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Archive for Mortgage – Page 13

Mortgage Rates Reach Another All Time Low

By BankAim · Comments (0)
Friday, July 30th, 2010

Mortgage Rates have steadily declined, setting new record lows since mid June.

According to the Freddy Mac Primary Market Mortgage Survey rates are now at there lowest in the history of this survey.

*Term August 16th August 6th
30yr fixed 4.19% 4.31%
15 yr fixed 3.43% 3.48%
5/1 ARM 2.92% 2.86%

The average 30 year fixed mortgage just above 4.5%.  Just 6 months ago it was over .50% higher, sitting at 5.09% on January 7th.

The 15 year mortgage is just about to break below the 4% average.  At the beginning of 2010 the 15 year rate was 4.50%

The story is no different for the 5/1 ARM.  Dropping from 4.44% on January 7th to 3.76% now.

For 6 straight weeks mortgage rates continue to dip into record lows.

Are you planning on purchasing a new house or refinancing your current mortgage?  Now is a great time, and remember to checkout our mortgage help page for all the help you need.

*The Graph on this page updates regularly with current rates. It may or may not reflect information congruent with this article.

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How to Choose the Right Loan Officer

By BankAim · Comments (0)
Sunday, July 25th, 2010

Are you planning on purchasing a home or refinancing your home soon?  If so then you will need an educated, hard working, competent loan officer.  But how do you find a loan officer with the right qualifications?

Getting the Wrong Loan Officer

First off let me explain to you the headache it can cause if you get a poor loan officer.  You are putting all your eggs into one basket when you pick a loan officer.  If you are using a broker the LO will select a bank, issue the paper work, follow up on conditions and pretty much has a hand in every aspect of the loan.  Not to mention they will have access to all your personal information.  If you use a bank the LO may or may not be as involved, but will have access and most the responsibilities as a broker.

If the LO is slow, a poor communicator, unorganized, doesn’t enjoy what they do, these things will make your experience terrible and frustrating.

I have worked along side some Loan Officers that I wouldn’t even trust to make me a sandwich, so choose wisely.

Where to start?

The absolute best place to start looking for a loan officer is with trusted friends and family.  Referrals are the safest way to go.  If you know someone that has had a bad or good experience talk to them.  If you think you don’t know of anyone that can refer you to someone ask around, you may be surprised.

If referrals from friends and family don’t pan out check with a real estate agent.  A real estate agent does a lot of work with loan officers and typically want to work with the best.  Now you need to be sure the real estate agent isn’t a dud themselves, but otherwise they could be a great source.

Interview

It is okay to ask your prospective loan officer some questions before working with them.  Here are a few questions you could ask…

  • How long have you been a loan officer? - Experience can be a big factor.
  • How many loans are currently in your pipe? - You want to ask this because you want someone who is moderately busy working on your loan.  If you get someone who has 0 or 1 loan in their pipe the danger is that they don’t have enough to keep them busy and may have distractions elsewhere.  Too many loans may mean they are too busy and won’t have time for you.  A good loan officer typically has about 2 -12 loans going.  Within that range is doable.
  • How will you disclose Yield Spread Premium to me? - This is a question that will separate the best from the average.  If you don’t know what yield spread premium is jump over and read our mortgage help post.  Look for a loan officer that will fully disclose the details of the loan and give you a straight answer.
  • What is your origination? - A good loan officer deserves 2% – 2.5% on the loan.  Typically that is divided between 1% on the front (origination) and 1% – 1.5% on the back (yield spread premium).
  • What has been the average amount of days to close your last 10 loans? – Now this could vary greatly because of the many different scenarios and condition of banks which are lending the money.  30 days used to be pretty standard, but 45 days has become more normal.  This is due to more guidelines and regulations that the lenders are requiring.   On normal purchases and refinance it should be in the 25 – 45 day range.  Short sales and other types of loans may take longer.
  • How often will you contact me? - The best answer you could hear is, “How often do you want me to contact you?”
    • Now the big test is asking them to follow up with you once or twice by email and once by phone after the meeting is over.  You have not agreed to anything yet, you just want to see if they will indeed follow up.  Give them precise times to contact you.  Something like, “Can you follow up and email me Tomorrow Morning around 10am, and can you give me a call in 2 days at 3:30pm?”
    • This will test their organization and ability to contact you when you ask.

It is completely okay for you to interview prospective loan officers.  If you had $100,000 to invest you would want someone who knew what they were doing.  Well getting a good loan officer who can get you the best deal can save you thousands and thousands of dollars over the life of your loan.

If you have any tips, stories, or great loan officers in your area please leave us a comment. And if you are from Washington State we recommend Clark Davis from Mortgage Master.

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Mortgage Rates Update – July 19th

By BankAim · Comments (0)
Monday, July 19th, 2010

Mortgage Rates dipped slightly after a week of raising rates.  Rates are still sitting at some of the lowest rates we have seen in a long time.  Due to the recession and fears of a double dip recession rates continue to remain in the low to mid fours.

Last week rates were on the rise due to high corporate earnings reports.  This week they are dipping back down.  Do not hesitate to lock in your loan.  These are historically low rates and now is a wonderful time to lock in on your purchase or refinance.

This Week:

  • 30 year fixed – 4.59%
  • 15 year fixed – 4.10%
  • 5/1 ARM – 3.70%
  • 30 year fixed refi – 4.48%

Compared to Last Week:

  • 30 year fixed – 4.63%
  • 15 year fixed – 4.13%
  • 5/1 ARM – 3.72%
  • 30 year fixed refi – 4.53%

Is this an old Article? Check out Mortgage Rates to see the up to date national mortgage rates.

4.59%

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Paying Points on a Mortgage

By BankAim · Comments (0)
Wednesday, July 14th, 2010

What are Points on a Mortgage Loan?

Mortgage points are fees paid on a loan to reduce the interest rate of your mortgage.  If you add an extra 1% to the fees on your loan your interest rate will be lower. Paying for points on a mortgage is essentially a trade of upfront money for a lower interest rate.

Why buy down your interest rate with  points?

Buying down your interest rate means that your monthly payment will be lower.  To determine whether this makes since to do simply divide the points dollar amount by how much money you save each month.  This will tell you how many months it will take to pay back the points amount.  Determine if you will be in the house that many months to start saving money.

No Point Loans

There are such things as no points and no fees loans.  Here are some reasons why someone would choose one of these options.

  1. No money for down payment and fees on a purchase. When you purchasing a new home and do not have the money for the down payment, a  mortgage with no closing costs can make up the difference of the down payment.
  2. If the estimated time you will be staying in the home is less than it takes to make up the money you spent on the points. Typically this can take anywhere from 3-5 years to recoup the difference.
  3. No equity in the house to pay closing cost when refinancing. No closing cost may allow you to complete the refinance, but your rate will be higher.

So ask your Loan officer about the possibilities of paying points and no fee loans.

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Why Lock Your Mortgage Rate Now?

By BankAim · Comments (0)
Tuesday, July 13th, 2010

Interest rates are at historic lows, and have been for several years.  Why would anyone need to worry about them changing?

The current word from the Fed is that they are only going to be keeping the interest rates ‘under market’ for a little while longer.  You see, they have been forcing interest rates to stay at this low to help boost the economy and encourage first time home buyers to jump in.  This coupled with the first time home buyer credit has really helped out the mortgage and real estate industries over the course of the last year.

What do we expect to happen?

If banks had their way, we would likely already be back in the 6% range somewhere. Rates are not going to remain this low forever.

What does this mean for you?

If you, or someone you know, is considering buying or refinancing, do it sooner than later.   Act now if you are considering buying/selling/refinancing check out your options now, you don’t want to be upset with yourself later for delaying.

Is everything else staying the same?

The word from the Federal Housing Authority (FHA) is that they are changing their program some too.  Right now this is the primary program we are using to finance first time home buyers.  This program has the most flexibility for credit score and the lowest down payment requirement.  FHA is saying that they are going to increase the cost of Mortgage Insurance and the Funding Fee associated with an FHA loan, and the minimum credit score.  This means that qualifying will become a little harder, not a lot, just a little.

Thank you to Clark Davis for this Article.

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$6,500 Home Tax Credit Sound Good? Not so fast…

By BankAim · Comments (0)
Wednesday, November 18th, 2009

How great does a $6,500 Home Tax Credit Sound?

Great enough to go out and buy a new house?  Not so fast…

Like pretty much everything in life there are a few catches to the tax credit. And not everyone is going to qualify.

In order to be sure you qualify to take advantage of the credit bankrate.com has a 4 question check list.  Before you decide make sure you can answer yes to these 4 questions on $6,500 home tax credit.

  • Are you already in the market?

“It’s a benefit if you need or want to move,” was a statement made by Dorcas Helfant-Browning, a former president of the NAR (National Association of Realtors).

  • Do local market conditions look favorable?

Helfant-Browning said, “Anybody contemplating doing this must feel strongly that the homes in their area have bottomed or are very close to bottoming,”

  • Can you sell your home in time?

Check on the average length of time a home is on the market in your area. This credit is only good until April 2009. If your average time on the market is 90-120 days from today you should be OK.

  • Can you close the expense gap?

“If you are upgrading, you need to make sure you have enough equity and available cash to cover the down payment.”

Remember that sometimes you are already in the best situation for your needs. Do not consider moving or purchasing a home just because this credit is being offered. Be sure to take into account all aspects of your situation before moving forward.

And remember it is always a great idea to meet with a Real Estate Professional who can lay out all your options for you.

If you are ready to move forward you can use our mortgage calculator or check out our mortgage rates to help you.

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Mortgage Rate Analysis-Monday October 19th, 2009

By Mortgage Master of Maple Valley · Comments (0)
Monday, October 19th, 2009

Well you never like to start an article with “an I told you so” but I feel that this week it is important to do just that.  People that were “floating” their loan last week saw the rates rise about .25% from the five months lows we had the previous week.  It is always tempting to try and get something better but in this market you need to analyze what you can get and if it is good you need to take it!  We had several “good news” economic reports last week that drove the price of Mortgage Back Securities lower, thus forcing the banks to raise the rates a bit to compensate.  Remember a stronger economy means that we are able to handle higher rates so those two entities tend to work against each other.

Today will not really have any major news in it that will shift the rates one way or the other, but our fearless Fed Chairman Ben Bernanke will be giving a speech later in CA that will get several peoples attention.  It is amazing how much power there is in this mans words.  We will wait to hear any indication that the Fed will either begin to raise the Federal Rate or hold steady.

Rates are holding steady today!

Rates are holding steady today!

Third, I have been reminding readers of the expiration date of the First Time Home Buyer Tax Credit.  The American Recovery and Reinvestment Act of 2009 authorizes an up to $8000 tax credit to any first time home buyer that closes a loan on or before November 30th  on a primary residence.   To qualify you must not have owned a home in the prior 3 years and must make less than $75,000 if filing single or $150,000 for a married couple filing jointly.  The amount of the credit is reduced if your income is higher and completely goes away if your income exceeds $95,000 if single and $170,000 if married filing jointly.   Currently the credit is being extended for veterans of our armed forces who have served overseas for at least 90 days during 2009.  Check out the IRS website for more information and the appropriate forms that must be completed to get the credit.  To receive the tax credit you can either amend your 2008 returns or wait until you file your returns next year.

My review of several other mortgage professionals indicates that the par 30 year conventional mortgage rate remains in the 4.875% to 5.125% range for well-qualified consumers.  I like this rates being published cause as you can see my rates at the bottom of the range!  To get a par interest rate you must have a credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination fee.  You can elect to pay less in fees and secure a higher interest rate, as every lender has a creative way of packaging your closing costs.  It is important to know that there are always closing costs in a loan it only differs how you pay them which is why a trusted mortgage professional is worth their weight in gold!

lock_iconThis week projects to be a pretty steady week as far as rates go, but as I have been saying for a several days now, I don’t see much improvement in the future so lock today and have peace of mind going forward with your mortgage process.

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Mortgage Rate Analysis-Friday October 16th, 2009

By Mortgage Master of Maple Valley · Comments (0)
Friday, October 16th, 2009

Sorry for missing posting an update yesterday, I just found out I am going to be a dad for the first time and my day was crazy from there as you can imagine!  The good news is there was not really anything happening with rates yesterday so we didn’t miss much!

Mortgage rates moved slightly higher yesterday but managed to hang in there a lot better than expected considering all the economic data and earnings reports we got this week.  Today, mortgage-backed security prices are mostly unchanged and mortgage rates trended just a little bit lower.   But in the big picture however, compared to last week mortgage rates are about 0.25% higher.

Rates are holding steady today!

Rates are holding steady today!

Although there is talk of an extension, the first time home buyer tax credit is currently scheduled to expire on November 30th.  If you want to take advantage of this great money opportunity, get your loan application submitted.  One thing you should know is, you will be unable to lock your interest rate until you have secured a home contract.  Additionally, if you lock and change your mind on the original home for a different home, you will be required to do a new lock at the current market rate since the lock goes with the specific address.

Lock Today!

As for the question as to lock or float your rate today, we are somewhat neutral based on your risk tolerance level.  If you want to try to get a lower rate, it could happen, but it could increase just as easy.  If I am making that choice I would lock and secure the piece of mind.

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Mortgage Rate Analysis-Wednesday October 14th, 2009

By Mortgage Master of Maple Valley · Comments (0)
Wednesday, October 14th, 2009

Today is a great day if you are trader on Wall Street or anyone that is following the overall economy as we have received several reports in the past 24 hours that indicates that we are pulling out of the recession!  JP Morgan posted profits that simply blew the projections out of the water, because a mini sell off of Mortgage Back Securities.  Simply put, as the stock market looks more attractive to investors they will sell their safer bonds for higher reward stocks.

Rates are up across the board today

Rates are up across the board today

To entice those investors back to MBSs we will see the bank raise their rates so the return for the investors is more attractive.

There was also a report release from the Mortgage Bankers Association that indicate that bases on the economy and where we are heading that they believe that rates are going to hold around 5% for the rest of the year, and then in 2010 we could see a slow climb up to around 5.5%.  Now if you are looking at the low point we hit a while back of 4.5% you might say that those are really high, but as my father likes to remind me, “when your mother and I bought our first house we had an 18% rate, and were so happy when we refinanced it down to 16%!”.  Great mortgage rates are very relative to where you are in life!

We are now pretty much at the end of qualifying for the First Time Home Buyers Tax Credit, as you will need 30-45 days to close a loan and the deadline is November 30th.  That means you need to have your deal closed on the 30th, not a “cute house” picked out by then.  We will post any updates that we hear concerning an extension or modification to the tax credit, similar to the one we talked about yesterday for active military personal.

lock_iconWe are defiantly of the opinion that today is a day to lock and not float!

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Mortgage Rate Analysis-Tuesday October 13th, 2009

By Mortgage Master of Maple Valley · Comments (0)
Tuesday, October 13th, 2009

With the bond markets being closed yesterday we really came off the weekend today, even though several lenders did issue rate sheets.  Today we saw little to no movement in rates as we get ready for a couple different reports that will be coming

Rates are holding steady today

Rates are holding steady today

out to help us to determine how the overall economy is fairing.  There are lots of different companies out there that offer all sorts of different rates, so make sure you are taking the time to check for the best mortgage rates in Seattle.  Right now is a very good time to consider locking in a low fixed rate.

One big piece of news is that congress voted to extend the First Time Home Buyer Tax Credit…but before you get to excited it is important to know that the extension is only for active duty military personal.  To qualify you must have been deployed for over 90 days in 2009.  For the rest of us you have until November 30th to qualify for your $8000 tax credit.  We are still waiting to hear if that also will be extended, although it is very unlikely that anything will be announced until we are right on the deadline.

Today's suggestion is to lock your rate

Today's suggestion is to lock your rate

I have received several emails and calls asking if you should lock today to “float” and wait for a better rate.  As with anything in our industry I don’t pretend to know the future, but I am going to do the best I can in these reports to suggest if locking is suggested or not.  My only disclaimer is this is going to be my “best guess” and you have to make the decision that is best for you.

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