My New Blog

This mornings bond market opened higher which generally translates into lower rates. So far this morning rates are down by .25-.375, depending on term and product.

Thursday appears to be the day that we may see more fluctuation in rates. Two key indicators will be released then and depending on those results, the bond market and thus rates will once again reflect the current economic concerns.

Call your Mortgage Broker for the best advice on when to lock your loan.

Today's rates are holding very steady with yesterdays levels. 30 Year fixed Conforming rates and FHA are currently at 5.625 give or take 1/8 of a point. 15 Year rates are both down slightly from yesterday. Conforming 15 year fixed rates are at 5.375% with FHA slightly lower at 5.125%.

This afternoon's Fed Meeting will be the next rate determinant. The Fed is expected to lower the key lending rate by 1/4 pt. It is still unclear how that will affect Mortgage Rates. In essence there is now a short term period of uncertainty regarding the direction of Mortgage rates over the next couple weeks.

Experts concurr that a lock may be recommended if your transaction is closing in the next 2 weeks. 

As always, consult with your Mortgage Professional daily during this ever changing market period. 

It will be a very busy week for rates. Each day will bring changes, with Tuesday and Wednesday the days with the most economic report news coming into play. The Consumer Confidence Index for April, the release of the Gross Domestic Product, and the Employment Cost Index reports will drive this weeks rates. The results of the GDP report will most likely be the most important driver as it really gives the best indication of recession trends.

Informed sources suggest floating your loan rates over the next 30-60 days. Keep in touch with your Mortgage/Real Estate Professional. They have the access to know when it's best to lock.

Yesterday's reduction is still holding as of this morning. 30 year rates are right around 5.625% with 15 year term rates at 5.375%.

FHA 30 year rates are holding very steady with conventional rates. Rates range between 5.50-5.625% 15 year FHA rates beat conventional by 1/8 of a basis point.

Today should be relatively quiet with rates unchanged. The next change for a swing up or down comes tomorrow with some key economic data coming into play. Once again , keep an eye on the stock market, as rates should adjust accordingly. Lower stocks=better rates.....higher stocks=worse rates.

The economy today is enough to make anyone a bit apprehensive about their future and their goals. I am not exempt form those feelings, especially since I am in a Sales Profession. No I am not a Realtor selling homes....I am a Mortgage Coach, selling My Clients financial soundness to a potential lender. But, before I can get to that point, I need to overcome the obstacles that face a client or that the client raises to me in my attempt to show them the benefits that working with me can provide.

I was with my 2 sons this weekend as they were selling discount cards for their school booster club. And by observing them I found myself learning from them. Yes, the price of just about everything is way up from last year. The amount of discretionary cash that most folks have is not what it used to be. So, knowing that they may not sell as many as they had in the past, they still went into the task with the goal of selling more cards than the rest of their team mates.

I was shocked to see them sell a card to just about one in three people they spoke to. So, even though money is very tight these days, folks still managed to reach into their pockets and pull out the $10.00 to buy the discount card. I tried to think about why they had the huge success they did, and after thinking about it for awhile I think have the reasons.

First and foremost they went into their task knowing the current market and also realizing that it would take determination to reach their goal.

Secondly, they had a product to sell that did provide a benefit to the consumer. The card was good for 1 full year at 2 dozen local merchants for in store discounts. After 1 or 2 uses, the card pays for itself.

Thirdly, they were able to build a rapport with those they were soliciting. There were the ones that did not want to make eye contact and just kept walking. Any salesman faces those folks. But, they didn't let that bother them. They just politely said " Thanks anyway and have a nice day."  Because they didn't get frustrated , they demonstrated to themselves and to other potential "buyers" around them that they were determined in their efforts.

Is fund raising that much different than what we do every day?

Do we know our market and what it takes to get to where we want to go? Have we set goals for ourselves? Realistic Goals?

What is the benefit of your service? What makes you different from your competitor?

Do you have the right work ethic to overcome objections/obstacles and still make the sale? Do you let the environment control you or do you control it? How do you build your rapport? Does your frustration show to your clients?

Take a few minutes and observe your children. Try to rekindle some of their enthusiasm and determination into your own daily tasks. Maybe you can learn something from them.

I know I did.

The first rate sheets for today suggest that rates are up again as they were last Friday.

Today's 30 year rate is at 5.75 and can go to 5.00 with almost 4 points being paid. 15 year rates are now at 5.5% and can go to 5.125 with almost 1 point to the lender.

FHA 30 year rates are at 6%, and can go down to 5% by paying over 4 points to lender. 15 year rates are at 5.5% with a buydown allowed to 4.5% by paying over 4 points.

This week should be fairly quiet as far as triggers to rates go. The stock market will likely be the key indicator this week, so keep your eyes on the market daily.

Expert opinions still seem to suggest Floating your rates in the near and short term. Just keep your eyes open.....

Todays rates are up approximately .375 from yesterday. The market suggests that this will vary from day to day over the next few weeks. Expert opinions suggest floating your rate if you are expecting to close within the next 30 days. This is just an opinion, however.

The stock market should be closely watched as gains will likely send rates higher, and losses will bring them down. Higher inflation concerns usually translate into lower Bond returns that is what really triggers rate changes. As always, conversations with your Mortgage Coach will help your decision.

Ok, I know it's not a HUGE milestone, but my site has now registered over 1000 page views since I initiated it less than 2 months ago. I want to thank all of you have visited my site, and I do hope that the information contained here is useful. I will continue to upgrade the content shown as well as to link this site with colleagues who have advice and insight that they can share with you and me. I know, 1 thing I need to do is to add a photo. I am trying to find the right one ( so you can see me in my best light so to speak).

If anyone has comments to share with me I would welcome them. If you are a Real Estate Professional and would like to add blog links to my BLOG, I welcome the additions. It will also help to increase your exposure.

Thanks again for helping to make my site a success. I am looking forward to the next 1000 page views.

James Bowen

Rates are up slightly since Friday. A 30 day lock at 5.375% will cost .2% while a 15 year lock will cost .113%. These are up by .2-.375% from Friday.

FHA rates are up also,but by a slightly lower margin of .15%

Wednesday seems to be the next big day for Rate adjustments. The March Consumer Price index, information on new housing starts and reports on Industrial production are all due out that day.

Industry commentators have recommended short term locks (0-20 days), but suggest a float if over the 20 day time to close.

Loan Officer just seems to be such a vague term. What exactly does this mean? With other uses of the word officer, you kind of know. Like , "Officer of the Law" or "Officer of the Court",or "Officer of the Corporation".

But "Officer of the Loan?" That just doesn't make sense.

Now Coach on the other hand seems to really pinpoint what we do. I know this for a fact. I coach my kids Youth Baseball Teams. Coaching kids is not that much different from how we work with our clients. Even the strongest team can't win unless they are positioned properly. No team has players that are not capable of improving that position.

I don't know about you all, but generally my clients are not in a strong enough position to accomplish their transaction immediately. They need some "coaching" in order to get themselves ready for a successful end goal. That is where this term really makes more sense. So, the same can be said for your clients. Most of them can be coached into a better purchasing or refinancing position with a little effort. It may not always be wise to "just get it done". A good coach puts the needs of the team first. That's what we need to do with our clients. Is this in their best interest? Will this benefit them in the long term? Does this meet their end goal?

Good coaches are in it for the long run. They want to build success. I am in it for the long run and will work with my clients to "improve their position."

James Bowen

Moneyline New York, LLC.

www.getmortgagenow.net

I really get a good feeling when my efforts pay off and I have a satisfied client who can move on with the events in their lives.

I worked on a refinance with a client for over 1 year. It was very complicated because it involved a Private Mortgage Holder who literally harassed my client making life unbearable. This individual was once best friends to my client, and as the saying goes, never do business with friends.

The Private Mortgage holder realized the value of the entire parcel owned by my client. Private Mtg. was taken out to build on clients existing land.

Mortgage holder wanted to do anything he could to get the parcel away from my client--went to the extreme of placing a judgement on title to prevent to client form being able to refinance conventionally. He even stopped taking their payments, essentially calling the note due.

But, I did not give up. I must have presented this scenario to at least 20-25 lenders before I found one that would work around the issue at hand.

My client just closed 2 days ago, and she and her family are now able to think beyond this situation.

I will not stop trying for you until my options are exhausted. Let me work for you.

We likely will see a slight increase in today's mortgage rates due to weakness in bonds late yesterday.

However, that is yet to happen as Current pricing is as follows:

30 year conventional-5.375% down to 4.75% paying 3.5% to Lender

15 year conventional-5.125% down to 4.75% paying 1.35% to lender

FHA 30 year-5.5% down to 5.0% paying 3.343% to lender

FHA 15 year-5.5% down to 4.5% paying 3.395% to lender

Don't wait to find that home you've always wanted. This is a buyer's market!

Research suggests that we likely will see mortgage rates improve by approximately .125 - .250 of a discount points as a result of strength in bonds late yesterday and early this morning.

Locks are suggested if closing in next 7 days, but if past that point it is worthwhile to float and hope for the right swing based on upcoming market events.

Current Conventional Rates at Featured Lender reflects this research with a .125% reduction from yesterday's rates.

30 year fixed-5.375%-down to 4.75% paying 3.8 BPS.    

15 year fixed-5.125%-down to 4.875%-paying .934 BPS

FHA rates are unchanged from yesterday

30 year fixed-5.5% -down to 5.00% paying 3.55 BPS       

15 year fixed-5.5%-down to 4.5% paying 3.5 BPS

Rates generally vary from day to day by a range of .125-.375 of a percentage point daily. Today's featured Lender Rates are below:

5.5% -Fixed 30 year conventional -no points to lender-- to as low as 4.875%

5.125%-Fixed 15 year conventional-no points to lender-- to as low as 4.875%

5.5%-Fixed 30 year FHA-no points to lender-- to as low as 5.0%

5.5% Fixed 15 year FHA-no points to lender---to as low as 4.5%

There are still some quality lenders left for the non conforming loans. All rates will reflect the perceived risk by the lender in underwriting the deal.

Take advantage of these extremely low rates today. I can help you to qualify for that house you've always wanted or I can help you refinance to consolidate your current debt and most likely lower your interest rate as well.

Call me today for your FREE consultation.

Hi:

I am working with a client right now to get him in a position to qualify for a primary Residence purchase. He has been living at home for several yerars, but owns a piece of Rental property. With his current debt load, he was not in a position to qualify. He has a Private Mtg. on his investment property. I am going to pay that off, consolidate all revolvong debt and pay off 2 open medical collection accounts. With this action, his monthly payment will be less than he is making on his Private Mtg. and it will put him in a position to be able to qualify for the purchase upcoming. He is also now aware that he needs to get a tenant into the rental to help offset the new Mtg. payment.

Sometimes it just takes a little bit of extra work to find a way to make a sale or to get a client qualified. I really enjoy digging into each client's different scenarios to make things work. It is a great feeling at the end of a day to know that I've helped someone.

If you go the extra mile for your client, it will pay off in the long run.

 James Bowen

www.getmortgagenow.net

http://finance.yahoo.com/expert/article/mortgage/73595

http://finance.yahoo.com/expert/article/mortgage/74779

These links are to a very well written and extrememly valid topic today. It was written by Jack M. Guttentag The Mortgage Professor. His profile is listed here   http://finance.yahoo.com/expert/bio/mortgage/jack-guttentag

As a 27 year Finance Professional I agree with the points he makes.

I found this press release from the University of Rochester about a program to benefit U of R employees/Staff. I think it is agreat program and wanted to share it with my Monroe County visitors.

http://www.rochester.edu/news/show.php?id=3133

New Incentive for University Employees to Buy a City Home

Up to $9,000 Available for Each Purchase, Advice for First-Time Homebuyers

Financial incentives to attract University of Rochester regular full-time and part-time faculty and staff into city neighborhoods closest to the River Campus and the Medical Center begin this month with a new arrangement among the University, the City of Rochester, Advantage Federal Credit Union, and Canandaigua National Bank & Trust.

"We're offering $3,000 with a comparable amount from the City of Rochester and Advantage Federal Credit Union or Canandaigua National Bank & Trust to encourage employees to seriously consider owning a home in the city that is close to our University," said University President Joel Seligman. "Let me particularly express my gratitude to Ron Paprocki, our chief financial officer, for his leadership in this initiative and for his commitment to supporting our neighbors."

The targeted areas for the incentive program are the 19th Ward, Plymouth-Exchange, and other neighborhoods on the west side of Rochester in Sector 4; while to the east, they include Highland Park, the South Wedge, and other nearby communities in Sector 6.

"The University of Rochester is our largest employer and a steady supporter of what this city has to offer," said Mayor Robert J. Duffy. "We are proud to match the University's investment and want to thank them for their ongoing support. We also want to thank Advantage Federal Credit Union and Canandaigua National Bank & Trust for offering an additional incentive to help people save for a down payment and closing costs. This is an outstanding initiative and a great complement to our City Living Sundays program that will help Rochester families achieve the dream of home ownership," he said.

The benefit program provides new homeowners in sectors 4 and 6 with up to $9,000 toward the purchase of a primary residence. Buyers are not limited by their income. Regular full-time and part-time faculty and staff are eligible.

The University's benefit is provided through a loan that will be forgiven if a five-year occupancy and certain employment commitments are satisfied.

"We timed this program to this year's City Living Sundays—March 30, April 6, and April 13," said Paprocki, the University's senior vice president for administration and finance. "We see value in our employees being part of city neighborhoods and also benefiting from easy walking or busing distance from their homes to work." (More details on City Living Sundays can be found at www.rochestercityliving.com.)

Since 2003, the University has encouraged employees to work with a number of local banking institutions that offer funds toward closing costs, lower interest rates, and other incentives. These programs remain available and can be applied to any location in the city—but do not qualify for the $3,000 benefit from the University or the $3,000 from the City of Rochester. Information on all of the University's housing incentive programs can be found at www.rochester.edu/working/benefits/housing.

As part of the new University Home Ownership Incentive Program for Sectors 4 and 6, NeighborWorks® Rochester (www.nwrochester.org), a community-based nonprofit agency devoted to strengthening city neighborhoods, will provide participants with home ownership counseling and pre- and post-purchase education. Fees for education services will be paid at closing.

In addition, information sessions regarding the University Home Ownership Incentive Program will be held at the University during the week of March 31. For a list of dates, times, and locations of the information sessions, visit www.rochester.edu/working/benefits/housing.

Rochester employers Eastman Kodak Company, Xerox, PAETEC, Unity Health, Visiting Nurse Service, and the City of Rochester participate in similar programs to promote city home ownership.