Senate.

The ”no bid” on 30 year treasury bonds sent the rates on 10 year treasuries sky rocketing.  We are interested in this because mortgage interest rates generally follow the lead of the 10 year treasuries…  All of this just reinforces the fact that the FED has no control over long term rates.  They can cut the short term rates down to 1.5% - but if no one is lending money it doesn’t really matter.

Bottom line, the FED and Congress are in a pickle… and rates continue to be VERY volatile!