Currently the Fed is the only major buyer of mortgages on the secondary market. Given that the Fed has made it very clear that they will begin tapering their purchases in the coming months - we expect mortgage rates to rise. Likely this won't happen until 2014 - but 2014 is almost here!
Consider this - an individual earning $100,000 per year, with $700/month in consumer debt, buying a home with $4,000 per year in taxes ...
Today they would qualify for a maximum conventional loan of $536,000 @ 4.25%. That same person would qualify for $465,000 at 5.5% - and $417,000 at 6.5% (rates were in the mid 6's in late 2008 - that's not all that long ago!).
Our Federal Government cannot stave off inflation forever ... If you lock in with us and rates go up - you're protected. If rates should drop by 1/4% or more in the 15 day window prior to closing - you may float down to the lower rate, plus 1/8%, at no charge. This applies to both purchases and refinances!
If you have a FHA Loan - we may be able to refinance you and lower or eliminate your mortgage insurance. If you have a VA loan above 4.5% - we can do a streamline refi and save you money. If you're in a conventional loan - consider refinancing to a 15 year loan and save 10's of thousands in interest.
If you're a buyer - ask us about how to finance home improvements with your home purchase ... we have several options depending on your situation.
As always - we thank you for your referrals and honor the trust you place in us.
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