Rates are flat today. Mortgage bonds are in the negative territory, but are gaining some traction. Positive earnings from IBM, Coca Cola and Wells Fargo are helping the stock market, which we know hurts bonds and raises rates eventually. Be ready. Today’s comparison mortgage rates with no lender fees are 4.5% on a 30 year, 3.625% on a 15 year and 3% on a 5/1 ARM. (click here for details).
It will help you to know what kind of borrower banks are looking for so you can negotiate a better deal.
If you are doing a purchase transaction with good credit, W2 income and are putting at least some money down for your purchase, congratulations you are officially the prettiest girl at the dance! Now it’s time to play hard to get and negotiate! (Tomorrow I’m going to talk about the nerdy kid in the corner)
Find out what that means in today’s episode:
Check out how one man in Texas got a $330,000 house for $16. Click here to read more. Is this a flaw in the mortgage system or a ingenious way to get a new home? I want to know what you think!!
The prettiest girls (see above) always have more options and competition for their attention. I want to make sure you know if you are one of them, you should use it to your advantage to negotiate that best deal.
I am sure you ladies know what I means, but just in case here is what makes this particular loan the most desirable loan on the market right now.
1. Lack of Appraisal Issues
Purchase transactions don’t typically fall out of the pipeline due to appraisal issues. Sellers can lower the price if they need to, making it a more flexible position.
2. Good Credit
These loans have less issues in underwriting.
3. W2 Income
It’s easier to figure out and predict. Self employed individuals can have nightmare tax returns.
4. It’s a Purchase Transaction!
This is the biggest reason in my opinion. When problems occur in underwriting like we all know they do, a purchase transaction borrower will do what it takes to get the loan done because they need a place to live. A refinance loan may just say screw it because they already live there and it’s not worth the hassle.
Stay tuned! Tomorrow we will discuss the nerdy kid in the corner with limited options or the least desirable loan in todays market.
Also, if you get a chance, I would love it if you could help me in my dream to bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter. Let’s change the way people shop for a mortgage…forever!
See you tomorrow!
PS. To ask a question, get advice, or to find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002