Get a Wholesale Rate Quote!
In this day and age of technology and sophistication, it still confounds me that the community at large believes that somewhere out there, there is a better "deal" to be had. As much as I hate to use the term "deal" it is used often by people in our industry and the public at large. Referring the best price on a home mortgage, of course, everyone wants the best "deal", but is that possible? When I work with my clients, as I have for 18 + years, I have found that it is beneficial not only for them, but for myself as well, to provide them with a
wholesale rate quote. This brings up many interesting questions and possibly concerns about proprietary information, etc., etc., however I prefer to remove myself from the position of sales, educating my customers, making them responsible for the price they choose.
Let me explain.Typically mortgage brokers, bankers and lenders post prices on various loans for consumers with few if no options. As a mortgage broker, I provide the wholesale pricing guides to my clientle so that they can make the decision as if they were the loan officer. This removes my job as salesman, lowering my risk, and placing me on the consumer level, responsible now, for advice on the best way to package the loan, the varous benefits regarding the many types of loans, the argument of high rate-low fee vs. low rate-high fee and everything in between.
Each institution no matter how big or small, ultimately in some form or another sells their loan to FNMA, FHLMC (Gov. Sponsored Loan Agencies) or some other major market conduit.
Essentially, what I am saying is "we all go to the same well for the same bucket of water ".Follow this link
Wholesale Rate Quote and get your wholesale rate quote, then you decide on the rate and points and I'll advise you on how to package your mortgage and get it closed.
Refinance out of your ARM Now!
Mortgage industry leaders have a warning for people already struggling to make their adjustable-rate mortgage payments: Get out of them now.For many homeowners who bought a home three years ago during the low rate trend, this might be the first big rate adjustment, and it's a doozy
Adjustable-rate mortgages normally start at a lower rate than the traditional 30-year fixed-rate mortgages, and are periodically adjusted to reflect current interest rates — and there are hundreds of different types.
But for many people who bought a home three years ago during the low rate trend, this might be the first big rate adjustment, and it's a doozy.
For those who had been paying about 4 percent interest, the rates could jump to 8.5 percent or 9.5 percent when the rates reset. "It's going to double the payment," said William Hobbs, senior loan officer with Carteret Mortgage Corporation in Manassas, VA. "They could literally see their mortgage double this year."And that's just the first adjustment.
The increases are happening in part because the Federal Reserve has raised short-term interest rates 15 straight times since June 2004. While many adjustable-rate mortgages, known as ARMs, cap increases at 2 percentage points per year.And therein lies the potential disaster.
While ARMs were designed for short-term buyers, Hobbs said many people have used the lower introductory rates as a way to buy a house for the first time. Average interest rates rose last week to 6.49 percent on a 30-year fixed-rate mortgage, according to Freddie Mac, the nation's second-largest mortgage lender. That's up from an average 5.89 percent at this time last year, and it's the highest average since July 2002.
The best advice at this time, is to refinance out of your ARM before it makes that first initial adjustment, get into a 30,20 or 15 year fixed rate while the rates are still relatively low. Use the
Refinance analysis calculator to determine what your savings will be. Then apply online or call Bill Hobbs at 888 702-0652
Interest Rates are Up
McLEAN, VA --
Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 5.98 percent, with an average 0.5 point, for the week ending October 6, 2005, up from last week's average of 5.91 percent. Last year at this time, the 30-year FRM averaged 5.82 percent. This is the highest the 30-year FRM has been since March 31 when it averaged 6.04 percent.
The average for the 15-year FRM this week is 5.54 percent, with an average 0.5 point, up from last week when it averaged 5.48 percent. A year ago, the 15-year FRM averaged 5.24 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.48 percent this week, with an average 0.6 point, up from last week when it averaged 5.44 percent. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.
One-year Treasury-indexed ARMs averaged 4.77 percent this week, with an average 0.6 point, up slightly from last week when it averaged 4.68 percent. At this time last year, the one-year ARM averaged 4.08 percent.
"Mortgage rates have been rising for the last four weeks on inflation jitters caused in part by extended high energy costs. Still we need more concrete data to predict the direction of the national economy, including mortgage rates," said Frank Nothaft, Freddie Mac vice president and chief economist.
"That said, we do think that the economy will continue to grow, albeit at perhaps a slightly slower pace than in the recent past. Mortgage rates will most likely continue to rise with the expansion of the economy."
Fannie Mae Authorizes Purchase of 40 Year Mortgage Loans
When new cars cost $5,000 consumers took our two or three year car loans. Now they are commonly a five to seven year commitment. Likewise mortgages, which, four decades ago were amortized over 20 years, then 25 years, and now commonly 30 years, may soon have a new standard: 40 year home loans.
After test marketing a 40 year mortgage for some months, Fannie Mae announced last week that it will begin purchasing them. The Corporation acknowledged that changes in "housing market affordability and requests from (our) lender partners" led to the decision to extend the maximum loan term on certain loan products
Fannie will now purchase 40 year fixed-rate mortgages and 40-year hybrid adjustable rate mortgages (ARMS) with initial fixed periods of three, five, seven, or ten years. Not included in the new purchase standards are biweekly mortgage products, loans secured by manufactured housing, loan to value ratios greater than 95%; and ARMS with initial fixed rate periods shorter than three years (including the popular 1-year ARM) or with any subsequent adjustment period greater or less than one year. Also on the no-fly list are negative amortization loans
Forty-year mortgage loans are not new, they have been tried, even promoted in years past and some lenders have continued to write them in special circumstances. When test marketing began a few months ago a number of mortgage pundits soundly denounced them because of the greater interest costs over the life of the loan. Conversely, however, the much lower monthly payment may make the 40-year a good choice for homeowners who have a limited time-frame in which they will own the home or keep the loan. Regardless, with Fannie opening its part of the secondary market to them, look for mortgage companies, banks, and brokers to start strongly marketing various 40-year loan products to consumers.
