Marc's Mortgage Matter's

So the Feds lowered the prime rate again last week and you'd think mortgage rates would be have benefited right? But as many feared mortgage rates were not better this week at all neither were Jumbo rates and for sure the Jumbo-conventional which never really picked up. So what to do? Well if you need to buy you lock what you can get now. Many Jumbo's are closing at over 7% and over 8% is now common if you can't show income. If you're thinking lets do an ARM instead think again because rates are not much better and they are much riskier.

Lower rates quoted are just not closing and buyers are just being schlepped thru the mud. Bottom line everyone knows rates will eventually come back down and if it make sense most will be able to refinance later at a better rate. So if you gotta close take what you can get and be happy you can even get a mortgage altogether ;) 

Some reports last week showed the economy doing better. Well that's good news though its hard to tell. I'm just waiting for the banks to open up and price the tougher jumbo loans way better then they are now. Interest rates have not dropped as lawmakers expected back a few months ago. Big banks don't want to mess with the vanilla programs they have and figure it is good thru the end of 2008 only so why bother. Bad move, as rumor has it the Senate will probably move to have it extended well into 2009 too. Time will tell.

Last week I heard from a few clients of Bank of America that had their HELOC (Line Of Credit) total line available lowered by substantial numbers. One had a line of 225K and was about to use it to start renovation on a home and was lowered to 90K which is a joke to her. This has happened this year with Citi & Wells Fargo too. I warned about this a number of times - many took heed and transferred the money into other accounts. Good for you! :)