I can not tell you how many people have told me TODAY that they heard rates are going to 4.5%!!!
From your mouth to God's Ears!
As I write this, rates are close to 5.0%... but it's still quite a stretch to get to 4 ANYTHING... so should you just wait?
The reality is that the mortgage business has gotten pretty L-E-A-N on the "back" side... what I'm saying is that the layoffs (it's estimated that more than 200,000 jobs have been lost in the mortgage business) affected closers and UNDERWRITERS... underwriting times are already over 2 weeks in some places.
So let's say the rates DO go to 4.5%... do you think everybody in the country is going to be trying to get some of that fixed rate money??? Sign me up coach! The Underwriting times are going to get EVEN LONGER...
Here's what we suggest... Start the loan application process NOW. If rates drop to 4.5, or WHATEVER, you'll be in the system, and ready to go THAT day. You see, here's the catch. With underwriting times backed up, you need a longer "lock" period. A longer lock period costs mo
re money... so if you're waiting for the CHEAPEST moment to get the rate - go ahead and commit to working with a lender, get in process NOW, and pull the trigger when the best time comes!!!
And one last note... I think it's important to shop around. I really do. But we are finally busy in the mortgage business, and our time is valuable. If you're going to work with someone else, tell me. If you're applying at 3 different shops at one time, let me know so that I can prioritize my time and efforts correctly. I want your business, I'll work hard for it, and I will give you the lowest price I can! But when you're standing around at the office, talking about what rate you got, and comparing that to your buddie's rate... remember, EVERYTHING is NOT equal. Balances are different, Credit Scores are different, the COST of the committment fee will be different... it's not like the "old days," when all you had to know was the rate! Lending has gotten COMPLICATED!
For more information about credit scores and cash out refinances, click here.
For more information about how much equity you will need in order to refinance, click here
For information about your Adjustable Rate Mortgage click here.
If you are considering a refinance in NC or Virginia, please call us at 919-649*5058.
ps. my personal opinion is that if rates go below 5% - it's not going to be for long... like maybe a couple of DAYS.
OUTSTANDING advice Elanor! Your closing point may be even more important that the 4.5% and getting started now. Our time IS valuable. We are professionals trying to do the best for all our clients. Sharing info like working with some one else or shopping 3 other shops is important to both the applicant and us. Additionally, comparing apples to apples is more difficult than it ever has been. Everything is seldom equal! Very well done!
I agree with Scott - OUTSTANDING advice. I don't know how many times I have told people this exact same thing. Start the process, be ready when the rates are where you want them and then pull the trigger. Appraisals are going to take longer then too.
With prices this low and rates so low where are all the buyers?
The rates you are heaing about...the Treasury is pushing to have FNMA and FHLMC to start buying purchase money loans at 4.5% fixed for 30 years... ok...but what about their underwriting??
Anyway your recommendations are on the mark.
Guys - thanks! I think that folks need to understand that the WAY they shop this refi is as different as EVERYTHING else in the business!!
Isn't it just lovely! Someone in their infinite wisdom from the government leaks, purposefully or not who knows, a rumor that they are going to discount pricing. This is like going into the clothing store and the sales clerk tells you there is a rumor management is going to discount everything 30% in 2 weeks.
Thank you very much, I'll be back in two weeks.
Just what we need, something to keep the buyers in the deep freeze!
Eleanor: This would be great refi time.....I can see them lining up....! Get out the mattresses!
Hi Eleanor,
I'm tagging this for a Feature -- it's excellent information and advice plus it gives Consumers (and agents) a better idea of what is happening on the lending side of things.
Have you made your Kahlua yet? :0)
Unfortunately so far only new home buyers for the program, however I believe we will hit 4.5 % in the general market in the next 60 days.
Richard
Hey guys - thanks for coming by! I just updated some folks, and the most important thing to remember is that LENDING HAS CHANGED. We have almost a 1/4% of interest rate difference if you want to take cashout and pay off debt! We have almost a 1/4% of interest rate difference if your credit score is less than 680!! You definately want to talk to your lender and find out your score, see if there's a quick (rapid rescore) way to increase it! Start working on this now.
I have a buyer today but it's new construction for year-end closing. You've got to love the rates now!
PS. Thanks for adding me as an Associate
Eleanor,
I really like your call to action!
Mike in Tucson