Guess Who"s Back? 3% Down!

It’s Baaaaaaaaaa-aaaaaack!

97% LTV is back everybody! That’s a 3% down payment on a conventional loan. With FHA loans having permanent MI, this is an outstanding alternative for low down payment mortgage loans. This change has been a long time coming and it’s available starting Monday! Contact Chris Reese, Certified Mortgage Planner in Roseville to see what you qualify for with only a 3% down payment at 916-502-1656 or visit http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

Guess Who"s Back? 3% Down!

30 Year Mortgage Rates...On The Rise?

Average 30-year mortgage rate rises to 3.93 percent! Been a long time since we’ve seen headlines like this.

Average 30 Year Mortgage Rates

Mortgage rates have been so low for so long that we’ve all been pretty spoiled. Rates rising is inevitable. They’ve been held down artifically by goverment and Fed interaction. Now finally the tone is set for some improvement in the economy and interest rates will have to rise, in fact they already are. Check out this article from the LA times website http://www.latimes.com/business/la-fi-mortgage-rates-20141212-story.html One thing is for certain, if you haven’t taken advantage of this low interest rate market yet, you really need to look into refinancing as soon as possible before these historically low rates are gone. Call Chris Reese, Certified Mortgage Planner for your free mortgage review and mortgage rate quote at 916-502-1656 or visit http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

30 Year Mortgage Rates...On The Rise?

Jumbo Mortgage 10 Percent Down, No MI, SS and BK Okay!

Chris Reese, California Mortgage Hero & Certified Mortgage Planner explains a unique, Jumbo Loan that has some very cool features that aren’t available with any other type of loan. Watch the video to find out more.

Want to take advantage of this Jumbo Loan Product? Call Chris Reese today at 916-502-1656. You can also inquire online at http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

Jumbo Mortgage 10 Percent Down, No MI, SS and BK Okay!

From 30 Year Fixed Rates to 10 Year Fixed Rate Mortgages and Staying Informed

Rates have been really low now for over a year. Most recently we’ve had some add’l improvement giving us the lowest levels the industry has seen all year. In spite of rates being so low, many people are turning to a shorter, 10 year mortgage loan because those rates of course are even lower. Check out this article http://www.thisismoney.co.uk/money/mortgageshome/article-2858084/Lock-mortgage-decade-record-low-rate-number-10-year-fixed-rate-mortgage-deals-increases-fourfold-one-year.html
The article discusses how rates have no where to go but up. I definitely agree. While I said above that we’re at the lowest levels we’ve seen all year, that was actually last week and those rates still pale in comparison with the rates available in January 2013. Take a look at this picture:

What it shows is a candlestick chart of the mortgage backed securities chart. Its showing the price of the 3.5% FNMA 30 year coupon bond. In other words, the bonds that are driving the mortgage rates on the 30 year fixed. Without getting too technical, some basic understanding of how to read this chart will help the explanation. The dates are along the bottom and the price of the bond is on the left. Mortgage rates have an inverse or opposite relationship to the mortgage backed securities that they are derived from. So the higher the price of the Bond, the lower the interest rates. The far right of the graph is now, and the far left is December 2012. So by the time the article I’ve referenced was written, rates had already risen from the lowest rates of the year. But if you look to the left, you can see that in both December of 2012 & April of 2013 that the MBS were much in price, the 106.5 range and today we’re at a modest 103.75. That is quite a bit of difference.

So while the article is talking about people locking in 10 year fixed rates, my take away is that they are confirming that rates have really nowhere else to go but up. So what do you do then? How do you get the best rate? The best Deal? You have to painstakingly monitor the market and do your research but more importantly you have to time your application with the market as well.

If you wait until rates are the “lowest they’ve ever been…” you’ve already missed them mark. First because by the time you call your mortgage lender to get the application in, rates are already back up as I’ve shown you in the graph from last week to this week. The second reason is that most of the news and information that is available doesn’t make it to the market until its too late. The article I referenced above came out yesterday. Rates were better the week before. By the time the news and the writers get this info, digest it, and then make it available it’s already outdated. I can help you with that. I provide real time information on where the mortgage rate market is moving. You can have that information arrive in your inbox either weekly or daily by signing up at this link http://www.rate-mastery.com/LoOptin.aspx?id=Chris_Reese_9165021656&p=WidgetTiny1 This is just my way of helping you keep your thumb on the pulse of the mortgage market.

If you have questions about your mortgage, refinancing, or purchasing another home don’t hesitate to contact Chris Reese, Certified Mortgage Planner at 916-502-1656 or inquire online at http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html The answer to all your mortgage and real estate questions are just a phone call or a click away.

From 30 Year Fixed Rates to 10 Year Fixed Rate Mortgages and Staying Informed

Fixed Rate Mortgage or Adjustable; What"s Right for You?

There are many different types of mortgage loans. The two most common types of mortgage loans for real estate are the Fixed Rate Mortgage and the Adjustable Rate Mortgage, also known as an ARM. Knowing the features of these types of loans and how they differ from each other will help you decide which type of loan is best for you.

First let’s define them. A fixed rate mortgage is a loan where your interest rate is fixed for the life of the loan. You make the exact same payment every month. At the end of the loan term, the loan is paid off in full.

With an ARM, the interest rate is often fixed for an initial period such as 5 years. Then at the end of the fixed period, the interest rate will adjust at the end of a pre-set period like once a year. During the adjustment period Interest rates on ARM’s are derived by a fixed margin, often 2.25%, plus the value of the index that the loan is tied to such as the 1 year LIBOR, which at the time of this post was at .557%. In this example, when the loan reaches the adjustable period of 5 years, the rate will adjust once time a year to the value of the LIBOR plus the 2.25% margin. Then at the end of each year, the rate is recalculated to adjust with the value of the LIBOR. If you had an adjustable rate mortgage that was adjusting today based on the 1 year LIBOR and a margin of 2.25%, your rate would be 2.875% rounded up to the nearest .125 point increment. Not a bad rate right? Especially considering that they fixed rates are in the high 3’s low 4’s currently.

You might be asking yourself, if the rates are so much lower on an ARM vs. a fixed rate mortgage, why would anybody do a fixed rate mortgage at all? There are quite a few reasons why somebody would take one type of loan over another but let’s focus on the most common reasons. With a fixed rate mortgage, you always know what your payments will be. During times where interest rates go higher than your fixed rate, you’re still enjoying that fixed rate and payment with no fear of things changing on you. You can also typically borrow up to a higher loan to value ratio with a fixed mortgage. So if you have limited funds for down payment or limited equity, the fixed rate mortgage may be the only option.

Fixed rate mortgages are by far more popular than ARM’s because most people tend to be very adverse to the risk of their interest rate going up and therefore their payment but there are some pretty cool reasons to take the adjustable rate mortgage aside form just an initial period where the rate is lower. As I stated above, an adjustable rate mortgage adjusting today would be a rate of only 2.875 where fixed rate mortgages are at least 1% higher today.

Take a look at this comparison on the right. This is an example of somebody that took a loan out in 2012 and is now wanting to take advantage of today’s awesome rates. They could take this rate of 4.125% on a 30 year fixed rate mortgage and lower their payments by $199 per month. In this example I’ve applied that monthly savings toward their principal balance each month. In doing so, they’ll have this new loan paid off in just 22.5 years. Their current loan paying that same amount will take almost 28 years as show by the line labeled Freedom Point (the point at which you are mortgage free). Looks really good right?  But look at the 5/1 ARM. In that example the rate is almost a full point lower, and the monthly savings is $314 per month. You don’t have to apply that savings to the mortgage of course. You could use that money to pay off a car loan or other higher interest debt. You could put that toward your retirement. Maybe just brighten somebody’s day with flowers now and again?

The amount of interest you save over the life of the loan can be very significant with a fixed or an ARM loan but the ARM tends to offer more savings than that of the fixed. Generally speaking, those that take out an ARM loan as opposed to those taking out a Fixed Rate Mortgage, tend to pay less interest over the life of the loan. This is especially true during the introductory period. Take a look at the graph on the left. It demonstrates the same example as above but taking a look specifically at the interest savings over the 5 year fixed period. Notice that the 5/1 ARM saves an additional $10,000 over the 30 Year Fixed. The total savings over a 5 year period  on the Fixed is about $14,000 whie the ARM would save $24,000.

Regardless of which type of loan might be right for you, an ARM or A Fixed Rate, either option makes great sense when deciding whether or not to refinance. Saving between $14K and $24K in interest over just 5 years time is a make sense decision. If you you want to know if a refinance would benefit you and how you might be able to make the best of it don’t hesitate to give me a call for your Free Mortgage Review. Call Chris Reese at 916-502-1656 for your free mortgage review. You can also apply online at http://www.sacramentohomeloanspecialist.com/applyNow.html. Have a wonderful day and Make it Happen!

 

Fixed Rate Mortgage or Adjustable; What"s Right for You?

Rates are Falling - Mortgage Tip

Rates are falling, Rates are Falling, and Rates are Falling!  Rates are falling guys but this could turn on a dime and rates could shoot up. There’s a lot going on right now which is driving rates or the cost of rates down. Take a look a the summary below:

What you have are 3 columns; A proposed Current Situation, a 30 Year Fixed Option, & a 5/1 ARM Option. The two options offer quite a bit of benefit to this hypothetical borrower. In addition to showing the difference in total payments, the refinance options also show the savings over time (5 years) and the freedom point of the new mortgage if the monthly savings were applied toward the principal balance each month. 

Let’s dissect the 30 year fixed option.  The proposed rate is fixed for 30 years at 3.75% with APR of 3.845%. The total payment including taxes and insurance drops by $170/month from $1,565 down to $1,395. That $170/month is $2,040 in savings per year. The closing costs and impound account came to about $4,816. Now let’s compute the cash on cash rate of return on spending this $4800 to save $2,046/year. The way to do that is to divide your annual savings, in this case the $2,046, by the cost of the investment (2,040/4,816 = .423) which equals 42%. WOW! Read that again, an ROR of 42%! Seriously? Yes! This is a concept known to Certified Mortgage Planners as a “Cash in Refinance”. While the borrower in this example is tying their closing costs into the loan amount, they are still costs that they incur so we can calculate a cash on cash rate of return. Can you imagine what your financial planner would do if you could earn an ROR of 42%?

Now let’s look at the 2nd example. Because its an adjustable rate mortgage we can’t predict what will happen after the five year fixed period so the freedom point makes an assumption that the payment will remain constant. This will not be the case but there’s no way to calculate a freedom point with a variable payment.  Having said that, individuals that take out adjustable rate mortgages as opposed to those that took out a fixed rate mortgage, all other things being equal, will pay less in interest over the life of the loan. This is due to not only the initial fixed period being at a lower rate than what is offered on fixed rate loans but also because when the rate does go adjustable, it can actually go lower than the note rate. This is because the payment during the adjustment period is based on a fixed margin, usually 2.25, and some index such as the 1 year LIBOR. The floor on the rate is typically the margin. So the 5/1 ARM option offers savings of $337 per month. If that savings were applied to the principal balance the client would save over $25,500 in just 5 years in interest taking into account the closing costs paid. The loan would be paid off in about 22 1/2 years (assuming a constant payment). 

Either option is a fantastic way to save money and put yourself in a better financial position. Whether you would choose a fixed rate mortgage or an adjustable rate mortgage largely depends on your adversity to risk. Regardless of whether a fixed loan or ARM is right for you, saving money is right for everyone. You owe it to yourself and your family to see if you can save money every month and over time. Pick up the phone and call Chris Reese, CMPS® at 916-502-1656 for your free mortgage review or home purchase pre-approval. You can also inquire online at http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

Rates are Falling - Mortgage Tip

Mortgage Rates Hit New 2014 Lows

Mortgage Rates seem to hit new lows about every other day now. Well its actually true. Check out the latest article from RIS Media released on 10/20/14.

The author discusses the average rates and points on loans from Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). Here’s the link again to the RIS Media Article http://rismedia.com/2014-10-20/mortgage-rates-hit-new-2014-lows/. If you have a rate of 4.5% or more, a refinance may very well save you a lot of money. Even if your rate is lower than 4.5% it makes sense to inquire. We recently blogged about a recent article regarding Ben Bernanke being turned down for a loan. That article, http://www.theguardian.com/money/us-money-blog/2014/oct/06/if-ben-bernanke-cant-refinance-his-mortgage-what-hope-for-the-rest-of-us, from the Guardian  talks about how Mr. Bernanke was attempting to lower his rate by less than a 1/4 point. He definitely understands the market, interest rates, and saving money & wanted to refinance but was turned down because his loan amount was outside guidelines. You may very well be able to do something that will put you and your family in a better financial position. You owe it to yourself and your loved ones so pick up the phone and call Chris Reese, Certified Mortgage Planning Specialist® in Roseville, California today for your Free Mortgage Review. These rates will not last! You can also inquire online at http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

Mortgage Rates Hit New 2014 Lows

The Sky is Falling? No Just Rates :)

Rates Dropped Massively overnight!

Watch this video to see just how much!

The mortgage market is hopping with volatility but rates dropped massively this morning. 30 year mortgage rates are very attractive. You owe it to yourself to see just how much you can save each month. Call me today for your Free Mortgage Review & Mortgage Rate Quote at 916-502-1656. You can also apply on line at http://www.sacramentohomeloanspecialist.com/applyNow.html

The Sky is Falling? No Just Rates :)

30-Year Fixed Mortgage Rates Fall Below 4 Percent

The headlines make you want to pick up the phone and call your loan officer to get this super low rate offered. In this article on Zillow Blog titled 30 Year Fixed Mortgage Rates Fall Below 4 Percent is pretty compelling right? The fact is that this is an average of rates taken from what appears to lead us to believe that the actual rate is 3.96% down from an actual rate of 4.06% the previous week. There are 2 very big problems with this however that will leave you feeling confused.

Average 30 Year Mortgage Rates

 

First, those are averages taken from what appears to be “Quotes on Zillow Mortgages”. So it’s unclear; are these actual locked in applications or are these actually just advertiser quotes being averaged? Regardless of which it is, the data or statistics is are extremely biased. If they are actual Zillow Mortgage Applications, they are taken only from a website that has advertisers publishing the lowest rates available to mankind and even if they locked those rates in, there’s no way to know if the applicants actually will close those loans or if they were even approved or locked. While this would be the case for any and all advertised rates, the fact that these are exclusively quoted from Zillow, which exists by selling advertising, it’s not a good cross sample of rates being offered by lenders to everyone. Now if they are in deed just quotes being advertised to the public, even worse! You can almost rest assured that those rates are being quoted with assumptions about credit and loan to value that most clients don’t actually have. A 30 year fixed for example at 30% Loan To Value with an 835 FICO score is pretty unrealistic, but there is still a faint possibility so they can publish it.

The other problem w/these averages is that they don’t quote the cost or discount points associated with these interest rates.  They don’t even show the Annual Percentage Rate (APR) which shows that there is some cost being associated for that interest rate. I’m not a huge fan of the APR calculation as it allows various lenders to skew those numbers as well based on including or omitting certain costs from the calculation to make it appear lower. It can be quite confusing at times and if you were to have 5 different underwriters take the same file independently and disclose the APR, you’d probably find them to all have some variation. This isn’t on purpose, it’s because its a calculation that you have to manually determine what should be included. While APR calculations are required, I think a much better way to compare rates is to simply state what the points are for a particular rate. I rarely see an article or blog post that does that though. Read the Article for yourself at http://www.zillow.com/blog/mortgage-rates-below-4-percent-2-2-161520/ Are you curious now about what 30 year rate you might qualify for? Pick up the phone and call Chris Reese, the California Mortgage Hero & Certified Mortgage Planner at 916-502-1656 or inquire online at http://www.sacramentohomeloanspecialist.com/forms/rateTracker.html

30-Year Fixed Mortgage Rates Fall Below 4 Percent

30 Year Mortgage Rates Dip Again but Ben Bernanke Cannot Refinance?

Wow! I have to say it again, Wow! 30 year mortgage rates dip again but Ben Bernanke cannot refinance his own house according to the Guardian.

 

Seriously? Declined?

Relax, its not as bad as you think. According to the article, Bernanke is trying to refinance from a rate of 4.25% down to 4.19% but his mortgage is above the conforming loan limit of $625,000 in his neck of the woods. It also goes on to talk about how he commands $250,000 per speaking engagement. The first thing I see wrong with this is that you shouldn’t be refinancing from 4.25 down to only 4.19. There’s not enough benefit to you as a borrower unless the 4.25 was taken out so long ago that by doing a new 30 year fixed you reduce the payments significantly by stretching out the re-payment terms back to 30 years.

The next issue I have is that he wouldn’t be trying to get a 4.19% rate. That isn’t offered. Rates are typically offered in 1/8 point increments. Sometimes lenders will provide a rate slightly under a double zero defying that rule. For example: instead of 4%, they offer 3.99%. It’s like paying $3.99 at the pump instead of $4.00.  In addition to that, 4.19% is the average rate on a 30 year fixed mortgage currently. It’s not a target rate you would shoot for.

The last thing that I take issue with is the fact that they’re selling this lke a hardship. Bernanke is probably not in any financial trouble whatsoever so if he can’t refinance his mortgage, well that’s not ideal but not the end of the world. He was simply trying to save money. I doubt that the savings from a refinance would significantly affect his way of life.

The takeaway from the article that I get from reading between the lines is that even though a wealthy, powerful public figure doesn’t need a mortgage at all, he’s wise enough to see that a mortgage makes sense. You get the tax benefit and you don’t have the opportunity cost. If you don’t use a mortgage instrument, much of your wealth is tied up in your home and you don’t have access to it. You can’t make money on it through other financial instruments like mutual funds and IRA’s or fund some other business venture–Some alternative place to put that same money where it works for you. In Bernanke’s case, $625,000 of liquid cash that he could presumably use for some alternative venture. My opinion of course but don’t take my word for it. Read the article from the Guardian yourself at this link Ben Bernanke ran the Federal Reserve and can’t get a new mortgage. Can you?

Are you having trouble refinancing your mortgage or qualifying for a new mortgage to purchase a home? Don’g struggle any further. Let the California Mortgage Hero and Certified Mortgage Planner put his expertise to work for you. Call Chris Reese for your free mortgage review, mortgage pre-approval, or property value analysis at 916-502-1656 or inquire online at http://www.sacramentohomeloanspecialist.com/applyNow.html

 

30 Year Mortgage Rates Dip Again but Ben Bernanke Cannot Refinance?

30 Year Mortgage Rates Dip Again!

30 year mortgage rates just keep surprising us. Check out this article from USA today http://www.usatoday.com/story/money/business/2014/10/02/ap-average-us-30-year-mortgage-rate-at-419-percent/16585341/ It explains how average 30 year mortgage rates have dropped again from last week of about 4.2 down to 4.19. The mortgage backed securities market has had extreme highs and lows over the last 30 days as you can see by this candlestick chart of the Fannie Mae 3.5% coupon bond.  The price was as high as nearly 103, fell to as low as 101.4, and now its doing its best to test those higher levels near 103 again. We’re talking about a price swing of 150 basis points!

With pricing swinging that wildly you have to plan your locking strategy accordingly. If you’re trying to do a refinance, be smart about it. Get your application in ASAP and then discuss your locking strategy. You may chose to lock your loan in immediately or w/some technical analysis from your mortgage planner you may decide to float for a bit.  Don’t wait to get your application in until you think that the rates are perfect you could really miss the boat. You never know that we’ve seen the lowest rates until they go back up.  Then you can reflect and say to yourself, “yep, should have locked our loan 3 days ago…”   Many borrowers that waited are kicking themselves for that choice. If you still haven’t even put your application in, you’re even further behind.

So please be wise and make sure that you are working with a competent Certified Mortgage Planner that will go over a locking strategy with you and help you figure out what is best for you. For your Fast & Free Mortgage Review, contact Chris Reese, California Mortgage Hero & Certified Mortgage Planner at 916-502-1656 or inquire on line at http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

30 Year Mortgage Rates Dip Again!

30 Year Mortgage Rates Held Record Levels Going into Labor Day Weekend!

Last week 30 year mortgage rates continued to make us all very happy by remaining historically low. Check out this article from USA today http://www.usatoday.com/story/money/personalfinance/2014/08/28/mortgage-rates/14741693/ discussing the average 30 year mortgage rate.  One very interesting point that the article makes is that it appears these historically low mortgage rates have boosted home sales. It also quickly takes away some of the luster of that comment by offering some quantitative data regarding home sales. Basically home sales have increased by 3.3% last month from the previous month but they are still down 2.1% from this time a year ago.

The article also talks about how the fed’s purchase program has been tapering and is set to end in October.  This poses a major threat to low mortgage rates. Once the Fed stops program, the market will be left to fend on its own. Will there be a major bounce back as the market tries to find equilibrium after years of government interference preventing the natural course of things?  My perspective is that we have much more room for rates to rise then there is for them to fall. Waiting for even lower rates than the historically low mortgage rates we have in today’s market is likely going to be very costly to consumers. I would compare this to playing craps.

Craps is a great game. It seems to give the player the “best” advantage with the “most” opportunities to win. This is why I like the game. If you play safe, you can play for hours on end and not really lose too much and often enough, you can come out ahead. Having said that, its really easy to get caught up in the excitement and the possibility of hitting it big. If you’re not familiar with the game, don’t worry I’m not going to get technical here. Just know that you can roll the dice for a very long time and continue to win. So can the players around you. This is because the reality of things is that events happen in patterns. Random patterns, but still patterns. So eventually your luck runs out as they say. If you were smart with how you were betting you could walk away with winnings and be very happy. If you weren’t so conservative you may lose it all on a single roll.

That’s what we have going on with Mortgage rates right now. We’ve been on a roll for a very long time and that luck is about to end. Do you want to walk away with a great interest rate today or do you want to risk it all for a slightly better rate in the future which more than likely won’t come? When you’re talking about your home and your mortgage loan, this isn’t a risk you should take. If you currently have a mortgage you should talk to a Certified Mortgage Planner right now and figure out if a refinance will improve your financial well being. Please don’t take unnecessary risks with the roof over your head. Call Today! You can contact the California Mortgage Hero and the Reese Mortgage Team today at 916-502-1656 or inquire on line at http://www.sacramentohomeloanspecialist.com/forms/refinanceAdvisor.html

30 Year Mortgage Rates Held Record Levels Going into Labor Day Weekend!

30 Year Mortgage Rates Still Hanging Out in the Low 4"s

It’s been an amazing couple of years in the mortgage and real estate industry. The last couple of years have been baffling to most of us that analyze the market. 30 year mortgage rates seem to be clinging to these artificially low levels. In this ABC News Article, http://abcnews.go.com/Business/wireStory/average-us-30-year-mortgage-rate-410-pct-25069828 the writer gives statistics from Freddie Mac. showing that at the time this article was written, 8-21-14, we were at a 52 week low! Well guess what? They’re even more improved as I write this blog post.

 

The industry is crazy and the most recent history will have the average person believing that this will last forever. The problem w/this thought is that rates are artificially low. The Fed has been buying Mortgage Backed Securities (MBS) for quite some time now and they’ve been tapering the amount they purchase now for months but global events like what’s been happening in the Middle East and in Russia have helped keep them low in spite of the tapering. Added to that is that the economy is not improving at the rate that some have predicted and we’re missing our marks slightly as the economic reports are released.  Bottom line, rates should be much higher than they are. What’s concerning about this is that borrowers have been spoiled by the rates we’ve seen over the last few years and forget about history.

They forget that this could turn on a dime. In other words, that rates could jump up in a heart beat. A great analogy for this would be the housing market from 2003 – 2007. By about 2004 – 2005 many experts were squawking about how these values cannot be supported. That there was a bubble looming. That property values were becoming dangerously inflated and the prices couldn’t be supported by the average income of homeowners. While all of this was true, we as the people didn’t listen. Then when the “bubble” burst, everyone realized that it was true but it was too late. They had already taken out multiple refinances, paid off debt, bought new cars and boats, took vacations, bought new houses and the list goes on.  They blindly believed that this run would continue and then one day the sky fell. Now they’re upside down, payments are going up, and they can’t refinance. Now had they looked at the situation logically they would not have used their equity like a bottomless piggy bank.

So how does this compare to the low rates of today? Values have now seemingly reached equilibrium and we’re on track to see gradual increases going forward so what’s the problem? The problem is that these rates being held down to the lowest levels we’ve ever seen is a result of government intervention and unfortunately war, destruction, and misery around the globe.  But it just cannot last. The rates have to go up in order for the economy to function normally. So when does that happen? Most of us thought it would have already but it hasn’t. An interesting concept to discuss is “Buy Low, Sell High”. Which is intelligent. But what it doesn’t mean, is to buy at the lowest and sell at the highest. Why is that? Because we can never know what the lowest rates are until they rise. Then we can look back and say, “oh, the lowest rate of the year was on August 28th, 2014 (just for example). So in theory, holding out for the lowest rates in history will only land you on the upside when rates are climbing.

I’ll sum this up w/a little story, kind of a fable if you will. There’s a dog w/a bone and on his way to bury the bone he sees a lake. As he pounces up to the lake he sees his reflection. Only he doesn’t know its his reflection. He thinks its another dog and what does that other dog have? He’s also got a bone! So the dog whimpers,and dances around and thinks to himself, “I’m gonna get me that bone!” So he waits and waits but the dog in the water is patiently waiting too? Finally the dog after quite some time plunges his head in the lake and tries to bite the bone out of the other dogs mouth. Guess what happened? You got it. He dropped his original bone and of course came up empty handed, or mouthed in this case because there was no other dog. It was merely his reflection. You see, its not that the dog was stupid. He hadn’t learned about reflections yet. So he didn’t have the right knowledge and information to make an intelligent decision but was blinded by the allure of what could be…having two bones to bury.  Today we’re victim to the same issue as the dog. All we know or can see is that rates are really low and all we get is misinformation from advertising. Because we don’t have the knowledge of how rates are derived and what drives them, we can’t make an informed decision, just like the dog w/the bone, or without the bone rather. Don’t be caught like the dog in this story. Call me today to do a free mortgage review and find out just how much you can save monthly and over time. Chris Reese, California Mortgage Hero and Certified Mortgage Planner, 916-502-1656. You can also inquire on line at http://www.sacramentohomeloanspecialist.com/forms/refinanceAdvisor.html

30 Year Mortgage Rates Still Hanging Out in the Low 4"s

OMG! 30 Year Mortgage Rates 8-15-14 - WOW!

OMG! Take a look at 30 year mortgage rates today.

30 Year Mortgage Rates Get a Nice Bump Today!

If you have a loan in process and its not locked, you might want to lock that in today.  30 year mortgage rates are truly at their lowest levels of the year. The 3.5% Coupon Bond is trading at 102.91 at the time of this post which is about an 80 basis point improvement from just a couple of days ago. That means that cost of  30 year mortgage rates were almost a full 1% higher than today. If your loan officer structured your loan w/some rebate in lieu of cost, you’d see roughly an add’l .8% in rebate or credit toward your closing costs. This is roughly a change of $800 for every $100,000 in loan amount. There is definitely going to be some tough resistance for rates to improve much more than this and it can be a bit scary floating in this situation because the resistance level being this tough lends itself to a big bounce back and we might be risking much more than we have to gain by floating. So borrowers, call your loan officer and get your loan locked in. Realtors, make sure your clients are doing this. Call your loan officer partners and make sure that they your clients are protected. For a free rate quote, mortgage review, or property value analysis contact Chris Reese, 916-502-1656, http://www.SacramentoHomeSpecialist.com

OMG! 30 Year Mortgage Rates 8-15-14 - WOW!

30 Year Mortgage Rates at 2014 Low"s

Check out this article, Mortgage rates at low for year; 30-year averages 4.12%, from the LA Times website. We’re back at the lowest levels of the year…for now at least!

Average 30 Year Mortgage Rates

The mortgage market has been all over the place this year bouncing back and forth in pricing. One day we’re down 80 basis points, the next we’re right back where we were.  The average person doesn’t know what to expect from day to day. That’s why I subscribe to a couple of different services that stream real time numbers of the Mortgage Backed Securities Market so that I can help my clients to plan a rate locking strategy.  Here’s the link again to the LA times Article http://www.latimes.com/business/money/la-fi-re-freddie-mac-mortgage-rates-20140814-story.html

For a free mortgage review, rate quote, or property value analysis contact Chris Reese at 916-502-1656 or submit an inquiry at my mortgage website http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

30 Year Mortgage Rates at 2014 Low"s

How to Pay Off Your 30 Year Mortgage Early - Mortgage Tip

Chris Reese The California Mortgage Hero and Certified Mortgage Planner delivers a Mortgage Tip on how to pay off your 30 year mortgage early.


For more information on mortgage loans or a free mortgage review contact Chris Reese at 916-502-1656 or post your questions at http://www.sacramentohomeloanspecialist.com/forms/askAnExpert

How to Pay Off Your 30 Year Mortgage Early - Mortgage Tip

What"s Up With 30 Year Mortgage Rates today? - Daily Rate Insider

Chris Reese, California Mortgage Hero & Certified Mortgage Planner shares today’s Daily Rate Insider.

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. I’m among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Neutral

Yesterday’s MBS market was worse by -22bps. According to Sigma Research there was moderate volatility. The movement may have resulted in worse rates for the consumer.

Today’s Rate Forecast: Neutral

The MBS market and mortgage pricing is likely to be fairly neutral. Sigma Research says there’s not a lot of economic data to push the market today or this week. Once again the US and global markets are completely focused on what is happening (and may happen) in the Ukraine and mid-east. It appears that Israel and Hamas are inching closer to a deal, but that can turn on a dime which would be a market moving event. Overall, the markets are based on emotions right now as tensions swing back and forth in Ukraine, Iraq and Israel-making market forecasting a difficult process.

Today’s Potential Rate Volatility: Average

According to Sigma Research the risk for volatility is average today. Because international affairs are hard to predict-high volatility is always a risk. As stated above, if something happens in the Ukraine or mid-east that is not worked into the market today we could see major volatility. We’ll be keeping a close eye on the markets.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact Chris Reese today at 916-502-1656 or visit http://www.SacramentoHomeLoanSpecialist.com

What"s Up With 30 Year Mortgage Rates today? - Daily Rate Insider

Benefits of a 30 Year Fixed Rate Mortgage - Mortgage Tips

Benefits of a 30 Year Fixed Rate Mortgage – Mortgage Tips brought to you by Chris Reese, California Mortgage Hero and Certified Mortgage Planner in Roseville, CA

A 30 year fixed rate mortgage is probably the most common type of mortgage originated. Most buyers and home owners seem to prefer the 30 year fixed rate mortgage over that of the short fixed rate terms such as the 20, 15, & 10 year fixed rate mortgages. Overwhelmingly most prefer the 30 year fixed rate mortgage over the much less popular Adjustable Rate Mortgage. Watch the video to see what the benefits are for a 30 year fixed rate mortgage. Maybe that is the perfect loan for your circumstances, or maybe it isn’t? To find out what type of mortgage program is best to suit your needs, contact Chris Reese at 916-502-1656 or visit http://www.SacramentoHomeloanSpecialist.com/forms/refinanceAdvisor.html

Benefits of a 30 Year Fixed Rate Mortgage - Mortgage Tips

It"s Never Too Late - Inspirational Quote

Inspirational Quotes from The California Mortgage HeroIt’s never too late to make it happen! For a free mortgage review contact Chris Reese at 916-502-1656 or visit http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html

It"s Never Too Late - Inspirational Quote

When Is the Right Time to Lock in Your 30 Year Mortgage Rate? - Mortgage Tip

Knowing when to lock your 30 year mortgage rate can seem like a total crap shoot!  I’m here to tell you that its not!  I’m Chris Reese, the California Mortgage Hero and Certified Mortgage Planner. I have my thumb on the pulse of the mortgage rate market.  I do this by research and by monitoring the mortgage backed securities market which is the predominate driver of 30 year mortgage rates. Here’s a picture of a candlestick chart for the MBS market at the time of this post.

Planning a Rate Lock Strategy

I help each of my clients plan a rate locking strategy based on data from charts like the one above but there are also many add’l factors to take into account. We live in a world economy and turmoil in the world, whether its political or financial, can have an adverse effect on the 30 year mortgage rates. It takes a competent mortgage planner to decipher the effects on the market as news will always trump technical analysis.  Then there are personal circumstances that will also dictate how we plan an individual client’s rate lock strategy. The client might be very adverse to risk and may also be at risk of not qualifying for their mortgage if rates were to change dramatically.  Other clients might be very comfortable with risk, almost to the point of treating locking their rate vs. floating like throwing the dice on a craps table.  Then there are clients that fit everywhere in between those 2 extremes. Some clients are also not doing a 30 year fixed rate mortgage and the fluctuations on adjustable rate mortgages is not as vast. In other words, the ARM loans aren’t as volatile from day to day as a 30 year mortgage.

Regardless of your situation, type of loan, or adversity to risk, I can help you. As a Certified Mortgage Planning Specialist and Certified Mortgage Coach, I have the experience, knowledge, tools, and technology to help you plan the best mortgage and rate locking strategy for your situation.  Maybe you just need a quick quote on a 30 year mortgage rate, or maybe you need a full mortgage review or Property Value Analysis? Maybe you just need to get pre-approved so that you can go out house shopping with your Real Estate Agent? Contact the Chris Reese Mortgage team at 916-502-1656. You can also apply on line for a mortgage loan, request a free property value analysis or mortgage review and even request to be added to my daily rate update list at http://www.SacramentoHomeLoanSpecialist.com. I look forward to delivering you the best service in the industry. Have a SUPER DAY!

When Is the Right Time to Lock in Your 30 Year Mortgage Rate? - Mortgage Tip