Note to Facebookers: While many of you receive my emailed Weekend Market Update and my Tips from the Trenches for Realtors and consumers, Mortgage News You Can Use is a new wrinkle on my part, sort of "tell them how you really feel" and giving information and advice at a more practical, and sometimes more political, level.

I still do not understand Facebook, but if my posting gets "sent" to you and it is unwelcome or just too much information, please let me know and I will figure out how to not send it to you.

By the way, if you make it all the way to my "Quote of the Day," you may notice a different Memorial Day sentiment.

Here goes:

This is the closest thing to a Wall Street-style bailout for regular Americans---a money deal that is all upside with no downside risk. 

Would you like to refinance your home loan for free? What that means is that your loan amount can stay the same as it is now, and it will not be necessary to roll closing costs into the loan amount, nor will it be necessary to pay costs out of pocket (besides appraisal).

What this means also is that any advantage you get from a refinance---going to an interest rate that is even lower than your present rate by only 0.25%---is worth doing with no downside!

RATES AT 2011 LOWS

Mortgage interest rates are at their lowest level since last fall. Since sweeping federal changes were mandated to Mortgage World on April 1, one unintended consumer benefit is that we have expanded "rebates" for First Community Mortgage borrowers.

For home buyers, also, I will help you and your Realtor negotiate with a seller to pay your closing costs---but if that fails, here is a way to get the lender to pay them for you.

While there is nothing new about "rating up" a loan to get the lender to cover some costs, and there is nothing new about paying a discount point to buy the rate down, what is new is that the rebates now are large enough to cover all closing costs for most conventional, FHA and VA loans.

While this refinance works for rate reduction, it also works for homeowners who would like to refinance and pay off some credit card, student loan or other debt, or pay for remodeling.

Please call me with any questions or for a free refinance analysis, or for a prospective buyer, a free pre-approval that you can use to negotiate a better deal from a seller.

REPUBLICANS SCREWING HOME BUYERS—WHAT ELSE IS NEW?

Republicans in the U.S. House are proposing to raise the FHA required down payment, which has drawn fire from the National Association of Realtors, the National Association of Home Builders and the Mortgage Bankers Association. Taking a cue from the right-wing Cato Institute, the bill which would also raise credit score requirements and lower loan limits. HUD and the markets have already done the heavy lifting on that.

DOLLAR DRIFTING DOWN

The dollar weakened on Friday, which was "liked" (no, not a Facebook like; a money like!) by stock markets, which were up for the day. While a weak dollar scenario is viewed as helping exports and multinational corporations---thus theoretically supporting stocks---the value of all things possessed by Americans decreases compared to the rest of the world.

While low inflation translates into low interest rates, which helps borrowing consumers, the weak dollar and low rate scenario favors bankers and smashes mom-and-pop retirees who must live off of their savings in safe instruments, such as CDs and money market accounts. Those are not paying yields for squat.

NEWS FLASH: THE GAME IS RIGGED

However, in a game rigged for the big boys, the low Fed funds rate (0% to 0.25%) allows the banks and investment bankers to borrow money for free and lend it back to us ordinary Americans for a big mark-up! Don't look surprised!

For instance, an investment banker can borrow $500 million from the Fed at 0.125%, for example, and then buy 10-year Treasury notes (or shorter term notes) that were yielding 3.06% as of Friday. That's "free money" in the spread.

At one point during the aftermath of the market meltdown, the Fed and U.S. Treasury were guaranteeing "buy-backs" from the banks, in case they needed to raise cash and decided they did not want to continue to hold the Treasury notes, or even if the resale value of the Treasuries dropped!

I am not sure if the "buy-back" program is still in place. But, have you ever heard of any such thing offered to regular American taxpayers? "We will lend you money so you can make money; but if you don't like it or the value of your holdings goes down, we will buy them back from you for what you paid."

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

30-Year Conventional Fixed

4.5% $100,000-$417,000

15-Year Conventional Fixed

3.75% $100,000-$417,000


30-Year FHA-100% VA

4.5% $100,000-$393,300


30-Year Jumbo Fixed

5.3% $417,001-$900,000

(Interest-only available-Call me)

Rural Development 100%

4.625%

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

"Can anything be stupider than that a man has the right to kill me because he lives on the other side of a river and his ruler has a quarrel with mine, though I have not quarreled with him?" --Blaise Pascal

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