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
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!