broker: When is the Best Time to Lock?
- 01/14/08 06:17 PM
I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client's interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele. A mortgage loan cannot be closed without locking in a rate, and there are three main elements to take into consideration: Interest Rate Points Length of the lock Locking in on a rate does not obligate the client to commit to the loan until the loan is actually closed. The lock simply eliminates any risk of the borrower being … (3 comments)
broker: When is the Best Time to Lock?
- 01/14/08 06:17 PM
I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client's interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele. A mortgage loan cannot be closed without locking in a rate, and there are three main elements to take into consideration: Interest Rate Points Length of the lock Locking in on a rate does not obligate the client to commit to the loan until the loan is actually closed. The lock simply eliminates any risk of the borrower being … (2 comments)
broker: Should You Leverage Your Home or Pay It Down Rapidly?
- 06/08/07 06:40 AM
There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let's examine the pros and cons of both strategies. Leveraging Your Property. In order to understand why you'd want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here's an example:
If Consumer "A" buys a home for $300,000, and puts 20% down, … (3 comments)
broker: The Price is Right: Utilize Your Equity While You Still Can
- 05/29/07 04:23 AM
While the stock market can be quite volatile, real estate has proven to be a stable investment over the years. According to the US Department of Housing and Urban Development, real estate prices had an average increase of 56% over a five-year period. Forbes reported an increase of 247% over the last 25 years. However, times are beginning to change. In fact, the national rate of real estate appreciation has had its most significant decline since the fourth quarter of 1999. With this in mind, perhaps now is a good time to begin evaluating your financial needs for the future. If … (1 comments)
broker: The Price is Right: Utilize Your Equity While You Still Can
- 05/29/07 04:23 AM
While the stock market can be quite volatile, real estate has proven to be a stable investment over the years. According to the US Department of Housing and Urban Development, real estate prices had an average increase of 56% over a five-year period. Forbes reported an increase of 247% over the last 25 years. However, times are beginning to change. In fact, the national rate of real estate appreciation has had its most significant decline since the fourth quarter of 1999. With this in mind, perhaps now is a good time to begin evaluating your financial needs for the future. If … (1 comments)
broker: What Should you do now?
- 05/22/07 05:54 PM
If you or someone you know has a subprime loan, especially an ARM or a hybrid ARM about to reset to a higher rate, you need to speak with a mortgage professional right away. With loan guidelines and credit requirements tightening so heavily, and property values still declining in many neighborhoods, you may not even qualify for a refinance if you wait too long and the pendulum passes you by. Even if your mortgage has a pre-payment penalty, it may be less expensive to absorb the penalty now and refinance into a more affordable or stable mortgage. Fixed rate programs are approaching … (3 comments)
I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client's interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele.;)
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