1. I s su e 12 , Vo lu me 3 3 / Au gu s t 1 9 , 201 1
One Last Chance to Reduce that Interest Rate? The Week Ahead -> The “Keys”
Tim McLaughlin - Housing Data and GDP Dominate the Week Ahead
To the borrowing public, lower interest rates generally
Date Economic Release Prediction Last
mean a reason to refinance. Astute borrowers take
advantage of low interest rate environments. What is the
best plan for attacking a rate friendly market? The following 8/22 Chicago Fed Nat Activity - -0.46
facts are value added for anyone looking to refinance their
8/22 Mortgage Delinquencies - 8.32%
current home mortgage in 2011.
8/22 MBA Mortgage Foreclosures - 4.52%
1. Know Your Value: The number one reason home
refinance loans are being rejected is that the appraisal 8/23 Richmond Fed Manufacturing - -1
of the clients home didn't come back as anticipated.
Basically, for a lender to refinance your home, there 8/23 New Home Sales 315K 312K
must be a certain level of equity in the transaction to
make the scenario work. Otherwise, your refinance 8/23 New Home Sales (MoM) 1.0% -1.0%
scenario may not be approved. Your knowledgeable
8/24 MBA Mortgage Applications - -
Weichert Financial Gold Services Manager can help
you understand the value and equity in your current 8/24 Durable Goods Orders 2.0% -1.9%
home and how to make the transaction work.
8/24 ex Transportation -0.4% 0.4%
2. Dig Up Your Documents: Make sure you have all
necessary documents to avoid delays. This includes a 8/24 Cap Goods Orders - -0.4%
copy of your current mortgage statement, current
paystub showing year to date earnings, last year's IRS 8/24 Cap Goods Shipped - 1.0%
tax returns (last two years if self-employed), and two
8/24 House Price Purchase Index - -2.5%
forms of personal identification (one must be a
government issued photo ID). Other documents may 8/24 House Price Index (Mom) - 0.4%
be required as well. If you don't have these items, it will
slow down the process, cause delays, and possibly 8/25 Initial Jobless Claims - 408K
cause you to miss this low interest rate window.
8/25 Continuing Claims - 3702K
3. Choosing The Best Product: First off, you have to
decide whether you are looking to reduce your payment 8/25 BB Consumer Comfort - -
or whether you are looking to reduce the term of your
8/26 GDP (QoQ) 1.1% 1.3%
loan (or possibly both). A higher rate 30 year loan
refinanced into a lower rate 30 year loan will reduce 8/26 Personal Consumption 0.0% 0.1%
your payment. A higher rate 30 year loan refinanced
into a lower rate 20 year, 15 year, or 10 year loan may 8/26 GDP Price Index 2.3% 2.3%
keep your payment somewhat static, but will cut
significant years off the duration of your loan and save 8/26 Core PCE (QoQ) 2.1% 2.1%
years of interest (same with a 20 year into a 15/10, or a
15 year into a 10 year). Which scenario is best for you? 8/26 U of Michigan Confidence 57.0 54.9
Again, our knowledgeable Weichert Financial Gold
Services Manager can help analyze what is best. Secondary Marketing Takeaways: 30 year rates
Not many in the markets expected rates to be this low at historic lows. 15 year rates in the low 3% range.
again in August (or in 2011, for that matter). Did you miss Hybrid ARM’s in the high 2% range. No better time to
the last refinance wave in 2010? Let’s not miss this one. act, whether purchasing or refinancing.
Have questions? Need advice? We can help!
Mortgage Access Corp. d/b/a Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. NMLS Company ID: 2731. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage
Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania Department of Banking, Mortgage Lender 21042. Licensed Lender in AK, AR, DE, MD, D.C., GA, ME, MI, MN, WI, IA, IL, IN, LA, VT, FL, WV, RI, KY, NC,
ID, MS, NE, WY, OK,TN, WA. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to
transact business in CO, SC. Registered Mortgage Lender in TX. Licensed with the Financial Institutions Division in New Mexico, License # 01297. Licensed by the Department of Corporations under the California Residential Mortgage
Lending Act. Licensed Mortgage Broker and Lender Ohio. Licensed Loan Broker and Lender Rhode Island. Kansas Licensed Mortgage Company, License #MC.0001229. Licensed by the New Hampshire Banking Department, License #
8714-MB. Licensed Oregon Mortgage Lender License #ML2528. Weichert Financial Services arranges loans with third-party providers. Equal Housing Lender.
