A majority of calls we get on a daily basis are caused by the media's reports of interest rates being lower than they have ever been since Freddie Mac has kept track. Current national averages are 5.06% for a thirty year fixed rate conforming mortgage.
Here is what I see from my chair. The mortgage backed securities are definately increasing margins on lower coupon rates for GNMA and FNMA products. Unfortunately due to high volume and what I believe is profit taking by lenders, the mortgage rates are not diving down as the media would suggest. No question, interest rates are low right now. If you are in the market to refinance or purchase a home, you are doing it at the right time.
Most people want the absolute lowest rate and this is understandable. I will caution you that trying to "time" when to lock can be a costly error! The only way for a consumer to know they got the lowest rate is after the rate and market have increased. Think about it, the only way to know what day had the lowest rate was after it has gone by and you can see the dip on a chart.
Will interest rates go down? Looking at the MBS yields would suggest "Yes". However, due to the economic uncertainty that we live with today there is no guarantee. The only way to be certain that you get a good deal is to lock into today's rates - the lowest in history to date!
Have a great 2009!
Friday, January 9, 2009
Friday, December 19, 2008
Mortgage NEWS! Mortgage Job Loss Insurance!
One of very own contributors, McGehee Wolf, on the NEWS!
Wednesday, November 26, 2008
Allied First National Lender to Help FHA Homebuyers
November 25, 2008
Allied To Offer FHA Homebuyers
New Rainy Day Foundation HELP Program
First-time Buyers Receive Counseling, Support To Make Payments
(Houston, TX.) – Allied Home Mortgage Capital Corporation, the Houston Based nationwide lender, today announced it is the first nationwide lender to partner with the Rainy Day Foundation, a national non-profit organization to offer educational tools and mortgage loan protections services through their new Homeowner Education and Loan Protection program (H.E.L.P.)
“The Rainy Day Foundation, headquartered in Washington, D.C., encourages responsible home ownership. Through its HELP program it teaches home buyers how to position themselves for success with their new mortgage. It educates them about home ownership and teaches them how to resolve problems that may arise,” said Jim Hodge, chief executive officer of Allied Mortgage.
Participation in the Rainy Day HELP program is made available to all FHA borrowers who finance their homes through Allied, at no cost to the borrower. “We feel that it is essential that we do our part to provide financial stability to our borrowers,” added Allied.
The program provides:
* Monthly communication and newsletters that focus on budgeting and offers solutions to home ownership challenges for a period of two years.
* Direct communication between the non-profit and borrower for a period of twelve months after the loan closes to reinforce standards, answer questions and gauge financial challenges.
* A job loss insurance policy that is in effect for the first year of the home loan. Depending on circumstances, the policy will pay up to six months of a borrower’s mortgage, up to a maximum of $1,800 (principal, interest, taxes and insurance).
* The ability for the homeowner to apply for an emergency grant to resolve short term financial challenges. These grants are specific for mortgage assistance.
“We know that many borrowers today don’t have the ability to navigate through real life issues. These are trying economic times and we believe that we want to give our customers every chance at successful homeownership”, said Hodge. “No one, including banks and lenders, wants a homeowner to default on a loan. We feel the Rainy Day program will proactively address problems that our borrowers might encounter”
This year alone it is anticipated that the Foundation will enrolled more than 20,000 homeowners, a figure that is projected to double in 2009.
“What happens when homeowners suddenly are scheduled for less hours at work, or they encounter unexpected medical expenses?” asks Rick Del Sontro, chief executive officer of the Rainy Day Foundation. “Life happens and there is no way to underwrite a loan to life. Our goal is to help families achieve and maintain the American Dream. We applaud Allied for taking this significant step and proving that not only do they care about making a loan, but those they want to create successful homeowners”
More information on FHA loans is available at www.fhainfocenter.com and free informational reports on everything Home Finance www.WeDoFHALoans.com.
Allied To Offer FHA Homebuyers
New Rainy Day Foundation HELP Program
First-time Buyers Receive Counseling, Support To Make Payments
(Houston, TX.) – Allied Home Mortgage Capital Corporation, the Houston Based nationwide lender, today announced it is the first nationwide lender to partner with the Rainy Day Foundation, a national non-profit organization to offer educational tools and mortgage loan protections services through their new Homeowner Education and Loan Protection program (H.E.L.P.)
“The Rainy Day Foundation, headquartered in Washington, D.C., encourages responsible home ownership. Through its HELP program it teaches home buyers how to position themselves for success with their new mortgage. It educates them about home ownership and teaches them how to resolve problems that may arise,” said Jim Hodge, chief executive officer of Allied Mortgage.
Participation in the Rainy Day HELP program is made available to all FHA borrowers who finance their homes through Allied, at no cost to the borrower. “We feel that it is essential that we do our part to provide financial stability to our borrowers,” added Allied.
The program provides:
* Monthly communication and newsletters that focus on budgeting and offers solutions to home ownership challenges for a period of two years.
* Direct communication between the non-profit and borrower for a period of twelve months after the loan closes to reinforce standards, answer questions and gauge financial challenges.
* A job loss insurance policy that is in effect for the first year of the home loan. Depending on circumstances, the policy will pay up to six months of a borrower’s mortgage, up to a maximum of $1,800 (principal, interest, taxes and insurance).
* The ability for the homeowner to apply for an emergency grant to resolve short term financial challenges. These grants are specific for mortgage assistance.
“We know that many borrowers today don’t have the ability to navigate through real life issues. These are trying economic times and we believe that we want to give our customers every chance at successful homeownership”, said Hodge. “No one, including banks and lenders, wants a homeowner to default on a loan. We feel the Rainy Day program will proactively address problems that our borrowers might encounter”
This year alone it is anticipated that the Foundation will enrolled more than 20,000 homeowners, a figure that is projected to double in 2009.
“What happens when homeowners suddenly are scheduled for less hours at work, or they encounter unexpected medical expenses?” asks Rick Del Sontro, chief executive officer of the Rainy Day Foundation. “Life happens and there is no way to underwrite a loan to life. Our goal is to help families achieve and maintain the American Dream. We applaud Allied for taking this significant step and proving that not only do they care about making a loan, but those they want to create successful homeowners”
More information on FHA loans is available at www.fhainfocenter.com and free informational reports on everything Home Finance www.WeDoFHALoans.com.
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