Buddy, can you spare a RATE?

Mortgage and Lending NMLS #94045

WOW...were locking between 4.75% - 5.0% this week for our best 80% LTV, 30 year fixed terms for perfect and I mean perfect applicants. So many caveats exist on your final loan offer that it is literally impossible to quote a 'rate' until we have reviewed your equity position, the kind of property you are financing, your credit, liabilities and income. Still --every person who calls or stops me on the street asks: "What is today's rate?" and "Will they go lower?" 

If only it were that simple. Watching rates has become like watching a volleyball match or the stock market for that matter. If you are the gambling sort you could wait.

May I ask what are you waiting for?5.25% is an incredibly good deal for 80% LTV. FHA 5.5% is AMAZING for 96.5% LTV or 5.75% for 100% VA purchase. You would be CRAZY to pass those prices up now if you qualify. Actually, lots of smart folks have gotten the word and we are busy as bees right now.

But what about the BAILOUT? Apparently $10 TRILLION is gone already! While bazillions of Stimulus Bailout dollars are going to some very big banks--the main purpose is to shore up their balance sheets. This is NOT the money coming to Joe Six-pack. Once those particular banks are in better shape that will instill confidence in lending again. The banks being bailed may have been unduly risking depositor's (your) money! If your bank was lending too much on loans not being paid back they may be out of compliance with FDIC rulings on how MANY times they can lend depositor's money. Yikes.  

Check out your bank on this rating site:  http://www.bankrate.com/brm/safesound/ss_home.asp

Side bar: Banks are being served with FDIC 'cease and desist' orders these days. Such a bank will most likely turn down your application rather than admit they are not in the mood so to speak. Or they might offer you a 'go away' rate that is suspiciously higher than the one across the street.

What is 'A-Paper ' these days? A-Paper loans are basically best terms offered to the best borrower who basically gets to call the shots. Or did. Leaning to live with risk-based pricing adjustments will be THE challenge this year. If your middle FICO score is below 680 you will pay more for your loan. Period. If your FICO is over 740 you will get the best rates and higher loan allowances. These new Fannie Mae/Freddie Mac pricing hits apply to all conventional loans.  We have been getting updates about once a month on higher scores and lower LTV's required by most of our lenders. Different lenders have different niche markets and products/prices to offer. So it's a good thing I have seventy banks to call upon. 

Similarly, FHA and VA and even USRDA are becoming 'score sensitive' and setting their baselines higher requiring traditional credit reports. To avoid surprises, it's more important than ever to get your credit in tip top shape! A strong FICO score could save you tens of  thousands of dollars via lower interest rates. Read more about credit issues on my blog http://www.netcredit.blogspot.com  

What's the HOLDUP? Rate swings generate a lot of sudden, sporadic business. While we can and do fund refinances in 21 days for folks living well within their means, less than 30 days to close is rare these days. It seems we have a lack of patience with the whole lending thing. Why is that? Maybe a few years of living on plastic has taught us to think that money is something you push a button for?

Things have gotten a tad complicated with all the new laws and redisclosures on our redisclosures! We are all working hard to build your case and place your loan with the right lender at the precise moment to get you the best terms in a changing market. Imagine your work load doubled and your pay didn't? Oh yea, it did. So you can sympathize! Our underwriting teams appreciate sales dates pending...so let's cut everyone a little slack. What we don't need is more angst. Most of the Realtors in our world get it and their patience and encouragement really pays off for everyone!

FYI: The BEST banks are just fine and lending. They just happen to be very busy doing just that. We make it our business to know which ones are lending to whom and for what (and how quickly--the ever moving target).

Time to BUY!  Once the fine weather sets in things start hopping so beat the rush and get on the bus! 

Gardeners or wannabees: If you are in the area, drop in for a free packet of Heritage Pink Poppy seeds gathered by yours truly. (open 10am - 6pm most days--might want to call first). Plant now to early May for best effect. All they ask is a sunny well drained spot...even sandy, rocky soil will do. Who can look a poppy in the face and not smile?

Happy Spring!  




susan templeton
mortgage planner


510-MB-24707-50145    An approved Conventional, FHA/VA/USRDA and Reverse Mortgage Broker

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Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. Loannetter is a private brand owned and copyrighted by Susan Templeton.


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