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Mortgage Blog

2009 a review of the year.

January 5th, 2010 12:00 PM

Much has changed in the mortgage business over the past year or so. We are dealing with new regulations, new stricter guidelines for loans, new licensing and continuing education requirements, new appraisal guidelines (HVCC), bank closings, home foreclosures, decreased property values, FNMA AND FHLMC being taken over by the Fed and MI companies filing bankruptcy. Meanwhile the FBI has shut down some companies for fraud, etc.

This can add to our stress level and add time to the loan process, as well as additional costs to the lender and borrower.

In light of all this, you still have 30 year fixed rates in the low 5.0% range. If you can refinance, it may lower your rate and payment substantially. Home values have gone down or leveled off, so often the important question IS what is the value of your home? or do with have sales data to prove the value?

The MI companies have changed their rates due to the tough time they are having keeping above water with all the foreclosures. Speaking of being above water, the flood of June, 2009 in the southern half of Wisconsin didn't help. That added more time and appraisal reviews to get loans closed.

A year ago, loans that would have been a "no brainer" are taking more documentation and more time.

The GOOD NEWS is that rates are low. The Federal government is offering a credit to home buyers in the amount of $6500 or $8000 for first time home buyers. It's a great time to buy.

Posted by John Matthews on January 5th, 2010 12:00 PMPost a Comment (0)

Mortgage rates are dropping?

January 20th, 2010 3:27 PM

30 year fixed rates are back down to 5.125% again with NO points

The downward movement looks stronger now and it seems that it could hit 5.0% anytime now. It's on the low side of 5.125% today.

This is some of the economic data I read today:

"Wednesday's bond market has opened in positive territory following the release of favorable economic data and early selling in stocks. The stock markets are reacting to some disappointing earnings results and the same economic data that is fueling the early buying bonds. The Dow is currently down 175 points while the Nasdaq has lost 40 points. The bond market is currently up 10/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point.
If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opini on and cannot be guaranteed to be in the best interest of all/any other borrowers."

This reporter seems to think that rates will STILL go lower. The negative news about unemployment, housing starts and producer prices all seems to be saying rates will go lower.

Hopefully, we will see a further drop in rates this week.

Posted by John Matthews on January 20th, 2010 3:27 PMPost a Comment (0)