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.

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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Mortgage Rate Lock Advice for Chicago and Oak Park - 7/14

Short-term - LOCK as equities are currently trending up and the risk outweighs the likelihood of rate improvement. I am now recommending that those closing in 7 to 15 days FLOAT based on potential favorable market conditions.

Long-term - FLOAT on belief that weakness in the economy will continue supporting the possibility in continued low mortgage rates. In the window of 15 to 30 days, there is now more risk and vigilance is recommended.

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

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

Rate Lock Advice 6/22

Short-term - FLOAT as markets a currently favorable to secure a better rate, but I recommend close monitoring of the market to take full advantage.

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

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