Mortgage Finance Blog

Happy New Year!!!

Alright...so 2009 is here. It is very exciting in the real estate and mortgage industry. After a dismal 2007 and 2008, those who remain in the industry take a collective sigh of relief and believe that things are going to stabilize and turn for the better. As we are gearing-up for an increased work load, we are keeping a close watch on the market conditions. While we hope for a steady improvement on Wall Street, we are also hoping that rates stay relatively low, as well.

I have a few friends who are employed at large investment firms, like Schwab, Smith Barney, etc. and even the large banks like Bank of America/Countrywide. I have been getting calls from them as they have clients who need to refinance or seek 'purchase' money. We like to compare rates and costs. Their rates are ok but I think that they are trying to reel in clientele with low closing costs. Don't be mistaken!!! Pay close attention to detail.

These large firms are getting service release premiums or large yields from the rates that they provide in order to make-up for some of the costs. Costs are always there, somewhere! If you are presented with a quote, make sure to call your local mortgage broker and find out, just how competitive it actually is. Why pay for a rate over 30 years when you can pay it up-front and save more money over the term of the loan.

Give us a call and we can help you understand APR's and the mystery behind these "low-closing cost" loans...

Until then...Have a happy new year!!!

Your Mortgage Professional,

Diego L. Quintero