Thursday 5PM 12/31/09 Today’s Current Mortgage Rates Update

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates +reversed+ Wednesday’s improvement, ahead of the holiday weekend. The upside move was directly related to a sharp drop in “first-time claims” for weekly state unemployment benefits. Generally, good news about the economy is bad news for those seeking lower “home loan” rates.

The national-average thirty-year fixed-rate mortgage is now at five percent with two and-a-quarter points, up an eighth of a point from Wednesday, for an extra cost of one-hundred-twenty-five dollars on a one-hundred-thousand dollar loan.

The five-and-a-quarter percent rate is at three-quarters of a point, also up an eighth-of-a-point from Wednesday.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average fifteen-year fixed-rate mortgage was up as well, with the four-and-a-half-percent rate now at one-and-a-quarter points, up an eighth-of-a-point from Wednesday. And the four-and-three-quarters percent rate rose an eighth-of-a-point to one-quarter of one point.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate +before+ the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

On Thursday, “jobless claims” tumbled to the lowest mark since August 2008. Some analysts said the drop was related to the inability of many people to reach their local unemployment office, to file the paperwork necessary, to receive unemployment benefits, due to “severe” winter-weather conditions.

On Friday, the financial markets are closed for the New Year’s holiday.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Saturday for my next *free* mortgage rate update.

(Part 1 of 3 posts on terminology that can often create confusion)

Don’t you just hate it when someone you are talking with starts throwing words around that you don’t fully understand?  We certainly don’t want that!  It is important that anyone involved in the purchase or refinance of a home understand the terminology used.  Especially when you consider this information involves not only your personal finances, but also something with high emotional ties – your home.

This series of posts will compare two similar terms but with very different meanings and implications that are used throughout the mortgage process.  This information will hopefully be valuable and not just industry jargon to pepper your conversation.  But either way, we thought you might want to know.

Part 1 – What’s the difference between a “pre-qualification” and a “pre-approval”?

Regardless of which term you are referring to, both words describe a lender’s review of your personal information in order to secure a home loan.  The process is typically used when a borrower is preparing to purchase a home.  (Incidentally, it is highly advised to take this step before you shop for a home, rather than shopping for a loan after you find your dream home.)

The significant differences are:  the amount of effort a lender puts into helping you determine how much house you can afford; and in how much documentation you provide a lender.  A pre-qualification means you have had a casual conversation with a lender and have verbally discussed your financial situation for purchasing a home.  You will only talk about your credit, income and possibly size of down payment.  You are given an opinion of your ability to secure a loan based on a hypothetical situation.

A pre-approval means you have provided actual documentation to verify your income and assets, have had a full credit report run, have discussed various loan options available and have a good idea of how much house you can afford.  You will also know how your home may be financed and what the payments can look like.  In a word, you are an informed buyer.

Gaining a pre-approval has significant advantages to both the buyer and to the seller.  As a buyer you know how to shop, can make an offer with a high degree of confidence and know that you have financing lined up.  Taking this simple step also gives you huge bargaining power over a pre-qualified buyer since your offer is more financially sound.  As a seller you know a pre-approved buyer is serious, prepared to make you a quality offer and you don’t have to worry if the deal is going to fall through.

If you are considering purchasing a home, call one of our Home Loan Specialists today and let us help you with a pre-approval so you can shop with confidence to purchase your dream home.

Coming soon – Part 2 – What’s the difference between a “pre-paid expense” and a “closing cost”?

Happy almost New Year!

The market wasn’t great this week, but that is typical for this time of year. Again, let’s keep our fingers crossed for better rates come Jan 10th or so.

Buckle up tonight. Use a designated driver if needed and have lots of fun! It’s a moral imperative.

Buckling down at home? Start the new year with a mortgage consultation! By applying on my website, we can begin to examine whether a refinance can save you money. Go to urbanaustinmortgage.com today and click on APPLY NOW to get yourself in position for the next rate drop.

Cheers,

D. Stephen Steakley, Jr.
Austin, Texas Home Loan Expert
512-577-8898 ph
Austin, TX Home Loan – Quick Application

Fannie Mae’s latest offering

At the brink of loosing your home? You might qualify for a special program. A deed for lease program, implemented in November by Fannie Mae ( buyer of existing home mortgages). 

This program basically allows the borrower to lease back the property from the lender- your signing a lease to the property. You must qualify. You become a tenant rather than an owner, but you get to keep your house for the time being.

This program is targeted for those that do not qualify or have not been able to obtain a modification or other solution to the problem. What happens is borrower transfers property to lender by completing a “deed in lieu of foreclosure” document, and then lease back the property at the current market rental rate.

 Some guidelines:

• Borrower must live in the home as primary residence.
• Must be released from any subordinate liens on the property
• Current rental rate must be less than 31% of gross income. (Must show proof)
• Leases may be up to 12 months, possibly a term renewal after 12m or month-to-month extension.

This is a great program for those struggling to make payments. Now, this is easier said than done. As you can expect, it requires a lot of paperwork and patients.

For professional advice on all aspects of buying or selling Real Estate, please contact me Richard Recuset at: 786-287-9272 -email: Richard@teamDoral.com

Thursday 8AM 12/31/09 Today’s Current Mortgage Rates Update

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates enjoyed a second-consecutive day of improvement on Wednesday. It was mostly the “result” of relief about the successful conclusion to a 118 billion dollar “borrowing binge” by the U.S. Treasury, with sale of 7-Year securities to global investors.

The national-average thirty-year fixed-rate mortgage is now at five percent with two and-one-eighth points, down an eighth of a point from Tuesday, for a savings of one-hundred-twenty-five dollars on a one-hundred-thousand dollar loan.

The five-and-a-quarter percent rate is at five-eighths of a point, also down an eighth of a point from Tuesday.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average fifteen-year fixed-rate mortgage was lower as well, with the four-and-a-half-percent rate now at one-and-“an”-eighth points, down an eighth of a point from Tuesday. And the four-and-three-quarters percent rate fell a quarter-point to just one-eighth of a point.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate +before+ the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

On Wednesday, the Chicago purchasing managers said that December manufacturing activity in the Upper Midwest rose sharply to a level of 60 from November’s 56.1.

Today, we-will-receive the latest look at first-time claims for +weekly+ state unemployment benefits. An eight-thousand increase is expected.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here later today for my next *free* mortgage rate update.