I take pride in providing useful information that you will find helpful when making decisions regarding your mortgage. My monthly newsletter covers different topics each month to help increase your knowledge of the mortgage industry and recent industry happenings. Please take a moment to review the monthly newsletter and click on the links on the left hand side for more news and resources. Feel free to pass this newsletter along to any friends and family members who might find it useful and contact me with any questions you may have.
Thank You,
Eric Brye
Spotlight
Are You One Step Ahead of the Fed?
With the Federal Reserve no longer buying mortgage-backed securities,
rates are expected to rise.
The Federal Reserve has stopped buying mortgage-backed securities from Fannie
Mae and Freddie Mac and is now returning control of interest rates to private
investors. Amazingly, the Fed has purchased a whopping $1.25 trillion worth of
mortgage-backed securities since the beginning of last year.
Now that the Fed is slowly backing out of the picture, many analysts believe
mortgage rates will jump to 6% or so by year end from 5% in recent weeks, while
others predict only a slight increase. But the truth of the matter is that what
happens to interest rates over the rest of this year depends on many factors
that are hard to predict, including the strength of the economy, Fed policies
and foreign investors' willingness to buy U.S. debt.
So what does this mean for you, the home owner?
If you're a home owner who is looking to refinance or otherwise modify your loan, consult with your Superior Mortgage Solutions mortgage specialist soon and consider locking your rate. A rate lock will ensure that the rate provided when you begin the application process for the modification to your loan is guaranteed for a specific period of time (typically 30 days) while you complete the process. This protects you from over-paying for your mortgage should rates or costs increase during that time.
Contact your Superior Mortgage Solutions mortgage professional by calling Office: 314-432-2111
to discuss your refinance options.
So what does this mean for you, the home buyer?
Just like the home owners who are looking to refinance or modify their loan,
home buyers are in a frenzy to take advantage of the rates before they rise.
If you're in the market for a new home, be sure to contact your Superior Mortgage Solutions
mortgage specialist first to ensure you're pre-qualified and
pre-approved for a home loan.
Those home buyers who are pre-approved will have, in hand, a conditional
commitment from their mortgage professional for an exact loan amount, which
will allow them to shop the homes that fit their price range. This also
provides the buyer with a bit of bargaining power, as the potential seller
is able to see that he/she means business and is ready to buy.
Meanwhile, federal tax credits available for some home buyers are due to
expire at the end of April, adding to that sense of urgency buyers may be
feeling. Sales are likely to spike throughout the rest of the month as house
hunters move quickly to take advantage of the $8,000 tax credit for
first-time buyers and $6,500 for move-up buyers.
Don't be left in the dust, contact your Superior Mortgage Solutions mortgage
specialist to discuss the pre-approval process and your mortgage options.
Keeping You Informed
Superior Mortgage Solutions is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://smsloans.com, or call today at Office: 314-432-2111, to obtain custom loan options designed to fit your needs and help you obtain your home ownership goals.
