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The FEDS lowered Interest Rates? What does that mean for you?

3/18/2020

We've also updated our 'upcoming class' pages to reflect changes in our current class schedules, and what we are doing to try to assist. Please feel free to contact me anytime with any questions. I am always here to help!

I want to say "Thank You" to those lenders who have been diligently trying to educate people about the Feds lowering interest rates and how that is not mortgage rates. This is an apples to oranges comparison...
I know that there is a lot of incorrect information being spread right now...even by other Realtors. I want to take this time to share with you accurate information that you can share with others. GI JOE wasn't kidding when he said that 'knowing is half the battle'. So, here's information from 3 different local lenders to assist you in knowing how the Feds lowering the interest rates actually work...
*feel free to share*
www.learningtobuyahome.com or www.freesellerclasses.com

Chris Berg with
Cardinal Financial
503 320 0925
Chris.berg@cardinalfinancial.com posted this
**PUBLIC ANNOUNCEMENT**

The Fed has cut the interest rate to zero. This means a lot of different things but it is way too early to know exactly what it will mean for mortgage rates.

While I can all but guarantee that mortgage rates will drop none of us professionals know what they will drop to.

But I can guarantee with 100% accuracy that Facebook will be littered with bad information in the very short amount of time for a very long amount of time.

This will make my business life hell for a while so I am hoping to get out in front of this with some real information. Below is a list of some things to keep in mind:

1) Feds slashing rates to near zero does not mean you are getting a near zero interest rate on your mortgage.

2) I do expect a big drop in mortgage rates this week but what most of the public doesn’t know is that rates went up about 1% last week alone. If rates were to drop significantly next week it would probably put us right back where we were about 10 days ago and that would be an amazing rate.

3) Getting a mortgage done in the near future will be like getting toilet paper today. We are all going to be extremely swamped, many of us at over capacity. This means just because you go to Costco does not mean that they have any toilet paper to sell you. On this story Costco is your big banks and credit unions. Find a local lender who can take care of you now, there are several of us who can still help and our rates and fees are going to be the same or very close to anyone else.

4) Online lenders suck when times are easy, right now they are absolutely useless. You would have a more productive mortgage experience applying at a paint store than an online lender.

5) Many people who are not licensed loan officers will have plenty to say on what you can get and where to go. There is a reason those people are not licensed lenders.

6) Us lenders are going to want to do as much of your loan online and over email as possible. We cannot meet with every borrower for an hour 2 or 3 times during this process, there just isn’t enough time in the day.

If you are paying over 3.750% on your mortgage or are paying mortgage insurance you may get real good news on your mortgage options soon. My advice is to get with me (or another reputable local lender) and have the following items ready to go:

Most recent mortgage statement
2018 and 2019 W2’s and tax returns
Last 30 days paystubs
ID

Lastly please be patient with us lenders. We are all drinking from a firehose for the next few months. In addition, for every one of us good lenders there are 6-12 support personnel behind us working ridiculous hours working for you.

Pray for us and wash your hands...

Feel free to like, comment, and share or tag this post. Don’t let someone get fooled into a bad scenario.

Chris Berg
MLO 198082
Chris.berg@cardinalfinancial.com

Renee Serface posted this

🗣🗣🗣 Friends- mortgage rates are not 0%. Trust me. The federal funds rate has no direct correlation to mortgage interest rates.

With the lowering of the federal funds rate:

> Go buy a car 🚗 (unless you’re buying a home or refinancing)
> Charge up your credit cards 💳 (never my suggestion)
> Take out a home equity loan (if that is the right fit for your financial situation)

Mortgage pricing ticked up more last week than we have seen in a very long time.

Stay tuned. This ride of volatility is not over. Anything can happen. When it does, I’ll do my best to be proactive and let you know how it impacts you.

Please tell all of your friends THIS- and not that mortgage rates are 0%.

Eric Newman posted this

For the last 90min I’ve had many inquiries on how the Fed action will affect their mortgage rate or loan in process. The answer ... it might, and it might not. Clear as mud. Here’s the details ...

1) When Fed lowers their rate, it impacts shorter term and variable rate loans. Your equity line, credit card, auto loans. It does not directly impact fixed long term loans like mortgages.

2) Sometimes the stock market reacts to Fed action. This can cause a huge gain on Dow Jones, or a sell off. When either of these happen, it can impact the investment into mortgage bonds, which does affect fixed rate mortgages. Tomorrow morning we will know the impact of this sudden move.

3) We are in a volatile time. This past week we had all time record low fixed mortgage rates on Monday. Then from Tuesday thru Friday, there was a massive mortgage bond sell off causing rates to rise 1/2 - 3/4% across the board. If you waited for lower rates, you missed out.

4) There has been announcement of Fed purchases of long term assets which includes fixed mortgage rates. That is a good thing for rates. Even if temporary.

Right now we are in unprecedented times. Nobody knows what will come or tomorrow. Maybe it’s hype, and maybe reality. Time will tell. But rates will move up or down regardless. Some days the swing will be wild.

If you were someone who could benefit big with a locking a refinance Monday, and wanted to think about it for a few days ... you missed out. Maybe you though rates would drop lower.

None of us can predict the future.

www.learningtobuyahome.com
www.traciedemars.com

Thank you, as always, for reading this.
I hope this helps you this week! Please, if you have any questions, please feel free to call, email, text, or even facebook me anytime. I am always here to help!
Information is power, and I hope that I am help you! Good luck, and as always...May the odds be ever in your favor out there.... If you are looking for a real estate agent, I would love to be able to help you.
I hope that explains this a bit, but if you have any questions, or comments please call or email me anytime! Please remember that while I mean these emails/blogs to be helpful, and educational, I am still hoping that you will call, or email me. I would love to help you with your home buying, or home selling adventure! :-)
As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one. Real Estate is not really about houses, it is about relationships. Your agent, and your lender work for YOU. You drive the bus...we are merely GPS to help you get to your goals. Like the classes, this weekly blog email is to help you with your home adventure. The goal is to be informative and non-promotional. :-) We are, however, hoping you will call and want us to help with your adventure.
Thank you again for your business and your referrals!! ...and thank you for referring these classes to your friends, family, and co-workers.
....disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings...

Upcoming Topics:
What's the difference between Inspection & Appraisal?
Last Month: Showings...what you need to know
Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com
traciedemars@aol.com
“Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com, or www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."
- Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

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What does it mean to be self-employed?

3/5/2020

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So...let's play pretend....
Let's pretend you have an interview with a company that you really like, and look forward to working for. They know you, your experience, and how great you are.
However, there are some downsides... there are zero benefits, no raises, you will only get paid once, and you only get one shot to negotiate how much you will be paid for your work.
So you go to the interview, and it all goes well....or so you think.
Then you get the call....
Employer:
"Hi! The interview went great! As a company, we can't wait to hire you. Your experience, and skills are exactly what we are looking for!
However, we would like to talk about your payment. We really do love you, and are excited about moving forward, but we also interviewed a couple of other people. There is someone else that we have talked to that is cheaper.
Now, we understand that this other person (that is cheaper) doesn't have your skills, or your experience. They most likely won't do the job as well as you will, and can't answer our questions like you can. As a company we understand that this other person also probably won't provide the same services, or level of competence that you do. As a company, we also understand that we will probably end up paying more for services that you include, or hiring another person to do things that you include in your payment, but they say that they're cheaper and will do what you do for less. So, will you go down on your price?"
So... what do you think? As the employer? As the person who is interviewing?
Welcome to being self-employed.....
You are the company. The self employed person is the interviewee. As the company, you are hiring a person to provide a service for you. You are hiring their skills & experience to help you with something you want done, or need help with. Everyone wants the best work for the least amount out of their pocket... it's human nature. The catch is to make sure that this doesn't end up costing you more in the end. There is always going to be someone willing to do it for cheaper, but at what cost to you?
So, where does this come from? I received an email from someone who went with someone cheaper. These folks have questions about what's going on with the sale of their home, and about what their "cheaper" person is doing... and not doing. Sadly, I can not help them. They have a contract with this other person. I can not, legally, intervene in that relationship as it is against the Realtor Code of Ethics. I feel bad for these folks as they're good people, who are now second guessing their hire. 🤷‍♀️
This is for all self employed people.... not just real estate 🙂... contractors too.

For information on home buyer or home seller classes & more educational blogs....
Facebook: Tracie DeMars Real Estate
or
www.learningtobuyahome.com
www.freesellerclasses.com

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How long is the home buying process? ...aka... when do I get keys??

3/5/2020

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Upcoming Free (& non-promotional) Home Buyer Classes:
Saturday, March 7th, from 9am-12pm (ish)
Marshall Community Center, conference room
1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Thursday, March 12th, from 5pm - 8pm (ish)
Marshall Community Center, Conference room
   1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, March 21st, from 11am-2pm (ish)
Vancouver YMCA, conference room
11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave).

If these class dates and/or times don't work for you, please let us know. We understand that you have lives, and families, and work. We will work something out that works better with your schedule. Just let us know....
....we also have home seller classes available too...look for link on top of website

Happy March!

Spring! It's coming! I can feel it... and so an the plants, and the trees. My daffy's are blooming, and the market is absolutely crazy. The real estate market runs on a pretty basic pattern...unless something out of the normal happens. The best time of year to be a seller is February through early June. The best time of the year to be a buyer is June - August, and again, October - January. So, why is this? Well, the majority of potential buyers use their tax refunds for down payments and/or closing costs, and most people get their tax returns starting in February. Most people who are thinking about selling don't put their homes on the market though until after spring break. This is why the market is so brutal right now. There are more buyers than there are homes for sale. It will ease up a bit about mid-April, but still be pretty crazy. Once kids start getting out of school in June, the market changes again. The summer has more homes for sale, and less buyers so it's a good time to be a buyer, but not too bad of a time to be a seller either as the market picks up again when kids go back to school in September. In September & October we see folks buying hoping to get in before the holidays. After Halloween the market dies because of the holidays & the weather, but that is a great time to be a buyer. This is the most common cycle we see in real estate but things like the teacher strike we saw a few years ago can disrupt the cycle.

Now, honestly, the best time to buy or sell a home is when it is the BEST time for your family. I can give you all the information, but ultimately, you need to decide when it is the best time for your family to make THAT move. So, what's your first step?
Talking to a lender about how much you are pre-approved for. There's nothing a realtor can do for you until we know what price range you are looking at. This can also determine when is a good time for you to be out there on the house hunt.
What if you are selling & buying? Well, then you want to start with your Realtor to see what your current home is worth, and what you would be looking at after selling. Then you would go to your lender to get pre-approved...just like we had just talked about.

  So, one of the questions we get a LOT is how long is the home buying process? Of course, what people really want to know is when do they get keys? So...when does this all happen? The home buying process is sometimes super short, and sometimes takes a long time. On average, most people write an offer on one of the first 6 homes they see. Weird? Not really if you think about it.... when you get pre-approved you have an idea of the home you are looking for. Your Realtor is going to do everything they can to help you find that home. First, we are going to hope that the home you are hoping to find is in your price range, but if it is... we're going to find it. Now, sometimes, it can take longer....especially depending on the time of year. The real estate market ebbs and flows and runs on a pretty cyclical nature. There are times of the year where it's better to be a seller, and times of the year when it is better to be a buyer. How long it takes to get a home under contract really depends on these factors. However, what happens after the home is under contract....

Once we have a home under contract with an accepted offer, that home goes PENDING (Congratulations!). This is when things really start moving. A copy of the signed around purchase & sale agreement goes to your lender and to the escrow/title company. The escrow company opens escrow on the home, and does a title search. The lender will call you to come in and sign your lending documents. Now that you have a home under contract, the loan application, and process can begin. On your end, we need to schedule the home inspection. We have 10 days to have the home inspection completed and to request any repairs. Once the inspection process is complete, the appraisal process begins. Remember that the home inspection is for your information, and the appraisal is for the banks information. Once the appraisal is in, the file goes to the underwriters again for their approval. Once we have the underwriters approval, closing documents are ordered. You will receive an email asking you to acknowledge receipt of the closing documents. From receipt of the closing documents you have 3 days before you can sign at title. Everyone always ask, "when is my signing appointment?" We don't know...yet... You see, once the title company receives the documents from the lender, they have to balance those papers, and numbers, and information with the lender to verify that all the information is correct. Until they are 'balanced' with the lender, they can not set up the signing appointment. Once this is all done, the title officer will call you for a signing appointment. Yay! Signing appointments are often same, or next, day. The title officer will also let you know how much (if anything) you need to bring into signing with you. Signing & closing gets mixed up quite often, but they are totally different steps. Signing is when you meet with the title officer at the escrow office to sign acceptance of the loan, and of the property you are purchasing. You will receive copies of everything you have signed and get sent home....to wait.... Why? Because now we move on to the last step in your home buying process, the closing.

Once you, and the seller have signed, all the paperwork goes back to the underwriters to sign off on, and then to the lenders to fund. After funding happens, you will probably get a call from your lender letting you know it's all done. Ok, well, they are all done. We, however, are not... Once funding happens (and this is when the banks get their monies), all the information goes back to the title company. The title company then sends the necessary information to the courthouse to record your sale. Recording is closing...this is when the home becomes yours. Recording happens during business days from 10am-12pm & from 3pm-5pm. Once the home records in your name, the title officer calls your Realtor to let me know that you are recorded. Congratulations!! NOW I can call you to meet up for those magical KEYS!!
One thing to mention...your lender, and your Realtor....we do NOT give out your information. We value your privacy. Recording on a home purchase, or sale, is matter of public record though. You WILL start getting tons of crap mail, and calls because it is public record. If you are not sure about anything you are receiving, please call your lender, or Realtor, we can let you know if it is spam, or something you need, or help you get information on where to ask.
So, how long does this take? Depending on your loan type, and the speed that you can get your information to your lender, and the speed we can get inspectors and appraisers out, anywhere from 3 weeks to 6 weeks to get from accepted contract to keys. Average is about 40 days. I've got one right now that we are closing in 2 weeks!!! I've got another one that just received keys that went into 6 weeks because the appraiser called out a repair. Wait, hold the phone!!! That can happen???? Why, yes, it can...but that is an email for a different day. :-D

Thank you, as always, for reading this.

I hope this helps you this week! Please, if you have any questions, please feel free to call, email, text, or even facebook me anytime. I am always here to help!

Information is power, and I hope that I am help you! Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.

I hope that explains this a bit, but if you have any questions, or comments please call or email me anytime! Please remember that while I mean these emails/blogs to be helpful, and educational, I am still hoping that you will call, or email me. I would love to help you with your home buying, or home selling adventure! :-)

    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one. Real Estate is not really about houses, it is about relationships. Your agent, and your lender work for YOU. You drive the bus...we are merely GPS to help you get to your goals. Like the classes, this weekly blog email is to help you with your home adventure. The goal is to be informative and non-promotional. :-) We are, however, hoping you will call and want us to help with your adventure.

Thank you again for your business and your referrals!! ...and thank you for referring these classes to your friends, family, and co-workers.

....disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings...

Upcoming Topics:
What's the difference between Inspection & Appraisal?

Last Month: Showings...what you need to know

Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com
traciedemars@aol.com

“Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com, or www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."
- Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

1 Comment

Tracie DeMars
real estate broker with Re/Max

I have been in real estate for about 15 years now, and I have seen the market up, down, and now going up again. I teach the Clark County Free Community Classes for Home Buyers & Home Sellers to help buyers learn about the loan, and home buying process; and sellers to learn about the paperwork and process of selling a home. We are volunteers, and have no affiliations so we are able to tell it like it is...with no sugarcoating. The pros, the cons, we tell it all in a fun, engaging, direct manner that encourages class attendee interaction and involvement. Classes are free and non-promotional and held at community locations. Walk -ins are welcome and all are invited.
Whether you're buying or selling a home, Education should always be your first step!
**we now offer Home SELLER classes too, by reservation. It is a sellers market out there, and the classes are designed to go over all the paperwork, the 'right' questions to ask, how to make sure your agent is really working for you, what a CMA (comparable market analysis) is, and what is considered a comparable home....and going over the settlement statement. What are the fees? What are you going to net???

The FEDS lowered Interest Rates? What does that mean for you?

What does it mean to be self-employed?

How long is the home buying process? ...aka... when do I get keys??

Tracie DeMarsreal estate broker with Re/Max

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Tracie DeMars
real estate broker with Re/Max