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refinance: Fannie Mae, Freddie Mac & Government: What it means to you in the short term - 09/09/08 01:19 PM
In case you haven't heard yet, the Federal Government took control of Fannie Mae & Freddie Mac over this last weekend. This means (among other things) that all changes to their loan programs will have to go through congress now. The potential long term effects of this Government intervention are still uncertain, however, the short term effects have been amazing. RATES ARE LOWER.
30 year rates have fallen about .5% in the last 24 Hours. Good borrowers can get a 30 year rate at 5.875% (without a buy down) as of 6:00 this morning. This is good news for people currently … (1 comments)
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refinance: HELOCs refusing to Subordinate makes it hard to refinance - 03/04/08 05:51 PM
If you haven't heard yet, many banks are lowering your available balances on Home Equity Lines of Credit (HELOCs) and informing you via the mail after the changes have been made. The bank that holds the Note on your HELOC can cut your line of credit right down to your current outstanding balance. They will not call and warn you first, it will just happen and you will have no recourse.
In example,... if you have a $100,000 HELOC on your house and are currently using $25,000 of it, the bank can cut your line down to $25,000 max leaving you without access to the remaining $75,000. For some people … (1 comments)
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refinance: HELOC update - 03/04/08 04:00 PM
I posted an article in January suggesting that you take a cash advance on your Home Equity Line of Credit before they lower your limit. (This is only suggested if you have been planning on using the money in the near future and would miss it). In case you are still doubting this will happen, I can assure you it is. I have seen USAA, CHASE, Countrywide, and National City all lower available HELOC limits to people I know - so it is definitely happening.
If you think that the bank holding your Equity Line will pass you over because you have … (4 comments)
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refinance: 30 year rates & the Prime rate - 03/04/08 03:26 PM
In case you missed it, there was big news that that the Feds dropped the Prime rate (2 times) in late January. This was portrayed in the news as a powerful force to lower all mortgage rates. The truth is that the rates had improved greatly in the three weeks before the drop in Prime in anticipation of it. After the event of the Prime rate reduction, rates quickly rose back to where they were in December (6.25%). If you find this a bit confusing, you are not alone. The connection between the Prime rate and 30 year mortgage rates is … (0 comments)
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refinance: Return of the ARM - 03/04/08 02:33 PM
Return of the ARMs
Here is a silver lining to the lending industry; Adjustable Rate Mortgages are very attractive again. For the better part of the last three years, the difference in Interest Rates between 30 year fixed and 5 year ARMs was usually only a .125% lower on the ARM (basically not much). The idea of the ARM is to give you a significantly better rate than the 30 year fixed during the fixed period.
Well, in the last 6 weeks we have seen a significant discount for ARMs again. Today the rate on a 7 yr ARM was 5.75%. That is … (5 comments)
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refinance: What did today's rate cut mean?? - 01/22/08 01:12 PM
Today's prime rate cut of .75% means that mortgage rates are going to continue to drop even lower,.. Right? Not Necessarily!!!
As much as I hope that rates continue to drop for homeowners, this rate cut does not mean that the 30 year rates will go down immediately. Rates have actually dropped significantly over the last 3 weeks on the assumption that the Feds were going to drop the Prime rate at least .50% (and some speculated that it might be as high as 1%). Had the Feds only dropped the rate .25% today, rates would actually have gone up today … (1 comments)
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refinance: Bush's subprime rate freeze problem... - 12/28/07 01:20 PM
President Bush recently signed legislation to freeze the introductory 2 year "teaser rate" on all subprime loans for an additional 5 years. The rate freeze will apply to loans taken out between January 1, 2005, and July 30, 2007, and scheduled to rise in 2008 and 2009. This is designed so that on the 25th month of a 2/28 subprime ARM your interest rate does not adjust (up) and increase your monthly payment by $100s of dollars.
Truth be told that this is nothing more than a political move. It looks like Bush is doing something substantial, but it really has no … (0 comments)
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refinance: What can I expect during the Refinance process? - 12/14/07 02:07 PM
What can I expect during the refinance process?
Summary
In an effort to educate future clients, this is a basic account of the events that take place during a refinance transaction with me. A typical refinance will take about 3 to 4 weeks to complete.
First Contact - In the first contact we will introduce ourselves and talk briefly about what your basic goals are, and set a time for us to take your Application over the phone.
The Application - This is a series of questions that you will know off the top of your head. I want details on your work history, … (0 comments)
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Jim Cunningham
Phoenix,
AZ
More about me…
Nova Home Loans - BK#0902429
Address: 5450 E High Street , Suite #260, Scottsdale, AZ, 85260
Office Phone: (602) 296-6403
Cell Phone: (602) 434-8261
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