Mike’s Morning Mortgage Update

Mike News Update10/24/2019 I hope you are having a great week and I hope that life is treating you well.  I just got back from a 5 day golf trip at TPC Sawgrass in Florida.  One of my friends set it up and I had my Dad at my side with 7 others as we hacked and ate our way around Florida.

I got back late on Tuesday and I worked until after 9PM last night.   I was working a couple of files, and sending information to people that were working with other lenders that were giving misinformation, or doing what was best for the lender not the buyer.  Then I thought, well it’s a race to the bottom and many people just want the lowest rate and the lowest fees and they don’t care about service, knowledge, reputation, trust, and so much more.  That is not true!  Price is an issue in the absence of value!!  I hear things about discount Mortgage and Real Estate Companies and it truly makes me gag!

I had a lady yesterday that was so upset that her loan was declined by another lender, and the lender had no idea how to package the loan.  The lender tried to do a 1st and 2nd Mortgage I think so she could refinance the buyer 6 months later?  Then there was the 1st time buyer that was freaked out that she was paying 2 points and the lender quoted one program, one rate and did not disclose fees until she got in escrow and she had 3% down and 2.5 points!  These Internet lenders are not talking about options.  They are not giving good advice, and consumers need the love and affection from their Loan Officers and Real Estate Agents.  The first time buyer that I was emailing last night said, “check out this guys profile on Linkedin, he looks a little shady.”  I looked and he has been with 4 companies in the past 5 years and now he has his own company.  She liked that I took the time to explain everything on the phone and follow that up with a long email explaining the rate difference between FHA and a conventional loan with a 660/680/720 credit scores.  I explained the difference in the two loans and why she should do FHA unless she got to 720.

This is not rocket science, but it is a service business and knowledge is important 90% of the time!  When you have someone who should be serving tables at the local Diner handling the most important transaction of a persons life then that is just planned failure!  Yes, interest rates and fees need to be competitive, but they don’t have to be to the point where nobody makes money!  We are in the advice business and I know when a client sits with me and picks my brain that I am an open book and I will give them 29 year of experience of working 60-70 hours a week!  Or they can go on the internet and find that kid making $12.00 per hour that would not know how to calculate a debt ratio, does not know the difference between a lease and a purchase of a vehicle and has no clue about appreciation, depreciation, tax implications, tax deductions…

Interest rates are still sitting with most rates in the 3’s!  The 10 year bond yields have increased from 1.51% – 1.75% in the past 3 weeks!  Interest rates are still great!  We are still about  1.250% below where we were a year ago!

  • Interest rates are still in the 3.5% (3.62% APR)  – 4.00% (4.00% APR) range for conventional loans.
  • FHA and VA Rates are in the 3.25% (FHA APR 4.578 / VA 3.35% APR)  -3.50% range (FHA APR 4.683 / VA 3.42% APR)
  • Jumbo Loans are in the 3.75-4.250% range (APR 3.796-4.309)

Why Ranges?  Because they are changing and points can be purchased to lower rates.  Plus every deals seems to price differently depending on the time of day!

Thank you to those of you who made it to our Oktoberfest last Thursday!  We had a great time and from the looks of it, we need a few more food trucks next year!  I will be around the rest of the week and I will be in and out of the office this weekend!  My cell # is  661-714-6258 and my office line is  661-260-2970 xt. 2222.  We have had some power outages due to fires and bad drivers lately, but my cell phone is always on!  Have a great dayu and a better weekend and I hope to hear from you soon!