Archive for the ‘Uncategorized’ Category

We’ve Moved.

June 29, 2009

That’s right, the mortgage blog is moving over to a new URL, http://themortgageblog.wordpress.com.

Please be sure to re-bookmark the home page and re-subscribe to the RSS feed so that you don’t miss out.  It’s a different web address, with a slightly different look . . . a few more contributors (among other things), but the same honest, professional, sometimes humorous, mortgage advice that you’ve come to enjoy.

This isn’t my last blog post, but it is my last post here.  And, you’ll be glad to know that this isn’t my last bad blog ending (usually song-lyric type ending), with so many to choose from, it was tough.  But this one seemed fitting . . .

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 “Don’t come around here no more . . . “

And, not only is “the mortgage blog” changing URL’s, but I am moving to a new (new to me) company. 

Read all about the company change, get my new contact information and find out all the details involving the move to Dunwoody Mortgage Services at http://themortgageblog.wordpress.com.

 

Jeffrey Pinkerton is a Mortgage Consultant and NOW with Dunwoody Mortgage Services and writer for “the Mortgage Blog.”  For more information about available programs and interest rates, please visit www.dunwoodymortgage.net

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All the build-up, none of the excitement.

June 24, 2009

Today’s highly anticipated Fed meeting announcement — billed by most to be a mortgage market mover, for sure — ended up being a thankful dud (big relief).  Marketwatchers were correct in assuming that the Federal Funding rate would remain unchanged, but most were anticipating that the comments from the Feds would give weight to mortgage rates breakin’ out (no one really sure if that meant UP or DOWN, although, recently mortgage rates have been trending more in the dance-action of the 1984 impossible for most kids to do, windmill). 

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That’s right.  I went there.  Breakin’ 2.

If the comments from the Feds were sensitive to inflation (and the fear of future inflation), mortgage rates would go up.  And if the comments from the Feds were focused on extending the purchase of mortgage backed securities past the current time-line, mortgage rates would (or at least, should) go down. 

The comments from the two day Fed meeting ended up being tame.  As far as mortgage rates going up on the fear of inflation, the comment that “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period” — translates as no immediate risk of inflation or a near-future Fed rate hike.  And the non-mention of a new dollar amount or policy change in the purchase of mortgage backed securities, means no immediate pushing down of mortgage rates.  The comments of dollars to the mbs market did have some ‘we will, if we feel like it’ language, which certainly leaves the door open for future policy changes.

So, despite the anticipation, and despite all hopes that there would be some serious excitment around the release, the Fed meeting came and went without any excitement at all . . . some may never even remember that it took place at all.  [insert cute phrase or memorable quote from movie, Breakin’ 2 here, as referenced in the pic above in blog post.  ERROR: sorry, no memorable quotes about Breakin’ 2 to be found on the entire internet].

 

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.

My thoughts on 5.5% . . .

May 29, 2009

That’s right.  On Wednesday, mortgage rates jumped up more than 0.5% over the course of a few hours — most lenders re-pricing and re-publishing rate sheets four times over the course four or five hours.  Some lenders (obviously throwing the towel in for the day ran 30 year fixed rate pricing all the way up to 5.75%).  Wednesday’s events should give a new perspective to interest rates in the 4’s to any of those home buyers or would-be refinance’rs in the waiting . . . waiting for “lower” rates; and it has caused me to shift my advice to clients.

If you keep up with some of my previous posts you will recognize “Plan B” for refinancing your mortgage and for positioning yourself to get the lowest possible rate on a new mortgage — a plan to start the loan process and have your loan approved and then take advantage of the preferred pricing of a short-term lock-in.  While “Plan B” worked very well for the past four to five weeks, my advice (after Wednesday’s market debacle) is now changing.  To call it “Plan C” would imply that I might come back with a 23 more plans as I work my way through the alphabet, so I won’t do that.  I will simply call it what it is . . . my advice.

Below is a portion of an email that went out on Thursday afternoon to my clients with loans currently in process:

“In case you missed this morning’s headlines, yesterday was a dramatically bad day for mortgage rates.  Over the past few days, mortgage rates had inched up slightly higher (trading at the top of the range of where they had been over the past months).  AND, over the past few days, even when the market had done poorly and moved in the wrong direction, mortgage rates were moving up only slightly, and moving “UP” to 4.75% and 4.875%.  But despite the range of the past few months and despite some technical markers that could have acted to help slow mortgage rates from moving up further, things moved up 0.5% or more yesterday alone.

Yesterday was the mortgage bond market’s worst single performing day since October of last year.  Why? 

Well, my advice has been that as long as the outlook for the economy remained grim and as long as the Feds are committed to purchasing mortgage backed securities, then interest rates should stay below 5%.  Yesterday’s move in rates had some to do with supply and demand and some to do with “speculative” economic outlook — the over-supply came in the form of a 2 year treasury auction; and the economic outlook was the start of the buzz of economic recovery in the distant future — good news that is good news simply because the news is not as bad as it could be.  A great example of this strange truth is this morning’s initial jobless claims — better than expected, because jobless claims fell by 13,000 to 623,000.  The bottom-line, still a loss of 623,000 jobs.
 
As mortgage rates moved up quickly yesterday (quicker than you could catch), the idea of locking-in would have at that point, been an exercise in locking-in at the TOP . . .
 
So, here are two points and then my advice:
  • The White House “Home Affordable” Program, just launched this month, will be severely slowed down if mortgage rates remain above 5%; it’s my opinion that the Feds and Treasury will be even more aggressive in the coming weeks to purchase mortgage backed securities to try and drive rates below 5%
  • Last week (and a few isolated days since the beginning of the year) have proven that 4.625% to 4.75% for a 30 year fixed rate loan is very close to the bottom (if not the bottom) of where lenders are willing to offer mortgage rates
These two points, along with yesterday’s drastic jump in mortgage rates are forcing me to change my advice towards locking-in your rate for your refinance.  My advice now is to get the process started and to wait on a specific target rate of 4.625%, 4.75%, 4.875% or 5.0% and to be prepared to lock-in if and when that interest rate is available (on a 15 day lock in your loan is approved, or on a 30 or 45 day lock if your loan is in process).”
 
If you are reading this post thinking that it might be time to look in to refinancing your mortgage, or starting the process of looking for a home to purchase, the answer is yes.  You should start.  You should start today.  Seriously.  As of today (Friday), the market has already gained back 50% of it’s losses from Wednesday and could be below 5% in the very near future. 
 

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

Too busy to blog . . .

May 15, 2009

A doctor who can schedule you for surgery tomorrow . . .

A dentist who can clean and check your teeth this afternoon . . .

A hair stylist who accepts walk-ins (no waiting) . . .

An attorney with a WIDE open schedule for next week . . .

A mortgage broker (in this market) with nothing to do . . .

Being super accessible and always available doesn’t necessarily mean that someone is really good at what they do.

I’m too busy to blog . . . NEVER too busy to talk.  Call me if you need some information — refinance or prequalifying to purchase.  To cut out all the fluff:  if your current mortgage is an ARM, or if your current mortgage rate is above 6.0% you NEED to look at refinancing your mortgage.  If you are first time home buyer, there is no better time in history to buy a house than now! 

End of story.  End of blog post.

 

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

What about today’s rates?

March 28, 2009

Posted on March 28, 2009.

Some readers may have been confused by my last post about 4.5% (and how to position yourself to take advantage of crazy-low mortgage rates).

For some perspective, on Friday, mortgage rates ended the day around 4.75% to 4.875% on a 30 year fixed and around 4.5% for a 15 year loan for a 45 day lock-in. Of course, those rates could be higher based on your credit score, loan-to-value, combined loan-to-value, etc. (APR’s are 4.917, 5.043 and 4.787 respectively; what a rule follower, huh?)

So . . . if you are thinking about passing up 4.75% to wait for 4.5%, I would consider the math. For each month you wait for lower rates, you are passing up the opportunity to save $$ each month. Let’s say you are going to save $200 per month by refinancing; if you wait 5 to 6 months to refinance, you have lost $1,200 just in the time spent waiting and watching . . . all in an effort to hopefully save an additional $30 per month (0.25% for a $200,000 mortgage is about $30 per month). And the cost of waiting the 5 to 6 months will now take 40 months to recoup at the extra $30 you have saved (this all assuming that interest rates will still be at their all-time historic lows when you are ready to move forward).

I apologize in advance . . .

“So you can keep waitin’ [waitin’], waitin’ on rates to change . . . you keep on waitin’ [waitin’], waitin’ on ra-aa-ates to change.”

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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