The Year Ahead
The future of the economy will continue to be debated. There is no certainty in predictions but the recent data, Fed statements, and Fed action clearly signal continued signs of improvement. The biggest concern recently has been the extreme stock volatility. Stocks took a beating in the months prior to the Christmas Holiday only to bounce back over 1000 points the day after. Continued volatility will do little to ease investor fears.
Recent analysis of Fed statements and projections predicts fewer rate hikes in 2019 but doesn’t remove them completely. Many analysts calculate there will only 2 hikes in 2019 as opposed to predictions a few months ago of 3 or more. The effect on the housing sector, which remains a vital part of the economy, remains uncertain. However, the last thing the housing market needs is higher rates.
What we can be certain of is the likeliness that mortgage interest rates will become volatile as we get closer to the next Fed rate hike. Historically, mortgage interest rates seem to improve slowly. In contrast, when rates increase, they often do so quickly and furiously. One negative day often erases a week of positive improvements.
The Fed isn’t the only player in the financial markets and there are many others buying and selling securities. Remember that the Fed does not directly dictate that mortgage interest rates will be at a certain rate. Rates are determined by the supply and demand for mortgage-backed securities and can change rapidly hour to hour. Now is a great time to take advantage of mortgage interest rates at these still favorable levels and avoid exposure to future market volatility.
2018 Has been a great year with new products and increased loan limits! This has allowed us to help more clients with these changes. Also with Speed to Respond as one of our core values we ensure clients and agents are informed in a timely manner and transactions close on time. We are looking forward to a successful 2019!
Here's Wishing you A Very Happy New Year!
Dana Bain & Robin Dunbar Bain
Mortgage rates held on to their recent improvements today after the important Employment Situation (the big "jobs report") showed November job creation was lower than expected. In general, weaker job creation is good for interest rates because it speaks to slower economic growth and inflation (both of which are enemies of rates). This report was particularly important because a strong result would have cast doubt on several speeches from members of the Federal Reserve. Those speeches have warned about slower economic growth in 2019 and the potential for fewer rate hikes than previously anticipated.
There were no clear winners or losers at first--probably because job creation is still historically solid. Additionally, the unemployment rate remained ultra low, and wage growth remained above 3.0% on an annual basis. Markets were indecisive at first, but stocks and bond yields eventually began to move lower. Multiple mortgage lenders offered small improvements on rate sheets in the afternoon, after the bond market gained enough ground. Today's mortgage rates are the lowest in months and current trends are about as strong as they've been in more than a year.
Mortgage bond prices finished the week near unchanged despite some sharp swings throughout the week. Rates fell slightly the first portion of the week amid no data and a strong stock selloff. Many of the improvements were erased Wednesday afternoon and Thursday morning as stocks recovered some of the earlier losses. Durable goods orders rose 0.8%. Analysts expected a 1% decrease. Weekly jobless claims were 215K, expected 214K. Continuing claims were 1.636M vs the 1.653M expected. Gross domestic product rose 3.5% versus the expected 3.3% increase. Consumer sentiment was 98.6 versus the expected 99. Stocks sold off again Friday morning. Mortgage interest rates finished the week unchanged to better by 1/8 of a discount point.
ReleaseDate & Time
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A Sure Thing
Timing is one of the most important factors in success. Unfortunately, knowing the perfect time to lock in a loan is impossible until after the fact. While analysts constantly try to predict the future, the bottom line is they continually fall short in terms of accuracy. The Fed is a prime example of this. They constantly adjust inflation expectations and rate hikes accordingly. Mortgage rates remain historically favorable and are a sure thing. Floating is risky.
Hamden County Agawam 01001, Blanford 01008, Bondsville 01009, Brimfield 01010, Chester 01011, Chicopee 01013, Chicopee 01014, Chicopee 01020, Chicopee 01021, Chicopee 01022, East Longmeadow 01028, Feeding Hills 01030, Granville 01034, Hampden 01036, Holyoke 01040, Holyoke 01041, Ludlow 01056, Monson 01057, Palmer 01069, Russell 01071, Southwick 01077, Thorndike 01079, Three Rivers 01080, Wales 01081, Westfield 01085, Westfield 01086, Wilbraham 01095, Woronoco 01097, Springfield 01101, Springfield 01102, Springfield 01103, Springfield 01104, Springfield 01105, Springfield 01106, Longmeadow 01107, Springfield 01108, Springfield 01109, Springfield 01111, Springfield 01115, Longmeadow 01116, Springfield 01118, Springfield 01119, Springfield 01128, Springfield 01129, Springfield 01138, Springfield 01139, Springfield 01144, Indian Orchard 01151, Springfield 01152, Springfield 01199, Holland 01521, West Springfield 01089, West Springfield 01090,
Middlesex County Ashby 01431, Ayer 01432, Devens 01434, Groton 01450, Littleton 01460, Pepperell 01463, Shirley, 01464, Townsend 01469, Groton 01470, Groton 01471, West Groton, 01472, West Townsend 01474, Framingham 01701, Framingham 01702, Framingham 01703, Framingham 01704, Framingham 01705, Acton 01718, Boxborough 01719, Acton 01720, Ashland 01721, Bedford 01730, Hanscom AFB 01731, Carlisle 01741, Concord 01742, Holliston 01746, Hopkinton 01748, Hudson 01749, Marlborough 01752, Maynard 01754, Natick 01760, Sherborn 01770, Lincoln 01773, Stow 01775, Sudbury 01776, Wayland 01778, Woodville 01784, Woburn 01801, Burlington 01803, Burlington 01805, Woburn 01813, Woburn 01815, Billerica 01821, Billerica 01822, Chelmsford 01824, Dracut 01826, Dunstable 01827, Lowell 01850, Lowell 01851, Lowell 01852, Lowell 01853, Lowell 01854, North Billerica 01862, North Chelmsford 01863, North Reading 01864, Nutting Lake 01865, Pinehurst 01866, Reading 01867, Tewksbury 01876, Tyngsboro 01879, Wakefield 01880, Westford 01886, Wilmington 01886, Woburn 01888, North Reading 01889, Winchester 01890, Cambridge 02138, Cambridge 02139, Cambridge 02140, Cambridge 02141, Cambridge 02142, Somerville 02143, Somerville 02144, Somerville 02145, Malden 02148, Everett 02149, Medford 02153, Medford 02155, West Medford 02156, Melrose 02176, Stoneham 02180, Cambridge 02238, Waltham 02451, Waltham 02452, Waltham 02453, Waltham 02454, North Waltham 02455, New Town 02456, Newton 02458, Newton Center 02459, Newtonville 02460, Newton Highlands 02461, Newton Lower Falls 02462, Newton Upper Falls 02464, West Newton 02465, Auburndale 02466, Chestnut Hill 02467, Waban 02468, Watertown 02471, Watertown 02472, Arlington 02474, Arlington Heights 02475, Arlington 02476, Watertown 02477, Belmont 02478, Waverley 02479, Weston 02493, Nonantum 02532, Lexington 02420, Lexington 02421
Essex County Andover 01899, Lynn 01901, Lynn 01902, Lynn 01903, Lynn 01904, Lynn 01905, Saugus 01906, Swampscott 01907, Nahant 01908, Lynn 01910, Amesbury 01913, Beverly 01915, Boxford, 01921, Byfield 01922, Danvers 01923, Essex 01929, Gloucester 01930, Gloucester 01931, Hamilton 01936, Hawthorne 01937, Ipswich 01938, Lynnfield 01940, Manchester 01944, Marblehead 01945, Middleton 01949, Newburyport 01950, Newbury 01951, Salisbury 01952, Peabody 01960, Peabody 01961, Prides Crossing 01965, Rockport 01966, Rowley 01969, Salem 01970, Salem 01971, South Hamilton 01982, Topsfield 01983, Wenham 01984, West Newbury 01985, Andover 01810, Andover 01812, Haverhill 01830, Haverhill 01831, Haverhill 01832, Georgetown 01833, Groveland 01834, Haverhill 01835, Lawrence 01840, Lawrence 01841, Lawrence 01842, Lawrence 01843, Methuen 01844, North Andover 01845, Merrimac 01860, West Boxford 01885, Andover 05501,
Norfolk County Bellingham 02019, Canton 02020, Cohasset 02025, Dedham 02026, Dover 02030, East Walpole 02032, Foxboro 02035, Franklin 02038, Medfield 02052, Medway 02053, Millis 02054, Norfolk 02056, Norwood 02062, Sharon 02067, Sheldonville 02070, South Walpole 02071, Stoughton 02072, Walpole 02081, Westwood 02090, Wrentham 02093, Quincy 02169, Quincy 02170, Quincy 02171, Braintree 02184, Braintree 02185, Milton 02186, Milton Village 02187, Weymouth 02188, East Weymouth 02189, South Weymouth 02190, North Weymouth 02191, Avon 02322, Holbrook 02343, Randolph 02368, Brookline 02445, Brookline 02446, Brookline Village 02447, Babson Park 02457, Wellesley Hills 02481, Wellesley 02482, Needham 02492, Needham Heights 02494,
Worcester County Barre 01005, Hardwick 01037, Oakham 01068, South Barre 01074, Warren 01083, West Warren 01092, Wheelwright 01094, Athol 01331, Petersham 01366, Royalston 01368, Fitchburg 01420, Ashburnham 01430, Baldwinville 01436, East Templeton 01438, Gardner 01440, Westminster 01441, Harvard 01451, Hubbardston 01452, Leominster 01453, Lunenburg 01462, Still River 01467, Templeton 01468, Winchendon 01475, Auburn 01501, Berlin 01503, Blackstone 01504, Boylston 01505, Brookfield 01506, Charlton 01507, Charlton City 01508, Charlton Depot 01509, Clinton 01510, East Brookfield 01515, Douglas 01516, Fiskdale 01518, Grafton 01519, Holden 01520, Jefferson 01522, Lancaster 01523, Leicester 01524, Linwood 01525, Manchaug 01526, Millbury 01527, Millville 01529, New Braintree 01531, Northborough 01532, Northbridge 01534, North Brookfield 01535, North Grafton 01536, North Oxford 01537, North Uxbridge 01538, Oxford 01540, Princeton 01541, Rochdale 01542, Rutland 01543, Shrewsbury 01545, Southbridge 01550, South Grafton 01560, Spencer 01562, Sterling 01564, Sturbridge 01566, Upton 01568, Uxbridge 01569, Webster 01570, Dudley 01571, Westborough 01581, West Boylston 01583, West Brookfield 01585, West Millbury 01586, Whitinsville 01588, Sutton 01590, Worcester 01601, Worcester 01602, Worcester 01603, Worcester 01604, Worcester 01605, Worcester 01606, Worcester 01607, Worcester 01608, Worcester 01609, Worcester 01610, Worcester 01611, Worcester 01612, Worcester 01613, Worcester 01614, Worcester 01615, Worcester 01653, Worcester 01655, Bolton 01740, Fayville 01745, Hopedale 01747, Mendon 01756, Milford 01757, Southborough 01772, Plainville 02762, Gilbertville 01031,
Suffolk County Boston 02108, Boston 02109, Boston 02110, Boston 02111, Boston 02112, Boston 02113, Boston 02114, Boston 02115, Boston 02116, Boston 02117, Boston 02118, Roxbury 02119, Roxbury Crossing 02120, Dorchester 02121, Dorchester 02122, Boston, 02123, Dorchester Center 02124, Dorchester 02125, Mattapan 02126, South Boston, 02127, East Boston 02128, Charlestown 02129, Jamaica Plain 02130, Roslindale 02131, West Roxbury 02132, Boston 02133, Allston 02134, Brighton 02135, Hyde Park 02136, Readville 02137, Chelsea 02150, Revere 02151, Winthrop 02152, Boston 02163, Boston 02196, Boston 02199, Boston 02201, Boston 02203, Boston 02204, Boston 02205, Boston 02206, Boston, 02210, Boston 02211, Boston 02212, Boston 02215, Boston, 02217, Boston 02222, Boston 02241, Boston 02266, Boston 02269, Boston 02283, Boston 02284, Boston 02293, Boston 02297, Boston 02298,
Plymouth County Brockton 02301, Brockton 02302, Brockton 02303, Brockton 02304, Brockton 02305, Bridgewater 02324, Bridgewater 02325, Bryantville 02327, Carver 02330, Duxbury 02331, Duxbury 02332, East Bridgewater 02333, Elmwood 02337, Halifax 02338, Hanover 02339, Hanson 02341, Middleboro 02344, Manomet 02345, Middleboro 02346, Lakeville 02347, Lakeville 02348, Middleboro 02349, Monponsett 02350, Abington 02351, North Carver 02355, North Pembroke 02358, Pembroke 02359, Plymouth 02360, Plymouth 02361, Plymouth 02362, Kingston 02364, South Carver 02366, Plympton 02367, Rockland 02370, West Bridgewater 02379, White Horse Beach 02381, Whitman 02382, East Wareham 02538, Onset 02558, Wareham 02571, West Wareham 02576, Marion 02738, Mattapoisett 02739, Rochester 02770, Accord 02018, Brant Rock 02020, Greenbush 02040, Green Harbor 02041, Hingham 02043, Hingham 02044, Hull 02045, Humarock 02047, Marshfield 02050, Marshfield Hills 02051, Minot 02055, North Marshfield 02059, North Scituate 02060, Norwell 02061, Ocean Bluff 02065, Scituate 02066,
Bristol County Mansfield 02048, Easton 02334, North Easton 02356, North Easton 02357, South Easton 02375, Assonet 02702, Attleboro 02703, Chartley 02712, Dartmouth 02714, Dighton 02715, East Freetown 02717, East Taunton 02718, Fairhaven 02719, Fall River 02720, Fall River 02721, Fall River 02722, Fall River 02724, Somerset 02725, Somerset 02726, New Bedford 02740, New Bedford 02741, New Bedford 02742, Acushnet 02743, New Bedford 02744, New Bedford 02745, New Bedford 02746, North Dartmouth 02747, South Dartmouth 02748, North Attleboro 02760, North Attleboro 02761, Attleboro Falls 02763, North Dighton 02764, Norton 02766, Raynham 02767, Raynham Center 02768, Rehoboth 02769, Seekonk 02771, Swansea 02777, Berkley 02779, Taunton 02780, Westport 02790, Westport Point 02791,
Dukes County Cuttyhunk 02713, Chillmark 02535, Edgartown 02539, Menemsha 02552, Oak Bluffs 02557, Vineyard Haven 02568, West Tisbury 02575,
Barnstable County Buzzards Bay 02532, Cataumet 02534, East Falmouth 02536, East Sandwich 02537, Falmouth 02540, Falmouth 02541, Buzzards Bay 02542, Woods Hole 02543, Monument Beach 02553, North Falmouth 02556, Pocasset 02559, Sagamore 02561, Sagamore Beach 02562, Sandwich 02563, West Falmouth 02574, Hyannis 02601, Barnstable 02630, Brewster 02631, Centerville 02632, Chatham 02633, Centerville 02634, Cotuit 02635, Cummaquid 02637, Dennis 02638, Dennis Port, 02639, East Dennis 02641, Eastham 02642, East Orleans 02643, Forestdale 02644, Harwich 02645, Harwich Port 02646, Hyannis Port 02647, Marstons Mills 02648, Mashpee 02649, North Chatham 02650, North Eastham 02651, North Truro 02652, Orleans 02653, Osterville 02655, Provincetown 02657, South Chatham 02659, South Dennis 02660, South Harwich 02661, South Orleans 02662, South Wellfleet 02663, South Yarmouth 02664, Truro 02666, Wellfleet 02667, West Barnstable 02668, West Chatham 02669, West Dennis 02670, West Harwich 02671, West Hyannisport 02672, West Yarmouth 02673, Yarmouth Port 02675,
Nantucket County Nantucket 02554, Siasconset 02564, Nantucket 02584,
Hampshire County Amherst 01002, Amherst 01003, Amherst 01004, Belchertown 01007, Chesterfield 01012, Cummington 01026, Easthampton 01027, Goshen 01032, Granby 01033, Hadley 01035, Hatfield 01038, Haydenville 01039, Huntington 01050, Leeds 01053, North Amherst 01059, Northampton 01060, Northampton 01061, Florence 01062, Northampton 01062, Northampton 01063, North Hatfield 01066, Plainfield 01070, Southampton 01073, South Hadley 01075, Ware 01082, West Chesterfield 01084, West Hatfield 01088, Williamsburg01096, Worthington 01098, Middlefield 01243,
Franklin County Leverett 01054, Shutesbury 01072, Whately 01093, Greenfield 01301, Greenfield 01302, Ashfield 01330, Bernardston 01337, Buckland 01338, Charlemont 01339, Colrain 01340, Conway 01341, Deerfield 01342, Erving 01344, Heath 01346, Lake Pleasant 01347, Millers Falls 01349, Monroe Bridge 01350, Montague 01351, Gill 01354, New Salem 01355, Northfield 01360, Orange 01364, Rowe 01367, Shelburne Falls 01370, South Deerfield 01373, Sunderland 01375, Turners Falls 01376, Warwick 01378, Wendell 01379, Wendell Depot 01380,
Berkshire County Pittsfield 01201, Pittsfield 01202, Pittsfield 01203, Adams 01220, Ashley Falls 01222, Becket 01223, Berkshire 01224, Cheshire 01225, Dalton 01226, Glendale 01229, Great Barrington 01230, Hinsdale 01235, Housatonic 01236, Lanesborough 01237, Lee 01238, Lenox 01240, Lenox Date 01242, Mill River 01244, Monterey 01245, North Adams 01247, North Egremont 01252, Otis 01253, Richmond 01254, Sandisfield 01255, Savoy 01256, Sheffield 01257, South Egremont 01258, Southfield 01259, South Lee 01260, Stockbridge 01262, Stockbridge 01263, Tyringham 01264, West Stockbridge 01266, Williamstown 01267, Windsor 01270, Drury 01343, East Otis 01029,
you’re looking for a mortgage you can use a mortgage broker or deal
directly with the bank. Even if you do have a bank you've worked with, you
should consider shopping around anyway—don’t trust your bank is automatically
giving you the best deal.
mind that when you're on your own, comparing rates and closing cost and
terms can be time consuming and complicated. A second opinion could save your
typically offers just a few mortgage options, so in order to find the best
one, you will have to research them each individually.
Pros of Using a Broker
Brokers are mortgage experts . They know the market, follow trends
and know which institutions offer which mortgages products. They'll also know
which lenders are offering discounts or deals.
brokers can save you time. A smart broker can identify the most
appropriate lender for your specific circumstances and know which mortgages
will be most appropriate. They also handle the hassle
of paperwork and interaction with lenders, which can help
relieve stress from the process.
saving of time, work and stress is a big factor for many individuals who
use a mortgage broker. Some brokers develop personal and professional
relationships with lenders, which may accelerate the application process.
Top 10 Reasons to Choose a Mortgage Broker
vs a Banker, Dana Bain
Few people realize there are large
differences when choosing what type of company to get your new mortgage
from. I have worked on both sides of the coin and will recommend to
anyone: Find the best Mortgage Broker you can.
10. Licensing Qualifications –
Brokers have many more laws to abide by and are more heavily licensed than
All Brokers are required to be SAFE Act compliant including being registered
with the Nationwide Mortgage Licensing System. The new licensing
requirements: 20 hours of education, FBI Fingerprint scans, Submission of a
credit report, and a satisfactory score on the Federal and State Licensing
Exam. Once licensed the broker must complete 8 hours of continuing education to
maintain their approved status. Not all Bankers are required to meet the
above guidelines; they can operate under the company licenses without being
9. Full Disclosure – All
Brokers must be completely transparent when disclosing the closing costs to the
borrower, even including their compensation. Bankers Do Not, nor is
it figured into the fees they show you.
We have to show you how much we make during the transaction and our fees are
also considered when calculating whether or not the loan passes the Qualified
Mortgage Rules Fee Cap. As of Jan 10th 2014, there is a 3% cap
to the amount of fees that can be charged on a loan that is equal to or greater
than $100k. Brokers are not allowed to collect compensation from both the
borrower and the lender in the same transaction. We must choose one or
the other, tell the borrower which and then show them the amount we are
collecting. Bankers do not have to disclose their compensation and their
compensation is not figured into the new Qualified Mortgage Rules Fee
Cap. Bankers do not have to let you know their compensation nor is it
regulated under the new federal laws.
8. Ability to Shop – Brokers have
various lenders in their portfolio, so they can effortlessly shop for
you. Bankers cannot shop around and sometimes are unable to even
get your loan approved.
Brokers can pair you with a lender that offers the best rates and costs for
your situation and tailor the loan to meet your needs. Bankers are
usually stuck selling one product to everyone with no option to shop you around
and find you the best fit.
7. Wholesale Vs. Retail – Brokers
sell wholesale, bankers sell retail.
you use a Broker it’s like shopping at Costco or Sam’s club versus going to
Walmart or Target. Everyone knows that the wholesale stores offer better
deals than their retail counterparts.
6. Smaller Company means Better Customer
Service – Brokers have more time to work on a personal level. Bankers
work in volume and not have time to provide personal service.
Most Brokers work for smaller local companies that focus on customer service
instead of margins and bottom lines. Those large Banks sure have big
names, but tend to do loans in volume to make investors and stockholders
happy. A smaller local company is more than likely focusing on building
customer relationships in the community than quarterly profit and loss
5. Faster and Easier Process – A
common misconception today is that a broker has no control over his business,
but must rely on the actual lender to close the loan. We have competitors
time and time again tell our clients if they want the loan closed then they
better choose a banker.
we have more control over our loans because we do all the beginning initial pre
approvals and qualifications. Before we can submit a file to a lender it
must be completely scrubbed by us and been run through Fannie Mae’s Automated
Approval system. This ensures the file is approved and is ready to be
underwritten by the lender. Most lenders hold brokers to high standards
when submitting files that don’t close and a dirty file could cost us our
relationship with that lender. Once in the door approvals take 24-48
hours, then we can start moving a loan toward closing. Fact is; as a
Broker I can get a loan approved and closed before most Bankers can get an
approval. Need a loan closed in just a couple of weeks instead of a
couple of months, then find a mortgage broker to work with.
4. Broker Hours vs Banker Hours – My
hours don’t end when the Bank closes, therefore I am here to help my clients at
As an independent Mortgage Broker I am always available to answer your
questions and take your calls. Most of my business is done actually done
before 9am and after 5pm, which is more convenient to the borrower. When the
bank closes, everybody goes home and you get the answering machine.
3. Knowledge – Brokers are usually
more educated and experienced because of the strict licensing requirements and
Strict licensing requirements and qualifications have weeded out most of the
fly by night Brokers. Those of us who are left have been in the industry
for a number of years and have continued to be successful despite the growing
pangs the industry has gone through since 2010. Most companies won’t hire
anyone without years of experience and a proven track record for success.
Banks are much more willing and likely to hire a newbie because they don’t have
to be licensed. Those few brokers who are left standing are the best of
the best in this industry.
2. Lowest fees – Since Mortgage Broker’s
Compensation is regulated by law we have seen these fees come way down and
benefit the borrowers.
most of my deals I rely on my lender paid compensation to earn my
commission. This means I charge ZERO fees to the borrower, so all they
are left with is Lender, Title and appraisal fees. There are no points or
origination and usually I can offer them a credit toward their closing costs to make them
even lower. The way it works is that each broker company must decide on a
compensation plan with their lender of choice. This is done usually once
a quarter or monthly. So every loan we bring to our lenders have a
predetermined % of compensation we can expect to earn. That
means no matter which rate you choose, I am paid the same amount. No
reason to steer you into a higher rate to make more money. We have our
comp plans fairly low in the market, so when we offer a rate there is usually
money still left over that goes to our clients as a credit to lower their
1. Lowest Rates – Compounding
on the lower fees is of course what rates come at those fees. Since we
are a smaller company with less overhead, we focus on the lowest rates.
The Big Banks have a lot of overhead; buildings, light bills, phone bills,
tons of staff, and the list keeps going. In order to compensate for their
rising costs they have to make it up somewhere, usually from your pocket in the
form of a higher rate. Simply put, I don’t have to pay for all that stuff
so I can give you the best rate and the lowest cost.
License Number Broker MB1498 Licensed by the State of New Hampshire
Banking Department- License Number 5430-MBR Premiere Mortgage Services
Inc. NMLS #1498 is a licensed broker and not a lender.We
arrange but do not make loans. Dana Bain NMLS #18693
Robin Dunbar Bain NMLS #18699
Here is the link to the National Mortgage Licensing System http://www.nmlsconsumeraccess.org
See this great video: https://www.youtube.com/watch?v=sGGDVcQJk6g
condo is a lot like purchasing a "regular" home, but
with one big difference -- mortgages are tougher to come by.
impose a different set of rules on you when you buy a condo. They may sometimes
increase your interest rate.
With condos and co-ops, it’s not just your creditworthiness the lender has
to worry about. It must also verify the fiscal and physical health of
the entire development into which you're buying.
Conforming mortgage rules for condos
The majority of homebuyers use "conforming"
This means that their loan
purchased by one of two government-sponsored entities -- Fannie Mae or Freddie
Mac -- and that the loan meets the two group's minimum standards.
Fannie Mae and Freddie Mac use the
term "warrantable" to describe condominium projects and
properties against which they'll allow a mortgage. See: https://www.fanniemae.com/content/guide/selling/b4/2.1/01.html
Condo projects and properties
which don't meet Fannie Mae and Freddie Mac warrantability
standards are known as non-warrantable.
Non-warrantable condos are more
challenging to finance.
Typically, a condo is considered
Common non-warrantable properties
include condotels, time shares, fractional ownership properties, and other
projects which require owners to join an organization, such as a golf club.
Manufactured housing projects and
other developments which are not legally considered real estate are also excluded
from warrantability. These include house boat and motorhome projects.
When buying a condo, ask your real
estate agent or lender about the building's warrantability before you go any
A warrantable condo typically gets
you lower mortgage rates than a non-warrantable condo. Warrantable condos
create lower risk for the bank.
PREMIERE MORTGAGE SERVICES INC.
11 Malvern Hill Rd
Sterling, MA 01564-2829
License Number Broker MB1498
Dunbar Bain NMLS #18699
Licensed by the State of New Hampshire Banking Department- License Number
5430-MBR Premiere Mortgage Services Inc. NMLS #1498 is a licensed broker and
not a lender. We arrange but do not make loans.
The cake has been cut, the thank you notes written, and the last vendor has (finally) been paid. Depending on your budget and style, getting married may be one of the most expensive events of your life. The average wedding in the United States in 2016 cost $26,720, and even if you had help from family and loved ones, you probably had to save up quite a bit for the big day.
After spending a lot of money on a major life milestone, it might be hard to know what to save for, or to even want to save. While you can certainly give yourself a breather, don’t neglect your savings account.
If you built up good saving habits in preparation for your wedding, like paying yourself first or utilizing automatic savings, you don’t want to lose steam, particularly if you want to move towards other important life milestones. Here are 5 things to consider starting to save for:
It’s great to take some time off after your wedding to relax and recharge. But it’s becoming more popular to put off the honeymoon, which some have coined the “later-moon.” There are a lot of reasons it might make sense for you to put off your honeymoon. One of our favorites? More time to save. If you’re already spending a lot of money on a wedding, it can be hard to save up for the honeymoon you want to take. You don’t have to compromise just to get away the day after you say “I do!” Once the pressure of paying for the wedding has passed, you can devote some more dedicated saving power to your dream vacation. Plus, you can take some time to rest from any wedding craziness, helping you fully enjoy your delayed honeymoon.
We know not all couples follow the “traditional” milestone track – get married, buy a house, have kids. But even if you already own a home, getting married means you might be reprioritizing. Your current living situation might not be ideal anymore for a variety of reasons, like needing more space or having different tastes. Whether you already own or you’re first-time homebuyers, consider saving money for a house.
Are you still driving your college clunker? Channel your new-found saving skills into saving for a new ride. You may be combining finances for the first time, which could help you afford an upgrade. If you’re a two-car household, talk to your partner about which car will need to be replaced first. You may also want to consider varying what kind of cars you own. If both of you own smaller cars, you might want to save up for a vehicle with more cargo space for big purchases, or to fit more people. Which leads to…
Before the wedding bells finished ringing, you probably already had one nosy family member ask you, “When are you going to have kids?” But even if they aren’t on the direct horizon, if you plan on having kids it doesn’t hurt to start saving now. According to the USDA, the average cost of raising a child born in 2015 was $233,610, and that’s without any college expenses. While those costs will be spread out over 18 years, planning ahead of time could ease the financial burden of starting a family.
If you’re enjoying the early days of wedded bliss, you probably aren’t think about retirement. But now’s actually a great time to consider how much you’re saving for retirement. In addition to banking on good savings habits, you likely need to swing by the HR department at work to update your marital status. While you’re there, get a refresher on any retirement plans, like 401ks, your company offers, as well as if they’re willing to match your contribution.
Mortgage companies, Banks and Credit Unions are subject to potential
daily and even hourly shifts in the market. Interest rates fluctuate on
the simple principal of supply and demand.
Mortgage rates trade based on Mortgage Back Securities and The Bond
Markets as well as the overall economy. The vehicles that mortgage
rates are based on are considered very conservative, stable and tend not
to have the wild swings that one would find in the Stock Market. If
the Stock market begins to see large increases or decreases, Investors
will shift Billions of dollars in and out of the Stock Market and move
them in to the Mortgage Markets. This will cause mortgage rates to
either rise or fall. Stock Market tanks, good news for Mortgage Rates,
Stock Market rallies and rates suffer. Investors and Traders will
constantly shift funds out of the riskier stocks into the safe haven of
the mortgage markets. These shifts can occur as little as once a day or
in some cases can happen multiple times during a trading day. Thus
causing mortgage rates to possibly change multiple times in a day.
These markets are affected globally as well; so even after the
markets are closed in US, whatever is happening in Europe, Asia and
around the world will cause our markets to move one way or the other.
Here are some of the variables that are being watched in today’s market:
Any of these items can trigger a rally one way or another. Even a
simple comment at a breakfast meeting by the President, the Fed Chairman
or someone in power is enough to influence the markets.
Additional Mortgage Rate and Index Information:
To help us understand why mortgage rates change, it is important to
realize that there is not one interest rate, but multiple ones. Below
are some of the most prevalent interest rates and indexes that also have
an impact on mortgage rates:
Prime rate – This rate is often offered to a bank’s best
customers. If you are shopping for a home equity line of credit, then it
is important to familiarize yourself with the prime rate. HELOCs are
typically based upon the prime rate -plus or minus a certain percentage.
LIBOR – Stands for London Inter-bank Offered Rates. Libor
rates are based upon the rates that a select group of London Banks offer
each other for inter-bank deposits. Many adjustable rate mortgage
programs use the Libor index.
Treasury bill rates ”T-bills” and Treasury Notes –
These are short-term and intermediate debt instruments used by our
Government to finance their debt. The treasury index is based upon the
auctions of U.S. Treasury bills or on the Treasury’s yield curve. Like
the LIBOR index, the U.S. Treasury index is a popular index for
adjustable rate mortgage products. Also, the Twelve Month Treasury
Average (12 Month MTA) is a popular index which is based upon the twelve
month average of the monthly yields of U.S. Treasury securities
(maturing in one year). The MTA is a popular choice for option arm
Treasury Bonds – Unlike T-bills and Treasury Notes, treasury
bonds are long-debt instruments. These bonds are used by the U.S.
Government to finance its debt.
Cost of Savings Index – often referred to as the COSI index.
This index is based upon the annual average of interest rates on World
Savings deposit accounts. The average is pulled on the last day of each
11th District Cost of Funds – Often referred to as the COFI
index – The COFI index is based upon the average of the borrowing cost
to member banks of the Home Loan Bank of San Francisco of the 11th
District. Unless you are shopping for an option arm mortgage, it is
unlikely that your loan will be affected by this rate.
Certificates of Deposit Index – Often referred to as the CODI
index – this index is arrived at by calculating the average of the past
twelve months rates of 3 month CD rates.
Federal Funds Rate – The fed funds target rate is the rate
which federally chartered banking institutions lend balances to other
depository banks overnight.
This is a lot of information to weigh each day when calculating
mortgage rates. In general, most Banks, Investors, Lenders etc. will
set rates around 10:30am once most of the morning economic reports have
been released and the markets have had time to react to the
information. In a calm trading day on Wall Street, these rates would be
good for that day.
In a day where lots of Economic reports and World events are occurring,
these rates can be reset a few times as the Markets fluctuate. It is
important to call your lender or bank often to check on these rates as
they can and will change. It also important not to follow online rate
sites that may be posting Average Rates as this information can be old
as well a different Financial Picture then you may have. The Freddie
Mac rates are based on closed loans from last week and an average of .7
Points of fees in the rate. This may give you a range, but not accurate
enough to base your mortgage payment on or what is happening today in