Just a few thoughts on if your planning on refinancing: One thing to keep in mind on the timing of when to refinance is the comparable's the appraiser uses to establish the value of your home. This can be a big key in refinancing as most home owners need a minimum of 80% LTV to justify refinancing to a lower rate (so they do not have PMI insurance). We are seeing more & more that the longer you wait, the older comp's get in your neighborhood. Values can sometimes be on the decline so if you think you want to wait for the lowest rates to hit with your timing (like trying to time the stock market), you may be hurting yourself if the comp's in your neighborhood become old & outdated & not useable. Banks are looking for newer comp's & do not put as much consideration in older comp's. So if current data supports the value your looking for in refinancing, you may want to refinance now vs. waiting. If you wait too long the value you need may not be there in the future. As a loan officer I always have our appraiser do a quick check on value for my clients home before moving forward & having my clients pay the appraisal fee.

Dave Mully

Senior Loan Officer

Cell: 248.767.1950

info@davemully.com

www.davemully.com

We in the mortgage industry are waiting for the new programs that will allow many homeowners to refinance without the requirement of a new appraisal. This will open the door for many homeowners to lower their rate without the concern of what their home will appraise for. It helps us all to keep people in their homes as keeping values of homes in neighborhoods is important for all of us in protecting this large asset. Stay tuned!

Dave Mully

Senior Loan Officer

Cell: 248.767.1950

info@davemully.com

www.davemully.com

Jumbo rates have become very attractive for anyone out there with an above 5.75% rate. For a 5 to 7 yr fixed rate arm you can now realize savings of $30k to $50k over a 5 to 7 yr period. Call now for details!!

Dave Mully

Senior Loan Officer

Cell: 248.767.1950

info@davemully.com

www.davemully.com

 

Now this could change next week but currently Banks I work with are pulling a bit of a switch. The wholesale prices we monitor lately from Banks are pricing in a way to make it more difficult to offer "zero" point rates to our clients. In other words from what I have been seeing the last few weeks, the rates we can offer have a wider margin between a zero point rate & a rate with points. For example typically in the past buying your rate down with points might get you a 1/4% drop in rate for each point. Currently paying one point could drop you as much as a 1/2% or more in rate from the zero point rate. This makes it much more attractive to pay points if your rate can drop that much. Just something to keep in mind if your one of those who swear you would never pay any points, you might have to re-think that philosophy. This is not me trying to get clients to pay points just fact.

Dave Mully

Senior Loan Officer

Cell: 248.767.1950

info@davemully.com

www.davemully.com

With the mortgage market tightening up FHA mortgages are one of the best options out there for those who want to purchase a home with minimum down payment (only 3.5%). The rates are pretty much the same as conventional mortgages so your not being penalized that way. Closing cost are also the same. FHA appraisals also are not as strict as in the past, so if the home is not in perfect shape your not going to be subject to repairs like you may have been in the past. You can also have up to 6% in seller concessions to help with closing cost. All this means you can buy a home with as little as a few thousand dollars depending on sales price & achieve home ownership & the many tax benefits that go along with owning a home. In this market there are many good opportunities to find a good deal on a home. Your credit score can be below 700 & not hurt you like it may with a conventional mortgage. If you would like to get pre-approved or have any questions please contact:

Dave Mully

Senior Loan Officer

Cell: 248.767.1950

info@davemully.com

www.davemully.com