Posted by: loanarranger | December 17, 2008
Mortgage rates – your bailout is here!
YES, THERE IS A SANTA CLAUS —- and it is the taxpayer!
In case you did not hear—yesterday, the FED said they will do anything and everything to lower rates and get the economy going again. They lowered their rate to near ZERO, but more importantly, they will buy treasury bonds, mortgage bonds and mortgage backed securities. You can be part of a bailout after all!
Mortgage rates dropped to 60 yr lows this morning in the mortgage market. Some rates are already at 4.5% or less, for a 30 yr fixed === rates are SUPER DUPER INVERTED (just made up that technical term) , so if you want a 3 yr ARM, your rate is 5.75%
This means that anyone that is intending to stay in their homes for a few more years, can get a piece of the BAILOUT. You will read headlines this weekend that “mortgage applications are UP at record amounts” — what that means is that every buyer or REFI person is calling their lender saying—”give me a lower rate or I will go to another lender”.
What you should do—-what I am going to do. Since this is the Christmas season, many are charging up their credit cards — when they get their credit report, their scores will be down about 50 points if these bills are there. If you pay off your cards every month, pay them off early (now).
Check your credit free at www.annualcreditreport.com to see what info is on your report, so you can correct mistakes NOW.
However , there is a catch.
To get the prime low rates you need credit scores above 800, low loan to value on your home, and a good debt to income ratio. As everyone rushes to REFI in the next month, times to close will get extremely long, since most mortgage underwriters have been laid off.
Please give me a call or e-mail for free information on your situation , or read my Blogs for more updates. I will be refinancing myself in the next month.
Your info is all well and good except you forgot one point ….to refi you also have a new appraisal to deal with and if you brought in the last 2-3 yrs. your value of your home has dropped by 100,000 more or less. and therefore you pay the devil to get the new lower rates and benefit due to your 1st mortgage is higher then what you can get on the new rate. L/V.
By: Jan Sgueglia on December 28, 2008
at 4:35 PM
That is true — But I was commenting that ordinary people that bought before 2003, have good credit, a job, now have a opportunity of a lifetime as 30 yr rates slip into the 4’s shortly. Some areas of the country have actually had stable prices for the past 6 months. If you have had tremendous loss of equity, it is gone, just like the stock market.
By: loanarranger on December 28, 2008
at 5:16 PM
Here is a link to a commentary on the government’s proposed mortgage bailout program that you might find interesting http://tinyurl.com/ckw7y4
By: Robert K Minniti, CPA, CFE, Cr.FA, CFF, MBA on February 19, 2009
at 6:15 PM