Palm Beach Real Estate and Loans

Today's post comes from Jason Price of Knightlines Mortgage Services:

I have said it once.

In fact, I have said it more than twice.

And now, I am saying told you so.

Just two days ago, mortgage interest rates were still under the 5% barrier at 4.875% for a 30 Year Fixed Rate Mortgage (FRM).  Today, the dreams of owning a home with a mortgage loan at a 4%+ interest rate turned into a horrifying nightmare that those days are no more.

With new home sales seeing an increase of almost 3% nationwide, most of those sales coming from first-time home buyers, lending institutions have begun to increase their rates in hopes that they can liquidate new mortgages more easily on the secondary mortgage market.  With these higher rates, Mortgage Backed Securities (MBS) become a stronger financial investment for Wall Street.

As the previous ceiling of 5% becomes the new floor, future home owners and current home owners looking to refinance can expect a testing of the new ceiling in the upcoming months.  What this means is that 5% will soon become a thing of the past, too.  And mid-5% rates become the new floor and the ceiling testing the 6% interest rate range.

Even with interest rates climbing, lenders are keeping their qualifying guidelines in place.  So future borrowers looking to purchase a new home will now qualify for less of a home.  Add that with slowly increasing home prices, it is only a matter of time before the opportunity for many new home owners to own a home disappears much like the fog fades away and the city of Brigadoon is gone for another 100 years.

Hope is not all but gone, yet.  Call us today to get your financing in place before your opportunity of home ownership starts knocking on someone elses door.

I'd like to add something here - all other hings being equal, an interest rate in the 5% range is not a bad thing.  Does anyone remember the double digit rates back in the 80's?  THAT was horrible. 

What were tring to impress on you is that waiting and waiting for rates to go lower is not going to do you any good!  I talked to someone the other day that said he was ready to buy.... as soon as rates were in the 3's.  That's just plain stupidity poor planning.

Another great example of 'Those Who Wait, Lose'

Mortgage Modification is a phrase that you hear all over the place these days - especially from the people that try to convince you that they are true PROS and that you need to pay them thousands of dollars to do the work for you.

Nothing could be further from the truth!

YOU can do all of the work needed to get your loan modified -

Check out this site for some very useful information:

Making Home Affordable.gov

The site asks a few questions about your mortgage and your current financial situation.  Those answers will determine if you would qualify for the program and you are told what to do from there.

You can also find a HUD-approved Counselor who can help you with the process FOR FREE.

YOU can do all the necessary work needed to get your Palm Beach Gardens mortgage modified.

Today's post comes from Jason Price of Knightlines Mortgage Services:

Congratulations! Your mortgage has been denied.

Congratulations??? Should that not be "Sorry"?

Many people in today's market are hesitant to apply for a mortgage, whether it be a purchase or refinance. They are scared, or more so embarrassed, about the possibility of being denied for the loan. However, those that are denied for a mortgage are one step closer to getting approved than those that sit around doing nothing and hoping that time will solve their problems.

Unlike many institutions, Knightlines Mortgage Services, LLC views a denial as an opportunity to help and eventually turn that denial into an approval. We do not just send you a simple letter that says your mortgage has been denied with a generic reason (usually something like "Decision was based on information obtained from a credit reporting agency.") That does a lot of help... what information on the report?

What will Knightlines will do to help you get the mortgage that you want? --->

Today's post has been provided by Jason Price from Knightlines Mortgage Services, LLC:

Some people still think that things are going to get better.  So I decided to hold off one week on writing something, so this way I could write on what did happen.  As they say, "Hindsight is 20/20."  Now, there is no arguing that things are getting worse.

May 1, 2009 - Policy went into effect whereby lenders are no longer accepting broker/3rd party appraisals.  This is better known as the Home Valuation Code of Conduct (HVCC).  Lenders will now order an appraisal for a newly submitted loan.  Why is this bad?

• Brokers must make a decision on what lender they will use prior to knowing the value of a the house.  Some lenders have better "bumps" for varying LTVs.  If the LTV comes in too high, the bumps may offset the "Par" rate.  If it come in too low, the borrower could be missing out on a lower rate.
• Brokers can no longer submit to more than one lender.  Lets say the lender all of a sudden becomes backlogged (YES, this does happen) and are no longer turning loans over in a couple of days but rather weeks, brokers used to be able to submit the file to another lender to get the faster turn time.  Now that the broker no longer owns the appraisal, a new appraisal would need to be ordered for the new lender.
• Relationships break down.  Brokers and appraisers will no longer work in unison to help a borrower determine a range value for their house prior to ordering the appraisal and working on the file to make sure that a loan is even possible.
• Home values will decrease, as appraisers will want to low ball a value to make sure that they stay on the lenders good side to see future business.
• Etc. Etc. Etc.

May 4-8, 2009 - Mortgage rates started at 4.5% on Monday.  On Friday, mortgage rates climb up to 4.75% for a 30 year fixed.  This rate increase was sparked by the failure of mortgage backed securities (MBS) to be sold on the market Thursday.  Fannie Mae stepped up to the plate to buy the MBS in hopes to keep rates down a little longer.  But investors want rates to come back up before they will start buying MBS again.  FNMA only has so much money and time left to keep rates low.  A .25% increase in less than 5 days is a sign of things to come.  Especially when you look at market trends.  The ceiling is being tested... it is only a matter of time before the ceiling becomes the new floor.

I can go on about how time is coming to an end for low mortgages and favorable financing guidelines, but I felt that these two items were the most important of this week.  One ties the hands of those who are here to protect you and get you the best possible deal, and the other proves that rates are on the rise.

The clock is striking eleven... dont wait for it to strike twelve and the fairytale ends because there is no happily ever after for those waiting for lower rates.

So, if you're thinking about financing a purchase in Palm Beach Gardens, or re-financing a mortgage that you already have, things are favorable NOW.  Why wait?

Today's post comes from Jason Price of Knightlines Mortgage Services-

"This week it is projected that mortgage rates will reach a 5 year record high.  Thanks to declining markets, credit lending guidelines tightening down, banks going out of business or merging to avoid bankruptcy, and many other economic factors, potential homeowners will now be facing an even more difficult time in trying to qualify for a new home due to the sharp and sudden increase in mortgage loan interest rates.

Just last week, mortgage loan rates were in the 4-5% range.  But by the end of this week, mortgage rates could be as high as 7-8%.  Those people who were waiting for the right time to buy have missed that ship, as it set sail last week.  The great deals of low priced houses and low rates, may never be seen again in our lifetime.  Those who jumped on the golden opportunity have the potential of turning their gold into platinum, while those who procrastinated will struggle to even purchase cardboard box big enough to cover them from head to toe.

But in all this bad news, there is good news!!! 

What you have already read has not happened yet.  Rates are still at all time lows.  They are still in 4-5% range.  There are still some 100% mortgage financing programs out there.  Banks are still lending money.  And homes are still being purchased at great prices.  Don't wait till the title becomes a reality.

Call your realtor today to find a deal, I mean home, that is right for you.  And call us today, to get your financing in place and your rate locked in before they really do go back up.  Time is not on your side..."

Please excuse his acerbic wit!

But it still comes down to Those Who Wait, Lose.