Rate Lock Advice 6/30 (No Change)

Short-term - LOCK as trends are showing rates at historical lows and advantage of floating is minimal. If you are closing in 7 - 15 days, I would consider FLOATING, but the markets are volatile, so you should keep vigilant.

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

5 Things You Don’t Know About Your Income When Buying Chicago Real Estate

As a lender, it is always interesting to hear the answer the income question. Not that my clients are in any way intentionally misrepresenting their compensation, the fraudulent borrower is actually rare. It is more a reflection of the chasm between what a client perceives their income to be and the figure that an underwriter uses.

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Rate Lock Advice 6/28 (No Change)

Short-term - LOCK as trends are showing rates at historical lows and advantage of floating is minimal. If you are closing in 7 - 15 days, I would consider FLOATING as there has been a further flight to quality this morning providing fuel for better rates.

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

Rate Lock Advice 6/28

Short-term - LOCK as trends are showing rates at historical lows and advantage of floating is minimal. If you are closing in 7 - 15 days, I would consider FLOATING as you might be able to get a bit better rate.

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

Rate Lock Advice 6/25

Short-term - LOCK as trends are showing rates at historical lows and advantage of floating is minimal.

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

Rate Lock Advice 6/24

Short-term - LOCK if less than 7 days to close. Mortgage Backed Securities overbought and rate increase possible. If 7 - 15 days out, FLOAT as the market still shows weakness in equities.

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

Fannie Mae Stepping In to Prevent Strategic Default

There has been a lot of hullabaloo lately about homeowners who choose to walk away from their mortgage instead of toughing it out. I am not hear to judge, because I have never been there. I can tell you that any foreclosure has a ripple effect in the community, which has made deals more difficult to close.

One organization that does have a dog in the fight is Fannie Mae and, as of today, they have made their view on the practice crystal clear. Today they announced more severe penalties, read waiting periods, after a foreclosure. Their stated intent is to make options such as loan modification, short sale, or deed-in-lieu of foreclosure much more desirable.

While there will be consideration for homeowners who truly faced extenuating circumstances, defaulting borrowers can now expect to wait 7 years after a foreclosure before being considered for a Fannie Mae loan. This represents a 2 year increase over the previous policy and it is meant to encourage homeowners to work with their servicers to prevent the default.

You can read more in their own announcement.