Sometimes I can’t remember what I have and haven’t talked about before, but I thought since I have been asked the following question so many times in the last week, I would at least write a little blurb about it. Does it cost money to lock a rate? While I am not exactly sure why this has been such a popular question lately, here goes my best answer… It depends. The Initial Rate … [Read more...]
What Happens When Interest Rates Go To 10%?
I was alive in the early 80’s but I wasn’t worried about my mortgage payment. I was busy watching ET and playing little league baseball. But to hear people who are just a little bit older than I am, getting a 30 year mortgage at interest rates in the high teens in the early 1980’s wasn’t uncommon. Assume for a moment that inflation kicks in and at some point in the future, the average rate that … [Read more...]
Arizona Mortgage Rates: Now In Real Time!
For about the last 6 months, we have posted mortgage rates on a daily basis on our Arizona Mortgage Rates page. The process of quoting rates is time consuming. First, you have to go look up anywhere from 3-5 different lenders mortgage rates for the day. Then you have to factor in other items such as turn times, inside information about guideline changes you may have as a loan officer, etc. and … [Read more...]
President Obama Says It Is Time To Refinance
One of my good friends (and uber-smart, I'm-lucky-to-know-her-type-of-person) originally posted this on Zillow's mortgage blog, and since she said it so well... I figured that there was no need for me to re-say it. Thanks Mary! Speaking from the White House today, President Obama urged homeowners to refinance. Mortgage rates are at historical lows, and the government’s new Making Home … [Read more...]
Home Path Mortgages: Great HomePath Mortgage Deals From Fannie Mae
We are currently working with a couple of people who are buying a home that is owned by Fannie Mae and are getting approved for the new HomePath mortgage program. As mortgage guidelines have gotten tighter over the last couple of years, it is nice to see a program come out that actually has features like no appraisal and no mortgage insurance. If you are interested in buying a home that is … [Read more...]
Arizona Mortgage Rates: Look For Lower – Then Higher
Yesterday, the Fed announced that they would buy up to $1.2 Trillion worth of mortgage backed securities and long term treasuries - which should result in lower rates in the short term. I also expect it to result in higher rates in the longer term (possibly much higher) as inflation kicks in - although the smartest guys in the room don't seem to think that inflation poses that big of a … [Read more...]
FHA Streamline Refinancing: How To Get A “Free” Mortgage
Question: How do you get a "free" mortgage? Answer: You really don't. Title companies get paid, lenders get paid, appraisers get paid, the government recording offices get paid, credit reporting companies get paid... it is just a matter of who pays them - you or "the bank". Here is how to get the closest thing to a free mortgage that I can think of... How to get the bank to pay … [Read more...]
Will Interest Rates Go Lower? Yes. Here is Why.
Will Interest Rates Go To 4.5%? We have been asked that question often recently. Normally, when people ask us "what is going to happen with interest rates" we usually reply with "well, one of three things can happen: They can go up They can go down, or... They can stay the same." If you asked me the question today of "are interest rates going to go down?" my answer now is "yes, … [Read more...]
Arizona Mortgage Rates: The Trend Is Your Friend
Some time ago, I was a student in an advanced capital markets finance class in college. I seem to have forgotten many of the things I learned in that class (or at least "learned" enough to pass the test!) but one thing has stuck with me through the years. "Don't fight the trend. The trend is your friend." Today, it was announced that the Federal Reserve was committing $800 billion to … [Read more...]