Posting live rates...

I think I'm tired of seeing low rate ads that never quote real scenarios. These are not automated junk, but real deals that I am quoting on a daily basis. I finally got tired of see Fixed Rate on TV @ 2.5% not telling you it's a 10 year fixed rate and the payment is based on $75000 loan amount. That's great for the one borrower is Fresno. But in California we need to see examples of real loan amounts and now you can see that at www.michaelfoote.com

Today's Rate Update

Mortgage Bonds are trading slightly higher today ahead of some big supply set to hit this week from the Treasury Department in the form of T Note offerings. 

In economic data, Durable orders were unchanged in October, while the case Shiller Home Price 20-city index rose to its 6th straight monthly gain.  

In addition, Lender Processing Services reported that home prices rose in September from the prior month and are higher from a year ago while Consumer Confidence jumped to its best level in more than four years. 

A Floating recommendation continues for it is tough to see home loan rates move significantly higher from current levels.

The Federal Reserve continues to keep home loan rates near record lows in an effort to shore up the housing market and that should continue well into 2013 or until such time that the sector can stand on its own two feet.

                                                                                                                                                                

 

MBS 16bps

Thanksgiving.

There are many things to be thankful for from the air we breath to the dirt we walk on and everything in between.

So please take time this week to be thankful for all the wonderful and glorious things we get to see and experience in our lives.

Happy Thanksgiving.

Purchase Sale and the mortgage process

OK you want to buy a house, now what? Buying a home is great and there are plenty of articles on the benefits etc. But let;s talk about just buying a home. More specifically, the financials associated with buying a home.

Can you afford it? The most basic qualifications allow you to finance and purchase a home with ratios as high as 45-50% of your gross income. Though most agree a number in the 33-38% range would be more preferred. So even today, we as lenders are able to offer a homebuyer good financing and allow for a reasonable amount of debt to income levels.

How much money do I need to bring in to close? Just because you are putting down 10% doesn't mean you won't bring in a amount at 10-15% of the sales price. In addition to the down payment most buyers will need to bring in interest and taxes for a prorated amount of time, you also may need to bring in closing costs for escrow, title, recording, notary, transfer tax, hoa fees, appraisal, tax service, etc etc. Many of these fees can be credited by the lender for an increased interest rate, or by way of seller or broker credits. These amounts and percentages may be capped on some mortgage programs.

How much documentation does it take. Pretty much everything over the last 90 days from bank statements to paycheck stubs, Your gonna need a ton of information, But if you are organized and retain your records as recommended you should be fine.

Get your trusted mortgage advisor involved before you start shopping. Get Pre-Approved by a lender like me to know EXACTLY what you are getting into.

180 days down just over 12 months ago...Approved

This business never ceases to amaze me. Today, I was able to get an approval for a client who was OVER 180 DAYS DOWN on their mortgage just last year. Their credit scores were over 700 already and they even had a few small paid collection accounts.

The moral of this post is; don't assume you are declined or can't get an approval until you have researched all the possibilities with a qualified licensed mortgage originator. You may be surprised by what you find out.

Post Election and Obama Mortgage Market Predictions

Ok.. finally it's over. All the ads, misrepresentations and taking everything out of context is over for a while - maybe.

Now we have to look at our businesses and determine where we think we are headed with current administration. This morning the market adjusted a fair amount and to the down side, with Treasury's rallying - resulting fantastic mortgage rates. It's a good day to lock, but where are we headed?

In my opinion, the Obama administration means we will see a longer period of low mortgage rates than we would have had with Romney. You will also see government maintain a greater share of mortgage lending backing. With recent announcements from Freddie Mac on earnings, its clear the government and the GSE's are enjoying making money again.

I think with the Obama admin you will also see a consistent barrage of new government intervention, compliance, audits, rules and regulations being continually beat with. Best case is we will continue to see consolidation in our industry as the purchase market continues its uptick and refinances continue to moderate after big rate drops.

The continued government involved will continue to limit private party money from entering the ring.
This will limit the pace of new mortgage products. Although a few may be able to navigate the government waters for reassurance that dipping their toes into the water won't get them bit off.