The Truth
1) There has never been a better time to purchase or refinance. Rates are hitting all time lows and we may never see rates this low again. Home prices in most areas are 30% to 50% less than what they were just a few years ago.
2) Mortgage rates are extremely volitile! None of the experts on Wall Street nor Capital Hill agree with what the our future markets will do. How could they, these are unpresidented times. So the next time you hear someone say that they know what mortgage rates will do (include yourself), you just have to laugh. Nobody knows!
3) Considering the above, does it really make any sense to wait for lower rates or if you are purchasing, further value deductions? Although it is possible rates could go down farther, there is also a chance they will go higher. Much higher!
4) If you are inclined to wait despite the above, please note that you won't be enjoying the savings you could already be earning. If lowering your rate right now could lower your payments significantly and you wait, you will never get those savings back.
5) Guidelines are tougher, so loans are more difficult to get approved. With each tightening of the guidelines, borrowers who would normally be considered good risk may not have any options and this means you could miss out on these great rates right now and forever.
6) Even with Direct Lenders like RPM Mortgage., there are several levels of underwriting. Underwriters everywhere are afraid of making mistakes that could cost them their job and/or livelyhood. Therefore, they insist that everything is documented.
7) Due to the revised appraisal system called HVCC, lenders must order their clients appraisals through appraisal management companies who they cannot have any communication with. The appraisal management companies then keep a good portion of the appraisal fee and then give the rest to the appraiser.
Therefore, the appraisers are making much less. As a result, appraisers need to take on twice the orders to make the same amount. Often times they will even drive far from their market to get those orders. Sometimes this will yield a higher valuation and sometimes it will work against you. I have seen it go both ways.
8) The new legislation that changed the Good Faith Estimate format, has put in place excellent laws to protect consumers from shoddy preparation of lenders estimates and outright misrepresentation. Unfortunately, the didn't seem to have Beta tested the form with borrowers nor loan originators.
For example, the form considerers Pre and Post Paid Interest as a Closing Cost which makes it very confusing for borrowers to understand without a guide or conversation with their mortgage advisor.
In addition, the new regulations have strict guidlines for disclosures which often cause delays in transactions and a ton of more paperwork. Before applying for a new loan, load up on your printer cartridges.
9) The big banks are borrowing money at almost 0% and making all the profit. These are the same big banks that the Fed's bailed out with your money. Do you really want to give them any more of your money? RPM Mortgage did not take 1 penny in bailouts.
10) More changes are comming. New legislation governing our industry takes effect on April 1, 2011. 2,000 pages of it! If the current plan goes through, it may force out of the industry many lenders who are helping create competition and your rates down.
Next year they are making further dramatic changes to how yours truly and my piers will be getting compensated. Every day there are less and less options of good people to service your financing needs and the number will be smaller by this time next year. We are still waiting for our counsel and management to sort through the 2,000 pages of legislation.
The good news is that we can help you navigate all of the above. I can help you make the right choices along the way and help you get the right loan at the right price.
Call me at 800-881-7572
Bill
“My wife & I cannot recommend Bill Emhoff adequately enough except say his work with our home loan process was "superlative" from start to finish!!!! He was tireless in pursuing & obtaining the best rate and locking it in at just the right time. He is the one to go to for counsel on the current mortgage market.”
- John O’Brien
"My wife and I worked with Bill Emhoff on two transactions last year. Even as a writer, it would be difficult for me to say in words how happy we were to have worked with Bill. He was: patient; professional; great at explaining all of our options and delivered on absolutely everything he promised to deliver. In both cases, we were ecstatic with the new loans we obtained. I would highly recommend Bill to anyone looking to buy, sell or refinance."
- David Polsky
“As a 10 year Real Estate Professional, I have dealt with many lenders. There are only a couple lenders I use on a regular basis. Bill Emhoff is one of them. He is a seasoned professional, an excellent resource, and I would highly recommend him to anyone in need of his services”.
- Leo McHale, Rodeo Realty, Westlake Village
"The rate was so good that about twenty loan brokers who had called me after I had locked the rate all implied in one way or another that I would never get the pricing I was quoted. However Bill did an excellent job of guiding me through the process and funding the quoted loan. I heartily recommend Bill's professionalism.”
- Alan German
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