Should I float? Should I lock? - Daily Update for Monday, December 31, 2007 - 12/31/07 07:30 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Friday saw a nice drop in interest rates due to continued tension in Pakistan. Today is an abbreviated trading day and with tomorrow being New Year's Day, look for wide swings to possibly occur this morning.
Technically speaking - the FNMA 6.0% 30 year bond broke through some major ceilings of resistance approaching some of the best levels in a couple years and is rapidly approaching the overbought zone.
The recommendation … (5 comments)
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Is your ARM adjusting in the next few months? - 12/29/07 11:10 AM
January, February and March are just around the corner. Did you perchance either purchase a home or refinance within the past 2, 3 or 5 years? When you made this particular move, did you get an Adjustable Rate Mortgage?
How can you tell? Look through the documents that were given to you at signing. The HUD1 is usually on top - this is the one that says what all the various fees, costs, taxes, etc were charged for your transaction. A Deed of Trust should appear in the package as well. Near the deed would be another legal document saying Adjustable Rate … (6 comments)
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Should I float? Should I lock? - Daily Update for Friday, December 28, 2007 - 12/28/07 09:03 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
The Chicago PMI or Business Barometer is expeted out later this morning. This is the report showing the manufacturing managers in the nation's heartland views the economy. While seemingly obscure to the rest of us, bond traders trust this number in determining if the nation is in an expanding or contracting mode. The Chicago PMI came out just now at 56.5 (anything over 50 means that the … (0 comments)
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Should I Float? Should I Lock? - Daily Update for Thursday, December 27, 2007 - 12/27/07 07:39 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
While consumer confidence comes out later this morning, Jobless Claims came in just above projections and Durable Good Orders were only up .1% - well below what was expected.
Technically speaking - the FNMA 6.0% 30 year bond broke through most levels of support yesterday and is a major oversold mode. The news of durable goods has already helped bonds recover 1/2 of what it lost yesterday, … (5 comments)
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Should I float? Should I lock? - Daily Update for Wednesday, December 26, 2007 - 12/26/07 07:39 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Slow news day as traders will analyze the various Christmas shopping reports to determine if retailers made any gains. Dow stock futures point to a good open and overseas stock markets were up sharply on the day. This could spell further bad news for bonds.
Technically speaking - the FNMA 6.0% 30 year bond is sitting on the 50 day moving average. It is also deep … (7 comments)
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A Christmas Tradition from my Chiropractor to You - 12/24/07 07:46 AM
I was needing my back adjusted a few days ago and went in for an open appointment my wife had.
Dr. Lindsell of Columbia, MD has been our chiropractor for quite a few years shared a rather neat Christas tradition.
He and his family usually host the Christmas get together. About 5 years ago his brother and family, who make up at least the clan, made it to the house about 15 minutes after the dinner was ready. (Cold turkey - ewww)
They have decided to order out since then and there seemed to be only one place consistently open on Christmas Day … (7 comments)
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Should I float? Should I lock? - Daily Update for Monday, December 24, 2007 - 12/24/07 07:18 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Slow news day and abbreviated trading day for stocks and bonds.
Technically speaking - the FNMA 6.0% 30 year bond broke through several levels of support on Friday. It's currently sitting on the 50 day moving average and in an oversold state. This coupled with the short trading day points to an excellent time...
... for consumers to
lock.
To learn why one should Float or Lock - … (2 comments)
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Reduction of LTV allowed in Declining Markets - 12/22/07 11:18 AM
Are you aware that Fannie Mae and Freddie Mac guidelines are changing in the New Year for homes in declining markets?
These guidelines are being put into place to protect banks from becoming overexposed in these markets as well as protecting consumers from being overextended. If a home has been identified, either through particular geographical regions or from the appraiser stating such, then the LTV could be dropped by 5% or more.
Example 1: Mr. & Mrs. Buyer have been approved for 100% financing (yes, there are still a few programs that allow this). They have a ratified contract in place and the … (6 comments)
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Federal Reserve to lend $20,000,000,000 (billion) to banks at 4.67% - 12/21/07 09:42 AM
It appears the Federal Reserve is really worried about another recession looming on the horizon. The Fed just announced plans to lend $20 Billionto banks at just under the rate of what the Fed lends to intuitions on overnight loans.
This combined with what the European Central Bank has been doing in lending huge sums of money to EU banks will help combat liquidity pressures inside the market. These are the same liquidity pressures that caused some banks and lending institutions to close their doors earlier this year.
The interesting thing about all of this is that banks could easily use the … (2 comments)
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President Signs Mortgage Tax Relief Bill Into Law - 12/21/07 08:47 AM
Daily Real Estate News
December 21, 2007 President Signs Mortgage Tax Relief Bill Into Law
President George W. Bush signed legislation into law on Thursday that will ease the tax burden for home owners who have had debt forgiven on a mortgage due to a foreclosure, short sale, or deed in lieu of foreclosure. The bill - Mortgage Forgiveness Debt Relief Act - has been supported by NAR since the 1990s. "The president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home," said NAR President Dick Gaylord in a statement. "Today's bill will ensure … (2 comments)
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Should I float? Should I lock? - Daily Update for Friday, December 21, 2007 - 12/21/07 07:45 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Big news of the day has to do with Personal Income and Personal Spending. Personal Income was down slightly while Personal Spending was nearly double the percentage that was expected. The big new though came in the Core Expenditures and the Year over Year Expenditures. The Core Expenditures (which deals with how much consumer goods and services have changed exluding energy and food) for the … (0 comments)
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Should I Float? Should I Lock? - Daily Update for Thursday, December 20, 2007 - 12/20/07 07:58 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
News of the day came in near analyst expectations. Auto sales were up a smidgen, Jobless claims came in a bit higher and Gross Domestic Product matched expectations. Tomorrow the big numbers come in on Personal Consumption.
Technically speaking - the FNMA 6.0% 30 year bond broke through a major resistance level yesterday. It is now sitting near some of the best levels of the past … (6 comments)
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Should I float? Should I lock? - Daily Update for Wednesday, December 19, 2007 - 12/19/07 07:40 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
A combination of a special auction by the Fed (which was successful) and continued fears the economy is slowing down gave bonds a nice boost yesterday. The big news of the week will be released on Friday with Personal Spending numbers coming out. For now bonds will be taking direction from stocks and various technical indicators.
Technically speaking - the FNMA 6.0% 30 year bond broke … (0 comments)
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Should I float? Should I lock? - Daily Update for Tuesday, December 18, 2007 - 12/18/07 07:50 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Yesterday the stock market took a tumble which in turn boosted bonds. Today's news is housing starts which came in just over expectations.
Technically speaking - the FNMA 6.0% 30 year bond took a much needed bounce off of support levels. This coupled with bonds still close to the oversold area leads to the following...
The recommendation for consumers is to
float.
Edit - We are currently at the … (0 comments)
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Should I float? Should I lock? - Daily Update for Monday, December 17, 2007 - 12/17/07 07:26 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
The beginning of this week is slow in terms of economic news. Therefore bonds will be taking dirction from the stock market - which hasn't been looking to good. After last week's tumble, look for bonds to catch a breath this week.
Technically speaking - the FNMA 6.0% 30 year bond broke through some major levels of support. It is currently resting on another support level. … (0 comments)
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Simple Interest Mortgage vs. Fully Amortized Mortgage - 12/14/07 04:29 PM
Definitions
An amortized mortgage is a loan where payments are made on a periodic basis (usually a month) over the term of the loan (in most cases 30 years). Interest is calculated on a monthly basis
A simple mortgage is a loan where payments are made on a periodic basis and interest is calculated on the average daily balance.
Grace Periods
An amortized mortgage usually allows for a grace period for payment to be received without any penalty. (Payment due on the 1st of the month can be paid up until the 15th w/out any penalty)
Since a simple mortgage is calculated on the average daily … (2 comments)
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Should I float? Should I lock? - Daily Update for Friday, December 14, 2007 - 12/14/07 07:45 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Consumer Price Index was released this morning. As expected from yesterday's Producer Price Index, this appear to be heating up in the economy. Is this a seasonal blip or could it be a longer trading month? Either way, this is bad news for interest rates.
Technically speaking - the FNMA 6.0% 30 year bond broke to the negative side of the 25 day moving average. … (3 comments)
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Should I Float? Should I Lock? - Daily Update for Thursday, December 13, 2007 - 12/13/07 10:57 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
The economy appears to be heating up or this is just a holiday blip. The Producer Price Index and Retail Sales both came in double what was expected. For the economy, this is great news. For bonds, not so good news. Rates dropped on the news but has appeared to have been stopped by the 25 day moving average. Stocks are down on the news … (4 comments)
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Should I float? Should I lock? - Daily Update for Wednesday, December 12, 2007 - 12/12/07 07:50 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
The Federal Reserve met yesterday and lowered the two key lending rates by 1/4 point each. This brings the Federal Funds rate down to 4.25% bringing down the Prime Lending rate to 7.25% Wall Street had been trading in recent days as if the Fed would take the rate down a full 1/2 point. Since this didn't happen the stock market lost just over 2% in … (0 comments)
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Should I float? Should I lock? - Daily Update for Tuesday, December 11, 2007 - 12/11/07 08:16 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
The Federal Reserve is meeting today. Everyone expects the Fed to decrease the Fed Funds Rate by 1/4 point. There is a distinct possibility of them reducing by a 1/2 point as well. Though this would be good for all home owners with HELOC's tied to the Prime, this will cause rates to worsen in the short term.
Technically speaking - the FNMA 6.0% 30 year … (2 comments)
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Properly Seasoned Firewood - 12/10/07 01:07 PM
I got this idea from Don Davies rather excellent blog on wood stoves - http://activerain.com/blogsview/300623/Alternative-Source-of-Heat
When one is wanting to heat their home using either a fireplace or a wood stove, the use of properly seasoned wood is paramount!
Wood needs to have been cut and split for at the bare minimum of 6 weeks prior to use. This allows for the minimum amount of water to be removed from the wood. If you run into someone claiming that they have just split the wood the other day - run do not walk from that person. The wood will not burn as efficiently, … (4 comments)
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Should I float? Should I lock? - Daily Update for Monday, December 10, 2007 - 12/10/07 08:03 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Big News of the week will be the results of the Federal Reserve meeting that is to take place tomorrow. Since Wall Street "buys on the rumor and sells on the news", look for a continued rally today.
Technically speaking - the FNMA 6.0% 30 year bond is currently sitting on the 25 day moving average which has been a good level of support. If it … (0 comments)
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Should I float? Should I lock? - Daily Update for Friday, December 7, 2007 - 12/07/07 07:49 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Great Economic News today - Jobs created came in higher, unemployment ticked down 0.1%, and earning rose 0.2%. This is all bad news for bonds.
Technically speaking - the FNMA 6.0% 30 year bond has broken through major levels of support and just below overbought levels.
Therefore recommendation is to
Lock
To learn why one should Float or Lock -
Check out Should I float? Should … (4 comments)
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Should I Float? Should I Lock? - Daily Update for Thursday, December 6, 2007 - 12/06/07 09:00 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Initial Jobless Claims is the news of the day. The report came in just over expectations (which is good news for bonds). This coupled with the Bank of England cutting their Prime Rate could help give our bond market a lift.
Technically speaking - the FNMA 6.0% 30 year bond is sitting between a resistance and support level and still is in overbought territory.
Therefore recommendation is … (1 comments)
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Should I float? Should I lock? - Daily Update for Wednesday, December 5, 2007 - 12/05/07 07:30 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Little economic news is being released in the early part of the week. Today, stocks appear set for good up-tick and bonds are already off on the day.
Technically speaking - the FNMA 6.0% 30 year bond has bumped up against a resistance level and is in overbought territory.
Therefore recommendation is to
lock.
To learn why one should Float or Lock -
Check out … (2 comments)
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Should I float? Should I lock? - Daily Update for Tuesday, December 4, 2007 - 12/04/07 08:16 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Little economic news is being released in the early part of the week. Yesterday, stocks took a bit of a hit and bonds remained unchanged.
The end of the week has the big economic news - payroll & unemployment.
Technically speaking - the FNMA 6.0% 30 year bond is sitting just above a support level but is in overbought territory.
Therefore recommendation is to
lock.
To … (2 comments)
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Should I float? Should I lock? - Daily Update for Monday, December 3, 2007 - 12/03/07 07:57 AM
Here are the daily thoughts on floating or locking if you are asked by your clients.
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Little economic news is being released in the early part of the week. The big news of late Friday was bonds breaking through a major level of resistance. If this trend continues, look for a improvement of interest rates.
Technically speaking - the FNMA 6.0% 30 year bond is sitting just above a support level but is in overbought territory.
The recommendation is to
cautiously float.
To … (2 comments)
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Ben Stein - 12/02/07 07:37 AM
The following was written by Ben Stein and recited by him on CBS Sunday Morning Commentary. My confession: I am a Jew, and every single one of my ancestors was Jewish. And it does not bother me even a little bit when people call those beautiful lit up, bejeweled trees Christmas trees. I don't feel threatened. I don't feel discriminated against. That's what they are: Christmas trees . It doesn't bother me a bit when people say, "Merry Christmas" to me. I don't think they are slighting me or getting ready to put me in a ghetto. In fact, I kind … (6 comments)
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