May 21st, 2013 1:05 PM by Amy Schiller-Goldstein
I am so frustrated. As a mortgage professional, especially a Broker, I sometimes feel quick sand underneath my feet. As a borrower, which I currently am, I feel frustrated as well. Lenders have been coming back with CRAZY loan conditions, asking for everything other than a DNA test... I know it’s hard, and as much as I have to support the ever changing rules and loan regulations in order to be compliance, it’s just genuinely frustrating. Rates are up and here’s why; Tuesday’s have been the Dow’s best performing day of the year, averaging a 0.5% gain. The current stretch is the longest Tuesday streak in history, and second longest for any day of the week. In 1968, the Dow rose for 24 straight Wednesdays. According to Art Cashin, if you played the Stock market only on Tuesday (bought Monday’s close then sold Tuesday’s close), you would have captured nearly 70% of this year’s whole rally. We’ll see if the streak continues to 19 as the day moves on.
Even though we say rates are up, we’re still looking at fixed rates starting with a 3, so most of us can’t complain, however, we run into the issue of home value. Everyone in real estate predicted this enormous buyer’s boom, with an abundance of new homes coming onto the market after a long lull of little to no inventory. This has NOT taken place. A few more homes have popped up, but they are sold quickly with contracts that are not contingent on financing, home inspection or appraisal. I will stand by my job and say it is risky to write a non-contingent purchase contract; because when none else fails you are still responsible and liable to buy the contracted house... Food for thought!
FHA, ARM & Mortgage insurance were once feared loan types. In today market, they are gems. Mortgage insurance factors are extremely low, rates on FHA products are unbeatable & adjustable rate loans, especially long term adjustable loans such as 10 & 7 year arms are extremely well priced. They should be considered!
As always; please feel free to contact me or any of my colleagues to run a mortgage quote or a new loan scenario. We are here to help!
Have a great week!
Amy
NMLS: 1846812