My New Blog

I have been asked the same question over and over so today seems like a good day to set the record straight.

The Fed cut the rate by 3/4s today; what do that mean for mortgage rates?

Actually, not much.  Mortgage rates are based on long term debt and the Fed rate deals with short term rates.  So in essence, they are not connected at all.  The Fed cuts effect Prime; this directly deals with HELOCs (Home Equity Lines of Credit).  They are generally Prime plus or minus a point etc.  So every time the Fed moves the rate up or down, Prime is soon to follow.

Rates went down in both markets today in response to the bleak outlook of the economy. 

Stocks fell, the Fed dropped it's rate and Mortgages are very attractive.  The exact opposite could happen tomorrow (although not expected)

I hope this helps!

I want to start out by saying that I love what I do!  Below will be a few examples of why my job is so gratifying.

The is a hierarchy of loans.  The best loans are made by Conventional lenders, next is FHA, then Sub prime and lastly, Hard Money.

I do whatever I can to get you Conventional then FHA, you get the idea.

Here are just a few examples of what we have in our pipe line this month (only FHA)

1) A gentleman called me for a quote, he had another quote from a competitor as well.  He was offered 8% on a 30 year mortgage from a sub prime lender.  I was able to lock this gentleman in at 6.375% for the same 30 year product.  Thus saving him over $175 per month and paying off back taxes and two credit cards.

2) I am refinancing a friend of mine who was put into a loan a year or so ago at 7% on the first and 9% on the second.  We just locked him at 6.25% on a 30 year fixed product.  He will be saving over $120 per month.

3) I did a loan for a friend of mine one year ago.  He went from a sub prime program to an FHA loan.  He was able to pay off over $40k of debt and help his situation out tremendously.  He has been paying 7.25% on a 30 year product.  He is now eligible for an FHA Streamline refinance.  This basically means without an appraisal and a full application, he can get the current rate which is much less today.  I will be able to take him for a 7.25 to at maximum 6.5%, again on a 30 year fixed.

The only people who do what I do who do not like FHA as an option are the ones that DO NOT have the ability to do FHA loans.  It is very hard to get licensed to be able to deliver FHA products to the public and most companies can and will not qualify.

I hope you get the idea that I like what I do and love saving people money!

Just pick up the phone and give us a call.  We do FREE loan analysis.  If the deal does not make sense to you, we do nothing.  All it will cost you is a few minutes of your time.

If you are paying over 6.5%, you must give us a call!

Thanks,
Ron Bradly

610-825-2389