Homes Fort Mill SC

The Federal Reserve slashed its target rate for overnight interest to a record low 0 to 1/4 percent.  What does this amazing and historical benchmark mean for consumers…

ALMOST NOTHING.

You can get a home equity line cheaper… if you can find a bank to give you one and if you have any equity left.  Your credit cards will probably remain unchanged and this has zero effect on mortgage rates.

The good news is that the Fed is also dumping tons of cash into mortgage bonds and that does have a big effect on mortgage rates.  The mortgage bond market was up considerably today and that means tomorrow morning our rates should improve. 

The Fed Rate cut only serves to remind everyone of what we already know, these are bad times.  Here are a few tips to better navigate these troubled times… (more…)

Mortgage rates hit 4.75% today for a short window for conventional loans over $325,000 and for borrowers with excellent credit.  This is an amazing rate for a 30 year fixed rate loan!  If you are in the market to buy a home and you have been waiting for rates to drop… NOW IS THE TIME!

I have been in this business for over 10 years now, and I have seen low rates before.  (more…)

Mortgages rates for conventional, FHA and VA loans have dropped to near record lows, but might now stay there long!

The federal government has been in the news daily trying to do something to weaken the recession. With the U.S. auto industry on the brink of bankruptcy, home prices still in decline and a seized up credit market, Treasury Secretary, Hank Paulson, has been trying different ideas to jump start the ailing economy. The newest idea is to artificially lower mortgage rates by using the “Bail-Out” money to buy mortgage bonds.

I have written many times about the way mortgage rates work, but here is a crash course for those still unaware… (more…)

#1. YES, YES, YES! Mortgage brokers, mortgage bankers and local banks are still making loans everyday for the purchase of homes. ONLY the following scenarios have gotten very restrictive:

· Investment Properties

· Buying a new house before selling your current house

· Credit Scores below 580

If you don’t fall into one of the categories above, the chances are good that you will qualify for a mortgage with little to no money down and a very low fixed rate!

#2. RATES ARE LOW! The Fannie and Freddie Bail-Out has created a very low interest rate window for homebuyers in today’s market! Because mortgage rates for most loans are driven by the sell of bonds guaranteed by Fannie and Freddie, the government take-over of these huge corporations is good for rates! They are backed by the U.S. Government now which makes their bonds almost zero risk… this has driven fixed rates lower!

Current 30 Year fixed rates are as low as 5.857%!! (more…)

Today was the first day in history that the DOW has traded up and down over 1000 points! What a ride, and if you aren’t too tired to read a little more maybe I can make some sense of the current craziness!

#1. “There is only one ‘end of the world’ and this ain’t it!”, stated one pundit on CNBC today. I liked the quote because it puts this mess in perspective. If everything always went up there would never be any opportunities! The question isn’t, “How low can it go?”, the question is, “At what point is buying a great bargain!?!?” I think maybe we hit that point today and investors started buying!

#2. Why are mortgage rates going up??? SIMPLE – Investors aren’t buying mortgage bonds right now. Mortgage is a four letter word until the market feels this mess is at least settled. We are getting there but not quite yet. Rates have to go up to get investors to buy mortgage bonds again…

#3. Tega Cay real estate is a great place to put your money! If you don’t want to buy stocks and are a little afraid to buy bonds… buy real estate!! This whole area is growing and the long term risk to your money in real estate is low. I have been told personally that many investors have started buying real estate in this area because they don’t want to keep their money in banks. Think about it… great mid-term potential, low risk and flexible options (live it, rent it, sell it, etc.)

Where are rates right now? (more…)

Maybe, but if you aren’t ready for it you might miss out!

The Fed just cut their rate by 1/2 point but mortgage rates are still rising. The stock market is getting it’s teeth kicked in, but mortgage rates are still rising. Inflation has moderated and even energy prices have started to decline, but mortgage rates are still rising. WHAT IS GOING ON???

Mortgage rates are controlled by mortgage bond prices and even though all the stars are aligned for fearful investors to gobble up mortgage bonds, many investors are not confident in any type of mortgage paper right now. Mortgage has become a four letter word to investors, and if mortgage bonds aren’t doing well… Mortgage rates will rise.

The Good News: At some point in the near future, if confidence in mortgage bonds is revived and market conditions remain the same, mortgage rates should drop like a rock! (more…)

There are plenty of mortgage lenders in Charlotte still making new loans!

The sky is falling. I just got hit in the head with a piece a few minutes ago! Just kidding but based on the public reaction lately its hard not to think I fell asleep a couple weeks ago and can’t wake up from the nightmare. I have clients calling daily now asking, “Are we still closing next week? Do you still have money to lend??” WOW, people are scared and rightfully so, because if you have a television set you can’t help but hear how awful the credit markets are and how banks aren’t lending money.

>>>>>>>>>ENTER REALITY

Mortgage lenders are lending money left and right in Charlotte, NC! I am not saying we don’t need the Bail-Out. I am Pro-Paulson Plan. I think things are tight and our banking system is in tatters, but there are still plenty of lenders that have money to lend for mortgage loans. Fannie and Freddie are still doing there thing, and there really haven’t been any huge changes to getting a mortgage in the last few weeks.

Right now you can still get…. (more…)

Mortgage Rates Move Lower!

Wall Street has been the best roller coaster ride around this past week! What a move… from one of the worst days ever to 2 of the best! Typically what’s bad for Wall Street is great for rates, but these are not typical times. Below I will explain a little about what is driving Wall Street and mortgage rates.

The recent credit crisis has fueled uncertainty among investors in both stock and bond markets. The bond markets are what drive mortgage rates and usually bonds compete with stocks because of the difference between them. People looking to invest in bonds need more stability and people looking to stocks expect higher returns because of the higher risk. The current crisis is unique because it has great impact on both markets. While stocks and bonds are usually affected differently by financial news, right now the news is affecting them both in similar ways.

#1. If the mortgage market is seen as risky or even in collapse, the bonds that are backed by mortgages are not very attractive.

#2. If the mortgage market is seen as risky or even in collapse, stock investors do not want to invest in banks or mortgage lenders.

The recent involvement by the government has done two important things for both markets.

#1. Mortgage bonds are now seen as safe again because the government backed Fannie/Freddie, which are the largest bond guarantors around. RESULT – lower rates!

#2. Financial companies are now seen as buying opportunities because the government has stepped in to stop short-selling, back money-market funds and add confidence so these companies can go back to doing business. RESULT – Stock Market Rebound!

I am recommending my clients lock in their interest rates now. The positive effects from the government moves are priced into our rates already and good news doesn’t last long. All this market movement was more a sigh of relief than a calculated move based on fundamentals. Inflation is still keeping pace with growth and rates are super low. I expect rates to start heading back up right away.

30 Year Rates are averaging 5.750% right now.

My 30 Day Prediction: RATES WILL INCREASE (more…)