HOME MORTGAGE RATES ARE AT ALL TIME LOW!!! NOW IS THE TIME TO REFINANCE!

I'm republishing a portion of a previous post primarily because it still applies but also to let you know the urgency to refinance or purchase if you re considering that??

I also wanted to let you know of an upcoming event being hosted by BFI - Business Fellowship International. You’re invited! Don’t miss Wednesday, July 21(11:30-1:00 pm) at Deer Creek Golf Club. The featured speaker will be economist Bill Helming, author of What Goes Up Eventually Comes Down. Bill is widely acknowledged as an expert economist whose economic forecasts have been uncannily accurate and on-target. Hear first hand what Bill has very good reason to believe we will all be facing economically between now and 2014 – and how to plan accordingly. Proverbs 22:3 states, “A prudent man foresees the difficulty ahead and prepares for them; the simpleton goes blindly on and suffers the consequences.” TO REGISTER GO TO: http://www.acanetwork.org/clubportal/EventDetailPublic2.cfm?clubID-1259&EventID=12415> ADVANCED REGISTRATION IS REQUIRED!

If you have been considering buying a home or even refinancing, you've probably been asking one of these questions? Should I refinance now? Should I buy now? What if rates go down again? With the economy this way, surely rates will have to drop again? I heard the Feds are going to lower rates again to stimulate the economy, should I wait to lock in an interest rate then?

These are all great questions and very valid. In the past, before all the housing bubble began, the answer to these questions might of been to wait. Times have changed! It's a whole new game in the mortgage world. If you are considering waiting to buy or refinance, below is a few reasons not to:

1. Mortgage Lenders are tightening guidelines to protect against future losses. Mortgage lenders are reducing loan to value limitations. They may require you to have 20% equity or more? If you are an investor or a jumbo borrower, those equity requirements are even higher. Someone who could qualify today, may not be able to qualify tomorrow.

2. The value of your home could decline, maybe it already has and could again? Foreclosures and short sales lower the market value of every home in your neighborhood and surrounding areas. A home that is comparable to yours that ends up selling for less than yours is going to lower your home's value. Lower appraisals lead to higher loan to values and, often, higher mortgage rates.

3. Have you or someone you know lost their job in the last two years? Job losses are happening at a very rapid rate. Many are being laid off as employers fear for the future stability of the company. Many are downsizing to offset lower prof ts (or no profits at all). Without a job and a steady paycheck, lenders won't give you a mortgage loan. I work with Business Fellowship International, a ministry that helps folks get connected and possibly into a new job. If this is you, please email me and I will help you in any way I can.

4. Another rise in cost is mortgage insurance or PMI. This is required if you have less than 20% equity or down payment in your home. PMI is an insurance that protects the lenders in the event of default. Remember hurricane Andrew and the impact it made on the insurance carriers? What's going on in the housing market right now, is comparable to that. Mortgage insurance carriers are raising rates and tightening guidelines as well, making it very hard to qualify or not allowing your payment to drop with the interest rate reductions.

5. What is your credit score? Most people assume their credit is good. But what is good anymore? To get the "preferred" or "going" interest rate, you have to have excellent credit scores, that means over 700 and sometimes over 720/740. Now don't get me wrong, we are still able to do loans under 700, but we would need to review your situation to see if it makes sense for you.

If you are thinking about buying or refinancing, now's the time to do it. The pendulum for mortgage loans has swung from one extreme to the other and it may be a long long while before lenders will consider loosening guidelines again. Financial crisis has it America.

Jewel and I, the InSight Team, are here to help you make sound choices with your mortgage. We have many valuable resources and offer a variety of mortgage products. Please give us a call or email us or visit us on the web at www.wantinsight.com.

Most Cordially

Michele "MAC" A. Cole
Business Development
michele@wantinsight.com

Jewel Callahan
Mortgage Consultant
816-510-1399

SHARP DECLINE IN MORTGAGE RATES FUEL HISTORIC LEVEL OF RATE LOCKS

On Wednesday, November 26, Secretary Paulson announced that the Fed will purchase up to $100 Billion in direct debt of Fannnie Mae, Freddie Mac and Federal Home Loan Banks and buy up to $500 Billion of Mortgage-Backed Securities.

With this news, the spread between Treasury bonds and mortgage-back securities narrowed significantly and fueled a sharp decline in mortgage rates.

So many customers who had been on the sidelines got into the game and locked their rates on refi's and new purchases. So much so, that many lenders announced that they reached recording breaking milestones!

Don't be a benchwarmer, get in the game now while rates remain historically low. Mortgage funds are available; we have a variety of programs to suit your specific needs. Call Michele at 913-642-3334 or email me at michele@wantinsight.com for the most current loan information.

Michele "MAC" A. Cole

913-642-3334

www.wantinsight.com

When the Feds cut rates, will mortgage rates go down to?

When the Feds cut rates will interest rates go down??

Previously, the Federal Reserve has lowered the Fed Funds Rate by 0.500%. In response, mortgage rates go up, not down.
This surprises a lot of people when we tell them that.
Remember: the Fed Funds Rate and mortgage rates are not related. When the Feds "cut rates", it's working on an overnight interest rate between banks. By contrast, mortgage rates are based on long-term securities between bond market traders.
When the Feds cuts the Fed Funds Rate, it is meant to stimulate the economy and that makes inflation more likely. Inflation, of course, erodes the value of the dollar and, therefore, the value of mortgage bonds.
This is why mortgage rates have gone higher after each of the Federal Reserve's four most recent rate cuts. The bigger the cut, the more the increase to mortgage rates.
Call or email me michele@wantinsight.com anytime. I am happy to serve you.
God Bless!

Michele "MAC" A. Cole
www.wantinsight.com