Each episode of “Investor’s Corner” will help you and your clients find the financial freedom they deserve through improving their cash flow and increasing their investing savvy.
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The latest news from the recent Federal Reserve meeting is that they will continue to curtail the QE program, and more importantly, they are not going by the unemployment rate levels alone.
Most people in the markets were banking on this, no pun intended.
The benchmark in Bernanke’s term as Fed Chair was that until unemployment hit 6.5% they would keep rates down.
The new Fed Chair, Janet Yellen, said this is not so. This announcement caused the bond yield to decrease making interest rates increase.
All other news this week, CPI, unemployment, etc. would have been rate friendly but the Fed trumped the other indicators. Uncertainty is never good for the markets.
Remember, rates can be locked in over the weekend!
Your Weekend Rate Sheet
**conforming means loans under $417,000. Conventional means Fannie Mae and Freddie Mac.
*** A no cost loan is where the bank credits you money to cover the third party costs such as title, escrow, notary, and recording fees.
If you have a client who is close to having an offer accepted and is nervous about rates, don’t worry because interest rates can be locked in over the weekend.
Remember we also have the float down: if rates improve more than .25% after lock-in the client gets the lower rate.
All rates are quoted at a 45 day lock in and assume a 720 credit score with 20% down except for FHA.
1 point is 1% of the loan.
Programs quoted as having 1 point also have the option of 0 points and the option of the 0 cost loan.
Jumbo loans are loans that have a loan amount of $625,501 and above on conventional programs.
Have a great weekend. Cheers!