Financial Insight

What is your bank doing with its TARP money? Up in Washington State, Sterling Savings Bank ($303 million in TARP) and Banner Bank ($124 million in TARP money) are offering mortgages at interest rates at 3.875%. Most borrowers must have a 20 percent down payment. Sterling is working with Golf Savings Bank, its mortgage lending subsidiary.  You want a rate like that call me!

Earning could throw wrench in US stock rally  NEW YORK (Reuters) -         Don't look now, but the U.S. stock market may be headed for another royal smackdown with fears that first-quarter results will fail to show signs of an upturn for Corporate America. read more

Tomorrow in Denver president Obama will sign his stimulus package into law, Wenesday in Airizona he'll tell us all about it.

In the meantime tell us a little about yourself and maybe, just maybe, we can help,  Click here   Yes, I'm sure we... can help!

Senate Passes Stimulus Bill, Real Estate Industry Reacts   --The Senate, with only scant Republican support, passed an $838 billion economic-stimulus plan Tuesday that would provide significant tax breaks for new car and home buyers but sharply trim billions in aid that states have been seeking. The vote was 61-37. The House of Representatives passed similar legislation ...

Mortgage Interest Rates Hit Historic Low    -- As the base rate has fallen further to an all time low of just 1%, mortgage interest rates are coming down too. Those with interest only mortgages have seen a huge drop in their monthly repayments with some lucky enough to have grabbed deals where they are paying no interest at all. Great news for variable rate mortgage borrowers who have seen their disposable income drastically increase. ...

Mortgage Protection Is Becoming Essential For Homeowners   --The risk of debts, unemployment, repossession and sickness is compelling many homebuyers to seek private insurance which will increase monthly repayments by 10-12 pounds per month per 100,000 pounds of mortgage. This would cover the homebuyer for the monthly interest payment on the mortgage if they were ill or lost their job and were unable to work with no income. Personal debt has now topped a trillion ...

Qualifying for a mortgage in a tough economy    -- Getting a mortgage has become increasingly challenging during recent months. One recent survey showed that 67% of those who applied for a mortgage found it more difficult. Although banks now may have stricter lending rules, it is still possible to qualify for a mortgage, according to the New York State Society of CPA s. Here are a few steps that may make it easier. DETERMINE HOW MUCH ...

Yep, for those that were paying attention they were able to take advantage of an interest rate only available back in the 1950's.

For the rest of you, well I could say, "too bad" but you will have an actual shot at this again even though the rates are hovering at around 5.5% (still not bad). 

Here's the catch!  I have to have all your information sitting here ready to go when the rate comes down. Lenders are only allowing us to lock loans once we submit a complete file.  Advice! start now, call me and get the ball rolling. For goodness sake don't be left out again.....

Rates moved higher yesterday, in spite of the House passing the Stimulus Bill (with no Republican support, for those of you playing along at home, as they believe the bill includes too much spending, not enough tax cuts and we have to pay scientist to surf porn sites). Things were relatively stable, even with the stock market rallying on financial stocks’ improvement, until the Fed’s announcement. As expected, they are leaving overnight rates alone. But bond market investors were disappointed that the policy statement did not include an immediate intent to begin purchasing government bonds – they have an “inclination” to do so.

The Reverse Mortgage is Meeting the Needs of Seniors in a Big Way    Jan. 28 -- In most cases the senior is looking places to find money to off set the major loses

Today does not look rosy either. We have a $30 billion 5-year note auction by the Treasury, with the market still swallowing $40 billion of 2-yr notes. We already saw Jobless Claims rise 3,000 last week, up to 588,000, with the moving average increasing to 542,500 from 518,250 the week before. Durable Good orders fell for the 5th month in a row, and dropped 2.6% in December following a November revised decline of 3.7%. Later we can look forward to New Home Sales, expected down slightly. In spite of being “over sold”, prices have moved down more, and rates higher, mostly due to the auction ahead of us. As I type this the 10-yr is at 2.70% and 30-yr mortgage prices are about .250 worse in price.

US House Panel Begins Debate On 'Cram-Down' Mortgage Relief
Jan. 28 -- (Dow Jones)- A U.S. House panel began debating legislation Tuesday to allow judges to modify mortgage loans for people in bankruptcy,

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Yesterday’s problems in the Middle East not only caused oil prices to rise, but a flight to quality in US Treasuries. Unfortunately mortgage rates didn’t tag along for the ride, and buyers backed off their prices during the day. On today's economic agenda, October's composite home price index is expected to decline -17.9%, a new record low, due to the inventory of homes and weak economic conditions. The Chicago PMI is expected to decline -0.8 points to 33.0, far below the neutral level of 50. We also have Consumer Confidence, expected at 45.7. Ahead of all of that, the 10-yr yield is around 2.16% and mortgage prices are worse by .125-.250 versus yesterday afternoon.

That's right you can lock a 30 year fixed rate mortgage in today at 5%, with good credit, based on 80% Loan to Value or less on your primary residence.

WASHINGTON – Mortgage applications spiked the week of Dec. 15 to their highest level in more than five years, as borrowers took advantage of rates that fell to near-record lows after the government pledged to funnel money into the mortgage market.

While some borrowers around the country are taking advantage of historically low rates to refinance their loans, others will miss the window because they don't believe it. The opportunity isn’t available to borrowers with poor credit or little equity in their homes, and foreclosures are still likely to surge.

The Mortgage Bankers Association said Wednesday its application index surged 48 percent in the week ended Dec. 19 to 1245.5, the highest level since July 2003, when refinancing activity boomed at the peak of the housing market. More than 80 percent of applications came from borrowers looking to refinance into loans with more affordable rates, the trade group said.

Interest rates plunged last month after the Federal Reserve said it would spend up to $600 billion buying mortgage-backed securities and other debt issued by government-controlled mortgage finance companies Fannie Mae and Freddie Mac.

Refinance volume grew nearly 63 percent, while purchase volume rose by nearly 18 percent.

The average rate for traditional, 30-year fixed-rate mortgages decreased to 5.04 percent from 5.18 percent a week earlier, according to the MBA report. That was the lowest point in the weekly survey since rates fell to 4.99 percent in June 2003. Predictions are that rates will bottom out at 4.5% in January,09.

What's the moral to this story?

Call now to lock in the best rate you will ever see!  719-262-9070