CourtesyTony Guaraldi, VP of Mortgage Lending Guaranteed Rate Mortgage
Are Interest Only loans coming back???Well technically they never fully left the industry even after the mortgage market meltdown in 2008, but most people are unaware these programs still exist today. However, there is only a small handful of lenders that offer the Interest Only programs today and they are nothing like “fog the mirror” testto qualify for them as it many people joked about prior to 2008. In fact the Interest Only programs offered today are even more strictin terms of income, down payment, and credit requirements then their principal in interest counter parts. Makes sense that underwriting would be more strict as the lender is taking more risk by not have principal reduced every month.
Courtesy Tony Guaraldi, VP of Mortgage Lending Guaranteed Rate Mortgage
Holly Guacamole! We unexpected got a lousy jobs report this morning and Mortgage Bonds are the beneficiary! The Bureau of Labor Statics reported the economy created 74,000 jobs missing huge on the forecasts that predicted a range of 200k to 250k jobs! For comparison the number for October was 200k created and November was 241k created so this was really out of left field! The Jobs Report each month is always the biggest market mover and again its tied to Fed stimulus right now so reactions to the news are exacerbated for Mortgage Bonds. You can see the large green box on the right of the chart below showing the bond market rally today but you can also see we are a long ways off from where rates were in Mid-November. We will enjoy the improvement for now and continue to watch it as we still have some room to run before hitting resistance. Hopefully we can hold onto these gains today as its typically a volatile day after the jobs report like this!
Jeni PfeifferIntero presents mortgage update courtesy Tony Guaraldi: As we mentioned the last couple weeks Bonds are trading between the 100 and 200 day moving average right now and that trend continued this week as expected. CLICK HERE for the Oct 18, 2013 Mortgage Rate Sheet. Continue reading →
The government shut down drags on and more lenders are coming around to allowing temporary exceptions to the norm which is a mandatory processing of a 4506-T form by the IRS. For W2 employees they’ll require us to verify income with the borrower’s employer. Continue reading →