Today was a great day in America!
As predicted, lenders of conventional mortgages raised rates from .25 to .5% since last week with our new found enthusiasm. Expect a 60 day wait and see honeymoon period with the new Obama administration.
According to watchers of global markets, we still have whole countries unwinding financially: Iceland, Greece and Ireland to name a few. There is no way to predict how quickly our financial pictures will improve. Confidence helps. A lot. We are not going to buy our way out of the situation. We may just have to start trimming budgets and saving again. A renewed interest in stable investments like real estate is certainly turning folks in our direction. And not a moment too soon!
Buying or Refinancing? If you are financing real estate within 60 days it's probably best to lock ahead and take your chances. Your broker can negotiate to float your rate down should a major drop happen if you are locked. After 60 days we will be in prime real estate marketing phase when things tend to take off again. If you have a home or loan to finance now--why wait for lenders to get busy and raise rates? If you are a first timer and buy before July 1 you may get the new $7500 tax credit!
Rate Buydowns: It may also make a great deal of sense to buy your rate down for the long term. Weigh your options carefully. If you intend to keep your home and pay the mortgage off sooner, a 30 year loan may make more sense than a 15 year term because YOU get to decide when you make the extra principal payments. Your mortgage professional should be able to compare savings. You can also buy down your rate for the first few years with some products to help you manage payment shock.
We are locking 15 and 30 year fixed rates at 5.25 - 5.50% range! Even for folks who financed 6% or higher last year this is still a great tome to refinance depending on how long you intend to hold the loan.
Practice credit wellness: www.netcredit.blogspot.com It's never too soon to look at your credit picture and see what improvements can be made. Plan on looking 90 days prior to applying for a loan. We are happy to consult with you for the price of your report (approximaely $20). The reports you buy yourself while useful, may be 'sanitized' . It annoys me to have to tell you the truth when we pull a lender report because the scores are often lower. At least they give you a starting point.
susan templeton www.loannetter.com
washington loan officer license 510-LO-31434 branch license: 510-MB-24707-50145
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