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What will RATES be like Today..Tomorrow...Next Year?

By
Mortgage and Lending with CNN Mortgage NMLS # 771044

That is the Million dollar Question.... Lenders/Brokers were horrified not too long ago when rates increased to what seemed like a 1/8th every hour. I am sure those who had not locked in on their rate were questioning what in the world was going on. Some experts say inflation...others will argue that it was just long due for an increase that happened suddenly. Now that we have calmed down in the last couple of weeks...what are the possible trends we can expect to go on from here?

 - Expect to see the short term loans ( ARMS ) have better rates! Yes, I am already seeing much improvement on the 5 yr ARM compared to the 30 yr Loan. Funny enough, millions of homeowners are seeking to get out of their ARM ( which is set to adjust shortly) and get into a 15/30 yr fixed rates

 - ALT A Loans on the comeback? Slowly....I am noticing that these once semi to very risky loans are starting to reappear. However....do not expect the loans that had the sang...If you can frost a mirror....you have a loan. All that I am saying is that the 95% LTVs to 100% financing loans are out there but are much more credit driven and manually underwritten.

 - Loans to think about for your clients: For the past year, I have been focusing on the FHA Market. These loans are limited depending on the county you are in. ( In Maricopa and Pima ) the limit is $263K. So, if your are in the Scottsdale...North Phoenix area...these loans may not apply to you. Here are some advantages of the FHA LOAN; ( Purchasing; up to a 3% down payment assistance program to make it 100% financing; NOT CREDIT SCORE DRIVEN; up to 6% in seller consessions; DOUBLE-WIDE Manf Homes okay! and interest Rates between 6.5% to 7%. That  is not bad when you may have a client who has troubled credit. Of course....some restrictions do apply on credit such as BKs....judgements, etc.