Rates Bounce Back

Mortgage rates which rose rapidly due to debt fears have bounced back favorably Friday afternoon, however they are still off of last weeks lows. A 30 year fixed rate conventional loan was available today at 5.125% with no points for borrowers with 700 or higher credit scores. Apply today. 414-416-9194

APR 5.19

Rates Have Risen

What goes down must come up. Recent rising rates for refinances and purchases have surprised soothsayers. Try to say that three times. An exercise in alliteration. Rates have risen. Since Thursday there has been a steady increase in mortgage rates with another couple negative reprices today. The 5% mortgage is gone for the moment. However rates remain low.

Broker or Bank?

What is the difference in mortgage rates from a mortgage broker or a bank? A mortgage broker has more than one bank to sell mortgages. For example a mortgage broker may sell loans to Citi, Wells, Bank of America, Chase and smaller regional banks like US Bank, M and I and others. A retail bank has one source of funds, one set of guidelines, one committee to make decisions.

Banks have two channels to sell loans: Wholesale and Retail. Banks have less expense selling loans through wholesale channels, like mortgage brokers. That is why a mortgage broker can offer a lower rate than a retail bank and also can fund deals that a bank may not be able to fund. The bank offers the customer their retail bank rate. The Bank offer the mortgage broker the wholesale rate. This is why rates are lower at mortgage brokers.

4.5% Mortgages

We can now offer a 4.5% 10 year fixed conventional mortgage. If building equity and paying off your mortgage is your goal this is the solution. Call to apply today.
414-416-9194

APR 4.59%

Mortgage News

Closing a refinance or purchase is taking longer than ever before. We talked to one person yesterday who was able to lock in a great rate for a short time, 15 days, and had to pay off his credit line because to keep it open you must receive written permission from that lender in 2nd position which can take up to six weeks and you must pay for the privilege of keeping the line open to obtain what is called a subordination agreement. So this customer had to pay off the line even though it was near the prime rate which is currently at 3.25%. Another delay that occurs is lenders are requiring field reviews, in other words a 2nd appraisal, which just getting scheduled takes time not to mention waiting for the report to be finished. As the rush to refinance continues another development is that many lenders won't even look at the deal until the appraisal is submitted along with the other documents. Naturally the appraisal is paid for by the customer in advance. There will be a lot of disappointed people who paid for appraisals and can't close for many varied reasons. Welcome to the new world of mortgage lending.

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Stimulus News

There is talk of the Housing Department allowing FHA approved lenders like us to allow the $8000 first time home buyer tax credit to be used as a down payment on a home purchase. Currently a buyer can purchase a home using an FHA program with only 3.5% down. In other words if someone buys a home for say $228,000 they need a minimum of 3.5% down or $7980. If they make less than $150,000 as a couple or $75,000 solely and have not purchase a primary residence in the last three years they receive an $8000 Federal tax credit which may soon be able to be used for that 3.5% down. If the details can be worked out with the IRS and HUD this would open up the purchase market and help those selling as well as buying. Stay tuned.

Mortgages

Mortgage rates improved in the Greater Milwaukee and Wisconsin area Monday afternoon.
FHA mortgages, a poplular mortgage for purchases and refinances and conventional loans both improved. Of course due to high demand if you would like to close in May and you have not made an application that would be difficult. Apply today, avoid the rush and make no payments till August.

4.990% Mortgage Available

We had a pricing improvement late Wednesday afternoon and we are once again offering a below 5% mortgage rate on a 30 year fixed loan. Many area banks offer 5.25%. Call around and see for yourself then call us. 414-416-9194 We meet or beat anybody.

Apr 5.03%

Milwaukee Mortgages

Milwaukee area mortgage rates remain low hovering around 5% for many borrowers. If you are considering purchasing a home now is a great time because you may be able to take advantage of the new $8000 Home Buyer Tax Credit. Here's how it works. If you make less than $150,000 annually as a couple or $75,000 solely and have not purchased a primary residence in the last three years you qualify. You can even amend your 2008 tax returns and receive the $8000 now. You need to hurry because this program will expire in the fall.