Fed Cuts Rate

The Federal Reserve Wednesday cut a key interest rate by a half point in another attempt to encourage banks to stop hoarding cash and start lending it again. It was the second rate cut this month. Mortgage rates have risen over the last four days as a result of other market news. The 30 year mortgage rate is not tied to the Fed's actions however mortgage rates remain in a favorable range around 6.5% now. To apply for a mortgage gather 2 years of income statements, 2 months of bank statement's, recent retirement statements and make an appointment with us today. 414-416-9194

Mortgage News You Can Use

Rate watchers await the Federal Reserve decision Wednesday on the future direction of interest rates. Traders expect a one half to full point cut. Mortgage rates rose Tuesday in anticipation of the cut. Mortgage rates are not tied to the Federal Reserve.

Gas sold for as low as $2.29 a gallon cash only today in Milwaukee. An encouraging sign. Also encouraging was the 889 rise in the DOW yesterday, the second largest one day gain ever.

A new President will be picked November 4th and take office in January 2009. Lots of change is happening and will continue. The only constant is change.

Save Gas Money

The cheapest gas in the area today was $2.65 a gallon at several stations, according to milwaukeegasprices.com.

Market Update

The DOW is in the 8700 range today, the 10 year Treasury is at 3.65% and the 30 year mortgage rate available for borrowers with good credit was at 6.125% today. APR 6.28%

A 15 year mortgage rate today was at 5.875%. We have not seen the 15 year mortgage rate dip below 6% for some time. APR 5.99% This is good news.

An FHA mortgage for purchase or refinance was at 6.375% for loan amounts over $100,000 and credit scores over 600. Mortgage rates remain favorable and the upward trend has reversed this week as earnings reports and other news has been released. To apply for a mortgage gather 2 years of financial statements and call 414-416-9194. We offer Wisconsin mortgage loans.

Stock Markets Dives, Rates Improve

Mortgage rates improved as the stock market crashed again. The Dow finished below 8600. Mortgages are widely available if you have equity. To learn more call me anytime. 414-416-9194

Rates in 6s

Mortgage rates remain in the 6s although they have risen in the last week. Buyers who qualify for FHA financing can purchase with 3.5% down. Veterans who qualify can obtain 100% financing. Otherwise, generally it is wise to put 5-10% down to purchase today. If you would like to learn what you qualify for call me today for an appointment. 414-416-9194 Thank you.

Surprise Rate Cut

The Federal Reserve Wednesday cut a key lending rate by a half percent. The rate is now 1.5% and is the rate banks charge each other for overnight loans. The rate cut came ahead of the regularly scheduled late October Federal Reserve meetings. The Prime rate is now just 4.5%. The 30 year fixed mortgage rate is not tied to this rate. Mortgage rates improved slightly after the cut and FHA mortgage rates, which account for the majority of loans lately stayed the same.

Mortgage Rates Dropping

Mortgage rates dropped Friday afternoon as a result of a jobs report released showing that more Americans are out of work. The House passed the $700 bill Friday designed to buy bad debt from big banks in order to make them more apt to lend looser again.

Mortgage Solution

A simple solution to the credit crisis is to allow the FHA to lend up to 110-115% of the value of a homeowners present appraised value. Place a provision in the loan that prevents the homeowner from refinancing their loan for 2 or 3 years without imposing a prepayment penalty. The main reason people today are unable to refinance is a lack of equity. The ones without equity will have equity in the future if they do not become serial re-financiers and maintain their payments and property condition. After the time period is up allow them to refinance at the usual loan to value limits which now is 95% for a rate and term FHA refinance. This program would not cost $700 billion dollars and would help homeowners.