01-30-09 Interest Rate Snapshot

Rates are still trending slightly upwards today. The good news is that a .125% difference doesn't drastically effect the monthly payment on the majority of loan amounts. All rates listed below are PAR rates and do not reflect adjustments that may be required based on individual loan parameters.

30 Year Fixed Conventional - 5.500
15 Year Fixed Conventional - 5.250
30 Year Jumbo Fixed - 6.000
15 Year Jumbo Fixed - 5.250
30 Year FHA - 5.500
15 Year FHA - 5.000
3/1 FHA ARM - 4.250

Jason Sanders - Bringing Value to Financing - Residential, Commercial, & Hard Money
American Capital Finance
856 308 2462 - cell
856 792 9214 - direct phone
856 792 9215 - direct fax
www.mortgagemantra.blogspot.com
Getting more referrals at www.TheValuePagesGroup.com

When Should I Lock My Loan?

This is a difficult, but personal decision for borrowers.  Interest rates are subject to change every day.  Some borrowers may naturally have more of a tolerance for risk than others.  There's no single right answer.

I personally am not a gambler and would rather know that the rate is locked than lose sleep if the market starts trending upward, but not every borrower shares my opinion.

I can share that rates are generally locked for either 15 or 30 days and on any given day the pricing is generally better for the shorter term lock (15 days).  So if you've been delaying locking your loan, I would never recommend locking it (with a 30 day lock) 16 days away from closing.  You're probably better off waiting another day to get the improved pricing on a 15 day lock.

Borrowers should ask themselves how much risk they can handle.  Often the process of purchasing a new home is stressful enough, and when weighed with all the other considerations, it makes sense to lock the loan well in advance of the closing.  Ask your qualified mortgage professional for his input.  If rates have gotten substantially better since you've locked your loan and you're still a ways away from your closing date, it may be possible for your mortgage professional to switch lenders and take advantage of the improved pricing with a new lock at a new lender.

Jason Sanders - Bringing Value to Financing - Residential, Commercial, & Hard Money
American Capital Finance
856 308 2462 - cell
856 792 9214 - direct phone
856 792 9215 - direct fax
www.mortgagemantra.blogspot.com
Earning referrals at www.TheValuePagesGroup.com

1-29-09 Interest Rate Snapshot

Rates are up slightly today. It's hard to predict the market, but if you know someone who has been on the fence, this might be a good time to act before things get higher. All rates listed below are PAR rates and do not reflect adjustments that may be required based on individual loan parameters.

30 Year Fixed Conventional - 5.500
15 Year Fixed Conventional - 5.125
30 Year Jumbo Fixed - 6.125
15 Year Jumbo Fixed - 5.125
30 Year FHA - 5.375
15 Year FHA - 5.000
3/1 FHA ARM - 4.250


Jason Sanders - Bringing Value to Financing - Residential, Commercial, & Hard Money
American Capital Finance
856 308 2462 - cell
856 792 9214 - direct phone
856 792 9215 - direct fax
www.mortgagemantra.blogspot.com
Earning referrals at www.TheValuePagesGroup.com

1-28-09 Interest Rate Snapshot

Rates seem to be pretty stable, even though the markets have been fluctuating. All rates listed below are PAR rates and do not reflect adjustments that may be required based on individual loan parameters.

30 Year Fixed Conventional - 5.000
15 Year Fixed Conventional - 4.750
30 Year Jumbo Fixed - 5.500
15 Year Jumbo Fixed - 4.750
30 Year FHA - 5.000
15 Year FHA - 5.000
3/1 FHA ARM - 4.250


Jason Sanders - Bringing Value to Financing - Residential, Commercial, & Hard Money
American Capital Finance
856 308 2462 - cell
856 792 9214 - direct phone
856 792 9215 - direct fax
www.mortgagemantra.blogspot.com
Earning referrals at www.TheValuePagesGroup.com

1-27-08 Interest Rate Snapshot

Rates! Rates! Rates! Here's the latest rates. All rates listed below are PAR rates and do not reflect adjustments that may be required based on individual loan parameters.

30 Year Fixed Conventional - 5.000
15 Year Fixed Conventional - 4.750
30 Year Jumbo Fixed - 5.000
15 Year Jumbo Fixed - 4.750
30 Year FHA - 5.000
15 Year FHA - 5.000
3/1 FHA ARM - 4.250

Jason Sanders - Bringing Value to Financing - Residential, Commercial, & Hard Money
American Capital Finance
856 308 2462 - cell
856 792 9214 - direct phone
856 792 9215 - direct fax
www.mortgagemantra.blogspot.com
Earning referrals at www.TheValuePagesGroup.com

1-26-09 Interest Rate Snapshot

There have been minimal, but positive changes in interest rates since last week. All rates listed below are PAR rates and do not reflect adjustments that may be required based on individual loan parameters.

30 Year Fixed Conventional - 5.125
15 Year Fixed Conventional - 4.875
30 Year Jumbo Fixed - 5.625
15 Year Jumbo Fixed - 4.875
30 Year FHA - 5.250
15 Year FHA - 5.000
3/1 FHA ARM - 4.250

Jason Sanders - Bringing Value to Financing - Residential, Commercial, & Hard Money
American Capital Finance
856 308 2462 - cell
856 792 9214 - direct phone
856 792 9215 - direct fax
www.mortgagemantra.blogspot.com
Earning referrals at www.TheValuePagesGroup.com

Changes to FHA financing

As you may or may not be aware, FHA financing has had some significant changes over the past few months. I want to discuss the changes in the allowance of a seller's concession.

FHA borrowers are still allowed to accept seller's concession up to 6% of the purchase price of the home. Now, however, none of that sellers concession is allowed to cover the minimum of 3.5% that the borrower is required to bring to the deal in the form of a down payment. Essentially all the seller's concession can now cover is the borrowers closing costs. No, the buyer cannot receive the difference back in cash at the table (too bad right?).

Closing costs are rarely 6% of the sales price of, so what can be done with the extra money? An unsophisticated mortgage professional may just reduce the seller's concession to cover the closing costs, but that would waste the seller's generosity. The most effective thing to do with the remaining money is to use it to buy down the borrower's interest rate. This money can be applied as a discount fee lowering the interest rate and saving the borrower thousands over the course of the loan.

That's my tip for today. Hopefully it will help you or your clients.

For Daily Interest Rate Updates, Follow Me On Twitter: http://www.twitter.com/mortgagemantra

Your Credit Report

Not all creditors report their information to all of the major credit agencies. That's why the information on your credit report may vary from agency to agency. Make sure your credit report is an accurate reflection of your credit record by ordering a report from each agency listed below.

Equifax

Credit Information Services

P.O. Box 740256

Atlanta, GA 30374-0256

Phone: 1-800-685-1111

Web Site: www.equifax.com

Experian

National Consumer Assistance Center

P.O. Box 2104

Allen, TX 75013-2104

Phone: 1-888-397-3742

Web Site: www.experian.com

Trans Union

National Disclosure Center

P.O. Box 1000

Chester, PA 19022

Phone: 1-800-916-8800

Web Site: www.transunion.com

The Fair and Accurate Credit Transactions (FACT) Act entitles all consumers to a free credit report once a year from all three major credit reporting agencies which have established a centralized source for accepting the requests. You can order a free copy of your credit report by calling 877-322-8228, visiting www.annualcreditreport.com or mailing a standardized form to Annual Credit Report Service, P.O. Box 105281, Atlanta, GA 30348-5281.

For further information, visit the website of the Federal Trade Commission at www.FTC.gov.

I'm marketing with www.TheValuePagesGroup.com

We're all facing unique challenges in this market. I'm growing my business because I get more referrals from www.TheValuePagesGroup.com.

Computing Suggestions

1. Don't drop your computer. Don't assume that it'll be ok if it only falls a short distance (like off the endtable that it will be ok. You know that old addage about ASS-U-ME-ing.

2. Never hit the reformat button in haste. Sure you may not think you have all that much to loose, but chances are you haven't fully considered how much you've done since your last backup. Which brings me to #3.

3. Always back up your information. Yes, it's time consuming. No, you don't WANT to do it at the end of the day. But life has a way of presenting the same lesson to you over and over until you learn it. Back it up! Back it UP!

4. Just because you think you can fix it, doesn't mean you can. Don't be too eager to save a buck and try to fix it yourself, or you could end up, like me, totally screwed, meaning lost data, computer that still doesn't work, a little bit of an anxiety attack, etc. etc. Calling a professional first is the suggested route, because after all...they're a professional! You'll probably have to call them any way, but if you wait you'll be paying them extra to clean up your mess and there's a good chance that you will have made it impossible for them to fully fix your problem, which really stings BTW. It feels much better being smart enough to call a professional first, than having the realization that your not smart enough to fix the problem yourself and you just messed everything up.

So, this doesn't have much to do with mortgages, but it's definately helpful, so I just wanted to make sure that I throw it out there. So, I hope you guys are having a better time with your computers than I'm having right now! Wish me luck!