Archive for March, 2008

Mortgage rates getting better?

March 17, 2008

The one small bit of good news in such a volatile market is that big up-swings in the market (and mortgage rates going up 1.0% over the course of three weeks) are sometimes followed by abrupt down-turns in the market.  While it is almost always true that mortgage rates go UP quickly and come DOWN slowly over time, over the past week or two, mortgage rates have dipped 0.25% or more from just one day to the next — some small proof that a rebound (and dip in rates) may be closer than you think.

The Feds move last week to increase liquidity in to the market has had a positive effect on the mortgage backed securities market (so far), but with some bad news from Bear Stearns (fallout from the sub-prime meltdown) and a weekend Fed cut of the discount rate, AND a likely 0.75% to 1.0% Fed Funds rate cut after their meeting tomorrow, this week would make even the most confident of mortgage warriors a bit nervous.

But, despite the ups and downs . . . still looking (and hoping) for rates to dip lower.

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Hold!  Hhhhhoooooollld!  Hhhhhhhoooooooollllld!!

Jeffrey Pinkerton is a Mortgage Consultant and President of Hillside Lending, LLC and writer for “the Mortgage Blog.”  Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing.  For more information about available programs and interest rates, please visit www.hillsidelending.com.

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Uh oh . . . effects of the trickle-down.

March 4, 2008

“100% Financing with Mortgage Insurance.  What is it??!”

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 “Well, it’s insurance for mortgage loans with a 100% loan-to-value, usually paid monthly by a borrower as part of their monthly mortgage payment, protecting a lender against a mortgagor’s default, but that’s not important right now.”

On March 30, 2007, I wrote a post about the after-effects (or the predictive after-effects) of the sub prime mortgage meltdown.  My first point was that 100% financing options would continue to become more and more restrictive, even to the average borrower.

So . . . over the next few weeks, keep that in mind (developing story).

Jeffrey Pinkerton is a Mortgage Consultant and President of Hillside Lending, LLC and writer for “the Mortgage Blog.”  Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing.  For more information about available programs and interest rates, please visit www.hillsidelending.com.