Thursday, February 26, 2009
Homebuyer Tax Credit Forms
Forms and instructions for claiming the credit on 2008 tax returns are available at www.irs.gov. The form number is 5405.
Thursday, February 19, 2009
HOW TO REFINANCE AND GET THE LOWEST MORTGAGE RATE
HOW TO REFINANCE AND GET THE LOWEST MORTGAGE RATE
President Obama has released details of his Housing and Mortgage Stimulus Plan this week. Now what?
If you currently have a mortgage rate of 5.50% or higher you need to call!
The fact of the matter is that mortgage interest rates are very low right now. But there are ways to ensure you get the lowest possible mortgage interest rate on your new Massachusetts Mortgage Loan.
So, what can you do to make sure you can get the lowest rate? Start the process right now!
- We can determine if today’s low rates make refinancing a good solution. If not..
- Complete a comprehensive Refinance Mortgage Analysis worksheet so we can determine your target rate
- We submit your mortgage loan application to receive your mortgage loan approval from the lender.
- Upon approval you can decide if you want to lock in the preferred 1st column pricing* or float your rate.
(*This could reduce your rate .125-.375%).
-
What happens when we have a sudden drop in mortgage interest rates?
- There is a flood of new applications taken
- When the volume exceeds the ability of the lender’s current staff to handle the lenders will raise the rates again. (Currently there is significantly less staff at the lenders due to the past slowing real estate market)
- Drops in mortgage interest rates in the past have only lasted a very short period of time and most people lose out.
- Underwriting turn times fall way behind and force the rate locks to be extended out to 45-60 days. (At the time of writing a large majority of lenders are 30-60 days out for refinance closings)
For those that decide to wait and not take action they will end up obtaining a higher mortgage rate and it will cost many thousands of wasted dollars over the repayment of your mortgage loan.
You have a choice, either save tens of thousands of dollars in your account or repay it needlessly to the bank. You decide.
Remember, when rates drop and you start the process at that time like everyone else, you will have to lock in for a longer period and will be getting a higher mortgage rate than you could have if you had planned. This eliminates the benefit you thought you would have received from waiting for a drop in mortgage rates.
We are looking at an incredible opportunity to be able to lock in mortgage interest rates lower than they have ever been. Put yourself in the best position to make the most of this situation and don’t miss out.
I am currently taking mortgage applications 7 days a week for your convenience. Call now to set up an appointment as I am currently booking appointments days in advance.
Jeff Drew is a Massachusetts Licensed Mortgage Loan Originator (MLO#41456) with Star Mortgage (MB0782) in West Bridgewater, MA. He can be reached at his Office at (800)-941-5616 or Cell (800) 984-3523. www.JeffDrew.StarMortgage.com
President Obama has released details of his Housing and Mortgage Stimulus Plan this week. Now what?
If you currently have a mortgage rate of 5.50% or higher you need to call!
The fact of the matter is that mortgage interest rates are very low right now. But there are ways to ensure you get the lowest possible mortgage interest rate on your new Massachusetts Mortgage Loan.
So, what can you do to make sure you can get the lowest rate? Start the process right now!
- We can determine if today’s low rates make refinancing a good solution. If not..
- Complete a comprehensive Refinance Mortgage Analysis worksheet so we can determine your target rate
- We submit your mortgage loan application to receive your mortgage loan approval from the lender.
- Upon approval you can decide if you want to lock in the preferred 1st column pricing* or float your rate.
(*This could reduce your rate .125-.375%).
-
What happens when we have a sudden drop in mortgage interest rates?
- There is a flood of new applications taken
- When the volume exceeds the ability of the lender’s current staff to handle the lenders will raise the rates again. (Currently there is significantly less staff at the lenders due to the past slowing real estate market)
- Drops in mortgage interest rates in the past have only lasted a very short period of time and most people lose out.
- Underwriting turn times fall way behind and force the rate locks to be extended out to 45-60 days. (At the time of writing a large majority of lenders are 30-60 days out for refinance closings)
For those that decide to wait and not take action they will end up obtaining a higher mortgage rate and it will cost many thousands of wasted dollars over the repayment of your mortgage loan.
You have a choice, either save tens of thousands of dollars in your account or repay it needlessly to the bank. You decide.
Remember, when rates drop and you start the process at that time like everyone else, you will have to lock in for a longer period and will be getting a higher mortgage rate than you could have if you had planned. This eliminates the benefit you thought you would have received from waiting for a drop in mortgage rates.
We are looking at an incredible opportunity to be able to lock in mortgage interest rates lower than they have ever been. Put yourself in the best position to make the most of this situation and don’t miss out.
I am currently taking mortgage applications 7 days a week for your convenience. Call now to set up an appointment as I am currently booking appointments days in advance.
Jeff Drew is a Massachusetts Licensed Mortgage Loan Originator (MLO#41456) with Star Mortgage (MB0782) in West Bridgewater, MA. He can be reached at his Office at (800)-941-5616 or Cell (800) 984-3523. www.JeffDrew.StarMortgage.com
Wednesday, February 18, 2009
Mortgage Market Commentary
Mortgage Market Commentary
Mortgage backed securities (MBS) prices near unchanged from yesterdays close (rates stable) in light trading, FNMA 4.5% coupon 101.17bps, +0bps. Favorable repricing was seen in the afternoon. U.S. Housing starts plunged in January as foreclosures swell the glut of homes on the market, undermining efforts to revive demand and lighten inventory by cutting prices. Building permits, a sign of future construction, also decreased as it would take a record 13 months to whittle down the existing supply. Positive news on inflation as import prices fell on lower commodity costs and slumping demand causing companies to cut prices to work down inventories. Lower inflation helps keep mortgage rates down. Industrial Production and Capacity Utilization also fell with broad based declines among its components. Mortgage applications surged last week, refinancing increased to 74% of total applications as interest rates dropped to near 5% showing homeowners are rate sensitive. FOMC minutes to be released at 11am pt & Fed Chief Bernanke speaks later today. Recent run up in MBS prices could lead to profit taking (rates higher) by lenders.
Mortgage backed securities (MBS) prices near unchanged from yesterdays close (rates stable) in light trading, FNMA 4.5% coupon 101.17bps, +0bps. Favorable repricing was seen in the afternoon. U.S. Housing starts plunged in January as foreclosures swell the glut of homes on the market, undermining efforts to revive demand and lighten inventory by cutting prices. Building permits, a sign of future construction, also decreased as it would take a record 13 months to whittle down the existing supply. Positive news on inflation as import prices fell on lower commodity costs and slumping demand causing companies to cut prices to work down inventories. Lower inflation helps keep mortgage rates down. Industrial Production and Capacity Utilization also fell with broad based declines among its components. Mortgage applications surged last week, refinancing increased to 74% of total applications as interest rates dropped to near 5% showing homeowners are rate sensitive. FOMC minutes to be released at 11am pt & Fed Chief Bernanke speaks later today. Recent run up in MBS prices could lead to profit taking (rates higher) by lenders.
Tuesday, February 17, 2009
How to Get the Lowest Mortgage Rate
How to Get the Lowest Mortgage Rate
Are you trying to time the mortgage market attempting to get the lowest rate?
I speak with Massachusetts homeowners every day and it seems that is exactly what a majority of them tell me they are doing. While I understand the thought process there are a few details that you need to know and some things you can do right now to help get yourself in the best position to get the lowest mortgage rate.
First you need to determine if refinancing makes sense right now at today’s rates. If yes, then you need to move forward and get the process started. If today’s mortgage rates are not quite there yet you can float your rate until it may or may not become available. We can determine a target mortgage rate and monitor and then lock it for you once it becomes available.
When mortgage rates dropped in December 2008 those historically low rates lasted just hours. Mortgage rates with no points stayed just below 5% for a few weeks after the 16th of December but have slowly moved higher since then. Why? Part of the reason is that the lender’s do not have enough staff to handle the volume of applications they received.
By raising the mortgage rates to higher levels it has slowed the flow of new applications so they can close what they have already received into their pipelines. What also took place was that in order to meet the rate lock period loans were being locked for 45 to 60 days.
The best way to lock in the lowest mortgage rate is to be able to lock for the shortest period available. (7-15 days). With current underwriting turn-times averaging several weeks you can’t lock for these short turn times and still close on time. The result is not getting the lowest rate.
What can and should you do? Start the process now. Once we determine that refinancing makes sense submit your mortgage application and all supporting documentation and get the mortgage loan approved. Once all conditions have been met you can lock your loan for the shortest period and obtain the lowest rate and close your new home loan on time. This allows you to be able to lock the lowest rate.
Remember, if you wait and rates do drop but you have not started the process you will not be able to lock in the lowest rate with a longer lock in period where the lender has built in rate lock insurance. Your application will be in the same pile as everyone else and you will not be able to lock with the best mortgage rates.
Waiting is not going to get you what you are looking for.
Jeff Drew is a licensed Massachusetts Mortgage Loan Originator with Star Mortgage in West Bridgewater. He can be contacted at Jeff@StarMortgage.com or visit his website at www.JeffDrew.StarMortgage.com.
Are you trying to time the mortgage market attempting to get the lowest rate?
I speak with Massachusetts homeowners every day and it seems that is exactly what a majority of them tell me they are doing. While I understand the thought process there are a few details that you need to know and some things you can do right now to help get yourself in the best position to get the lowest mortgage rate.
First you need to determine if refinancing makes sense right now at today’s rates. If yes, then you need to move forward and get the process started. If today’s mortgage rates are not quite there yet you can float your rate until it may or may not become available. We can determine a target mortgage rate and monitor and then lock it for you once it becomes available.
When mortgage rates dropped in December 2008 those historically low rates lasted just hours. Mortgage rates with no points stayed just below 5% for a few weeks after the 16th of December but have slowly moved higher since then. Why? Part of the reason is that the lender’s do not have enough staff to handle the volume of applications they received.
By raising the mortgage rates to higher levels it has slowed the flow of new applications so they can close what they have already received into their pipelines. What also took place was that in order to meet the rate lock period loans were being locked for 45 to 60 days.
The best way to lock in the lowest mortgage rate is to be able to lock for the shortest period available. (7-15 days). With current underwriting turn-times averaging several weeks you can’t lock for these short turn times and still close on time. The result is not getting the lowest rate.
What can and should you do? Start the process now. Once we determine that refinancing makes sense submit your mortgage application and all supporting documentation and get the mortgage loan approved. Once all conditions have been met you can lock your loan for the shortest period and obtain the lowest rate and close your new home loan on time. This allows you to be able to lock the lowest rate.
Remember, if you wait and rates do drop but you have not started the process you will not be able to lock in the lowest rate with a longer lock in period where the lender has built in rate lock insurance. Your application will be in the same pile as everyone else and you will not be able to lock with the best mortgage rates.
Waiting is not going to get you what you are looking for.
Jeff Drew is a licensed Massachusetts Mortgage Loan Originator with Star Mortgage in West Bridgewater. He can be contacted at Jeff@StarMortgage.com or visit his website at www.JeffDrew.StarMortgage.com.
How to Get the Lowest Mortgage Rate
How to Get the Lowest Mortgage Rate
Are you trying to time the mortgage market attempting to get the lowest rate?
I speak with Massachusetts homeowners every day and it seems that is exactly what a majority of them tell me they are doing. While I understand the thought process there are a few details that you need to know and some things you can do right now to help get yourself in the best position to get the lowest mortgage rate.
First you need to determine if refinancing makes sense right now at today’s rates. If yes, then you need to move forward and get the process started. If today’s mortgage rates are not quite there yet you can float your rate until it may or may not become available. We can determine a target mortgage rate and monitor and then lock it for you once it becomes available.
When mortgage rates dropped in December 2008 those historically low rates lasted just hours. Mortgage rates with no points stayed just below 5% for a few weeks after the 16th of December but have slowly moved higher since then. Why? Part of the reason is that the lender’s do not have enough staff to handle the volume of applications they received.
By raising the mortgage rates to higher levels it has slowed the flow of new applications so they can close what they have already received into their pipelines. What also took place was that in order to meet the rate lock period loans were being locked for 45 to 60 days.
The best way to lock in the lowest mortgage rate is to be able to lock for the shortest period available. (7-15 days). With current underwriting turn-times averaging several weeks you can’t lock for these short turn times and still close on time. The result is not getting the lowest rate.
What can and should you do? Start the process now. Once we determine that refinancing makes sense submit your mortgage application and all supporting documentation and get the mortgage loan approved. Once all conditions have been met you can lock your loan for the shortest period and obtain the lowest rate and close your new home loan on time. This allows you to be able to lock the lowest rate.
Remember, if you wait and rates do drop but you have not started the process you will not be able to lock in the lowest rate with a longer lock in period where the lender has built in rate lock insurance. Your application will be in the same pile as everyone else and you will not be able to lock with the best mortgage rates.
Waiting is not going to get you what you are looking for.
Jeff Drew is a licensed Massachusetts Mortgage Loan Originator with Star Mortgage in West Bridgewater. He can be contacted at Jeff@StarMortgage.com or visit his website at www.JeffDrew.StarMortgage.com.
Are you trying to time the mortgage market attempting to get the lowest rate?
I speak with Massachusetts homeowners every day and it seems that is exactly what a majority of them tell me they are doing. While I understand the thought process there are a few details that you need to know and some things you can do right now to help get yourself in the best position to get the lowest mortgage rate.
First you need to determine if refinancing makes sense right now at today’s rates. If yes, then you need to move forward and get the process started. If today’s mortgage rates are not quite there yet you can float your rate until it may or may not become available. We can determine a target mortgage rate and monitor and then lock it for you once it becomes available.
When mortgage rates dropped in December 2008 those historically low rates lasted just hours. Mortgage rates with no points stayed just below 5% for a few weeks after the 16th of December but have slowly moved higher since then. Why? Part of the reason is that the lender’s do not have enough staff to handle the volume of applications they received.
By raising the mortgage rates to higher levels it has slowed the flow of new applications so they can close what they have already received into their pipelines. What also took place was that in order to meet the rate lock period loans were being locked for 45 to 60 days.
The best way to lock in the lowest mortgage rate is to be able to lock for the shortest period available. (7-15 days). With current underwriting turn-times averaging several weeks you can’t lock for these short turn times and still close on time. The result is not getting the lowest rate.
What can and should you do? Start the process now. Once we determine that refinancing makes sense submit your mortgage application and all supporting documentation and get the mortgage loan approved. Once all conditions have been met you can lock your loan for the shortest period and obtain the lowest rate and close your new home loan on time. This allows you to be able to lock the lowest rate.
Remember, if you wait and rates do drop but you have not started the process you will not be able to lock in the lowest rate with a longer lock in period where the lender has built in rate lock insurance. Your application will be in the same pile as everyone else and you will not be able to lock with the best mortgage rates.
Waiting is not going to get you what you are looking for.
Jeff Drew is a licensed Massachusetts Mortgage Loan Originator with Star Mortgage in West Bridgewater. He can be contacted at Jeff@StarMortgage.com or visit his website at www.JeffDrew.StarMortgage.com.
Mortgage Rate Trends
Mortgage Rate Advise
Today the stock market opened down. At the time of this report it is down 255 points. There is a lot of economic reports due out this week which can have an impact on mortgage rates.
According to Rueters:"The New York Federal Reserve's Empire State factory index fell to minus 34.65 -- the lowest in the history of the index, which dates back to July 2001. It was down from January's already contractionary reading of minus 22.20."
The FOMC meeting minutes from the last meeting are to be released Wednesday.
January housing starts come out Wednesday morning and CPI is due out on Friday.
Today's short term and long term trends lean towards floating.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Today the stock market opened down. At the time of this report it is down 255 points. There is a lot of economic reports due out this week which can have an impact on mortgage rates.
According to Rueters:"The New York Federal Reserve's Empire State factory index fell to minus 34.65 -- the lowest in the history of the index, which dates back to July 2001. It was down from January's already contractionary reading of minus 22.20."
The FOMC meeting minutes from the last meeting are to be released Wednesday.
January housing starts come out Wednesday morning and CPI is due out on Friday.
Today's short term and long term trends lean towards floating.
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
Friday, February 13, 2009
Mortgage Rate update
Friday's bond market has opened well in negative territory despite the release of weaker than expected results in today's only economic news. The stock markets are flat during early trading with the Dow up 2 points and the Nasdaq is up 4 points. The bond market is currently down 20/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
The University of Michigan Index of Consumer Sentiment was today's only relevant data on the schedule. It showed a reading of 56.2 that was well below forecasts of 60.2. This indicates that consumers were much less optimistic about their own financial situations than analysts had expected. That is good news for bonds and mortgage rates because it usually means that consumers are less likely to make large purchases in the near future.
Today's weakness is due to attention turning back to the amount of debt expected to be brought to market to fund the economic stimulus package that is being considered by Congress. With an approval seeming like a good possibility, the potential new supply for government debt has traders concerned.
Also contributing to this morning's weakness may be an expectation of a stock rally once the approvals are announced. That would create a scenario that makes stocks more appealing to investors and lead to a shift in funds from bonds to stocks. It appears that the selling in bonds may be in part a move by some traders as an effort to get back into stocks if the plan is approved.
There is an early close in the bond market today ahead of Monday's President's Day Holiday, but I don't think it will negative affect bonds or mortgage rates today. The financial markets will be closed Monday and will reopen Tuesday for normal trading hours.
Next brings us the release of a couple of important reports including two key inflation readings. None of the important data is scheduled for release Tuesday, but look for details on next week's events in Sunday's weekly preview.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
The University of Michigan Index of Consumer Sentiment was today's only relevant data on the schedule. It showed a reading of 56.2 that was well below forecasts of 60.2. This indicates that consumers were much less optimistic about their own financial situations than analysts had expected. That is good news for bonds and mortgage rates because it usually means that consumers are less likely to make large purchases in the near future.
Today's weakness is due to attention turning back to the amount of debt expected to be brought to market to fund the economic stimulus package that is being considered by Congress. With an approval seeming like a good possibility, the potential new supply for government debt has traders concerned.
Also contributing to this morning's weakness may be an expectation of a stock rally once the approvals are announced. That would create a scenario that makes stocks more appealing to investors and lead to a shift in funds from bonds to stocks. It appears that the selling in bonds may be in part a move by some traders as an effort to get back into stocks if the plan is approved.
There is an early close in the bond market today ahead of Monday's President's Day Holiday, but I don't think it will negative affect bonds or mortgage rates today. The financial markets will be closed Monday and will reopen Tuesday for normal trading hours.
Next brings us the release of a couple of important reports including two key inflation readings. None of the important data is scheduled for release Tuesday, but look for details on next week's events in Sunday's weekly preview.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009
* Please note that if you have a mortgage interest rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.
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