I hope you enjoyed your weekend! I don’t know about you, but I’m ready to get back on the horse.

Rates are flat again today. Mortgage Bonds are up slightly due to some weak economic data that came out this morning. Higher bonds means lower mortgage rates. For reference, today’s comparison rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 2.875% on a 5/1 ARM. Use these rates to negotiate the best deal with your loan officer (Click here to get the details and other rates I found today with no lender fees). If you have a question, shoot me an email, post on Facebook, or tweet it at me. I’m here to help.

I am sure you’ve heard of a “Cash Out” refinance, but have you ever heard of a “Cash In” mortgage? Today I share three reasons why a “Cash In” mortgage might be a good idea if you have the funds available.

I explain more in today’s video:


(Watch it on your mobile phone or email reader here)

If you have the funds, here’s why you would get a “Cash In” mortgage:

1) It can help eliminate Private Mortgage Insurance (PMI)
2) You may get a lower rate
3) It will lower your Loan to Value Ratio (LTV) to get underwriting approval if the appraisal comes in low

It’s not an option for everyone, but this can be the right move depending on how long you will be in your house or your long term financial goals.

Before you bring money in, you should make sure you have enough cash reserves left over just in case you need them. I recommend at least 6 months of Principle, Interest, Taxes and Insurance (PITI) in your reserves at all times. If you have that, you may want to consider a “Cash In” mortgage.

Also, I found a great article this weekend written by Stacey Sprain. It covers some Q & A on a blog and how bad some mortgage “professionals” answer a consumers question. We share the same pet peeve – Bad information. Know your source before you believe anything you read on the internet. Great article Stacey! Click here to read the article.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

Have a great (long) weekend!

– Mike

PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question.

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