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
503 320 0925
Chris.firstname.lastname@example.org posted this
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
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.
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.
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...
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Have a great day, and I will talk to you soon,
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
“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).