30 year fixed rate mortgages

If I were your LO, I would recommend getting the appraisal, and watching the market. Most industry experts seem to think rates may moderate over the next week or two. What is your loan officer recommending to you?

The mortgage market is unpredictable right now, and it is hard to predict which way the rates will head in the next few weeks.  I would recommend negotiating the best possible terms with your lender right now and locking in your rate;  if rates fall dramatically, most lenders will renegotiate with you to some degree.

"if rates fall dramatically, most lenders will renegotiate with you to some degree. "

Locking your rate is doing just that. "Locking your rate." Most lenders DO NOT renegotiate if rates fall. You are going to get all kinds of varying answers on this but reality is that after the FED drops the discount rate mortgage rates almost always rise. They will eventually come down so given that the FED just dropped the rate yesterday your best bet would be to float your rate and watch them closely before you lock. I respectfully disagree with the comment above.

I concur Mike, most don't.

Good Day! I think you may find this information interesting.

First: make sure you are working with an experienced, professional loan officer. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way. But how can you tell?

Here are FOUR SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY. IF THEY DO NOT KNOW THE ANSWERS.RUN.DON'T WALK. RUN.TO A LENDER THAT DOES!

1) What are mortgage interest rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators.

2) What is the next Economic Report or event that could cause interest rate movement?
A professional lender will have this at their fingertips. For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate, visit www.suewoodard.com and hit the green MMG Weekly banner - this is a copy of our weekly newsletter, let us know if you want to be added to my weekly distribution list.

3) When Bernanke and the Fed "change rates", what does this mean. and what impact does this have on mortgage interest rates?
The answer may surprise you. When the Fed makes a move, they can change a rate called the "Fed Funds Rate" or "Discount Rate". These are both very short- term rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed change. This is due to the dynamics within the financial markets in response to inflation. For more information and explanation, just give us a call.

4) Do you have access to live, real time, mortgage bond quotes?
If a lender cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday's newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday's paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future? No way!

Be smart... Ask questions. Get answers!
More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life. but we do this every single day. It's your home and your future. It's our profession and our passion. We're ready to work for your best interest.

Here's the rest of the story

 Once you are satisfied that you are working with a top-quality professional mortgage advisor, here are the rules and secrets you must know to “shop” effectively.

First, IF IT SEEMS TOO GOOD TO BE TRUE, IT PROBABLY IS
But you didn’t really need us to tell you that, did you? Mortgage money and interest rates all come from the same places, and if something sounds really unbelievable, better ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees? What is the length of the lock-in? If fees are discounted, is it built into a higher interest rate?

Second, YOU GET WHAT YOU PAY FOR
If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case, expect very little advice, experience and personal service. Worst case, expect that you may not close at all. All too often, you don’t know until it’s too late that cheapest isn’t BEST. But if you want the cheapest quote – head on out to the Internet, and we wish you good luck. Just remember that if you’ve heard any horror stories from family members, friends or coworkers about missed closing dates, or big surprise changes at the last minute on interest rate or costs…these are often due to working with discount or internet lenders who may have a serious lack of experience. Most importantly, remember that the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime. That being said – we are not the cheapest. Of course our rates and costs are very competitive, but we have also invested in the systems and team we need to ensure the top quality experience that you deserve.

Third, MAKE CORRECT COMPARISONS
When looking at estimates, don’t simply look at the bottom line. You absolutely must compare lender fees to lender fees, as these are the only ones that the lender controls. And make sure lender fees are not “hidden” down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since they are third party fees – they are often under-quoted up front by a lender to make their bottom line appear lower, since they know that many consumers are not educated to NOT simply look at the bottom line! APR? Easily manipulated as well, and worthless as a tool of comparison.

Fourth, UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND
This means that you can have any interest rate that you want – but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all – but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals.

Fifth, UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY
This means that if you are comparing lender rates and fees – this is a moving target on an hourly basis. For example, if you have two lenders that you just can’t decide between and want a quote from each – you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates.

Wow, that is a lot of reading. 

I see a shadow of self promotion in the book above.

Noooooo, say it isn't so!

That was a bit lengthy.......sorry about that! I guess that's what my daughter calls "TMI"!

A shadow of self promotion???? 

This is outright SPAM.   Doesn't zillow have rules about this?

DR,

If you read earlier "rookie" posters that graduated CUM LAUDE from CMPS... you will notice that your novel is the exact same.  I am not saying you are a bad guy, but you are brainwashed and have no ideas/thoughts on your own.  There was a local Orlando guy that had a 3 part take everytime.  Planning a mortgage and using investment charts (all need racalibrating after this crash FYI) is very plastic. You will get torn up here whether you apologize for TMI, ADD, Turrets Syndrome, or any other Weekend education banner you might hang on your marquee. It is a sales pitch and is a closing mechanism.  Have a take, back it up with facts (not CMPS spew) and shoe people you care. Your clients need a plan on how to simply afford their mortgage.....  Anything chart oriented about YEN Carry and shorting OIL futures with the savings is for the trash can.  I wish you well, but it is a gauntlet of CMPS peeps that runs close to the MTG accelerator fraternity and MTG MOD specialists.  Just my helpful warning for HALLOWEEN. keep rockin'.

I guess I never realized how hard it really was to figure out that the time to lock is when the customer is comfortable with the payment. Forget about all the other crap, when you feel you are getting the best payment, lock the loan in.

My pappi used to alway tell me, knucklehead you had it right in your hands why did you let it go... and I would always tell my pappi, because he gave me 3 magic beans...

Nah, but truth is bird in the hand is better than 2 in the bush, if you try to get the lowest rate I can almost guarantee that you will always get burned. Buy what you can afford and if you can't then don't. Good luck and hope all goes well.

Now these last two posters I'd trust to do the largest transaction of my life...

Anybody who tells me they can prognosticate rate movement better than the other guy - because they have access to better charts/info than the other guy... I guard my wallet and head for the door

I found this on a very famous mortgage broker's website. I am not going to make claims of plagiarism, I'll let you guys do that.

Here are 7 questions you want answered in your phone interview:

1- What is your philosophy in as much as it relates to Strategic Equity Management?

2- What makes mortgage rates go up and down?

3- What's the next big economic event that can move mortgage rates?

4- When the Fed raises rates, how does that affect mortgage rates?  (they can come down)

5- What's going to happen in the near future to mortgage rates?

6- Can I get a pre-approval if I give you a credit report, income, and asset package?

7- Will you lock my rate/terms, give me a good-faith estimate, truth-in-lending form, and written rate lock confirmation if I elect to use you?

Some people just don't have original thoughts. I agree with the newbie above- lock when you like what you see. All this other fluff, and 'questions to ask your loan pro' is just silly. Hey, I was new to the business once, and didn't know a THING. But guess what? My clients still got very good interest rates- so take that! ;)

Martin,

Ew!  You are very spry today I see!

LO's can not predict the next rate movement... they can't even guess their next bowel movement correctly. The bird in the hand theory holds very true these days because if you advise your client to float and are wrong (ALL HAVE BEEN).. The bird in the hand might just get "flipped in your face". The past does not predict the future.  Home prices are not a lock to always go up... stock prices will not always go up....  People using props to close sales are loose cannons at best. Keep rockin'.

Martin,

You are absolutely correct.  All that mumbo jumbo does is try to impress the public and the borrower.  However, it confuses the hell out of the borrower and then has many, many of them make wrong decision or the deciision not to do anything at all thus missing  out on what it was they wanted to do.

CMPS   CFMPS   UFMBC    Flat Fee Mortgage Broker (FFMB)

Who makes this stuff up?

New Idea:  We should all collectively make up an acronym, devise some sort of test for LO's to take to become Zertified.  Then charge them each $99 a year to hold our certification and tell the general public their certification sets them apart from just mere Loan Officers....

Who's in?

Let's do it.

"G",

I was really pointing out that the canned/cut/pasted stuff was very familiar from another recent grad.  Nothing against higher learning.  However, fiscal and financial responsibility is a mindset and desire for a consumer/homebuyer/owner to want to be wealthy and/or debt free.  Graphs and Charts lead to anxieties and SHARTS for many.  The main question anyone wanting to cram down this knowledge is:  "ARE YOU GOING TO FOLLW MY PLAN?"  If they promise YES cross my heart and hope to die.... then sell them your reverse LLAMA LIBOR-INDEX based 5/3 Adjustable PAY OPTION ARM with a direct deposit of inverted cash-flow sent to INDIA against the EURO/GOLD DUBAI/CHINA ETF and according to your final exam at the "Institute" all is just fine.  HOWEVER, most of this stuff ends up like CHUCK NORRIS's "TOTAL GYM" and is hanging laundry on it.  Yes you got a "sale", but you did not help anyone but yourself. KISS is the method for the vast majority.  All the complex lending instruments are designed for few but marketed to the masses... another pathetic display of buyerbewarism.

Granite counter tops look really great all polished.....But at the end of the day....It's just a rock!

The industry as a whole would benefit greatly if we stopped polishing up our sales pitches and simply told the borrowers the truth without over complicating things or making things seem fancier than they are.

It is as simple as this:

YOUR RATE IS 6.5%

YOU MUST PAY ON THE 1st

IT IS LATE ON THE 16th

THANK YOU

No rabbits, no tirckeration, no Farmer's loans, no seller-assisted DPA, no more acronyms of badgelery, just the T R U T H... But with all the clowns out there.. the Nicholson saying is what they market:  "You can't handle the truth!"  so they shave here and clip there to show America what it wants to see.  Like buying SPANX..  Makes the ladies look great without lines/rimples...  the SPANX come off and it looks more a Breakstone's Cottage Cheese convention. 

"Makes the ladies look great without lines/rimples... the SPANX come off and it looks more a Breakstone's Cottage Cheese convention."

Beautiful words MW, you should have that inscribed on your anniversary card. Nothing says love like pointing out butt dimples!

In college I wanted to start a class action suit against wonder bra....for false and deceptive advertising practices

Well . . .  In the 70's, the thing was the sock enlargement deception.  I will not comment any more than that . . .

Hello: I've tried floating the rate with mixed results. If your loan officer knows what he/she is doing, they will watch the rate and suggest locking as soon as it's advantageous. Good luck!

Paul

I'll comment for those that have the wrong idea of my intentions. I'm sure my additional post will provide fuel for more negative comments to which I will not reply.

My initial post was information I keep handy for distribution to buyers. Any lender that has a problem with a borrower/buyer asking questions must lack answers. I am not new to the mortgage business or the concept of managing home equity. I have an established record of clients that have enjoyed great benefit from making smart decisions.

As my time is limited I sometimes utilize information already available. This is due to time limitations, not thought limitations as posted above. 

I'm in the business to help others, not spread negative comments.

Best of luck to all.

Doug,

You answer a question about should I lock or float with a canned Q&A on how to pick a loan officer and never offered your opinion on the question.  Do you think rates will be improving?

People jumped on you for not answering but going into a canned CMP spiel.  If all you will do is regurgitate scripts or post information...spare us!