Thursday, February 26, 2009
Homebuyer Tax Credit
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
Obama Housing and Mortgage Plan
Obama's $75B Housing Plan to Assist 3-4 Million Homeowners
The Obama administration unveiled a $75 billion housing plan on Wednesday, which it says will help seven to nine million American families avoid foreclosure.
In a White House press release, the Obama administration said the mortgage plan will boost confidence by creating lower mortgage rates and will allow refinancing for four to five million homeowners and assist another three to four million "hard pressed" homeowners.
As part of the plan, the U.S. Treasury will increase its stock purchases of Fannie and Freddie by up to $400 billion, or $200 billion each - double the original level. The Treasury will also boost its purchase of Fannie and Freddie's mortgage portfolios by $50 million each to $900 billion.
The administration said the move will strengthen confidence in Fannie Mae and Freddie Mac, and will ensure mortgage stability.
The $75 billion initiative will be available only to owner-occupied homes and aims to modify loans to reduce payments to more affordable levels, the administration added.
By Stephen Huebl and edited by Sarah Sussman
©CEP News Ltd. 2009
The Obama administration unveiled a $75 billion housing plan on Wednesday, which it says will help seven to nine million American families avoid foreclosure.
In a White House press release, the Obama administration said the mortgage plan will boost confidence by creating lower mortgage rates and will allow refinancing for four to five million homeowners and assist another three to four million "hard pressed" homeowners.
As part of the plan, the U.S. Treasury will increase its stock purchases of Fannie and Freddie by up to $400 billion, or $200 billion each - double the original level. The Treasury will also boost its purchase of Fannie and Freddie's mortgage portfolios by $50 million each to $900 billion.
The administration said the move will strengthen confidence in Fannie Mae and Freddie Mac, and will ensure mortgage stability.
The $75 billion initiative will be available only to owner-occupied homes and aims to modify loans to reduce payments to more affordable levels, the administration added.
By Stephen Huebl and edited by Sarah Sussman
©CEP News Ltd. 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.
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