Rates are down today! Mortgage Bonds have seen a nice rally. Mr. Bernanke’s comment that “the economy is still producing a levels well below its potential” helped with this rally. If you’re looking for comparison rates with no lender fees, look for 4.375% on a 30 year fixed, 3.625% on a 15 year fixed, and 2.625% on a 5/1 ARM (click here to get the details).

Today’s Topic:

With the extremely volatile market, I want to make sure everyone is aware that the organizations who buy blocks of mortgages change the price they’re willing to pay throughout the day to reflect the bond market. What does that mean to you? It means rates can change multiple times during the day. However, did you know that your closing costs or credits should change as well?

I explain each one in today’s video:

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

You know what is just as important as getting the best deal on your mortgage? Getting the top dollar for your home when you sell it. The Corcoran Group has a great video blog on how to get the best price for your home. Great information guys. Check out the video by clicking here.

With the extremely volatile market I want to make sure everyone is aware that the market changes throughout the day. Because of that investors change their pricing through out the day as well. What does that mean to you? It means rates can change during the day, but did you also know that your closing costs could change as well? They should change! That’s the key.

There is usually an overage that can be credited towards your closing costs. We call it “crediting overages” and this credit should be greater when the market improves and less when the market gets worse. If your lender is not offering you a credit it either means you are at a par rate already, paying extra for your rate or they are pocketing the overages as extra profit. I would definitely be asking each lender “Do you credit overages”? This will help reduce your costs.

It would be awesome if you could help me in my mission 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!

– Mike

PS. To ask a question, get advice, or find out what your lender is making off 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

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