My Theory of Relatitivity

Customers asked me everyday “will rates get any lower”? My answer is “who knows!”. Financial people a lot smarter than I guaranteed that by now mortgage rates would be in the upper 5s or low 6s but for many people with really good credit, we’re still in the mid 4s.

Here’s my “Theory of Relativity”; a year or 2 down the road…or maybe even 6 months from now when rates are in the 6s or 7s and you look back at your wise decision to lock in a low rate in August of 2010, you will feel pretty good about getting fixed in the 4s. Plus or minus an eighth or a quarter will make little difference. Holding out to try and catch the bottom is very risky. In a flash we could loose what we feel is the bottom. It’s all relative.

Mortgage bonds are traded just like stocks and we want to get you the lowest rate possible….we want you bragging to your friends and relatives about how well we did for you. Stock traders always say “buy low..sell high”. If it was that easy, none of us would have to work for a living.

Don’t miss this opportunity. Lock in an unbelievable low rate today.

Everyone’s scenario is slightly different, based on many factors. Give me a call today and let’s see what we can do for you. I promise I will give you the best possible deal I can.

HARP can Help

Thursday, August 20, the bond market finished strong and today we gave it all back. What does this mean to you…nothing. No change on the rate sheet. The stability in rates over the last month or so has been pretty amazing. We have seen no more than 1/8% to ¼% movement during this time. This seems like a real floor. Could rates dip lower? Who knows but if I was in the market for a low rate loan, I’d lock in now and move forward. What does Jim Cramer say….. “Pigs make money but hogs get slaughtered”. Don’t loose sleep thinking, “Maybe I should wait to try and save another 1/8%”.
The instability in the world economy and the 24 hour news cycle make me nervous. Something crazy could happen somewhere in the world and puff ….our 3s and 4s become 5s and 6s.
We even have some great mid 3s and 4s on Jumbo 5/1 and 7/1 ARMs, primary and second homes.
Wish you could get in to a lower rate? At NO COST to you, I can give you a pretty good idea if refinance will work. Even if you are underwater and the loan is $417,000 or less, we have the government HARP program that may work up to 105% LTV (loan to value).
HARP works on primary and second homes with rates almost as low as market rates and can even work on investment homes at a slightly higher rate.
Call me today. Don’t wait another day,

Defying the Laws of Gravity

Defying the laws of gravity, mortgage bonds continue to rise, driven by weakness in the job market. Bonds have broken through new levels. Mortgage rates are the best we have ever seen them. How long can this last….who knows. Weakness in the economic reports, low inflation and a stable stock market is great for fixed rate mortgages.
We have had an incredible couple of weeks, locking customers in, at record lows. Every customer may qualify at a slightly different rate depending on many factors; credit score, property type and use, loan program, etc. Call me and I will get you the best possible deal I can. I try and do the majority of loans with no points.