Posts Tagged ‘mortgage rates’

Charlotte Mortgage Rates Drop!!!

“Treasury prices rallied Thursday after new reports showed the economy barely moved forward at the end of last year and that jobless claims rose last week,” this according to CNN Money. The report shows that Treasury bonds reacted in a favorable way for Charlotte mortgage rates early this morning.

By the end of the day, rates had increased slightly, but very minimally! So by the end of the day, the same rate as yesterday would cost a lot less, or even allow for a lower mortgage rate!

If you have been on the fence about your mortgage rate options, now is the time to make your move. Rates are not as low as they were just a few weeks ago, but they are very close. I personally believe they will begin to rise again, so now is the time to fix your adjustable mortgage rate, refinance your Charlotte mortgage with a lower rate, or buy that dream home in Charlotte with lower payments!

Fed Rates to Lower?

The Charlotte Observer published an artice this morning in which they noted that Bernanke has stated that the Fed is ready to lower the rate again should the need arise. The article had an overall feel to it that this would happen sooner than later.

This is great news for credit card holders, home equity line owners and some short term ARM mortgage holders. The Fed rate is most applicable to the Prime Rate which many of these types of loans and credit are based. However, for those of you seeking a 30 year fixed mortgage, do not expect that this type of rate cut will impact the overall mortgage industry.

Bonds not Fed Rate

30 Year fixed mortgage rates are normally based on the yields of the 10 and 30 year Treasury Bonds. Their performance on the Bond Market is what will determine the pricing for mortgage rates, especially your longer term rate programs.

The bottom line is this… Make your move now. 30 Year mortgage rates in Charlotte are at all time lows! Now is the time to lock a rate and buy or refinance your home! Don’t wait for some magical rate drop… I doubt you will see that materialize.

Apply now and lock in the best mortgage rates in Charlotte now!

877-411-9327

Charlotte FHA Limits

$230,470 is Charlotte’s FHA Mortgage Limit

Yesterday, President Bush authorized the Economic Stimulus Package. In addition to the checks going out to the American public, this package permitted Jumbo loan limits for some areas of the country to be increased temporarily. Since Charlotte’s increase did not surpass the standard loan limits for jumbo loans, we did not gain any increase in the jumbo market. However, the FHA loan limits did increase for the Charlotte-Gastonia-Concord, NC-SC MSA!

Charlotte Areas with New FHA Limits 

This means that properties for sale in Mecklenburg county, Union county, Cabarras county, Gaston county, Anson county and York county now qualify for FHA mortgage loan limits up to $230,470. With the minimum 3% downpayment requirement by FHA, that means a Charlotte home currently for sale for $237,597 can be financed with FHA loan parameters with only 3% down. And until the end of March, we still have access to down payment assistance for Charlotte FHA loans, so you could end up with a new home with no money down!

This opens up a new window of opportunity for Charlotte home buyers that should be considered. FHA mortgage loans are not credit score driven and in many cases the low FHA mortgage insurance can save a home buyer a lot of money! And with great Charlotte FHA mortgage rates, today’s home buyer really needs to look into getting pre-approved for a Charlotte FHA mortgage!

To get pre-qualified for a Charlotte FHA mortgage,
call 877-411-9327 or Apply Online Now.

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.

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

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!

ATTN: POTENTIAL CHARLOTTE NC HOME BUYERS

NOW IS THE TIME TO BUY!

Seriously, what are you waiting for? Your Charlotte home search just got simple. Heck, get out and drive any neighborhood you like and you will see at least one home for sale! It is amazing just how many homes are for sale in Charlotte! The selection we have right now is not like anything we have seen in quite some time! And sellers are willing to negotiate! THIS IS A BUYER’S MARKET!

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Earlier today, mortgage rates dropped big time. The bond market had taken a big hit and that forced mortgage rates down considerably. However, by mid afteroon, bonds had rebounded and mortgage rates took a big swing up. A jumbo loan that I had quoted at 5.75% by the end of the day turned into a 6.125% rate!

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