News You Can Use from Gary Moore

Mortgage interest rates hit 2011 lows this week, giving a second chance to homeowners who either missed the refinance merry-go-round last year or now have a change in circumstance or a purpose for getting cash out.

We also have changed the way interest rates are expressed---we no longer have a "loan origination fee." Borrowers now actually may get a "rebate" on many loans.

So, an interest rate might be "4.5%" on the nose or "4.5% with a half rebate" as would be on an FHA loan being locked today. That is, 4.5% would be the rate, and on a $200,000 loan amount, the borrower gets back a rebate of $1,000 to use toward paying closing costs.

All conventional, FHA and VA loans are currently priced that way. For simplicity, I do not express rebate amounts in programs cited below.

If you want to get super aggressive with rate pricing, a 5/1 ARM is 3.25%. Do not overlook using an adjustable rate mortgage, based on your objectives and time you believe you will remain in the home or other factors.

I rarely talk this openly about rates, because you and every borrower are unique. Determining the best mortgage strategy for your objective and your financial picture is not a cookie cutter answer, and many factors affect the rate.

And, I do not want to encourage borrowers to shop for a loan by "rate quote" like shopping for gas by the gallon or hamburger by the pound---those folks are missing a key piece of the loan process.

Working with a direct lender with local operations and underwriting is key to getting your loan closed properly and on time. And, receiving a good referral to a mortgage professional is recommended.

But, the point of talking rate at this time is that things have changed. That was prompted by federal regulation changes, and we chose to streamline the way we express rate pricing by not having a 1% origination fee or a discount---unless a borrower chooses to buy a rate down further.

U.S. stocks rose on Friday after losing about 1% for the week. The Labor Department reported that the private sector added about 244,000 jobs in April. Unemployment claims for the last week of April rose to a seasonally adjusted 474,000, the highest mark since August, and unemployment as reported edged up to 9%.

Gold, oil and other commodities pulled back for the week after being in rally mode for many months. Oil dropped to about $97 a barrel or a drop of about 15% for the week. The U.S. dollar was strong for the week after a spell of weakness that corresponded with commodities rising.

The 10-year Treasury dropped to a yield of 3.15%.

Have you noticed that when there is turmoil in the Middle East that it is instantly reflected in gas prices at the pump in Tennessee---although we are pumping gas that was refined months ago and that cost much less as crude? On the other hand, when crude prices decline, I do not see gas prices drop, do you?

Low interest rates and low home prices present an opportunity for real estate home buyers and investors. Call me for details about an investor program that requires only 10% down and has no mortgage insurance.

Gary Moore 615-579-8658, email Gary@BrentwoodHomeLoan.com. Web site: www.BrentwoodHomeLoan.com

30-Year Conventional Fixed

4.625% $100,000-$417,000

15-Year Conventional Fixed

3.99% $100,000-$417,000


30-Year FHA-100% VA

4.5% $100,000-$393,300


30-Year Jumbo Fixed

5.4% $417,001-$900,000

(Interest-only available-Call me)

Rural Development 100%

5.25%

THDA Great Start 100% with Gift

5.35% $100,000-$393,300

4% of loan amount Gift

Call for free pre-approval and to discover

the best financing for you!

...by Gary Moore

Mortgage Planner, First Community Mortgage

...a subsidiary of First Community Bank

Cell: 615-579-8658 Toll-free fax: 866-321-6513

Quote of the Day

"Genius begins great works; labor alone finishes them." –Joseph Joubert

Visit my mortgage website:
http://www.BrentwoodHomeLoan.com

Market Update informs consumers and Realtors on market trends, offers subjective opinions and is not a quote for a unique borrower. Reply "remove" with your name and email address to discontinue Update.