Posts Tagged ‘interest rate’
Did We Find the Bottom?
Hold on to your seats! Rates are heading up!
Over the past couple weeks, we have begun to see a steady upward trend in mortgage rates. Last week, rates began to worsen and we have not seen any real relief since.
Much like the gas prices, even when good news comes, the prices seem to still climb. Mortgage rates have tended to follow the news. Good economic news such as a down turn in unemployment and an improvement in the stock market would usually push mortgage rates upward. Conversely, if unemployment rates rose and the stock market fell, rates would decline. However, over the past week, we have seen a steady increase regardless of what the news says.
This makes one wonder if we have seen the bottom of mortgage rates for a while.
Last week, you could find 30 year mortgage rates hovering around 5.875%, where today given the same pricing criteria, you might see rates more along the 6.375%. (This is not an advertisement of any rate or program; rather it is for illustrative purposes to explain the rise in mortgage rates lately.)
If you are on the fence waiting to see if rates will get better, get off the fence now! Mortgage rates in Charlotte may have seen the lowest rates we will see for some time to come.
Get Multiple Mortgage Loan Offers Now! Mortgage loans for all of the Carolinas, including Charlotte, Raleigh, Matthews, Concord and more! All mortgage applications and requests are submitted through LendingUniverse.com, an affiliate partner that can provide you with multiple loan quotes and offers from lenders.
Top Ten Things to Avoid During the Mortgage Loan Process
Special Contribution Article
The Top Ten Credit Dos and Don’ts During the Mortgage Loan Process
Keep in mind the actual lender will pull their own credit report at closing, and if your credit scores have dropped, you may no longer qualify for the rate that was underwritten and the final approval may come back with a higher rate. Unfortunately, all lenders qualify you by your credit score as to which criteria you fit and every loan has different criteria attached. The loan to value, the debt to income ratio and so on etc. This is what borrowers do not understand, and they think the loan officer is baiting and switching. They are not. If an issue comes up that the lender decides you do not qualify for a certain loan, the only thing a loan officer can do is shop for lenders and see if any are willing to give the rate and program they thought you qualified for. If you have good credit and know your score, the loan officer can give you an idea what he or she can offer based on what you say. But do not expect them to stand by their quote if and when they pull your credit your scores have dropped.
Following are some helpful tips to avoid the credit mistakes that many borrowers make during the loan process:
Great Rate in 2008! Apply Now!
2008 may be your last chance to get a great rate!
Experts are saying that rates may be heading upwards, and while they are still low, the time to lock in your Great Rate in ‘08 is now!
Apply for a mortgage or refinance Now
Top Reasons to Buy a Home - NOW
Special Contribution Article
Here are the top reasons you should not wait to buy a home. There are many beautiful, affordable homes on the market in the Carolinas. Take advantage of time off during the holidays and look for homes to buy now.
1. UNBEATABLE INVESTMENT.
Even in down markets, over the long term home prices still appreciate more than the stock market.
2. LOW INTEREST RATES.
Rates remain at near-record lows; you can lock in a payment that fits your budget. Read the rest of this entry »
First Time Buyers: Creative Ways to Save For a Down Payment
For the last five years, many homebuyers have only needed enough money for a home inspection, a earnest money deposit and a appraisal to buy a home. Unfortunately, last quarter’s mortgage meltdown caused the mortgage industry to act swiftly to make it a little more difficult for first time buyers to purchase their first home, but not impossible. Read the rest of this entry »
Truth in Advertising
Driving down the road today I heard the funniest commercial.
A local spa that offers body wraps claims that you can lose 7 inches in one visit. That is a tremendous claim to say the least. But what struck me as funny was the serious claim in their guarantee…
They absolutely guarantee that you will keep those 7 inches off! As long as you dont gain weight.
I just thought this was a funny thing and laughed for quite some time. Is that where we are in “truth in advertising?” What can I offer in this fashion?
- The Foreclose-Free Guarantee: “The lender will never foreclose on your loan. (as long as you make your payments on time.)”
- 100% APPROVAL ON OUR SPECIAL ONE TIME PAYMENT MORTGAGE: “We offer 100% approval to all borrowers that will pay the mortgage loan off in 1 simple up front payment… Cash is preferred.”
- The 0% Interest Rate Mortgage: “You are guaranteed to pay NO INTEREST on your mortgage when you make one easy payment of 100% of the total balance on the day you buy or refinance your home.”
I know, these are all silly, but that one commercial made such a big deal of such an obvious truth. Does the general public really fall for that?
Personally I think the public is smarter than that. As such, I treat all my customers with the ultimate in respect for their intelligence. And when they may not be as educated on certain areas in regards to home loans, I take the time to inform them so they can make a solid decision.
No smoke and mirrors… after all… “when time and money really matters”… you want someone you can trust!
So folks, for real truth in marketing and in home finance, give the Carolina Mortgage Connection a call. 877-411-9327.
Ed
Charlotte 14th in Nation for Affordable Housing
The reality of real estate is that real estate is really local.
This basically means that you can’t judge what’s going on in your neighborhood by what you see on the nightly news in California! If you live in Charlotte, NC and the surrounding areas, you will want to read this!
Forbes Magazine ranked Charlotte, NC as the 14th most affordable housing market in the nation! That means that Charlotte homes are some of the most reasonably valued homes! With the solid job market and the great wages available, buying a home in Charlotte is very affordbale!
More good news! Forbes Magazine has also ranked the Charlotte Real Estate Market the 4th strongest market in America! This means that you are currently in one of the strongest markets in the country. Now before you discredit this ranking, Charlotte, NC is the 4th strongest real estate market in growth with and average growth of over 8%! HELLO! Charlotte real estate is still strong!
So if you have been putting off taking advantage of what is a buyer’s market for fear of what has been in the media, now is the time to turn off that tv and start looking for a home in Charlotte! You can’t afford to let this opportunity pass you buy! With Charlotte mortgage rates at their all time lows, you simply need to act now!
Let the experts of the Carolina Mortgage Connection help you get qualified to buy a home today! We know home loans in Charlotte!
More info on Increasing Mortgage Costs
“Ask and ye shall receive”
I recently posted about the delivery fees that Freddie Mac will be imposing on loans with score below 680 and LTV’s above 70%. With that report, I have been asked several times how this will work… Will the borrower need to have an additional 2% for closing? Will this be paid in the rate? How will this work?
I do not have any “official” word, but here is how it should play out…
The delivery fee is charged to the seller of the loan… i.e. the lender. So, for example, if the lender is Wachovia or Countrywide, when they sell the loan to Freddie Mac (and even Fannie Mae) they will have to pay a delivery fee according to the borrower’s score and LTV. I assume this will be deducted from the money they earn when selling the loan back to Freddie / Fannie.
This will apply to all loans sent to Freddie / Fannie regardless of who originates the loan.. in other words, brokers and bankers alike will have to deal with this. It all comes down to when the lender sells it to Freddie or Fannie on the wholesale end after it is closed.
Now, how will it be addressed? The cost will most likely be included in the rate. The feedback I am getting is that when a loan is priced and locked, the delivery fee that the lender will need to pay will be included in the lender’s yield from the rate. So if Wachovia, for example, is getting 2% in yield when they sell to Freddie, but the new fee will eat up 1% of that yield, they will lock the rate to the borrower with a higher yield to net the same money. This would result in a higher rate to the borrower.
In other words, a better credit score will now definitely yield a better rate to the borrower! And those with moderate credit (640-680) will be impacted by this. Below 640 has already felt the crunch and will feel it even more so.
Now, one thing to consider… and please pay attention to this: The delivery fee will be imposed on lenders selling their loans to Freddie / Fannie after March 1, 2008. HOWEVER, we will start seeing the rates increase sooner than March 2008, maybe as early as DECEMBER because the loans closed in December/January may not actually get delivered until around March! So NOW IS THE TIME FOR BUYERS TO GET OFF THE FENCE!
For more information on mortgage and home financing, or for help in the Charlotte NC area, please contact Ed Nailor with 1st Metropolitan Mortgage- your Mortgage Loan Specialist.
_________________________________________________
Ed Nailor
Home Loans in Charlotte
1st Metropolitan Mortgage
10801 Johnston Rd Suite 213
Charlotte, NC 28226
704-248-8694 Phone
visit http://carolinamortgageconnection.foundbydesign.net/
Inside the Money (a look at the mortgage industry) 11/21/2007
This week Inside the Money:
- Freddie Mac announces Higher Costs for Mortgages
- Rates remained relatively level
- Subprime is making strides
- It’s still a great time to buy or refinance!
Freddie Mac announces Higher Costs for Mortgages
Freddie Mac announced that beginning March of 2008, it will impose “delivery fees” to lenders that write loans with credit scores below 680 and with loan to values over 70%. The fees will range from 0.75% to 2% of the loan amount on a sliding scale of credit score ranges. No word yet as to the ability to “roll” these fees into closing costs, or if the lender itself will just charge a higher rate to provide greater yeild to pay this fee. We will see as we get closer.
Rates remained relatively level
Rates over the past week have held fairly steady. The average 30 year fixed mortgages were hanging in the low to mid 6% range (including FHA). With recent announcements of Freddie Mac and Fannie Mae losses, one can only expect that these rates may begin to move upward soon, however I would expect it to be a gradual move if this happens.
Subprime is making strides
Believe it or not, the lenders still in the subprime market are beginning to make strides. Rates are falling, although very slowly. And credit score requirements are beginning to come back down. For a while you needed to have a 680 score to get 90% with many subprime lenders, and then you were looking in the 9-10% range with many of them. Pricing is slowly coming back and minimum scores are being lowered, however most subprime lenders are still shying off from 95-100% loans. There are a few, but most of these buyers can also qualify for a Fannie Mae type loan and save money there.
It’s still a great time to buy or refinance!
Even with the “mortgage crisis” and the tightening of liquidity in the market, rates are still near record lows and holding fairly steady. There are a ton of mortgage products for nearly any buyer, although those with major credit issues may need some work before buying. And home selection could not be better. For anyone thinking about buying a home, now is the time to make your move. Opportunity is knocking very loudly.. don’t ignore it!
For more information on mortgage and home financing, or for help in the Charlotte NC area, please contact Ed Nailor with 1st Metropolitan Mortgage- your Mortgage Loan Specialist.
_________________________________________________
Ed Nailor
Home Loans in Charlotte
1st Metropolitan Mortgage
10801 Johnston Rd Suite 213
Charlotte, NC 28226
704-248-8694 Phone
visit http://carolinamortgageconnection.foundbydesign.net/
Get pre-approved to buy a home in Charlotte NC today
Time to Refinance?
Special Contribution Article
If you closed on your mortgage loan with National Mortgage in May of 2005 or May of 2003 - you are probably going to get a call from me in the next week.
It’s time to consider refinancing your home, because your mortgage will reset in the next 60 days. WHAT DOES THAT MEAN?? When your mortgage resets it means that the payment is going to change. If you have a 4.5 percent interest rate (and many of the 3 and 5 year arms had those start rates) the mortgage holder will take your Index and add the Margin and then calculate the new payment.
Many of the loans we made have 2 percent caps on the payment adjustment, meaning your 4.5 percent loan will likely go to 6.5 percent for the next year. PLEASE CHECK because some of the loans we made through Wells Fargo have 5/2/5 caps. THIS MEANS that your First Year Adjustment could go up as much as 5 percent!!
Most of the loans we made have LIBOR as the base Index. Unfortunately, it has not gone down in recent months. THIRTY YEAR fixed rates, however, are near 5.5 percent! All of the bad news for the economy is working in YOUR FAVOR!
The other thing to consider is legislation pending in the Senate. The new Predatory Lending Legislation has a provision that PROHIBITS no cost refinances…
So - when I call be ready to talk about what your new payment is going to be and let’s see if it’s time to refinance!