How Mortgage Rate Locks Work

One of the most mysterious and confusing aspects for consumers during the mortgage process is the mortgage interest rate.  Getting a handle on how mortgage rates move and understanding loan locks can help take some of the stress out of the process.
 

Mortgage Rates Move Constantly
Mortgage interest rates move on a daily basis due to the ebb and flow of mortgage-backed securities (MBS), also commonly referred to as mortgage bonds. These mortgage bond trades ebb and … Continue reading

Mortgage Rates On the Rise…Why?

Throughout the year, mortgage rates have been amazingly low, recently setting a new all-time record low.  These uber-low mortgage rates, which have consumers taking advantage of refinancing and home buying, have been the result of ongoing drama from Europe in addition to the sluggish US economy and struggling job market.

After months of rumors, hints, and out-right foretelling, on September 13 the Fed pulled the trigger on quantitative easing, dose #3, dubbed QE3, and we saw mortgage rates fall to … Continue reading

Euro-Drama Drags On, Bonds Benefit

The European uncertainty reigns supreme as their crisis makes many twists and turns (check out the cute movie below for some background) impacting the US bond markets and mortgage interest rates.  This  Euro-Drama has caused quite a bit of volatility in the US Capital Markets for some time now.  After some good and mixed US news last week mortgage rates began to climb.  However, the past 2 days, more bad European news has helped mortgage rates recover as money moves … Continue reading

Safe Haven from The Debt Ceiling Debate

The never-ending, all-too-frustrating Debt Ceiling debate wages on and this has investors taking refuge in the safe haven of the Bond Market.  Both Treasuries and Mortgage Bonds are benefiting, while Stocks are taking a big hit.

The Debt Ceiling is the legal limit on the total debt the U.S. can accrue – and there are two types of debt.

Public debt, which is debt the government borrows from investors by way of U.S. Treasuries – bonds and notes.  The investor … Continue reading

The Mortgage Lending Cycle

Back in the “old” days, if you wanted a home loan you walked into your local bank and completed an application for a mortgage.  The Bank used their guidelines and made the decision on your approval.  Once approved, the Bank funded your mortgage loan with their own money and kept your mortgage loan on their books.  And they accepted your mortgage payments each month until the loan was paid in full.

While this is convenient for the consumer, it wasn’t … Continue reading

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