Mortgage Update

[fisherdog19]

Just a quick update on the market and what the rates are doing. Conforming A, Alternative A, and Jumbo A paper loans rates have seen a slight decrease over the last 8 weeks, and an even larger decrease since last September. On the flip side, second mortgage/home equity, and subprime rates have done the opposite especially on the high loan to value, and high combined loan to value (first and second leins combined) mortgages. Those in ARM'S that are over 1 year old may be in the biggest dilemma; do I ride out the ARM that may be at a slightly lower rate than what is available now, or refinance into that fixed mortgage?

Well, if you are in an ARM, and plan on staying in the home longer past the adjustment date than what is left on your ARM's fixed rate period, you should consider it. In more simple terms; if your ARM will adjust in April 2008 (12 months), and you plan on staying in your home for more than 12 months after it adjusts, you should consider refinancing. Current ARM to Fixed spreads are very minimal so if you are looking at purchasing or refinancing for any reason just go with the fixed rate. The minimal savings, and possible costs of refinancing in the future will cost you more than you will save in the short term. Although projections for some indices like Prime rate, 3 month LIBOR, and US Treasury note into the first 3 quarters of 2008 are for them to decline slightly (.1-.25%), it is not enough of a drop to consider staying in your ARM.

What does this mean? If you are in the above situation, don't put it off any longer because current rate projections are for an increase, as the industry recommendation is to lock current clients into their rates. Why you ask; well after the bond sell off last Friday due to some positive economy reports, consensus is that the economy will continue to put out positive reports which will in turn cause some type of rise in the current rates.

Current conforming 30 year notes are hovering in the high 5% range, while Jumbo 30 year notes are around 6.25%. If you are in need of a home, land, or commercial loan for any reason, please call me for a prompt, courteous, professional, no obligation consultation. Whether you have good or bad credit, little to no money down, or don't know what you can qualify for I'm here to help. I am a nationwide lender, and offer some of the lowest rates and closing costs available anywhere. Remember, all FM Members get a free appraisal when you finance with me.

[fisherdog19]

Rates moved upwards almost .125% since Thursday. Just thought some of you would like to know.