Rate Lock Advice for Chicago and Oak Park - 7/30

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. Although risk has tapered off, there is still too much risk to justify floating. 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.

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Mortgage Rate Lock Advice for Chicago and Oak Park - 7/27 (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 as the risk outweighs the benefit. If closing in more than 15 days, however, I still recommend FLOATING, but keeping a very watchful eye on the market as it has been tumultuous lately.

Long-term - FLOAT on belief that weakness in the economy will continue supporting the possibility in continued low mortgage rates.

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

The Adventures of Mortgage Man: The Loan #3

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The Adventures of Mortgage Man: The Loan #2

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Tune in next week to see Mortgage Man put together a file in lightning speed to begin his battle with his arch nemesis, The Underwriter.

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Reverse mortgage might make sense for some at a certain age

OakLeaves contributor Felecia Dechter writes that a consumer who took out a reverse mortgage a few years back told her how well it was working out a few years ago, helping her to pay bills and have a couple of extra bucks in her pocket. The sad thing is, when she called to talk about it, the woman now 91 could no longer remember the details.

Oak Park resident Doug Katz, a mortgage banker with Chicago Bancorp, highly recommends reverse mortgages. Katz directs the day-to-day mortgage sales operations of more than 25 branches for the company.

"Reverse mortgages are typically best for somebody trying to make up an income shortfall in retirement," said Katz, in business since 2002." I think a lot of seniors are on the ropes. Social security and pension aren't getting them where they need to be. But they have equity in their property, and they can tap that equity to create income."

There are criteria for a reverse mortgage. You have to be 62 plus, and have to have some equity. Your age determines how much you receive and how it's paid out is determined by the borrower. The loan comes to an end when people hit limit, and the only time it has to be paid off is if the property is vacated.

Katz told Oak Leaves there is a huge amount of protection built into the product. "You can't even take an application before people talk to a HUD-approved counselor. Not to say it's riskless but it's like anytime that you're securing any debt. You have to figure out how it fits your financial structure."

Reprinted with approval of author and courtesy of Pioneer Press

5 Things to Know When Buying a Condo

The condominium is a great type of property. It provides the joy of ownership with minimum amount of maintenance, but it is also a type of property that strikes a bit trepidation into the heart of lenders. Think of it as the difference between running the 100-meter hurdles versus a simple 100-meter dash. You get to the end of both races, but one definitely has more complexities.

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The Adventures of Mortgage Man: The Loan #1

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Mortgage Man begins the application process with Betty Borrower.

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