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How To Get A Low Mortgage Rate In A Volatile Market

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Getting a great, low mortgage rate in a volatile mortgage market requires preparation. 

Consider what has happened in conforming mortgages 4 times in the last six months:

The Dow Jones Industrial Average moved dramatically, recording both its largest one day gain and its second largest one day point loss in history.  Mortgage rates got whipsawed, too.  From day to day, huge rate swings made mortgage rate shopping difficult.  It wasn’t uncommon for lenders to change pricing 3 times per day.

If you missed the recent plunges in mortgage rates, and don’t want to miss the next one, all you have to do is get prepared.  A low rate may only be available for a matter of hours.  You probably won’t even know when it happens.  And we won’t have time to contact you when it happens.  We’ll be busy locking in low rates for the customers prepared.

It’s a lot like getting a table at a popular restaurant on a desirable day.  If you don’t have a reservation you are out of luck.

There are 3 basic steps to prepare for low rates and the key is to follow them before rates plunge, not during.  That way, you’re ready to pounce on low rates at the moment they present themselves.

The first step is to contact us. 

Next, provide us with the information required to complete a loan application.  This is a free service of ours…it will cost you nothing but a few minutes of your time.  Be honest and accurate so that we can get you pre-approved for a loan.  Then just sit back and wait for the market to reach the pre-determined rate. 

When it does…We’ll lock the rate and you won’t be left behind.

This preparation process is very similar to what home buyers do before making an offer on a home.  Getting ready for a refinance is the same as getting pre-approved for a home purchase, but instead of waiting to pick out a home, it’s waiting to pick out a rate.  

So, to summarize:

Contact us by phone or email

Provide a complete application

Be prepared to receive the good news that you have locked in a great mortgage rate.

It will be your lucky day and you will have been ready for it.

Posted by Terry Brunner.  Terry is a Sr. Loan Officer w/ Horizon Financial and can be reached @ 877-627-9211×150 or TBrunner@HorizonFinancial.org

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By admin
July 1, 2009

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Good News For Housing Market

Representatives Childers (D-MS) and Miller (R-CA) introduced HR 3044 last week which requests an 18 month moratorium on the HVCC .    This is the Home Valuation Code of Conduct implemented in May and sited by the National Association of Realtors as a major hurdle for the housing markets recovery.

NAR chief economist Larry Yun said “faulty valuations are causing contracts to fall thru because buyers can’t get loans”.    Yun also stated “lenders are using appraisers who are not familiar with a neighborhood and compare traditional homes with distressed or discounted sales”.    

Another complaint of HVCC is the added cost to borrowers.     Fees are higher, processing times are extended due to slow turnaround time, and the appraisals are not portable to different lenders.    The lack of portability means a borrower cannot shop for the best deal because they would have to pay for multiple appraisals for each lender.     Let’s hope that HR 3044 passes quickly so that the ailing housing market can find traction and consumers can take advantage of historically low rates.

 

Posted by Mike Owens.  Mike is a Partner with Horizon Financial and can be reached at 864 907 2678 or at mowens@horizonfinancial.org                   

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By admin
July 1, 2009

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New “Homeowner Affordability And Stability Plan” Spells OPPORTUNITY!

Under the new Homeowner Affordability and Stability Plan, homeowners who stay current on their mortgages, but have been unable to refinance because of decreasing home values, are eligible to refinance into a low-interest, 15 yr or 30 yr fixed rate loan!

The new initiatives can also be used to replace Adjustable Rate Mortgages or Interest Only Loans.

These programs can help homeowners who have loan-to-values ( LTVs ) above 80%, but not more than 105%.  If you have a 2nd mortgage or equity line of credit there is no combined LTV limit, provided your 2nd mortgage holder agrees to subordinate their lein.

Step One - visit Fannie and Freddie’s websites below to see who has your current loan.

www.FannieMae.com/loanlookup www.FreddieMac.com/mymortgage

Step Two - Call or email and we’ll see if you qualify.  Easy stuff!

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By admin
May 18, 2009

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Mortgage Guidelines May Be Loosening

In its quarterly survey to member banks, the Federal Reserve asked senior bank loan officers whether “prime” residential mortgage guidelines had tightened in the last 3 months.

Nearly 50% of banks said guidelines tightened last quarter, a much lower figure than during all of 2008 and a signal mortgage lending may be turning a corner.

Guidelines remain restrictive, however.

Versus 18 months ago, lenders subject would be borrowers to all of the following:

  • Higher minimum credit score thresholds
  • Larger minimum downpayments
  • Lower debt-to-income requirements
  • Mandatory fees based on certain loan traits

In addition, the availability of subordinate financing has all but disappeared when a home’s loan-to-value exceeds 80 percent.

Combined, these changes preclude a lot of Americans from getting access to today’s low rates but that could change in the coming months if the Fed’s reported trend continues.

Some experts believe credit tightening started the recession.  Credit loosening, therefore, could help lead us out.

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By admin
May 18, 2009

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