Michigan Mortgage

Why Bother Refinancing – III

My rate is 5.75% now and I don’t think it would be worth my while to refinance.

This client, like so many are able to refinance because of the “open access” and “plus loan” programs that are available but because their current rate is not real high and because of the pricing adjustments these programs come with, the value of refinancing might be squeezed out.

This client has…

Why Bother Refinancing – II

I’m thinking about selling my home soon and moving out of the area. Should I bother refinancing?

This client of mine (Joe again) is in a $250,000 mortgage that I wrote for him in 2006, it was a 15 year fixed rate loan and his rate is 5.875%. He put plenty of money down at the time and since he has been making payments on a 15 year clip, he has enough equity in his home in order to qualify for a mortgage right now even though home values have dropped in his neighborhood. The appraisal would only…

Why Bother Refinancing – I

Appraised value may not be enough – should I take the risk?

I made this one first because this conversation is at least a part of nine out of ten discussions with clients who are evaluating a refinance.

Mr. Client (Joe) called in and said that he owed 150,000 on his mortgage. We ran the numbers and a refinance would definitely be very beneficial. He had an interest rate of 6.75% right now…

Why Bother Refinancing – Series

There are many articles being written right now that are highlighting the fact that interest rates are at all time lows but home owners are not making application for new mortgages at as high of numbers as one might think.

The reasons given for this are many and varied…

Toxic Adjustible Rate Mortgages

Lets face it, these loans have more moving parts than a Swiss watch and most of them should never have been written – I will even include some of the ones I wrote. Not so much that the product is so scary, but because the uncertainty is more than many want to live with day to day. Be that as it may, some are still in this deal and we should keep a level head about things. They still need good advice…

Fed Will Keep Buying If Rates Spike

As we have been saying since this time last year – the FED will officially end its Mortgage Backed Securities purchase program in March this year after it reaches the prescribed $1.25 Trillion mark.

But, according to New York Fed Bank President William Dudley, the Fed is not on “auto pilot” and will restart the MBS purchasing program if mortgage rates spike. “If there is a sharp turn in the road” Mr Dudley said, the Fed would intervene…

Buy Now? – Consider Some Facts

The expression Perfect Storm usually has a negative connotation; after all, storms are bad. But in the real estate market today, the perfect storm of price, rates, and incentives may make buying a new home a very good thing…

Good Advice for someone in an ARM

Last week I received a call from a new client. I had not written his last loan, but he was referred to me for advice because he is in an ARM mortgage, is facing a layoff from work and wants to make a good decision. This is the email I just fired off to him . . .