Having chosen South Carolina as your home, you’re now ready to find the cheapest first, second, or refinance mortgage rates available. The process of finding and comparing low-cost mortgages can be summarized into the following steps:

• Learn the options.
• Know the rates of interest.
• Determine your budget.
• Collect quotes.
• Compare your offers.

Horizon Financial is here to help. Our content is informative, and our information is accurate. You can request free quotes online, crunch numbers on the mortgage calculators, or calling Horizon Financial directly.  Take advantage by using our thorough South Carolina broker/lender mortgage loan programs knowledge to get the mortgage loan that is right for your situation.  Whether you are just starting to research or have a written offer on your dream home, we have Conventional, FHA, VA & USDA Rural Housing expects ready to assist with your hassle free options.

Posted by Bob Dangelo, a senior Loan Officer with over 20 years mortgage lending experience.  You can reach Bob toll free at Horizon Financial (877) 627-9211 ext 110 in Greenville, SC 864-527-8900 ext 1100 or email at bdangelo@horizonfinancial.org

The Dead Cat Bounce is a Wall Street term that refers to a brief recovery in the price of a declining stock, bond, security or market. The term is derived from the concept that “even a dead cat will bounce if it falls from a great height”. This phenomenon may apply to the mortgage bond market in the near future.

First of all, remember that when bond prices go up, rates go down. When bond prices fall, rates go up.

In the latter half of 2008, 30 year rates moved in a range from 5.875% to 6.5%. 15 year rates moved in a range from 5.75% to 6.125%. That is until November 25th, 2008. On that day the U.S. Federal Reserve Board announced that it would initiate a program to purchase mortgage backed securities from Fannie Mae and Freddie Mac, artificially propping up the prices of bonds and keeping interest rates low. The very next day rates on a 30 year fixed went down to 5.125% and ensuingly headed further south.

Over the last year and four months, the massive purchases (1.25 trillion dollars worth) of mortgage backed securities by the Federal Reserve have kept mortgage bond prices up and interest rates down. The 30 year rate has fluctuated between 4.5% and 5.25%, while the 15 year rate has moved in a range from 4.25% to 4.875%.

Now the bad news. The Federal Reserve has officially stopped buying mortgage backed securities as of March 31st, 2010. Mortgage rates have started to move up. While there may be some short term volatility, some experts expect rates to rise by 1% this year.

If you need to get out of an adjustable rate loan, or would benefit by refinancing, this may be your last chance to do so at a great rate.

And lets hope for the “Dead Cat Bounce” or bounces. Because this cat is officially DEAD!

Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon
Financial. Terry can be reached toll free @ (877) 627-9211 x150 or
email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org

We are all happy rates are down in 2010!

15 Year Fixed Mortgage

You want to save as much as $100,000. or more towards retirement?  Guaranteed!  No market fluctuations.  Change your 30 year fixed to a 15 year fixed.  With 15 year fixed as low as 4.25% and APR’s only 4.45% as of today, 15 year fixed are a great way to save many thousands in interest and payments.  How can you save $100,000. or more?  Review the following numbers:

$100,000. loan – If someone is 2 years into a 30 year loan, they have 28 years or 336 payments remaining in mortgage payments.  If the mortgage was $103,000 2 years ago at 6% (the approx. average rate 2 years ago), the payment would be $617.54..  That means $207,492. in remaining payments ($617.54 x 336 payments = remaining payments).  A new $100,000. loan at 4.25% has a 15 year payment of only $752.28 per month.  That means remaining payments (752.28 x 180 =) would be only $135,410..  That means going to a 15 year fixed loan would save you $72,081. in total payments!!!  Plus your home would be FREE and CLEAR in just 15 years instead of 28 years.  The payment increase to go to 15 years is NOT double, it’s only $135. more per month.  A small price to pay to guarantee you a savings of $72,000.+ in mortgage payments.  That certainly has out performed most 401K’s and IRA’s the last 15 years, with NO risk.  Let’s look at a larger loan amount.

$150,000. loan -   2 years into a 30 year loan (336 payments remaining).  If the mortgage was $155,000. 2 years ago at 6% (the approx. average rate 2 years ago), the payment would be $929.30..  That means $312,245. in remaining payments ($929.30 x 336 payments = remaining payments).  A new $150,000. loan at 4.25% has a 15 year payment of only $1,128.42 per month.  That means remaining payments ($1,128.42 x 180 =) would be only $203,115.  That means going to a 15 year fixed loan would save you $109,129. in total payments!!!  A huge amount of GUARANTEED money over the life of your mortgage, with only a small payment increase.  That is a solid retirement savings plan.  The larger the loan amount, the greater the savings, especially if your current mortgage rate is over 6%.

Take advantage of the huge savings and the low rates of the 15 year fixed loan.  Let an experienced mortgage professional run the numbers for you.  You could save over a $100,000..  Plus, if you are 40 years old, as an example, you could have your home FREE and CLEAR by age 55, instead of age 68, like in our above example.  Ask yourself this VERY important question.  Do you want a mortgage payment AFTER you retire???  If not, think strongly about the 15 year fixed mortgage.

-Gary Schoenholz – Loan Officer Manager – Horizon Financial, Inc.  15+ years of mortgage experience, 1000+ loans closed.  864-979-1111.  www.GaryTheMortgageExpert.com website.

For home buyers and homeowners that can manage the higher monthly payments, 15 year fixed rate mortgages look attractive as compared to 30 year rates

The 15-year/30-year interest rate spread is near a 5 year high.

Despite lower rates, however, homeowners opting for a 15 year fixed mortgage should be prepared for its higher monthly payments.  This is because the principal balance of a 15-year fixed is repaid in half the years as with a standard, 30 year amortizing product.

As compared to 30 year terms, 15 year products repay 3 times as much principal each month.

There are a few downsides to the 15 year.   Because 15 year mortgages are heavy on principal and light on interest, homeowners who itemize tax returns may have to claim a smaller mortgage interest tax deduction at tax time.

Another negative is the larger monthly payment.  If you run into financial trouble down the road, the only way to reduce the monthly obligation is to refinance into a 30 year product and that costs money. 

In other words, be sure you can manage the payments over the long-term before you opt for a 15 year term.   If you can manage it, though, the rewards are tangible.

Today’s 15 yr fixed with no pts and no origination fee is 4.25%.

Posted by Scott Fowler.  Scott can be reached @ 864-527-8900 x 104 or email SFowler@HorizonFinancial.org.  Visit Scott’s website @ www.ScottFowlerTeam.com.