financing: Myth: Mortgage Interest Rates Will Plummet in 2008
- 02/01/08 03:38 AM
Will the Fed’s recent rate cuts cause mortgage interest rates to plummet this year? Most likely not because the Funds Rate (the suggested overnight rate charge for banks) is NOT directly tied to fixed home loan rates! Fixed home loan rates are directly tied to bond rates and when the stock market goes up, the bond market goes down, which means mortgage rates go up. Obviously if we experience a recession than all bets are off. So if you are looking to buy real estate, it may be the right time to lock in those low rates…because they just might go up! … (0 comments)
financing: Bond Programs - Free Money!
- 01/30/07 02:35 AM
I recently had an unexpected experience dealing with a bond program. Not only were we able to close the loan using the bond program, but we did so on time! No extensions! I was truly caught off guard with how easy it was to obtain financing using a bond program. In this case, I represented the buyers. They were a newly married couple looking to start off their new life together by purchasing a house for themselves and their daughter. Unfortunately, their family income made it difficult to afford conventional financing. After exploring all of their options, I spoke with … (6 comments)
Born and raised in New Orleans, I know this city and its real estate. Please contact me soon if you are interested in buying or selling property in New Orleans. I look forward to hearing from you!
Will the Fed’s recent rate cuts cause mortgage interest rates to plummet this year? Most likely not because the Funds Rate (the suggested overnight rate charge for banks) is NOT directly tied to fixed home loan rates! Fixed home loan rates are directly tied to bond rates and when the stock market goes up, the bond market goes down, which means mortgage rates go up. Obviously if we experience a recession than all bets are off.
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