Interest Rate "Indifference" ... it Can Cost You

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Interest rates appear to be finally rising as has been predicted for some time now.  Here's some good advice about paying attention to this fact from Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi :

 

Interest Rate "Indifference" ... it Can Cost You

 

     Interest Rates are talked about endlessly ...  

 

 

  • Will interest rates rise ... or won't they?  
  • How big will the rate hike be?
  • How soon will the Federal Reserve Board raise its benchmark interest rate?
  • What indicators could influence a decision?
  • How will an increase effect the markets?
  • How will an increase effect housing and financing?
  • More ...

     

     Speculation regarding interest rates and their rise has been going on for almost a full year now.  In fact, it's been non-stop since the Federal Reserve Board last took action and raised rates in December of 2015.  That move proved momentous, as prior to that action it was June of 2006 when a movement in rates was last seen.

     But because Mortgage interest rates have held steady for so long ... , home buyers and borrowers have been lulled into somewhat of a coma.  They've come to think any talk of changing rates is hype or media "buzz".  

     And after such a lengthy time of stable low rates and many false alarms regarding an interest rate hike, it's easy to see why home buyers might feel that way.  And why they might have grown a bit deaf on the topic.  

     Right now, I'm seeing real proof of that "indifference" or "deafness" in many of my mortgage applicants.  Many are falsely assuming that Interest rates will remain low indefinitely.  They think the periodic "noise" heard regarding rates rising is of no real concern.  

     Unfortunately, that's not true.  History has taught us that.

     What's also unfortunate is that deafness ... that indifference ... has caused real stress and concern in a couple of my most recent transactions.  How and Why?  

     Over the last 30 days or so, the financial market has been in an upward swing.  And interest rates have been reacting to the market and following suit.

     Now it must be pointed out that it's always important that loan applicants remain engaged and in communication with their Mortgage Originator.  But it's especially important around interest rate lock time.

     It's been at this crucial point in the process that a few of my clients have gone AWOL, disappearing on me for days.  


     In each case, it has cost them. Interest rates, and their changes, wait on no one.  And that translates to dollars.

     
Expectations are that the Federal Reserve Board will raise rates at their next meeting.  The recent election has fed into that speculation, as there has been a significant uptick in rates following that event.  


     But the election isn't the only factor that contributes to this speculation.  Mortgage Interest rates react to a variety of changing or volatile factors, and change DAILY, not just when the News Media decides to talk about Fed decisions. 

   
 Other factors include:


  • Bond Trading
  • Political Factors
  • Economic Indicators
  • World Events
  • Inflation
  • Trade
  • Inflation Rate
  • Federal Reserve Board actions
  • and More ...


   
 Add to that:  Mortgage interest rates were at historic lows in 2013 and near that once again during 2016. It only stands to reason that interest rates will continue to, or likely will, be on the rise in the long term.  

     Given all the factors above ... plus recent activities, financial experts are predicting that interest rates will change and we'll finally see the Fed take action ... soon.

     Many of my younger or first-time home buyers are of the age that they know nothing but the current low interest rates.  Horror stories of multi-digit interest rates experienced during the 80's are just that to them ... stories.  As fictional as many movies or books.

     
What most do understand though, is rent is rising on their apartments, condos, homes.  Rising to a point that often buying a home and paying for a mortgage would provide them financial relief for housing.

     THAT single point grabs their attention and motivates them to contact me.  But discussing the steps and details of actually securing and processing their mortgage?  That causes their attention to wane. 

     Borrowers can't afford to have that happen ...  

     
Each stage of the mortgage process is important.  Even the more boring or mundane of them.  And that's really important to remember right now as interest rates have been more volatile and trending upward.  Any indifference shown ... or delay in communication with their LO ... has real potential to cause stress and cost them money.

     As the old saying goes, "Timing is everything" ... and that is certainly true when it comes to interest rates.  

     Stay engaged and stay in touch with your Chicagoland Mortgage Originator throughout your entire mortgage process.  From first contact to completion.  

   
 Respond and respond in a timely fashion to their requests and communications.  Doing otherwise could cost you ... 




* When in need of Mortgage info, guidance, or service when buying a home in Will County or elsewhere in Chicagoland, contact me. I'll be happy to put my 40+ years of mortgage experience and expertise hard to work on your behalf.
     I'm easily found at:

Gene Mundt
 
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed
 
American Portfolio Mortgage Corp.
NMLS #175656


Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
 

 

  

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   

  Zillow Acct. of Gene Mundt, Mortgage Lender     Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  

    

 

Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                   IL Lic. #0006220  -  WI License                                                                                                     

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

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Ambassador
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Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I always enjoy your re-blogs Gabe Sanders and this contribution is a great example of a Gene Mundt post...

Dec 31, 2016 11:20 PM #1
Rainer
120,932
Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Gabe Sanders, I agree.  A rate locked will expire, if the loan is not signed in time.  Required documents needs to be submitted on time. Thank you for re-blogging this  post. Happy new year to you and your family.

Best of luck.

Dec 31, 2016 11:26 PM #2
Rainmaker
3,815,729
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thanks for the reblog .Happy New Year . I hope you will achieve all your goals in 2017. Have a good year.

Jan 01, 2017 06:32 AM #3
Rainmaker
4,391,772
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is an excellent selection for a reblog. Smart consumers are taking advantage of the very low mortgage interest rates.

Jan 01, 2017 04:39 PM #4
Rainmaker
3,229,119
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Gabe

A good choice to re-post the information on interest rates.

Good luck and success.

Lou Ludwig

Jan 01, 2017 05:06 PM #5
Rainmaker
2,512,231
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Is anybody else having trouble commenting? The profiles don't load when you click on them.

Jan 01, 2017 11:51 PM #6
Ambassador
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Gabe

Happy New year!!

Thanks for this reblog - Gene always has good information to share, and interest rates are certainly a hot topic as we start the new year, and buyers should pay attention.

Jeff

Jan 02, 2017 05:31 PM #7
Rainmaker
2,512,231
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

You getting a lot of love today. This profile was saved in my pages, and I have to admire all the love!

Jan 02, 2017 07:54 PM #8
Rainmaker
2,512,231
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Did I forget to say happy new year? If so, have a wonderful 2017 and keep on going on adventures in real estate!

Jan 02, 2017 07:56 PM #9
Rainmaker
2,512,231
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

If the numbers in matter, they wouldn't ever be a thing to anyone. I really agree with you and I don't understand that mentality.

Jan 02, 2017 11:44 PM #10
Rainmaker
2,449,892
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Gabe, a great reblog and one that I missed first time around.  Have a great 2017!

 

Jan 03, 2017 08:57 AM #11
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

Feb 05, 2017 01:45 PM #12
Rainmaker
4,043,577
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks. Your comments are always appreciated!

Feb 05, 2017 01:45 PM #13
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Gabe Sanders

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