Market Update: Interest Rates At Record Lows
Contributed by Mark Chrisman of West Coast Mortgage
It seems to be the only positive thing going on financially in our country right now. You’ve heard it on the news, read it in the paper, and you can’t miss all of the advertisements for low mortgage rates. So, is it for real? Are mortgage rates at record lows? Should you quit reading this article and start refinancing right this second? As a matter of fact, that might be a good idea.
Currently I am writing 15-year fixed loans at 3.250% with no closing costs. 30-year fixed rates are at 3.875% with no points, and 5/1 ARMS can be locked at 2.500%. Rates fluctuate constantly, but for the right borrower who acts fast, even for someone who has a great rate now, this can mean several hundreds a month in savings.
Last year about this time we saw 30-year mortgage rates hit record lows. The mortgage industry had been in a transition period: the heyday of the early 2000’s was long gone, banks had failed, rates had gone up, the tax incentives had expired, even the massive institutional lenders were still trying to recover from the TARP hangover. I knew a lot of people who had left the business altogether.
Suddenly the media declared that rates were at an all-time low and the entire world wanted to refinance. A frenzy ensued. Within weeks lenders were so backed up with applications, many of them raised rates just to try and get caught up. Appraisers that were knocking out full appraisals in 3 days were quoting 3 week turn times. Lenders took away 30 day rate locks and replaced them with a minimum 45 day lock, then they bumped it to 60 day locks, at the borrower’s expense. I have a friend who was a recruiter for one of the large banks and she blasted out an e-mail “URGENT: 500 experienced underwriters needed immediately.”
Then it all went away as fast as it came. In November we saw rates jump half a percent in a couple days. Borrowers who had taken too long to submit their required paperwork or had not locked in hopes of even lower rates were out of luck.
Many lenders learned from what happened last year and they have implemented procedures to handle sudden influxes of loan applications, but huge increases in volume are still going to create delays. If you missed the opportunity last year and are thinking about refinancing, even if you are just curious about what rates you qualify for, you need to start the process today. A good mortgage banker can let you know in a very short time if a refinance is right for your situation. If rates stay this low, and especially if they drop even more, the first borrowers in line with a complete file will be the only ones guaranteed to close before it all disappears.
Mark Chrisman is a Mortgage Banker with West Coast Mortgage, specializing in purchase, refinance, and equity loans including Conventional, FHA, VA, and Jumbo loans.
West Coast Mortgage
Mark Chrisman
(619) 795-6517
mark@markchrisman.com
MarkChrisman.com and WestCoastMortgage.biz Continue reading
Market Update from San Diego Mortgage Professional Felisa Schlosser
MySanDiegoMortgage.com is excited to introduce you to Felisa Schlosser of Prospect Mortgage. Not only is she well informed and an advocate of her clients, but she’s got really cool artwork!
Tell us something fun about yourself and your business:
I love what I do for a living. It’s challenging, exciting, rewarding and there is never a dull moment. I feel like I was made for this business. And I am darn good at it! In fact, there is kind of a joke in my office and I’m occasionally teased by my co-workers and managers because they know that I believe that I am the best mortgage loan originator in the business. But it’s true, I can’t help the way I feel, now can I?
I love hiking, photography and listening to music. I enjoy studying languages and am currently studying Spanish and German.
How would you describe the current San Diego real estate market?
We are at an all-time high for home affordability in San Diego. That means that my clients range anywhere from grocery store checkers to union workers, county and city employees to the active military. San Diego real estate is on sale and that, combined with such low interest rates, is why it is an incredible time to buy here.
Are there any particular obstacles that are challenging consumers of San Diego mortgage loans?
Yes! Anyone that is looking to purchase a condo with either an FHA, VA or conventional loan may face some obstacles this year. Investors are going to have the most difficult time obtaining financing for condos. In my opinion, Fannie Mae’s HomePath® financing loan is going to be the easiest way to get an owner occupant or an investor into condos this year.
What are currently the most popular San Diego home mortgage products?
Without a doubt Fannie Mae’s HomePath® financing loan and FHA’s 203K Renovation Loan are San Diego’s most popular mortgage options right now. Fannie Mae HomePath® financing is great because it offers a low down payment of 3% for owners that are going to occupy, plus no mortgage insurance, and no appraisal. We can get investors into a property with only10% down! This is a phenomenal option that even my REALTOR® partners are using to build their own portfolios.
The FHA 203K Renovation loan is not a new loan but it is becoming a very popular option especially on those bank-owned properties that need a little or a lot of work.
Another favorite of mine is CalHFA’s CHADAP loan. Did you know that a first time home buyer may be able to get into a home with only 1% down? Yeah, incredible isn’t it?
Why would someone choose to work with you?
Buyers want to work with me because I am honest and trustworthy. I will not put someone in something that is bad for them. I am a great communicator and information gatherer. I take the time to fully understand (coupled with a background of knowledge to ask the right questions) my client’s needs. My pricing is fair and equitable. It is neither too cheap or too much. The service is exceptional. I am very attentive. I stay incredibly calm through all the bumps that are inherent with the business. And when I do call my buyers and REALTOR® partners with a problem or issue, I have already done the research to present them with solutions. I am very educated on the market, the programs, what’s available and what is possible. My REALTOR® partners do not worry that their clients have missed out on something because I, along with my company, are on top of what is available. I look at the client’s needs and the whole process as a whole and understand completely the needs and requirements of everyone involved in a transaction. For instance, I understand the timelines and the importance of meeting the closing date on time. That’s a really big deal. And finally, most importantly, it’s never about me. It is always about the client.
Please feel free to leave a comment below, and contact Felisa Schlosser directly:
felisa schlosser
mortgage loan originator
nmls license #255612
prospect mortgage–a direct lender
4275 executive square | suite 700 | la jolla | california | 92037
e: felisa.schlosser@prospectmtg.com
d: 858.550.2528 | f: 877.371.1698 | www.felisaloans.com
Any opinions are those of the loan officer and may not reflect the opinion of Prospect Mortgage. Continue reading
Market Update from San Diego Mortgage Professional Mark Chrisman
MySanDiegoMortgage.com exists to bring information and education about mortgage loans, real estate, and the financing process to consumers. We can’t think of a better way to do that than to ask local professionals about the trends and issues they are seeing, as well as for their helpful tips for people who are in the market for a home mortgage. In this installment, we welcome Mark Chrisman of West Coast Mortgage.
How would you describe the current San Diego mortgage market?
My primary focus is residential purchase, refinance and equity loans. In regards to residential financing, purchase loan applications slowed down a bit after the tax rebate expired in April of 2010, but they have steadily increased for the past 9 months. With interest rates hitting record lows last year, I did a large amount of no-cost refinances until the rates started creeping up in November. Rates are still very good and we are seeing a large number of people who were waiting for the right time to buy putting in offers. There are still a lot of short sales and REOs (bank-owned homes) on the market. I would say that distressed properties make up about 60% of the purchases we are doing right now. Although we did see large declines in value in some parts of the county, San Diego held up pretty well in comparison to other parts of California and the nation. People love San Diego and want to live here. I doubt that will change. Continue reading