Mortgage Discussion for the Panhandle area

As I said WOW, last week was quite a ride. Hold on for another week and we will see where we end up. The markets flipped all over the place last week with rates at 5.75% on Monday, 5% on Wednesday and 5.5% by Friday. Expect another week of the fun ride. With a load of economic data and a Federal Reserve meeting rates will move daily. I believe the end result will be very positive.

Good news of the week has to be buyers. Buyers are showing up and looking at houses. I am not sure if the rates are helping or the time has just come for some real estate movement but alas good news is good news.

From a mortgage stand point we are starting to see some refinances. This too is good news as people start to get rid of the adjustable rate mortgages and lock in on a more stable fixed option. The more refinances we see nation wide will soften the concerns of future foreclosures. This will eventually lead to freeing up some credit policies. This too is good news.

100% money is still flowing at a blistering pace. Closings for low or no down payment deals are still the most sought after loans and the money is readily available.

We all stand together in an ever changing market with good news happening everywhere around us. It is up to the professionals in the real estate field to shout the good news from roof tops as the media tends to focus on every morsel of bad news it can find. Money is flowing and home prices are marked to sell. A great combination.

It is official, with the rate cut by the Federal Reserve yesterday 30 year fixed interest rates are at 5%. This marks a new low and should give us all something to cheer about in the real estate field. How could anyone ignore these rates and not buy something. we will also hit a small refianance boom with many homeowners trading in their adjustable rates for new low fixed options.

GREAT NEWS.

It pains me almost every day when I hear the negative rumors about the mortgage industry I am in. With all this doom and gloom it is no wonder we have so many homes on the market. Well, I have had it and I decided to write this blog message to say "times are not so bad".

First let's look at interest rates. Today I can lock a 30 year fixed rate in below 5.5%. That is as good as it gets.

Next I hear we have "declining markets" and we can no longer close mortgages at 100%. That is just made up fiction. I am not sure why some mortgage so called professionals go out on the street and tell people this nonsense. I can and do still close loans at 100% with the seller being able to pay closing cost. Best of all this is a conforming loan with rates about 6%. These are the same deals we were closing in 2005 and 2006. Nothing has changed. The game has not changed just some of the players i.e. mortgage professionals that know what they are doing.

Then I hear that credit has tightened and no one can get a new mortgage unless they have perfect credit. That too is wrong. The subprime market has dried up but Fannie Mae, Freddie Mac, USDA, VA and FHA are still closing the same loans they were last year before all this started. They all have changed a little but the same credit can be bought today as was issued an approval in the past years.

I have even been told by realtors that VA and Rural Development (USDA) cannot close 100% deals in declining markets. That is just funny. Government loans have not changed at all.

I go through this rant to explain to everyone that the mortgage business is still strong and you can still buy a house in today's market. I have been in this business for 23 years and this market is not new to me. I have been through it before. The secret is to stay up to date with the changes so no customer suffers. If you need a positive mortgage professional to help in any way please give me a call.

Well, 2008 is here and many of us are thankful to be done with 2007. Last year brought many challenges to the real estate/mortgage industry. 2008 should be a year of correcting the credit markets and good real estate sales. There is plenty good news on the horizon so watch for it. Those who do not keep up with the changing market will be left in the dust of those eager to make 2008 a success.

Interest rates are again at all time lows so rate or payment should not be an excuse why a customer stalls an offer. Mortgage products are still aggressive and products like VA and Rural Development are tops on the list still lending 100%+. We have a program for most anyone who wants to buy a home so just call.

Happy New Year.