interest rates: Applying for a mortgage online - be careful
- 01/26/10 12:01 PM
Know who is getting your application
Applying online for a credit card, car loan or home mortgage probably doesn’t work exactly like you think it does. In fact what you probably do not know is the company accepting your “application”, especially for home mortgages, is not a lender or broker at all. They are simply a lead generation company.
Mortgage lead generation companies soared during the boom. A large number of solicitation calls answered by brokers and small lenders consisted of someone from one of the myriad of lead generators and resellers which sprang up almost overnight. Without indicting any companies … (8 comments)
|
interest rates: Housing prices and interest rates are extremely low - so what?
- 11/07/09 05:16 AM
Obviously, from the market numbers, people do not get as excited about "historically low interest rates and low home prices" as they do low rates and rapidly escalating values. My numbers show it, your numbers show it and the national reports show it. Oh there are a few people "doing better than they ever have" but I'm a long stretch from generating the 400-600 loans a year I enjoyed in 2004 through 2007 - cue Archie and Edith singing "Those Were The Days". So if we thought low cost of money and low housing prices were fueling the business obviously we … (7 comments)
|
interest rates: Interest Rate and Annual Percentage Rate (APR) - What you need to know.
- 10/27/09 07:38 AM
Every loan officer who has done their job for more than a week or so has heard the question. Some loan officers avoid it altogether by simply not sending the Truth In Lending (TIL) until they absolutely are required by law to do so. Why? Because in the top left corner in prominent font is a number that confuses almost every borrower and non-financial insider - the Annual Percentage Rate (APR).
The APR disclosure requirement was sort of a good idea when it came out back in 1968 when there was pretty much just one type of home loan: a 30 … (1 comments)
|
interest rates: So You Think You Know The Mortgage Industry
- 05/28/09 04:44 AM
Anyone who thinks they know the mortgage industry - especially well enough to predict it - is like someone saying they know which star has a planet in orbit that can support human life. Seriously, everything anyone knew about the mortgage industry just six months ago is completely different today.
Yesterday, May 27, 2009, interest rates at par went from about 4.75% to a par at about 5.25% between lunch and five PM eastern. Did anyone see it coming? Well, the indicators were there that's for sure so some people did call it. Many completely blew it like Dan Green who … (8 comments)
|
interest rates: Rates Are Down -but- Does CNN Offer Mortgages?
- 03/19/09 04:46 AM
As a mortgage banker I have the distinct privilege of being simultaneously a genius and an idiot. The viewpoint is reached as a matter of perspective and today I get to be an idiot because I have to, once again, undo what the news networks have done. This means I am spending extra time (15 minutes or so) with all of my customers and educate them in what most of the media needs an education. You see it's all over the news today that rates are headed to the fours. Orly?
First let me say I agree that rates are down … (34 comments)
|
interest rates: What Does It Mean to "Lock the Rate" or "Rate Lock"?
- 02/26/09 10:52 PM
Yesterday I had a customer who is an engineer at one of the largest cable companies in the world tell me he was feeling pressured from me to get his mortgage loan origination agreement so I could lock his rate. Just as I read his email a man was in my office to pick up my son's XBox360 and that man is a career firefighter. He overheard part of the conversation and looked at me questioningly. I said, "every job has details other people have no idea about. People have no idea what you do when you are not fighting a … (9 comments)
|
interest rates: What Are "Discount" Points?
- 02/23/09 02:46 PM
Be careful when you answer because you may not exactly know the full answer. As an agent it is something you hear and something you learn about in CE classes from time to time but do you know exactly how they are determined? You will in five minutes. Some of you already do so you may be excused to continue Rain surfing but thanks for stopping in! There are also several readers who are not in the industry and really want and need to know this answer!
When you hear "discount" you automatically think of "something for sale which can be … (4 comments)
|
interest rates: National Banks and Mortgage Insurance Conspire Against YOU
- 02/13/09 07:15 AM
So basically I am the RantMan this week - but I am doing it all for you my clients and my friends. Seriously - it's not like I get paid for these blog posts :)
Not a conspiracy theory ... an actual conspiracy. This is not so much about the inner workings of the conspiracy itself but more about why it is bad for you as a borrower with average credit and average down payment or equity (less than 20%). I have written several articles and blog posts over the last few months about how mortgage insurance companies control the mortgage … (7 comments)
|
interest rates: What is "PAR" rate and how can I meet or beat it? (Using golf as an example.)
- 01/22/09 04:20 AM
Golfers already know - par is when you reach balance with the score on the golf course. Many golfers instead of writing down the total number of strokes record the number of strokes over or under the par. In golf par is the standard to aim for. The same applies in mortgage lending and investment borrowing.
Not every golf player "shoots at par". Others actually beat par - they beat the standard. Tiger Woods has a bad day when he shoots a par score on the golf course and I am joyous when I'm within 15 points over par. In fact … (33 comments)
|
interest rates: Feds Cut Target to .25% - Historical Low
- 12/16/08 05:41 AM
BUT! Please don't change historical to hysterical. Before you pick up the phone and start calling around to ask "what's your rate" read this "Is Now A Good Time To Refinance?" and then let's put this into perspective as we have so many times in the past.
The Feds Do Not Set Interest Rates. The Feds set the target rate and in this case for overnight funds. There is no certainty this will affect mortgage interest rates in the next 2 hours or 2 decades. Mortgage interest rates are affected more by the yield on 30 year Fannie Mae MBS's (Mortgage … (6 comments)
|
interest rates: What They Don't Tell You About Their "No Fee Mortgage"
- 12/01/08 03:04 AM
They are big. They have millions to spend on advertising. In fact, they don't pay for that advertising at all -their customers do. Since we started back in 2001 we have fought giants and we have always beaten them and we will continue to do so. Currently there is a very large bank offering what they call the "No Fee Mortgage". Now if you visit the website you will see rates advertised in the mid 5% range. If you click on the link to take you to their super special you will not see any rate changes when they show you … (12 comments)
|
interest rates: Today's Mortgage Interest Rates
- 03/25/08 03:47 AM
Marginalized. Annualized. Economically isolated. Indicators. Mean reversion. Seasonally adjusted. Negative growth. Queuing ... now there is an interesting economic term. About two years ago a colleague suggested to me and a small group of three or four others that he believed the prime lenders may be positioning to wipe out all the mid level lenders and take all the marbles. I suggested that I didn't think the controllers and economists at these larger lenders had the ability to communicate well enough to pull off such a massive undertaking. But today I ask myself, "Where have all the mid level lenders gone?" … (0 comments)
|
interest rates: People Get Ready - There's A Train A coming
- 03/19/08 07:15 AM
You DO need a ticket to climb on board.
It is the beginning of the Spring buying season and while there is an excess of inventory in the marketplace the worst problem is the loss of the secondary market which should come back over the next couple of weeks with the release of liquidity through the GSE's (FNMA/FHLMC).
So we know the secondary market has been stifled (nee - frozen) by the disappearance of investment funds and the goal of the GSE move is to unstifle the market to bring life back to the secondary market.
Is it too late? Have people been turned … (8 comments)
|
interest rates: Improving Interest Rates and Other Market News
- 03/12/08 08:33 AM
YOU HAVE NO EXCUSE NOT TO BUY A NEW HOME TODAY - AT LEAST LESS OF AN EXCUSE
A must read for anyone who depends on mortgages and finance to buy or sell a home.
It's always good to see the rates in the fives. What is strange is why buyers wait "for a better rate" when the are in the fives. Then again it really is our fault and the fault of the American though process in general. When I speak with people who are "rate conscious" I also find out they are equally "rate unaware". For example people are hearing that … (5 comments)
|
interest rates: Market Update - Mid-day March 11, 2008 - Why Isn't It Getting Better?
- 03/11/08 07:15 AM
Behind the scenes of the interest rates and market today are some strange goings on as well as some interesting discussion. One of the hot topics today is how the rating agencies will be involved in untangling the credit crisis, devaluation of the dollar and destruction of consumer confidence. Why the rating agencies? Because buyers of MBS's whether from GSE's or whomever the securitizers are depend almost solely on the powerful word of the ratings companies namely Standard and Poor's and Moody's.
Essentially it works like this parable: S&P and Moody rank Bob's Mortgage Pool as A and Bob can sell his … (6 comments)
|
interest rates: Georgia Mortgage Rates - Mid-day March 10, 2008
- 03/10/08 07:17 AM
Talk about movement in the rates! At least what we have seen so far is just a downward trend. The market has been in such motion today that I didn't even do the live video stream because I was too busy modifying the rates.
Even the financial news today is mixed. From Warren Buffet to Jim Paulsen they all had great information to share today. I love it when I am right especially when others really thought I was wrong. I predicted that by Spring this year we would be in negative growth and it would last through the Summer. I predicted … (1 comments)
|
interest rates: Just Who Says I Am In A Declining Market? (Video Market Update, Too)
- 03/04/08 04:28 AM
Who determines declining markets? Simple: the mortgage insurance company - usually. MGIC, Radian, RMIC, Genworth ... the list goes on. Mortgage insurers have "taken a beating" with declined value properties over the last several months as well they should have. You see they were simply another component to carry the blame for letting the problem get so far out of hand. They are not and were not an innocent third party bystander through the strong market neither should they be free from cost and investigation in the market downturn. They do, however, act like it was all your fault.
Okay let me … (0 comments)
|
interest rates: The Empowerment of Active Rain - Tools For Winning!
- 03/03/08 03:18 AM
You will be empowered to win! Ask me why I am still excited! Wait, no need to ask, I'll just write it here. You see I still think the United States of America and our allies are the greatest nations in the world and history of mankind. I also still thin US real estate is a great long term investment. If you know me you know I say, "real estate investing is not a get rich quick scheme". Although you CAN hit home runs there is nothing better than a good old double or single every at bat. (Yes, my friends … (4 comments)
|
interest rates: Friday Real Estate Forecast Looks Great For This Weekend - Video Included
- 02/29/08 05:59 AM
If you or your clients have been "on the fence" this weekend may be one of the best weekends to move forward that we have seen or will see for a while. Rates are very low today and if they go into the weekend unchanged should emerge Monday just as strong. The stock market has tumbled nearly 2 percent as of the writing of this article and demand is increasing. Unfortunately the bond market is flat to down and that can hold rates from falling even farther but we'll take what we have! Fixed thirty at 5.625 with an APR of … (7 comments)
|
interest rates: Huge News In Mortgage Interest Rates Today - Sharp Drop Early AM
- 02/28/08 03:17 AM
Today's Mortgage Interest Rates for GEORGIA HOME LOANS Effective 11:15 AM EST February 28 MUCH IMPROVED ▼
You can always check daily rates here and they always are with no discount points and show the APR.
NEW DAILY SCHEDULE
HTTP://JUSTIN.TV/REIBROKER
Topics include the real estate market in general, interest rates, short sales, declining markets, buyer trends and much more!
Hopefully I'll see each of you there and I want to get around to each of you as a guest speaker as soon as we get the bugs ironed out.
(You'll have to follow one more link from that site for now. Hope … (3 comments)
|
Know who is getting your application
;)
;)
;)
