TODAY’S RATES & HOUSING NEWS

Interest Rates moved up .15% this
week with the Mortgage Backed
Security Market (MBS) trading down
-56 bps. The 10 Year Treasure
currently sits at 4.37%.

On Wednesday, the Consumer Price
Index was released and the numbers
came in close to expectations. Year
over Year Inflation went to 2.6%
and Core Inflation went to 3.3%.

The biggest concern is the 3 month
average inflation would equate to
yearly inflation of 3.5%, well above
the FEDs target number. Mortgage
interest rates usually follow inflation
so we want to see inflation come
down for better interest rates.

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While interest rates went up some
on Wednesday, since then interest
rates have moved down.

Below are Mortgage News Daily’s
average interest rates across the country.
There are a lot of characteristics that
go into a mortgage rate – credit score,
investor, loan to value, loan amount,
costs, etc.

Please call me to go over your specific
scenario so we can price your loan
out accurately.

OR reply to this email with the answers
to the questions below for Mortgage
Options for your scenario.

REFINANCE QUOTE:

Goal of Refinance – Lower Payment, Cash Out, Etc:
Address of Home:
Estimated Value Of Home:
Current Loan Amount:
Loan Amount You Would Like to Finance:
Current Rate:
Do you know what type of Loan you are Currently in – FHA, VA, etc:
Estimated Credit Score:
Are You a Veteran or Active Member of the US Military: 
If you are a Veteran, do you get VA Disability:

HOME PURCHASE QUOTE:

What City and State Are You Looking to Buy In: 
Estimated Purchase Price:
Loan Amount You Would Like to Finance:
Will Property be a Primary Residence, Investment Property, or Vacation Home:
Estimated Credit Score:
Are You a Veteran or Active Member of the US Military: 
If you are a Veteran, do you get VA Disability:

Thank you!

Why an Appraisal Over Purchase Price
Is a Game-Changer for Home Buyers

We have seen an increasing number
of homes under contract appraise
higher than the purchase price. This
happens a lot during the Holiday
Season because demand is lower and
home buyers can often get a great
deal on a home. A high appraisal is
not only a huge benefit to homeowners
by walking into immediate equity, but
it also gives homeowners a great way to
negotiate the terms to get a better payment.

Let’s show a real-life example.

Client is purchasing a $500,000 home
putting 5% down. The client originally
locks in a 7% rate, putting their
payment at $3,160.19.

$500,000 Purchase Price
$25,000 Down Payment
Monthly Payment of $3,160.19

Once the appraisal is completed, the
home appraises at $525,000,
$25,000 higher than the
purchase price.

We discuss the possibilities with the
client and buyer’s agent and the
Realtor negotiates to raise the
purchase price to $510,000, and gets
the buyer $10,000 in seller concessions.

Lenders calculate down payment on
the lower of the purchase price or
appraisal. Since the appraisal is high,
we can loan at the same percentage
down when raising the purchase price.
While raising the purchase price may
seem like a backward approach, let
me show you how it affects your
terms and you can decide which
option you would prefer.

Client is purchasing a $510,000
home putting 5% down. The client
adjusts lock to a 6.25% rate by
using seller concessions to buy down
the rate. Client’s new principal and
interest payment is $2,983.15.

$510,000 Purchase Price
$25,500 Down Payment
Monthly Payment of $2,983.15. 

Let’s look at the major benefits
to the buyer.

$177.04 Lower Monthly Payment
.75% Lower Rate
Only a $500 Higher Down Payment

We have closed many deals in
November using this same strategy.
The key is getting a good deal on
the price, hopefully having an
appraisal come in over the purchase
price, and working with an
experienced Mortgage Broker to
help show you your options.

Have a great week!