Now May Be The Time To Lock Your Mortgage Rate If You Are Less Than 15 Days Out From Close

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK

Long-term - FLOAT

The week ahead for economic data that can affect mortgage interest rates.

Tuesday

• Case/Schiller 20 City Index - This will tell us a lot about the current health of the housing market
• Cosnumer Confidence Report
• Fed Minutes from 8/11 Meeting

Wednesday

• ADP Private Employement Data - This will tell us a lot about the health of employment outside of giovernement jobs
• Construction Spending Report
• Auto and Truck Sales Data - Always a good bellwether of spending

Thursday

• Weekly Jobless Claims - Very important and if negative could help rates
• Pending Home Sales - Could be an ugly number as housing has suffered in the wake of the expiration of the New Homebuyer Tax Credit

Click here if you want to know the rates for your individual situation or have a lending need

Please note that rates were trending down at the time of writing this post

Update on housing and credit markets

Great segment on the credit markets and housing. Explains some of the challenges that Fannie Mae and HUD have added to the loan approval equation. Definitely worth a listen.

A Swing To The Other Extreme Strangles Housing: http://www.npr.org/129492503

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Continued Negative Housing Data Keeps Mortgage Rates Low

For those of you that did not read or heed my post last week, congratulations. You have received a reprieve on low rates. Continued abysmal housing data released this week reinforced the belief that we are far from turning the corner on our current economic woes. Existing home sales dropped by a whopping 27.2%. Employment data did improve, but not enough to convince the investing community that the end of the recession is in sight. In response, mortgage rates continued to stay extremely low as continued talk of a double dip recession became the debate de jour.

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Three Programs for Drowning Homeowners

There is a great misconception that there are no options for struggling homeowners. The reality is that major players in the mortgage lending market, specifically Fannie Mae, Freddie Mac and HUD (The Department of Housing and Urban Development), would like to avoid foreclosures whenever possible. As a result, they have created loan programs designed with this end in mind.

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Mortgage rates holding steady, but may be time to think about locking

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK if less than 7 days, FLOAT 15 - 30 days, but market is losing some steam

Long-term - FLOAT

The week ahead

• Tuesday
  
  
  
  • July Existing Home Sales Report - Will likely reinforce that market is weak


• Wednesday
  
  
  
  • Weekly Report on Applications
  
  
  • July Durable Goods Report
  
  
  • July New Home Sales Report - Will likely reinforce that market is weak
  
  
  • 5-Year Treasury Note Auction - Will help rates if demand is high


• Thursday
  
  
  
  • Weekly Jobless Claims - Very important and if negative could help rates
  
  
  • 7-Year Treasury Note Auction- Will help rates if demand is high


• Friday
  
  
  
  • August Consumer Sentiment Report

Click here if you want to know the rates for your individual situation or have a lending need

Please note that rates were trending down at the time of writing this post

Mortgage Rates Up For First Time In Weeks

Well folks, we may have hit the bottom, at least in the short-term that is. Rates ticked a bit lower than last week Monday and Tuesday, but began a mild movement upward by the middle of the week. This slight change was likely less the result of economic factors than the deluge of applications overwhelming lenders. To understand this, you need to understand that lenders can and do sometimes raise rates independent of the equities and bond markets as the meet their production capacity. This market favors mortgage banks as they can take advantage small variations in market pricing offered by different investors to whom they sell to secure you the best rate. That said borrowers currently should worry less about rate and more about execution.

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Flood-proofing Your Chicago Basement Floor

I usually write about Chicago real estate & mortgages, after all, that is what I do. Sometimes, however, I come upon a subject that is worth moving outside of the normal bounds of expertise. In light of the wet summer that we have had, I’ve come across more and more loans where homeowners are dealing with the unfortunate aftermath of flooding in the basement. For some homes it is a chronic issue, but for many it is only a problem when we deal with a Biblical rainfall that saturates the ground beyond the point that any drainage system can counteract. Either way the end result can range from nuisance clean up with a shop vac to massive damage requiring complete removal of carpet, dry wall and possibly even mold remediation. Most of the time, the floor bears the brunt of the onslaught.

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Chicago and Oak Park Mortgage Rates Unchanged - 8/18

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK if less than 7 days, FLOAT 15 - 30 days

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

Please note that rates were flat at the time of writing this post

Chicago and Oak Park Mortgage Rates Ticking Up - 8/17

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK if less than 7 days, FLOAT 15 - 30 days

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

Please note that rates were trending upward at the time of writing this post

Mortgage Rate Lock Advice for Chicago and Oak Park: 8/16

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - FLOAT

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

Please note that rates were trending downward at the time of writing this post

Mortgage Rate Lock Advice for Chicago and Oak Park - 8/13

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK, but FLOAT if 7 - 15 days from close.

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

Mortgage Rate Lock Advice for Chicago and Oak Park - 8/12

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK, but FLOAT if 7 - 15 days from close.

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

Mortgage Rate Lock Advice for Chicago and Oak Park - 8/11

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - FLOAT

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

What Is The Best Way To Default On Your Mortgage? - Part II

In our present economy, the terms foreclosure, short sale, and deed-in-lieu of foreclosure have become more commonplace. More and more homeowners strapped with homes that they simply cannot afford are making the tough decision to default on their mortgage obligation. Although such a decision solves an immediate problem, the echo of a mortgage default or foreclosure can go well beyond a simple hit to your credit score. Beyond the obvious drop in FICO score and nasty line item on your credit report, the actual impact of these events in the eyes of future creditors needs to be understood.

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Mortgage Rate Lock Advice for Chicago and Oak Park - 8/10

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - FLOAT

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

Major FHA Changes Coming on September 7th

FHA (Federal Housing Administration) insured loans are headed for a big change. For those unfamiliar with FHA mortgages, these loans are insured by the government, which allows for flexible approval guidelines. This insurance is paid for by the borrower as an upfront premium collected at close and as a smaller premium collected on a monthly basis. These premiums are then pooled with those from other FHA borrowers to form an insurance fund.

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Mortgage Rate Lock Advice for Chicago and Oak Park: 8/9

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - FLOAT

Long-term - FLOAT

Click here if you want to know the rates for your individual situation or have a lending need

Mortgage Rate Lock Advice for Chicago and Oak Park: 8/6

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - FLOAT as employment numbers were disappointing, which has opened the opportunity to secure a better rate.

Long-term - FLOAT but markets could begin to shift and you should be ready if they do. I would keep vigilant over the next few days.

Click here if you want to know the rates for your individual situation or have a lending need

Please note that pricing was trending down at the time of writing this post.

Mortgage Rate Lock Advice for Chicago and Oak Park - 8/5 (No Change)

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK If closing in more than 15 days, however, I still recommend FLOATING, but the odds are against securing a lower rate in this period, much will depend on employment numbers released later in the week.

Long-term - FLOAT but markets could begin to shift and you should be ready if they do. I would keep vigilant over the next few days.

Click here if you want to know the rates for your individual situation or have a lending need

Please note that pricing was trending down at the time of writing this post.

Rate Lock Advice for Chicago and Oak Park - 8/4 (No Change)

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK If closing in more than 15 days, however, I still recommend FLOATING, but the odds are against securing a lower rate in this period.

Long-term - FLOAT but markets could begin to shift and you should be ready if they do. I would keep vigilant over the next few days.

Click here if you want to know the rates for your individual situation or have a lending need

Please note that pricing was trending up at the time of writing this post.

Rate Lock Advice for Chicago and Oak Park - 8/3

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK If closing in more than 15 days, however, I still recommend FLOATING, but the odds are against securing a lower rate in this period.

Long-term - FLOAT but markets could begin to shift and you should be ready if they do. I would keep vigilant over the next few days.

Click here if you want to know the rates for your individual situation or have a lending need

What Is The Best Way To Default On Your Mortgage?

So, you wake up one day and decide that the home on which you owe more than the value is no longer a good investment. With the monthly payments killing you, you decide that the right time to unload the property is now. Unfortunately, with the value such as it is, the only way to facilitate this is via an option other than simply selling the home and paying off the mortgage note. This is done through short sale, a foreclosure or providing a deed-in-lieu of foreclosure. Getting this done will get rid of your white elephant house, but what will a move like this do to your credit?

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Rate Lock Advice for Chicago and Oak Park - 8/2

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - LOCK as equities markets are responding very favorably to economic news out of Europe. If closing in more than 15 days, however, I still recommend FLOATING, but the market is losing momentum and there is increasing risk of rates increasing.

Long-term - FLOAT but markets could begin to shift and you should be ready if they do. I would keep vigilant over the next few days.

Click here if you would like to know more or want to talk about your individual needs