Find out more on Debt Consolidation Credit Counseling In Phoenix Now!
Friday, January 23, 2009
Your mortgage is most likely your largest debt you will have in your life. Securing your mortgage interest rate is one of the most important factors.
In a volatile mortgage market like the one we are in right now it is hard to be an average citizen/homeowner and be able to gauge what the market is doing and when a good time would be to get into a new loan.
You could practically drive yourself crazy if you try and follow some of the standard rate indicators of the past in this environment. What is the 10 year treasury doing? What is happening on the stock market? These indicators just dont apply like they used to today.
Over the past two years over 300 mortgage banks (particularly wholesale mortgage banks) have gone out of business because of a lack of liquidity or inability to sell off their loan portfolios or a host of other reasons. The ones that have weathered the storm or are weathering the storm have had to reduce their workforce dramatically to cut costs and operate leaner operations.
Right now mortgage rates are at an all time low. This is causing a huge increase in new mortgage applications. The banks are still running with the reduced support staff and are unable to handle the work load. With virtually no other choice many of them are being forced to increase their rates to slow down or temporarily stop new applications.
As a result we are experiencing a fluctuation of rates that is artificially caused by the inability of the banks to process loans as fast as they are coming in.
The best way to ensure that you are not gambling with your mortgage rate that you will have for years is to make sure you align yourself with a solid mortgage company that can collect your qualifying information upfront and watch the market for you. That way they can capitalize on the sudden drops in rates when the banks have caught up on their loan pipelines for you.
In a volatile mortgage market like the one we are in right now it is hard to be an average citizen/homeowner and be able to gauge what the market is doing and when a good time would be to get into a new loan.
You could practically drive yourself crazy if you try and follow some of the standard rate indicators of the past in this environment. What is the 10 year treasury doing? What is happening on the stock market? These indicators just dont apply like they used to today.
Over the past two years over 300 mortgage banks (particularly wholesale mortgage banks) have gone out of business because of a lack of liquidity or inability to sell off their loan portfolios or a host of other reasons. The ones that have weathered the storm or are weathering the storm have had to reduce their workforce dramatically to cut costs and operate leaner operations.
Right now mortgage rates are at an all time low. This is causing a huge increase in new mortgage applications. The banks are still running with the reduced support staff and are unable to handle the work load. With virtually no other choice many of them are being forced to increase their rates to slow down or temporarily stop new applications.
As a result we are experiencing a fluctuation of rates that is artificially caused by the inability of the banks to process loans as fast as they are coming in.
The best way to ensure that you are not gambling with your mortgage rate that you will have for years is to make sure you align yourself with a solid mortgage company that can collect your qualifying information upfront and watch the market for you. That way they can capitalize on the sudden drops in rates when the banks have caught up on their loan pipelines for you.
About the Author:
Start your process by watching real time mortgage rates online. If your current rate is higher than today's rateit is time to partner with a trustworthy company to ensure you are getting a great deal.
posted by Credit Counseling at
9:51 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home