I have been unable to blog the past week due to market changes and adapting to the new Good Faith Estimate. What seemed simple in theory has turned into a mess for lenders and home buyers/borrowers.

The trouble so far is that the new good faith estimate is so poorly designed that it tricks buyers into thinking higher costs for loans are being presented to them. The new GFE blocks most all lender fees into one section called “origination charges.” It shows this on top of listing origination fee or discount points.  Instead of adding transparency to mortgage banks this new form has turned into a nightmare for us all making borrowers and lenders shaky as they contemplate moving forward on a home loan.

What the brilliant people at the FED don’t realize in their inability to fix ANYTHING is that when they make a change like this new GFE, lenders double the time they spend with each borrower — first, explaining the new form and how odd it is compared to the plain english approach to the old GFE; second, as lenders, we are penalized for any mistakes on the estimate itself even small variances in fees that lenders have no control over such as title, transfer and some insurance fees.  As everyone knows, when you double the time an employee spends on anything, eventually, costs will go up. Why our pals up on the hill can’t figure out the basics of economics is beyond me.

As a lender, I am 100% honest with my clients and I’ve never mislead a buyer into a fee that was not valid. I can say that for almost every lender I know. I am sickened to think that we as lenders may be forced to charge more to our buyers to give them the same great service they deserve and we’ve always given.

Now that we’re getting the hang of this new set of rules I am hoping that everyone gets back into the groove of things by next week.

On a better note, I hope everyone smiled when my prediction came true regarding interest rates coming down around the 11th of January! Here is my gift to you, as rates are still great here at Urban Austin Mortgage …

Todays Rates:

30yr Fixed- 4.75% 0+1

15yr Fixed- 4.25% 0+1

FHA/VA 30yr- 4.875%

USDA 100% financing- 4.875%

Any and all questions can easily be answered over the phone or via email any time.

Sincerely,

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

UA website - Austin Texas Home Loans
Quick Application

Welcome back, everyone!

I sincerely hope you all had safe travels and/or a very special Christmas at home. This week like last week will start and finish off with rates much higher than we have seen the last month. As I mentioned last week, we won’t see any relief from this uptick until corporate earnings start posting mid January and some expected lower earnings reports gives bonds (mortgage rates) a hand with some downward pressure.

I suspect we won’t see much of anything positive for a week or two, so hang in there.

It’s the perfect time to be gathering your info and or filling out a loan app while you wait for rates to retreat.  REMEMBER, you CAN’T simply lock a rate by submitting a loan app. You must go through the approval process first which can take several days. Prepare yourself now by starting early.

Today’s 30-year fixed rate is sitting around 5.25% with the big banks and closer to 5.00% with Urban Austin Mortgage.

Go to urbanaustinmortgage.com today and click on APPLY NOW to get yourself in position for the next drop.

Respectfully,

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

Hey, gang!

I hope your weekend was relaxing and you don’t have too much last-minute shopping to do.

With nothing in the way of new macro-economic data to guide them the few mortgage investors still at their desks appear to be taking their directional cues for mortgage interest rates from trading action in the stock market. In today’s early going a solid rally in the stock market is exerting noticeable upward pressure on mortgage interest rats.

Today’s Urban Austin Mortgage Rates:
30yr fixed- 4.625% 0+1.5
15yr fixed- 4.125% 0+1.5
FHA/VA- 4.75% 0+1.5

USDA 100% financing- 4.75% 0+1.5

*These low rates are ONLY offered through Urban Austin Mortgage. The application process is FREE, simple and you can receive an approval in just a few hours. Let’s get to work!

Respectfully,

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

Good day, folks!

We were greeted this morning with great news for bonds, but bad news for stocks. The dollar is up but stocks are down.

The U.S. currency jumped for two reasons. First, are the “continuing jitters” after the Federal Reserve on Wednesday left interest rates unchanged near 0%, saying weakness would remain for some time. Adding to those fears are reports about Greece being downgraded by Standard and Poor’s.

The S&P move came after healthcare companies complained that the country was behind on payments related to its public health system, and it follows Fitch Rating’s downgrade of Greece on Dec. 8.

Marc Chandler, chief foreign exchange strategist for Brown Brothers Harriman, Chandler said those downgrades and persistent worries about the economy are driving up the dollar.  —CNNMoney.com

Again, this has improved rates today by .125% which makes it a great time to jump on a lock if you’ve been waiting.

Today’s Urban Austin Mortgage Rates:
30yr fixed- 4.625% 0+1.25
15yr fixed- 4.125% 0+1.25
FHA/VA- 4.75% 0+1.25
USDA 100% financing- 4.75% 0+1.25

*These low rates are ONLY offered through Urban Austin Mortgage. The application process is FREE, simple and you can receive an approval in just a few hours. Let’s get to work!

Respectfully,

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

Hey Team!

Hope this week is off to great start for you all.

The mortgage market took-one-on-the-chin this morning when the Labor Department reported prices paid at the farm and factory gate jumped more than double the 0.8% gain most analysts had been expecting.  The headline November producer price index was up a surprising 1.8% while the core index (a value stripped of the more volatile food and energy components) posted a larger-than-expected 0.5% gain.  The lion’s share of the surge in the November producer price index figures was created by a strong uptick in energy costs and new model year price increase for light trucks.  Crude oil prices hit $82 a barrel during the survey period for this data but has since retreated sharply – trading around $70 a barrel as I write.   Near record excess manufacturing capacity and a jobless rate that is projected to average 10% for much of 2010 will likely prevent suppliers from passing on these increasing costs through at least the end of the first-quarter of the New Year. 

     Mortgage investors are taking a cautious “wait-and-see” approach in front of the last Federal Open Market Committee meeting of 2009.  The text and tone of the Committee’s post-meeting statement (scheduled for release at 2:15 p.m. ET, Wednesday, December 16^th) will contribute significantly to the trend trajectory of mortgage interest rates up and through the Christmas break.  

Any hint that the central bank is considering backing off of its asset purchase programs, or perhaps mulling an increase in its benchmark short-term interest rates will likely send mortgage interest rates notably higher.  While it is worth noting this risk exists – the probability of such an outcome is exceptionally low. 

Today’s Urban Austin Mortgage Rates:
30yr fixed- 4.625% 0+1.25
15yr fixed- 4.125% 0+1.25
FHA/VA- 4.75% 0+1.25
USDA 100% financing- 4.75% 0+1.25

*These low rates are ONLY offered through Urban Austin Mortgage. The application process is FREE, simple and you can receive an approval in just a few hours. Let’s get to work!

Respectfully,

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