The Refinance Boom is not Over? Refinance Your 15-Year to a 30-Year!

January 30th, 2014

Actually, the refinance boom is indeed over; however, there are a fair amount of people that still need to refinance. For example, I know of many people who have excellent interest rates on a 15-Year fixed rate mortgage because they thought they would be in their home forever and wanted to get the mortgage paid off over a shorter term, but now have suffered a job setback or some other sort of financial blow, and need to revert to a 30-Year mortgage to reduce the monthly payment. Let me give Read the rest of this entry »

Bookmark and Share

The Refinance Boom is not Over? Refinance Your 30-Year to a 15-Year!

January 28th, 2014

Actually, the refinance boom is indeed over; however, there are a fair amount of people that still need to refinance. For example, I know of many people who have excellent interest rates on their 30-Year fixed rate mortgages, and plan to be in their home for a long time or possibly forever. These people should consider giving up their low 30-Year fixed rate, and get a still quite low 15-Year fixed rate, and save a small fortune over time. Let me give Read the rest of this entry »

Bookmark and Share

The Refinance Boom is not Over? Refinance Your HELOC!

January 23rd, 2014

Actually, the refinance boom is indeed over; however, there are a fair amount of people that still need to refinance. There are a stunning amount of home equity lines (HELOCs) outstanding and most people will need to refinance those. Most HELOCs were set up so that the first ten years of the loan only require interest only payments and no principal is due. Then, in year 11, the principal would start to amortize, and it amortizes over 20 years, not 30. This is a problem because Read the rest of this entry »

Bookmark and Share

The Refinance Boom is not Over? Refinance Your ARM to a Fixed Rate!

January 21st, 2014

Actually, the refinance boom is over; however, there are a fair amount of people that still need to refinance. The problem is that the people that have not refinanced when rates were low simply don’t realize that they should still refinance. The people that obviously needed to refinance have already refinanced, in some cases multiple times. There are many people left that can refinance. For example, Read the rest of this entry »

Bookmark and Share

Interest Rates Going Up by Rules, Not by Market

January 2nd, 2014

There are increases coming to mortgage interest rates due to several rule changes. One change is a proposed increase in the guarantee fees, also called the g-fees. This fee will increase 10 basis points, which is equal to 1/10th%. There are also increases coming to what I call add-ons. Add-ons are fees charged by Fannie Mae and Freddie Mac, that vary depending on credit score and down payment of each mortgage borrower. Read the rest of this entry »

Bookmark and Share

Is Real Estate in Another Bubble?

December 9th, 2013

getloans-brian-martucci-housing-bubble

I wrote an article in February 2013 discussing the low inventory environment, wondering where the sellers were, and predicting that inventory would eventually start to rise, which would put a lid or even some downward pressure on real estate prices. To read that article click here. So where are prices and inventory headed now, a few quarters later? Read the rest of this entry »

Bookmark and Share

Historical Interest Rate Chart

August 2nd, 2013

It seems the big discussion in the mortgage world lately has been about interest rates. I think it is important to put the discussion into some context, and what better context than to look at interest rates historically. The chart below tells the whole story. You can see that the average interest rate level in our country dating back over 40 years is quite high compared to current interest rates. The average interest rate is quite high compared to current rates even if they go up another 1%. The average interest rate is still higher when compared to current rates even if they go up another 2%. Read the rest of this entry »

Bookmark and Share

Are Interest Rates Too High?

July 16th, 2013

Interest rates are becoming a hot topic lately. With interest rates shooting up approximately 1% in about a month, there is plenty to talk about. It seems that some people were only in the housing market as a result of give away mortgage rates. When I hear someone exclaim surprise when I quote a 4.5% interest rate, because they heard rates were at 3.5% six months ago, it actually shocks me that people are surprised. It is as if most people expected rates to stay down forever. Any casual student of interest rates and general economics knows that interest rates, as with any market, move up and down constantly. Read the rest of this entry »

Bookmark and Share

Interest Rates Up Again… a Lot!

June 26th, 2013

Interest rates are now up about 1% from their rock bottom lows of a few months ago. The inevitable interest rate increase from all-time lows is continuing. Investors have continued to sell stocks and bonds following the Federal Reserve meeting last week. It seems that if the economy performs as expected, then the Fed plans to taper its bond purchases later this year. Over the past few years, the Federal Reserve bond purchase program has helped mortgage rates decline to historically low levels. This occurrence has lifted the stock market. So any sign of the withdrawal of stimulus has hurt both stocks and bonds. Read the rest of this entry »

Bookmark and Share