What a rollercoaster ride over the past few months. As a loan officer and industry insider/expert I have watched mortgage rates go from a PAR rate of 4.25% on a 30YR conventional rapidly climb to 4.875% and higher in under 90days. For many people in the application process November was a nightmare. More than likely if you had not locked your interest rate you, you fell victim to a higher rate of interest and received a call from a loan officer that since your rate was floating it can no longer be achieved. It was to no one’s fault. Neither your company nor your Loan Officer is to blame.

Over the past year I have realized a growing trend towards individuals being more concerned about their credit profile and Fico scores than ever before. I have also realized that most individuals though concerned, are unaware of what their credit scores are, and the impact this negligence can have on their lives. This increased awareness among the populace may simply be due to the heavy marketing campaigns of the companies profiting off of a tight lending environment where good credit is ones most important asset.

I’ve been in the business over 20 years (started when I was 10) and I’ve seen all types of Adjustable Rate Mortgage come and go. Some ARMs of years past should have been outlawed and are much of the reason our country mortgage delinquency rate is at an all time high. The negative amortization Pay Option ARM was probably the worse and I wouldn’t recommend it unless you were picking up a check for the Mega Millions jackpot next week.

I often get inquiries about No Closing Cost Refinances that lenders advertise. The ironic part is that there really are closing costs but it’s incorporated into the interest rate premium that the lender receives so rates are often higher and sometimes not worth while depending upon the circumstances.

For example:

$200,000= loan amount

4.00%= interest rate with closing cost

4.50% =interest rate with no closing cost

The estimated closing costs on a $200,000 loan amount might be close to $4,000 (title charges, settlement fee, recording fee and lender fee)

Refinancing can be a valuable tool to save money or use the equity in your home for large expenses like college tuition. However there are some things to be aware of:

• Don’t refinance to use equity for regular expenses
If you are having financial difficulty, make an appointment with a credit counselor to help you create a plan. Stripping your home of its equity because you are overextended can create more problems than it solves.
• Do your homework

There are so many lender options out there it’s almost impossible to say what’s the “best mortgage” for your needs. When someone from Aequor contacts you they have the ability to access over 20 investors for both residential and commercial lending products. Offer the best solution. Now normally we advise clients based on their own experience, circumstances or life necessities as to what are the best options for them. However this may not always be the best move for you. Only you know what’s best for you, only you know what you truly want. We here at Aequor we just know what you tell us.

November 3rd, 2010 the Federal Open Market Committee (FOMC) met for one of its 8 regularly scheduled meetings throughout the year. The decisions made in these meetings greatly impact the economy and more precisely the direction of interest rates and borrowing costs. Last Wednesday the FOMC made a ground breaking decision to purchase $600 Billion of Longer Term Treasury securities by the end of the second quarter of 2011 at a pace of $75 Billion per month. This decision comes as part two of the Feds Quantitative Easing and is commonly known as OE II.

Estadisticas y estudiosos de los cambios en la industria del real estate han previsto una disminucion del 25% en el valor de las casas para finales de este año . Una vez mas percibimos que esta situacion no mejora y que no hay ninguna escapatoria a esta desmembracion de la economia. Sin embargo, este descenso apocalictico nos trae a su vez muchas nuevas oportunidades y nos abre otras posibilidades para hacer remerger nuevos compradores que antes no cualificaban y que ahora podran adquirir la misma casa que desearon hace unos meses atras por un precio menor .

Effective October 4th, 2010 the Federal Housing Administration made significant changes to their mortgage insurance premiums (MIP) . These changes will adversely impact some borrowers while benefiting others.

The old upfront insurance was 2.25% of the loan amount and the old monthly insurance in most case was .55% monthly
The new upfront insurance is 1.00% of the loan amount and the new monthly insurance is .85% monthly in most cases
In the example below I have compared the new guideline with the old ones using $150,000 loan at an interest rate of 4.50% 30 year fixed rate