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The “Broker Out” Advantage
The current mortgage world is truly a stormy sea. Rates rise and fall in nauseating waves. Loan programs crash and splinter like wayward boats crushed against rocks. Promising policy announcements turn out to be like false sightings of land after queasy months in the open ocean. As a home buyer, a potential refinancer, or as a realtor helping a seasick shopper, where do you find a safe harbor?
Me.
Why? Because as rough and as shark-ridden the home loan waters may become, I have the resources to guide you safely to a great loan product. The McDonough Group has given me two big advantages: 1) Great rates and great service on the loans we do well, and 2) Broker-out ability to find the right lender for out-of-the-box transactions.
Here are some observations from my “crow’s nest” at The McDonough Group:
-Conforming Fixed Rates while violently unpredictable are really quite good right now! The McDonough Group’s in-house safe haven takes the form of fixed rate loans under $417,000. Our rates are great, our service is superior, and in this calmer part of the mortgage world our local processing and closing gives us a great edge over our competitors. My advice to anyone: LOCK YOUR RATE! If you’re buying or refinancing and a see a rate that works, don’t even try to second guess this volatile rate environment.
-Rate Watcher Tool is my way to keep an eye on rates for you. Let’s analyze your situation and I’ll use an Excel spreadsheet to keep track of daily rate movements. When (if) we get to the rate you need, I’ll contact you, or better yet, we’ll make a pre-determined plan to take action. Call for details.
-5/1 and 7/1 ARMs have disappeared like ships in the fog. For market reasons that are beyond my comprehension, the secondary market recently collapsed around “intermediate” ARM loans. Last night my research showed that almost all major lenders charge a higher rate for a 5/1 ARM than they charge for a 30-year fixed, effectively eliminating the intermediate ARM as a viable program. But stay tuned, these ships could re-emerge at any time!
-Jumbo Rates are high, qualifying guidelines are tight, but several lenders offer unique and very competitive solutions for the customer needing a loan over $417,000.
-Rising “Conforming” Limit thus far appears to be mostly a false hope. We’ve been waiting eagerly for Fannie Mae to raise the bar for “Conforming” loans to $567,500 in King County. Instead, they’ve created an intermediate tier of loans in King County from $417,000 to $567,500 and it appears that these loans will be priced significantly higher than loans under $417,000. If you fit in this category, we’ll find the lender offering the best terms for you.
-Fed Action to lower short term rates almost always causes fixed mortgage rates to RISE! It seems crazy, but long-term mortgage rates rejoice in bad news, the type of stuff that causes inflation to go lower. When the Fed lowers short-term rates, the stock market usually rejoices, but bond investors fear inflation and often bid the mortgage rates UP rather than down.
If you find yourself sailing in the waters of a new home purchase, or are lost trying to navigate your refinance, don your survival suit and give me a call (206) 251-7976. I’m glad to throw you a life ring, and will put our in-house and broker-out resources to work for you!
Finally, some GOOD NEWS from the Mortgage World!
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Suffice it to say, I certainly have been working my RESILIENCY
muscle a lot over the past few months. Thankfully, we have found
a new source for LOW RATES on Jumbo loans ..but this is for a
select group. The “Over Qualified!”
* 700+ credit scores
* Strong assets
* Full Documentation
* Owner Occupied
Today I was able to secure a loan for $1,000,000 at
4.75% on a 5 year fixed rate mortgage. What a deal!
From all the research I’ve done….this is substantially below
market.
