Monday, June 30, 2014

VOLATILITY ALERT! LEVEL: VERY HIGH

This Thursday, July 3rd, the Change in Nonfarm Payrolls will be released. This info along with the Unemployment Rate and Labor Force Participation Rate may lead to additional price volatility in the market. 

Compounding this potential volatility is the fact that the market is closing early on Thursday and trading desks will be lightly staffed ahead of the July 4th holiday. I recommend you you consider locking in our great rates before this release.

Nonfarm Payrolls - Explained By Michael Hansen

Nonfarm payrolls is something you want to be familiar with if you want to have an edge in finance. Nonfarm Payrolls, aka NFP, describes goods, construction and manufacturing companies in the US. NFP excludes farm workers, private household employees, or non-profit organization employees.

This influential statistic and economic indicator is released monthly by the United States Department of Labor as part of a report on the state of the labor market.

The financial assets that are most affected by NFP info include the US dollar, equities and gold. The markets react quickly and most of the time in a volatile fashion around the time the NFP info is released. The short-term market changes indicate there is a strong correlation between the NFP info and the strength of the US dollar.

The info is realeased by the Bureau of Labor Statistics on the third Friday after the conclusion of the reference week, at 8:30 a.m. Eastern Time. Nonfarm payroll is included in the monthly Employment Situation, most commonly referred to as “the jobs report”, and affects the US dollar, the Foreign exchange market, the bond market, and the stock market.

The figure released is the change in the NFP, compared to the previous month, and is usually between +9,000 and +249,000 during non-recessional times. The NFP number is meant to represent the number of jobs added or lost in the economy over the last month, not including jobs relating to the farming industry.

Tuesday, June 24, 2014

FAQ

Do $0.00 Closing Cost Loans Really Exist?

So EZ Mortgage offers a no closing cost option on many of our loan programs. With this option, our lender credit covers all title, appraisal, and 3rd party fees resulting in absolutely zero closing costs paid by the borrower. Many banks offer a "no point" mortgage where they don't charge fees, however the borrower still must pay for some items such as title and appraisal fees. With our true no closing cost mortgage, the borrower pays no closing costs period!

Benefits of the no closing cost mortgage

If you lower your interest rate by any amount you are saving money You don't have to wait any amount of time to recover closing costs...savings kick in immediately You can ask for a lower sales price on a new home instead of asking the seller to pay closing costs You can refinance anytime rates are lower, even multiple times in the same year to keep saving You do not have to lose any home equity to refinance The loan is simple and easy. There is no guesswork or itemizing sets of fees because there are no fees! Simply contact any of our loan professionals at (855) 955-SOEZ for a free consultation to see if you qualify for the no closing cost mortgage. Certain restrictions apply.

Common Questions About Our No Closing Cost Loan Program

The following are general questions and answers regarding our popular No Closing Cost home loans. Because underwriting rules and guidelines change often and each borrower’s situation may vary, these answers do not supersede the guidance of your loan professional.
Q: Why is a No Closing Cost loan a big deal? Will I really benefit and save money? A: The national average that a homeowner pays for closing costs is $2,748 (as published by Bankrate.com). Our No Closing Cost customers avoid having to pay this $2,748 which results in a huge savings. It also makes refinancing a “no brainer”. With a lower interest rate, you will save money and it won’t cost you anything.
Q: Do you charge a higher interest rate on the No Closing Cost loan program? A: Our No Closing Cost rates are typically at or below the national average. You can expect to get an interest rate that is just as low as what other places are offering but with us, you will avoid paying for all those closing costs.
Q: If there are no closing costs, how does So EZ Mortgage make money? A: We pay for your closing costs with some of the revenue that we make when we release the servicing of the loan in the secondary mortgage market. After paying for your closing costs, we still profit although our margins are not nearly as high as some other lenders and banks. We receive a lot of referrals and repeat clients which is a big part of our success and helps us keep our exceptional pricing.
Q: What is the minimum loan amount required for the No Closing Cost mortgage? A: This varies with changes in the market but usually around $180,000. During periods of exceptional loan pricing, we have approved no closing cost home loans as low as $150,000. With smaller loan amounts, we significantly “scale down” the closing costs, but cannot waive everything. It is best to try our free mortgage review service so that we can price out your specific scenario.
Q: Is the appraisal fee included in the No Closing Cost mortgage? A: Yes. With regards to the appraisal fee, borrowers will pay upfront for this service (typically $300-$400) and So EZ Mortgage will reimburse this fee at closing. If for any reason the loan does not close, So EZ Mortgage does not reimburse the appraisal fee.
Q: Does the No Closing Cost mortgage have a pre-payment penalty? A: No
Q: Can I still qualify for the No Closing Cost mortgage if I have less than perfect credit? A: The No Closing Cost mortgage was designed for those with credit scores of 740 and higher but some below this mark have been approved on a case by case basis. You really should try our free mortgage review to learn all of your options.
Along the way, we've designed state of the art interactive tools and resources designed to help you understand every aspect of the loan process. We're confident that educating yourself on the programs, process and our company will lead you to select fulfill the most important transaction in our life.

Tuesday, June 10, 2014

What Is The LIBOR? (London InterBank Offered Rate)

London InterBank Offered Rate (LIBOR)

LIBOR is the rate on dollar-denominated deposits, also know as Eurodollars, traded between banks in London. The index is quoted for one month, three months, six months as well as one-year periods.

LIBOR is the base interest rate paid on deposits between banks in the Eurodollar market. A Eurodollar is a dollar deposited in a bank in a country where the currency is not the dollar. The Eurodollar market has been around for over 40 years and is a major component of the International financial market. London is the center of the Euromarket in terms of volume.

The LIBOR rate quoted in the Wall Street Journal is an average of rate quotes from 16 major banks.

The most common quote for mortgages is the 6-month quote. LIBOR's cost of money is a widely monitored international interest rate indicator. LIBOR is currently being used by both Fannie Mae and Freddie Mac as an index on the loans they purchase.

LIBOR is quoted daily in the Wall Street Journal's Money Rates and compares most closely to the 1-Year Treasury Security index.

Monday, June 9, 2014

What Should I Do Before An Appraisal?

When it comes to ordering your appraisal, you don't want to find out after its completed that you should have done something first. I have seen these tips save people thousands.

  1. Verify you have a carbon monoxide detector in addition to smoke detectors. They must be in working order as well.
  2. Make sure your water heater has two metal straps holding it against the wall, the old single strap is no longer sufficient.
  3. If any unpermitted additions were done to the home, you need to notify your loan officer right away. Some lenders will deny the loan unless you get permits for the work prior to funding. Even if the work was done prior to you purchasing the home.
  4. Remove any clutter like your cars from in front of your home. The front of your home will be used as the main photo in your report and featured in your review on my website.  You want your home to look its best. Also they will be taking pictures of every room in the house. Pick up if you have not done so already.
  5. If you are repainting or changing the floor, hold the phone because you will have to have a re inspection done before funding and that will cost you another 150 or more in fees as well as possibly delaying the funding of your loan. Before you lock your rate or order the appraisal, make sure your home is going to pass inspection. Talk to your loan officer about the type of work being done. 
  6. Remember most lenders need more than 3 recent comparable sales to complete an appraisal report. If you don't think any homes have sold in your area for a while, notify your loan officer, he needs to check the comps before ordering the inspection.
If you really want to be the client of the year, there is a way you can help your lender. They are not allowed to communicate directly with the appraiser, so the only way we know if the appraisal was scheduled and executed is if you tell us. Send your loan officer an email when you set the appointment and another when the appointment is done. This could expedite the process.