Fed Ending Low Rates
By · CommentsIt’s true – and it’s big news to buyers, sellers and everyone in the real estate and mortgage business.
This time last year 30 year fixed interest rates were at 6.25%. Then The Fed stepped in the Tuesday before Thanksgiving and decided to subsidize those higher rates with a whopping 1.25 Trillion dollars. It’s those dollars that have yielded us these SUPER LOW rates we’ve gotten so used around the 5% or below mark ever since.
Well, that time is about to end. Come March 2010, we can all say good-bye to that program AND to 5% rates. The rates are being held at an artificial level by the purchases the Fed has been making with all that money and when they stop… That’s it. Guaranteed.
On a $600,000 purchase mortgage, the interest rate difference translates to a monthly increase of over $450 a month to a new buyer. That can make the difference between seizing an opportunity or losing one.
Do you know what the Cost of Waiting might mean for you? If not, feel free to email or call me.
You’re Kidding … Peter Graves?
By · CommentsFor review, the results of a recent Adweek poll on the topic of the believability of spokespersons among various age groups. The results paint an interesting picture.
Not terribly surprising is the fact that 18-34 year-olds disbelieve everyone pretty much equally.
In the “eligible for a reverse mortgage” crowd, business leaders hold more sway than celebrities. This is interesting because traditionally, reverse mortgage lenders have relied heavily on actors (James Garner, Robert Wagner and most recently Peter Graves*) and former political figures (Jack Kemp) as spokesmen.
It has always been my opinion that this kind of endorsement was cheap and one of the dumbest ways to market the reverse mortgage product. The fact is, if you need a reverse mortgage, it sells itself. And no celebrity, musician, senator or anybody else in the world is going to sell a reverse mortgage to someone who doesn’t need one… or who is too afraid to get one.
And that’s the real issue: educating those who need them, but who are too afraid to get them. The problem with most marketers today is their refusal to walk in someone else’s shoes for a little while.
Need a reverse mortgage education? Click here to send an email and I’ll reply with the best stuff there is to get you up to speed on the HECM Reverse Mortgage, no charge and no obligation, of course.
*I guess that was as close as they could get to a “Larry Grimm” or a “Ronald Reaper”.
HVCC Harms Your Property Values
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What is a Homepath Loan?
By · CommentsIf you’re like many people, you dream about getting a great deal on your real estate.
After all, real estate is a great way to build wealth (yes, it still is, even post-credit crisis) and what if you could pick it up priced even more competitively than other houses in the same neighborhood.
Well, enter the HomePath program from Fannie Mae.
Fannie Mae is the largest purchaser of the Mortgage Backed Security. Simply put, they manage and coordinate most of the mortgage paper in the U.S. This means that when someone can’t make their mortgage payment and the lender forecloses, Fannie Mae is left holding the property.
The benefits of the HomePath Program include:
- A very low down payment
- Flexible mortgage terms (including fixed-rate, adjustable-rate, or interest-only)
- Loans are available to owner occupied buyers and investment buyers
- Down payments can be funded by your savings, gifts, grants, loans from nonprofit organizations, government grants or even your employer
- There’s no mortgage insurance (What’s Mortgage Insurance?)
- There’s no appraisal required
You can search for HomePath properties here on the official website.
First Choice Financial in Whittier is eligible to lend on HomePath properties — not true of all lenders — so give me a call if you’d like to learn more about how to qualify for this mortgage product.
