Archives for January 2013

Mortgage Interest Rate Update 01.24.2013

After a better than expected unemployment report bonds sold off in the early morning hours however buyers stepped in and the market recovered to nearly flat levels.  Mortgage rates remained generally flat/a bit worse depending on the loan program.  Interest rates and loan programs continue to play a prominent role in the feds desire to push mortgage rates down, and expand the product line for borrowers.  California refinance applications remain steady and purchase transactions continue to rise.  As we continue to wait on Washington to solve their problems lender’s attempt to learn the new rules and regulations set forth by Congress and the Fed.

Richmond Fed business index falls

In a report out today the Richmond Fed business index fell significantly.  This is the third are Fed report this year to show a sharp contraction (NY and Philly both showed a contraction).  The report missed on on all estimates and this trend is somewhat alarming.  The index fell from a positive “5” to a negative “12” .  Mortgage rates and bond markets did not budge and it appears the stock market may close positive for the day.  Most markets have had an “optimistic” view of the economy lately as the job picture has improved along with the belief that the budget/debt/deficit/spending issues in Washington will get resolved soon. California mortgage rates remain steady for the day after the MLK holiday.

Mortgage Interest Rate Update 01.17.2013

The Mortgage Backed Securities (MBS) market took a bit a of a hit this morning when unemployment numbers came in better than expected.  However after a knee jerk reaction the selling moderated and the market interest rates have settled into their recent range.  Treasury’s also took a hit along with Gold.  In general economic news; Boeing continues to have problems with it’s “Dreamliner” as all of the have been grounded by the FAA.  Over the next several weeks mortgage companies will look to keep rates stable during a potentially volatile news cycle.  The market is facing the coming issues in Washington along with earnings season and pre-announcements or company warnings.  If you would like a refinance quote on your current loan feel free to contact us for a no obligation/no cost quote.

Chase reports 53% earnings increase as mortgage profits rise

 

Another day, and another bank posts solid profits due to their mortgage loan operations.  Chase reported today that 4th quarter profits rose 53% as their profits in their mortgage division increased.  With record low interest rates for refinance and purchase home loans Chase turned in a solid quarter like other major national banks.   Net income climbed to $5.69 billion, or $1.39 a share, from $3.73 billion, or 90 cents, in the same period a year earlier, the New York-based company said today in a statement. “The firm’s results reflected strong underlying performance across virtually all our businesses for the fourth quarter and the full year, with strong lending and deposit growth,” Chief Executive Officer Jamie Dimon, 56, said in the statement.  This is their third  straight record year for profits and it’s clear record low interest rates are helping. Refinance and purchase mortgage loan volume is up significantly and so are profit margins.

No point loans with origination fees….how can that be?

Similar to when this was originally written; this is becoming more common than it used to in the mortgage industry.  Some loan officers love to say that they are proving you a “no point” loan and still charge loan origination fees up front (what they are referring to is only discount points charged by the lender they work for). In fact when a potential client let’s me know they received this to-good-to-be-true “no point” mortgage rate; we always discover that there are upfront origination fees (usually thousands and thousands of dollars added to the mortgage).   I’ve also seen mortgage lenders advertising no point loans but having origination fees listed in the small print.  When I started in the industry nearly 15 years ago this was VERY common with mortgage loans and then it seemed to shift didn’t incur all that much. mortgage interest rateHowever over recently I have seen/heard numerous “zero point” quotes in which the lender was charging a 1% or even 2% mortgage origination fee.

Everyone wants the best California mortgage rates and the best California mortgage rates can only be obtained if you work with an honest, upfront and well respected mortgage lender.  Working with an unknown mortgage lender and/or a lender with a bad reputation with an organization like the Better Business Bureau or the Business Consumer’s Alliance is a major risk.  It is extremely important that you keep an eye out for this as it’s something that could cause a lot of issues if you are seeking a true zero point loan.  We do not confuse the two:  discount points or loan origination fees….we include them, if our client is requesting to by down the rate, as one so that our clients are not confused. (this post was updated in 2017.

If you are interested in refinancing your current mortgage or purchasing a new home please give us the opportunity to earn your business.  We have a top rating with the Better Business Bureau, a top rating with the Business Consumers Alliance and we always provide a clear quote for our clients to understand.  We don’t hide fees or avoid disclosing the true cost of the mortgage.  On top of this we have a time tested system in place to provide you with a great experience and we always target 100% costumer satisfaction.  You can reach us directly at 1-800-550-5538 or fill out the request a quote form on the front page (or side pages) as well.