I know there is a couple guys that do mortgages loans on this site. I was just wondering if any of this is true. I would trust someone on this site more than a mortgage person from the local bank.
Today?s Rate 4.625%
Mortgage Loans
- SPECIAL ANNOUNCEMENT -
THE HOMEOWNER AFFORDABILITY & STABILITY PLAN
FOR ALL HOMEOWNERS
For a LIMITED time ONLY
Obtain Mortgage loans at Banks COST
Unprecedented Government Announcement:
The Fed met to make new FOMC Policy Statement. They stated they will expand the existing $500 billion buy-back program for mortgage-backed securities with another $750 billion, bringing their total commitment to a staggering $1.25 trillion. The Fed will also raise its buy-back of direct Fannie and Freddie debt to $200 billion. All of these moves are designed to keep interest rates low for mortgages and other forms of consumer debt to help the economy recover from a deep recession. We should now see conventional 30-year rates stabilize near historic lows providing excellent refinance opportunities.
FHA also announced the following; ?Given the continued deterioration in the housing market, and FHA?s need to limit its exposure to undue risk, this reduction to the maximum LTV for cash-out refinances is being instituted on a temporary basis while FHA further analyzes the housing and mortgage industry as well as its own portfolio to determine whether permanent measures should be taken?.
The Government ?giveth and it shall taketh away? 95% LTV (loan to value) Mortgage loans will no longer be available after March 31st 2009. There are ONLY 8 days left to refinance your home*
If you have remotely thought about refinancing your home, now is the time to take advantage of being able to consolidate your debts. Only an application is required to be filed prior to 3-31-09. The Government is doing everything that they can to make mortgage rates low.
If you qualify, TODAY you could get a rate at 4.625%, I advise you not to wait ? your payment would go down only $47.94 IF you received a 4.0% rate ? most experts do NOT see rates dropping that far, you may be waiting for something at will never happen.
If you are waiting to see if rates will get lower than 4%, you must read this report below.
Never Before Offered Loans at Cost Program:
If you qualify, you have the opportunity to get a mortgage loan at the Bank or Lender?s COST. For a limited time only, you can obtain a mortgage loan at COST, including closing costs and interest rate. The average person is saving over $200,000 in interest over the life of the loan. Listen to what a ?real? person had to say about this special program:
?By getting the rate and closing cost at the Banks cost, we saved $5,644.45
in closing cost and $709.83 each and every month!, this program gave us
a second lease on life? C. Mellon, Ut.
Had the Mellon?s waited after 3-31-09 their monthly savings would have been $176.89 a month instead of $709.83.
*FHA will not allow refinance mortgage loans above 85% after March 31st 2009.
Do not wait; this is truly an opportunity of a life time. If our lines are busy call back, if we are slow at responding to your e-mail, try again ? be persistent. We are doing our best to get in touch with all of you.
FOR FENCE SITTER?S WAITING FOR A 4% RATE:
The Federal Reserve recently said that it plans to continue purchasing large quantities of Mortgage Backed Securities to provide support to the mortgage and housing markets, and "it stands ready to expand the quantity of such purchases and the duration of the purchase program as conditions warrant".
The concern as always is that the media will spin these comments - telling consumers their own version of reality - something along the lines of this: "Good news, the Fed's words on continuing their purchasing program mean that rates will continue to drop lower, and remain low into the Summer"...thereby creating another round of folks hitting the "snooze bar" on moving forward with a refinance or purchase, which looks to be a very costly strategy for borrowers.
First, many of you have been waiting for 4.0 - 4.5%...but here's a reason we shouldn't look to the Fed to help make that happen with their purchasing program. Yes, the Fed has been buying Mortgage Bonds. But, those Fed purchases, are a lot of FNMA 30-yr, 5.5% and 5.0% coupons, which will not have much of a positive effect on present rates.
(go to this link to see the Fed purchases: http://www.newyorkfed.org/markets/mbs/index.html)
Note - there is a difference between the "coupon rate" and the interest rate the borrower actually pays. When we are talking coupon rate, this is the rate that the end investor purchasing these Bonds receives. For example, a net 5.50% to the investor - or their coupon rate - has to start off as a significantly higher rate to the borrower. Why? Because the originating firm, the wholesaler, the agencies like Fannie or Freddie, and the securitizing firm on Wall Street all take a little piece of profit. A mortgage rate of 6.25% to the borrower nets down to around a 5.50% coupon.
Why is the Fed buying these Bonds? Well if you think about it, it's very smart of the Fed...and maybe even a little sneaky...because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50%, which are precisely the loans being refinanced today.
So with rates at present levels, many of the mortgages in these FNMA 5.5% pools being bought up by the Fed will be refinanced and paid, thus giving the Fed a quick recoup on some of their investment. This is likely a big reason why the Fed said they could continue this purchasing program beyond June if necessary. Bottom line, the Fed's buying higher rate coupons will not necessarily get rates to 4.5%, but it should put a ceiling on how high rates can go during the near term.
Second, let's address plain old fashioned customer greed. Even though it may make sense to refinance right now, and save $250 per month for example, the greed factor kicks in as clients fall in love with the dream of a 4% handle on their refinance rate...so they wait, and risk the savings of $250 per month in the hopes of gaining another $30 of savings per month.
Clearly, rates could turn higher, and this window of opportunity could pass them by entirely. But here's the most important part: even if they are correct and are able to eventually grab that lower rate and save another $30 per month - think of what they have lost by waiting. While they delayed, they lost the savings they could have gained by taking action sooner - or in the example used, $250 - for every single month they waited. So even if they get the rate they are looking for, it could take years to make up what they lost by waiting.
Don't let the tempting ?lower rate? force you to hit the snooze button ...use the advise I have provide you and NOW WITH GETTING RATES AT COST ? YOU HAVE NO REASON TO SNOOZE
Today?s Rate 4.625%
Mortgage Loans
- SPECIAL ANNOUNCEMENT -
THE HOMEOWNER AFFORDABILITY & STABILITY PLAN
FOR ALL HOMEOWNERS
For a LIMITED time ONLY
Obtain Mortgage loans at Banks COST
Unprecedented Government Announcement:
The Fed met to make new FOMC Policy Statement. They stated they will expand the existing $500 billion buy-back program for mortgage-backed securities with another $750 billion, bringing their total commitment to a staggering $1.25 trillion. The Fed will also raise its buy-back of direct Fannie and Freddie debt to $200 billion. All of these moves are designed to keep interest rates low for mortgages and other forms of consumer debt to help the economy recover from a deep recession. We should now see conventional 30-year rates stabilize near historic lows providing excellent refinance opportunities.
FHA also announced the following; ?Given the continued deterioration in the housing market, and FHA?s need to limit its exposure to undue risk, this reduction to the maximum LTV for cash-out refinances is being instituted on a temporary basis while FHA further analyzes the housing and mortgage industry as well as its own portfolio to determine whether permanent measures should be taken?.
The Government ?giveth and it shall taketh away? 95% LTV (loan to value) Mortgage loans will no longer be available after March 31st 2009. There are ONLY 8 days left to refinance your home*
If you have remotely thought about refinancing your home, now is the time to take advantage of being able to consolidate your debts. Only an application is required to be filed prior to 3-31-09. The Government is doing everything that they can to make mortgage rates low.
If you qualify, TODAY you could get a rate at 4.625%, I advise you not to wait ? your payment would go down only $47.94 IF you received a 4.0% rate ? most experts do NOT see rates dropping that far, you may be waiting for something at will never happen.
If you are waiting to see if rates will get lower than 4%, you must read this report below.
Never Before Offered Loans at Cost Program:
If you qualify, you have the opportunity to get a mortgage loan at the Bank or Lender?s COST. For a limited time only, you can obtain a mortgage loan at COST, including closing costs and interest rate. The average person is saving over $200,000 in interest over the life of the loan. Listen to what a ?real? person had to say about this special program:
?By getting the rate and closing cost at the Banks cost, we saved $5,644.45
in closing cost and $709.83 each and every month!, this program gave us
a second lease on life? C. Mellon, Ut.
Had the Mellon?s waited after 3-31-09 their monthly savings would have been $176.89 a month instead of $709.83.
*FHA will not allow refinance mortgage loans above 85% after March 31st 2009.
Do not wait; this is truly an opportunity of a life time. If our lines are busy call back, if we are slow at responding to your e-mail, try again ? be persistent. We are doing our best to get in touch with all of you.
FOR FENCE SITTER?S WAITING FOR A 4% RATE:
The Federal Reserve recently said that it plans to continue purchasing large quantities of Mortgage Backed Securities to provide support to the mortgage and housing markets, and "it stands ready to expand the quantity of such purchases and the duration of the purchase program as conditions warrant".
The concern as always is that the media will spin these comments - telling consumers their own version of reality - something along the lines of this: "Good news, the Fed's words on continuing their purchasing program mean that rates will continue to drop lower, and remain low into the Summer"...thereby creating another round of folks hitting the "snooze bar" on moving forward with a refinance or purchase, which looks to be a very costly strategy for borrowers.
First, many of you have been waiting for 4.0 - 4.5%...but here's a reason we shouldn't look to the Fed to help make that happen with their purchasing program. Yes, the Fed has been buying Mortgage Bonds. But, those Fed purchases, are a lot of FNMA 30-yr, 5.5% and 5.0% coupons, which will not have much of a positive effect on present rates.
(go to this link to see the Fed purchases: http://www.newyorkfed.org/markets/mbs/index.html)
Note - there is a difference between the "coupon rate" and the interest rate the borrower actually pays. When we are talking coupon rate, this is the rate that the end investor purchasing these Bonds receives. For example, a net 5.50% to the investor - or their coupon rate - has to start off as a significantly higher rate to the borrower. Why? Because the originating firm, the wholesaler, the agencies like Fannie or Freddie, and the securitizing firm on Wall Street all take a little piece of profit. A mortgage rate of 6.25% to the borrower nets down to around a 5.50% coupon.
Why is the Fed buying these Bonds? Well if you think about it, it's very smart of the Fed...and maybe even a little sneaky...because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50%, which are precisely the loans being refinanced today.
So with rates at present levels, many of the mortgages in these FNMA 5.5% pools being bought up by the Fed will be refinanced and paid, thus giving the Fed a quick recoup on some of their investment. This is likely a big reason why the Fed said they could continue this purchasing program beyond June if necessary. Bottom line, the Fed's buying higher rate coupons will not necessarily get rates to 4.5%, but it should put a ceiling on how high rates can go during the near term.
Second, let's address plain old fashioned customer greed. Even though it may make sense to refinance right now, and save $250 per month for example, the greed factor kicks in as clients fall in love with the dream of a 4% handle on their refinance rate...so they wait, and risk the savings of $250 per month in the hopes of gaining another $30 of savings per month.
Clearly, rates could turn higher, and this window of opportunity could pass them by entirely. But here's the most important part: even if they are correct and are able to eventually grab that lower rate and save another $30 per month - think of what they have lost by waiting. While they delayed, they lost the savings they could have gained by taking action sooner - or in the example used, $250 - for every single month they waited. So even if they get the rate they are looking for, it could take years to make up what they lost by waiting.
Don't let the tempting ?lower rate? force you to hit the snooze button ...use the advise I have provide you and NOW WITH GETTING RATES AT COST ? YOU HAVE NO REASON TO SNOOZE
