There is good reason to seriously discuss rates right now as we have just surpassed the Ides of March and April is bearing down on us like a raging bear. No, it’s not that Easter ushers in higher rates but notice that I did say “bear” and not “bull”.  For the past year or so the Fed, sorry, THE Fed has been purchasing mortgage backed securities to the tune of 1.3 Trillion dollars in an effort to keep the credit markets afloat for mortgage loans until private buyers are willing to return to the market.  Well, the end of March also marks the end of the FOMC purchase party which will then mark the beginning of a new period of MBS bearishness.  You heard me right, these low rates we’ve had are the result of our government temporarily supporting the mortgage bond market and when they are through we WILL see a pull back on bond prices and because rates travel inverse of price we will see a spike in rates. There are two questions to be asked at this point:

1. How high will rates get?
2.  How long will they stay elevated? 

How high rates get will be determined by the attractiveness of the bond versus the equity market. Remember, bonds are considered a “safe haven” and the more risky equities appear, the more bonds benefit. My prediction is that we will see rates hit 6.5% to 7% by the end of this year and if the stock market continues to pick up steam we will likely see 8% by the end of 2011. I could be completely wrong as the Euro may crash sending the dollar through the roof which could help pull foreign dollars into the bond market and reduce rates again. Once rates are elevated they will stay elevated as long as the large institutional investors are willing to play equities over bonds for fear of a devaluation of the dollar.

If you don’t want to have to worry about what rates are going to do you need to have your rate locked before April 1st. Call us today @ 1-877-742-1500 or use our handy contact form below for a free rate quote customized for your situation.

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As the Real Estate and financial markets continue to move up and down, mortgage rates can also be affected. Since mortgage rates are more closely tied to the bond markets, an up or down move in the stock market may not have the result in mortgage rates that one might expects. In fact, many times the resulting mortgage rate changes are counter-intuitive.

More importantly, rates change daily and they can change quickly. Some mortgage professionals have recently noted that their rate quotes have only had shelf lives of three to four hours before market changes have deemed them inaccurate.

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How does a consumer navigate fast changing markets in order to refinance their existing loan or purchase a home with the most favorable terms possible?

1. Plan – Define your needs ahead of time, do not wait until the last minute. This is especially true of home purchases.
2. Consult – Talk to your mortgage professional on a regular basis so they can interpret recent market events to you and communicate how those events can affect you.
3. Execute – When you have defined your needs and have determined that now is the best time to move forward, don’t shop yourself out of a good loan! What does this mean? It is easy to get caught up in shopping for the best rate, but it is not uncommon for home owners to miss locking their loan at a great rate because they are in search of better rates that do not exist or that they do not qualify for. It is important to shop to insure you are getting the best rate possible, but set limits to the number of companies you are going to consider doing business with and be careful of having your credit report needlessly and more times than is necessary!

With the resurgence of FHA home loans, many home owners are wondering if they can benefit from an FHA loan. The truth is that you may or may not benefit by converting your existing loan into an FHA loan when you refinance.

Some of the factors that can determine if an FHA loan is right for you:

• Loan To Value
• Home Value
• Size of Existing Loan
• Credit Score
• Amount of Cash You Want to Take Out

With the many changes that have occurred with FHA loans, it is possible that even if you didn’t qualify six months ago, there may be a loan program that is right for you.

One of our mortgage professionals can help you determine if an FHA loan is right for you quickly with no costs.

Our mortgage professionals can give you FREE loan advice to help you understand the mortgage process.

Wondering which loan is right for you? Not a problem! We can help determine which loan will fit your needs for your home purchase, refinance or debt consolidation needs.

If you have any questions, please contact us or call us!

Thanks!