Mortgage Rates and Industry update

[fisherdog19]

Currently mortgage rates are at 4.75% for a 30 year and 4.25% for a 15 year. It is a great time to refinance or purchase a home. For those of you that are first time homebuyers, you have until the end of November to qualify for the $8,000 tax credit for a home purchase so time is running out. If any of you have questions, do not hesitate to contact me. Rates can go up at any time, and winter is coming so if you're on the fence, now is the time to get off of it.

Rates are holding strong, and there have been many changes in the industry. Many of these changes are overkill making my job much more difficult with loans becoming harder than ever to close. It is imperative to use someone like myself that has the experience and knowledge needed to get things done right, the first time. I'll give you honest answers, with options that are best for you. We lend in 48 states so no matter where you are (except NJ and MD), I can help you.

[rcook72]

Buying just land doesnt fall under the tax credit does it?

[Coach1310]

So fisherdog.... what does this new news about the Fed helping out mean. I have read about 5 articles/blogs about it but it doesn't really say what it is going to do. It just says it is going to help.

[fisherdog19]

rcook, you must be a first time homebuyer to qualify for the tax credit which means you cannot have owned a home for the last 3 years.

Coach, the fed helping can swing rates either way. No one really knows how investors will view it. It usually will be a short term change and then will normalize again.

[Coach1310]

I understand that much, I guess I was asking about more in general and not so much about rates.... there has been talk about the fed extending the tax credit and possibly changing it to all buyers.... all the info I can find says the fed will help, but it doesn't say how.... i guess How is the Fed helping is more my question. Thanks

[Vallejo]

What is the rate for a refinance 30 yr FHA loan (streamline).

[fisherdog19]

It's tough to guestimate without more specifics. Based on a 720 credit score, 90% LTV and $225K value, the rate would be 4.875% as of the end of business today. If you'd like more accurate numbers shoot me an email with the particulars.

[Coach1310]

Hey Fisherdog.... what is the inside word on the possibility of extending the credit to those who have been in their home for 5 years??? Will it may it through and when would the program begin?

[fisherdog19]

It's funny you should ask, I just got something about it via email today. Look for the new post regarding the tax credit continuance.

[fisherdog19]

Rates are still at or near all time lows. Current rates are at 4.75% on Conventional and 4.625% on the FHA 30 year fixed The 15 year is at 4.25% on the conventional side and 4.375% for FHA. We may see a short term spike in rates as investors sell mortgage backed securities to realize their profit from buying at lower prices a week or so ago. With the spike in MBS availablitiy and lower demand for them, their value will slide pushing rates up. If anyone is considering a refinance, now would be the time to take advantage.

[fisherdog19]

30 year touched 4.625% today, still 4.25% on the 15 year. Locked a fellow FM'er in at 4.625% on his second/lake home today, it's a great time to take advantage of a lower rate and lower payments, or reducing your term with a small increase in payment. I have a different client going from a 30 year that he is 4 years into, over to a 15 year and he is saving $89 per month but cutting 11 years off his mortgage term. That ones a no brainer, if you need a quote or scenario just shoot me an email with your current balance, original loan amount along with your current interest rate and I'll let you know the particulars.

[BoxMN]

I just closed today, from our own fisherdog and Jackpine the closer. All went well, and got my 4.625%. Saving me quite a bit extra each month. Pretty painless, and this was my second refi with these guys. No complaints, and pretty darn happy. If anybody still has high rate on their place, give it a try, it might save you a bunch - and won't hurt to at least ask what it might save you.

[fisherdog19]

Thanks again for your business Box, it was a pleasure.

We've seen a small spike in rates and it seems as if they may go up further so those of you on the fence may want to consider getting off. Have a great Holiday Season everyone.

[pisces]

Say Fisherdog, could you answer for me the following. I received a letter from my mortgage company offering to refinance my existing mortgage. It lists several options, all supported by a lower interest rate: a)Lower payments and extend term b)Lower payments and maintain term c)new loan with shorter term, less interest paid. All are at 1 discount point. My question is " why would the company that is currently holding my mortgage be incenting me to refinance, thereby giving themselves less interest money." This seems to me to be contrary to a profit motive.