Tuesday, October 11, 2011

Another refinance boom?

   Boy, its been a while since my last post.  I have been saying for weeks that I need to write something, anything new.  But, I have been so busy with new applications, that I have not had a chance.  I guess its good news, but it actually has some downside to it as well.  You would think that not having a minute to spare in the last 45 days would mean I have a hundred loans.  Well, the answer is no.  It is taking 2-3 times longer now to prepare a file for the bank.  Additional  disclosures, Good Faith Estimates that need to be perfect, making sure the file will get approved at the bank.  Loan officers are working much harder now and for less money (but that is a discussion for a different day).  It just feels like I have done the work of a hundred loans.

   Rates fell below 4% for a 30 year fixed conforming and the rates for ARMs (even the jumbo loan) are off the charts good.  In some instances, the rates are below 3%.  I recently closed a loan of $900,000 on a 5 year ARM at 2.5%.  After the tax deduction, its like free money!!!

   There is also a very good government program out there called HARP for those that are underwater or close to being underwater.  No its not a perfect program but I think many people don't realize that they can benefit from it.

   With Operation Twist in full swing, rates will stay low for a while.  The key is to make sure you are prepared.  What does that mean?  Make sure that you work with your loan officer to have a package ready to go to the bank at a moments notice.  Rates are very volatile and can go up and down quickly.  If you have the package ready to go, you can lock the rate and get it off to the bank quite quickly.  If you lock the rate before having a package ready for the bank, trust me, you will not close within the lock period.  Banks are overwhelmed and understaffed.  A lethal combination.


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