Okay, not the lowest ever, but there is a point to this....
Mortgage interest rates for the most part in my 16 year career as a loan officer dropped quicker today than ever before. But they still aren't the lowest that I have seen in my 16 years. But why such a quick decrease in interest rate?
Today, the Feds announced two new programs, one of which will allow them to purchase up to up to $500 billion of mortgage-backed securities issued by Fannie, Freddie and Ginnie Mae. This is after the fact the MBS's have been more expensive in the last year or so, costing investors more money, which in some cases keeps the interest rates from coming down. For more information about mortgage-backed securities (MBS), please read : Mortgage-backed securities.
Overall, this is excellent news for many homebuyers and those that might have a chance to refinance into a cheaper rate.
Here is what I fear.... there will be some companies now advertising much lower rates. Some will make it sound like the lowest rates ever. Very easy to do....it's called advertisement.
My Biggest CONCERN for the day today.... 11/25/08???
In black and white... if you have applied for a mortgage in the last 21 days or so and haven't closed as of yet.... you should have received a call from your loan officer today... no matter what anyone says... especially if you are closing in the next 5 to 20 days. Yes, rates went down today, but spiked back up just a tad. But they still ended about 5/8 of a percent lower than what they opened as of yesterday.Yes, just yesterday & over a half of a percent better today.
It doesn't matter if I am talking about FHA loans, conventional loans, VA loans, or USDA loans...
Here is some more advice that I can give you. You will see many posts that talk about mortgage interest rates, and when you should lock your rate. Word of advice, many of these same loan officers get this advice from services, so don't base your decision on what you think they might know when it comes to what rates will do. Especially since they can change at any time. Please read...
SUMMARY : My biggest pet peeve??? Again, if you have applied with a lender in the last 3 weeks to 4 weeks and you didn't receive a phone call from your loan officer. hhhhhmmmm My advice, in many cases, seek a true professional that is on top of their game and who keeps you in the loop. Especially if you haven't locked in as of yet. But even if you have locked in, many of these lenders have probably flipped your loan to another investor and are making a killing. Not many will be passing the difference onto you unless you call them.
Early today I called a client who I first spoke with on 10/10/08 who decided to use Countrywide Home Loans 13 days ago. I spoke to them today and they are closing on 12/12/08 and the loan officer didn't lock their rate. Well, I had her call me again tonight after she got home from class, which she takes after work, and no word from her lender. OUCH... maybe her lender locked her in, but they didn't tell her. If she didn't ask, more in likely, the loan officer is going to pocket the profit. Because I called her, I am still saving you $1,100 more in costs and an extra $15 a month. Hey, just in 3 years, that's another $1,000. And check this out... they are getting $10,800 back from the seller. As it stands, her loan officer never told her to get addendum's to the contract to reduce it to $9,800, which would reduce the purchase price buy $1,000, because there will be money left over from the full seller's concessions. And in regards to my scenario, that I am $1,000 cheaper than her current lender, they will get to reduce the purchase price by $2,000. It's because I caught this and educated them, that they won't be losing this money. It's illegal to get money back at closing, unless there is an addendum reducing the seller's concession. Otherwise it's lost money.
LASTLY.... if any of this or all of this has happened to you, please don't hestitate to call me or another mortgage professional. But don't stick with your current lender. They didn't give you the true service that you should have received.
All pictures from istockphoto
- FHA Loans - USDA Loans - Conventional Loans - VA Loans - Experience & Knowledge at its BEST !!!
- FHA Loans - USDA Loans - Conventional Loans - VA Loans -
Experience & Knowledge at its BEST !!!
For more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger