Category Archives: Uncategorized

Mortgage Rates are Low

Posted on by

Rates as Low as

1.875% /APR 2.154%
15 Year Fixed

2.50% /2.544% APR
30 Year Fixed

Learn More

Call

877-794 Lend (5363)

Restrictions Apply

Mortgage Bankers Association Applications Report

Earlier this morning the Mortgage Bankers Association released
their Mortgage Application data for last week, showing that overall application volume rose by
6.8% from the previous week. Purchases were up 2%, and on a year over year basis, are 22%
higher.
Refinances increased by 9.0% last week and are up 47% year over year. While this is still strong,
the year over year comparisons are shrinking – Just a few weeks ago refinances were up over
100% on a year over year basis. Refinances made up 65.7% of all transactions, up from 63.9%
last week.
Interest rates decreased from 3.14%, to 3.06%, which is 95 bp or almost 1% lower than this time
last year. Remember the MBA rate is for last week and always includes a fraction of points, in
this case 0.33.

__________________________________________________________________________________________________

N Y CT FL Refinance Home Mortgage Home Loans

Home Sales UP

Posted on by

With a worldwide health crisis that drove a pause in the economy this year, the housing market was greatly impacted. Many have been eagerly awaiting some bright signs of a recovery. Based on the latest Existing Home Sales Report from the National Association of Realtors (NAR), June hit a much-anticipated record-setting rebound to ignite that spark.

According to NAR, home sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June: 

“Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic…Each of the four major regions achieved month-over-month growth.”

N Y CT FL Refinance Home Mortgage Home Loans

This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief Economist for NAR, the momentum has the potential to continue on, too:

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown…This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”

_________________________________________________________

15 Year Fixed Rate 1.875%

*APR 2.17%

30 Year Fixed Rate 2.50%

**APR 2.66%

Close in as Little as 23 Days!

No Application Fee, No Lock in Fee, No Commitment Fee, No Hidden Fees

Maximize your financial future with our custom designed home loans. You can expect close communication and responsiveness.

Click for Mortgage Rate Video Update

Get a Rate Quote FAST?

Contact us at 877-794-5363 (Lend) 

or Click here for a Quote 

__________________________________________________________________________________________________

With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to continue taking advantage of this historic opportunity to buy. This fierce competition among buyers is contributing to home price increases as well, as more buyers are finding themselves in bidding wars in this environment. The report also notes:

“The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.”

The graph below shows home price increases by region, powered by low interest rates, pent-up demand, and a decline in inventory on the market:

NY CT FL Refinance home loans cash out debt consolidation

Yun also indicates:

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

Bottom Line

Buyers returning to the market is a great sign for the economy, as housing is still leading the way toward a recovery. If you’re ready to buy a home this year, reach out to a local real estate profession.al to make sure you have the best possible guide with you each step of the way.

.

.

.

.

.

.

.

.

.

*The Annual Percentage Rate is based on a a single family owner occupied purchase or rate & term home loan with a maximum loan amount of $510,399.00 a 1.875% interest rate, 1.25 point and a discount fee of $3838.42, a 15 day rate lock, Fixed Rate for 15 Years with a payment of $3248.17 a 80% Loan to Value, and a minimum credit score of 740.**The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term refinance home loan with a maximum loan amount of $510,399.00 a 2.50% interest rate, 1.00 point and a discount fee of $3,067.50, a 15 day rate lock, Fixed Rate for 30 Years with a payment of $2.016.70 a 80% Loan to Value, and a minimum credit score of 740 . **** The  rates and annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates quoted are for home purchase or Rate & Term Refinance loans. Refinance cash out loans may have a higher rate. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Rates advertised are as of May 7, 2020. Rates are subject to change without notice. 178 Trinity Pass, Pound Ridge NY 10576. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER NMLS #1375 & 42481.* Registered Mortgage Broker NYS Department of Finance, Loans arranged through third party providers.

.

.

.

.

.

.

.

1.875% Fixed Rate

Posted on by

15 Year Fixed Rate 1.875%

*APR 2.17%

30 Year Fixed Rate 2.50%

**APR 2.66%

Close in as Little as 23 Days!

No Application Fee, No Lock in Fee, No Commitment Fee, No Hidden Fees

Maximize your financial future with our custom designed home loans. You can expect close communication and responsiveness.

Click for Mortgage Rate Video Update

Get a Rate Quote FAST?

Contact us at 877-794-5363 (Lend) 

or Click here for a Quote 

 

 

.

.

..

.

 
*The Annual Percentage Rate is based on a a single family owner occupied purchase or rate & term home loan with a maximum loan amount of $510,399.00 a 1.875% interest rate, 1.25 point and a discount fee of $3838.42, a 15 day rate lock, Fixed Rate for 15 Years with a payment of $3248.17 a 80% Loan to Value, and a minimum credit score of 740.**The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term refinance home loan with a maximum loan amount of $510,399.00 a 2.50% interest rate, 1.00 point and a discount fee of $3,067.50, a 15 day rate lock, Fixed Rate for 30 Years with a payment of $2.016.70 a 80% Loan to Value, and a minimum credit score of 740 . **** The  rates and annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates quoted are for home purchase or Rate & Term Refinance loans. Refinance cash out loans may have a higher rate. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Rates advertised are as of May 7, 2020. Rates are subject to change without notice. 178 Trinity Pass, Pound Ridge NY 10576. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER NMLS #1375 & 42481.* Registered Mortgage Broker NYS Department of Finance, Loans arranged through third party providers.
Posted in Uncategorized.

1.875% Fixed Rate

Posted on by

15 Year Fixed Rate 1.875%

*APR 2.17%

30 Year Fixed Rate 2.50%

**APR 2.66%

Close in as Little as 23 Days!

No Application Fee, No Lock in Fee, No Commitment Fee, No Hidden Fees

Maximize your financial future with our custom designed home loans. You can expect close communication and responsiveness.

Click for Mortgage Rate Video Update

Get a Rate Quote FAST?

Contact us at 877-794-5363 (Lend) 

or Click here for a Quote 

 

 

 

.

.

..

.



*The Annual Percentage Rate is based on a a single family owner occupied purchase or rate & term home loan with a maximum loan amount of $510,399.00 a 1.875% interest rate, 1.25 point and a discount fee of $3838.42, a 15 day rate lock, Fixed Rate for 15 Years with a payment of $3248.17 a 80% Loan to Value, and a minimum credit score of 740.**The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term refinance home loan with a maximum loan amount of $510,399.00 a 2.50% interest rate, 1.00 point and a discount fee of $3,067.50, a 15 day rate lock, Fixed Rate for 30 Years with a payment of $2.016.70 a 80% Loan to Value, and a minimum credit score of 740 . **** The  rates and annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates quoted are for home purchase or Rate & Term Refinance loans. Refinance cash out loans may have a higher rate. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Rates advertised are as of May 7, 2020. Rates are subject to change without notice. 178 Trinity Pass, Pound Ridge NY 10576. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER NMLS #1375 & 42481.* Registered Mortgage Broker NYS Department of Finance, Loans arranged through third party providers.

															

		
		
	





	
		



	
	


		
		

							

					
				

			
			
1.99% -15 Yr Fixed Rate – APR 2.33%


							

					Posted on   by  				

			
		


					

				




Click for Mortgage Rate Video Update


Contact us at 877-794-5363 (Lend) 


John Sauro


or Click here to learn more 


Email: johnsauro@gmail.com


 


The Mortgage Bankers Association released their mortgage application data




for last week, showing that overall application volume was up 4.1% from the previous week.

Purchases were up 1.8%, and on a year over year basis, are now 19.4% higher.

Refinances were up 5.3% last week and are up 122% year over year. Refinances made up 64.8%

of all transactions, up from 64.2.% last week.


The national average Interest rates increased slightly from 3.19% to

3.20%, which is 88 bp or about 7/8% lower than this time last year. Remember the MBA rate is

for last week and always includes a fraction of points, in this case 0.35.


60% of Home owners can Benefit from refinancing


Fannie Mae Chief economist Doug Duncan estimates that at today’s rates, 60% homeowners

with a mortgage could still benefit from a refinance and save at least half a percent. He also

estimates that mortgage lending will reach $3.14 Trillion this year, which is the highest volume

since 2003.


The FHFA (Federal Housing Finance Agency) released their House Price Index, which measures

home price appreciation on single-family homes with conforming loan amounts. Home prices

fell 0.3% in May, but are still up 4.9% year over year. The 4.9% year over year reading is a bit

lower than the 5.5% in April and 5.9% in March.


 


 


.


Click for Mortgage Rate Video Update


Contact us at 877-794-5363 (Lend) 


John Sauro


or Click here to learn more 


Email: johnsauro@gmail.com


.


.


.


.


.


.


.


.


.


.


.


.


.


.


.


.


The Annual Percentage Rate is based on a single family owner occupied conforming conventional home loan, no cash out, with a maximum loan amount of $510,400.00, a 1.99% interest rate, a payment of $3282.12 1.50 points, a $3026.67  discount fee, a 15 day rate lock, Fixed Rate for 15 Years, a 80% Loan to Value and a minimum credit score of 740. The annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Rates are as of July 20, 2020.  Rates are subject to change without notice. 178 Trinity Pass, Pound Rid NY 10576. Licensed Registered Mortgage Broker, NYS Banking Dept., Loans Arranged Through Third Party Providers. Mortgage Broker CT Banking Dept., MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER. NMLS # 1375 & 42481 Registered Mortgage Broker, NYS Banking Department. Loans Arranged Through Third Party Providers. NMLS# 1375

															

		
		
	





	
		



	
	


		
		

			
			
1.99% -15 Yr Fixed Rate – APR 2.33%


							

					Posted on   by  				

			
		


					

				


Click for Mortgage Rate Video Update


Contact us at 877-794-5363 (Lend) 


John Sauro


or Click here to learn more 


Email: johnsauro@gmail.com










The Annual Percentage Rate is based on a single family owner occupied conforming conventional home loan, no cash out, with a maximum loan amount of $510,400.00, a 1.99% interest rate, a payment of $3282.12 1.50 points, a $3026.67  discount fee, a 15 day rate lock, Fixed Rate for 15 Years, a 80% Loan to Value and a minimum credit score of 740. The annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Rates are as of July 20, 2020.  Rates are subject to change without notice. 178 Trinity Pass, Pound Rid NY 10576. Licensed Registered Mortgage Broker, NYS Banking Dept., Loans Arranged Through Third Party Providers. Mortgage Broker CT Banking Dept., MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER. NMLS # 1375 & 42481 Registered Mortgage Broker, NYS Banking Department. Loans Arranged Through Third Party Providers. NMLS# 1375

															

		
		
	





	
		



	
	


		
		

							

					
				

			
			
Mortgage Rates 2.375%


							

					Posted on   by  				

			
		


					

				
15 Year Fixed Rate 2.375%   *APR 2.59%


20 Year Fixed Rate 2.75%   ** APR 2.91%


30 Year Fixed Rate 2.75%   ***APR 2.87%


Click for Mortgage Rate Video Update


Contact us at 877-794-5363 (Lend)   


                                                                            John Sauro


or Click here to learn more 


Email: johnsauro@gmail.com


.


.


.


.


.


.


.


.


.


.


.


.


.


.


.


*The Annual Percentage Rate is based on a a single family owner occupied purchase or rate & term home loan with a maximum loan amount of $510,399.00 a 2.375% interest rate, 1.25 point and a Discount fee of $769.50, a 30 day rate lock, Fixed Rate for 15 Years with a payment of $2974.15, a 80% Loan to Value, and a minimum credit score of 740.**The Annual Percentage Rate is based on a a single family owner occupied purchase or rate & term home loan with a maximum loan amount of $510,399.00 a 2.75% interest rate, 1.25 point and a Discount fee of $589.50, a 30 day rate lock, Fixed Rate for 20 Years with a payment of $2439.75, a 80% Loan to Value, and a minimum credit score of 740.***The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term refinance home loan with a maximum loan amount of $510,399.00 a 2.75% interest rate, 1.25 point and a Discount fee of $866.50, a 30 day rate lock, Fixed Rate for 30 Years with a payment of $1837.09, a 80% Loan to Value, and a minimum credit score of 740 . The  rates and annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates quoted are for home purchase or Rate & Term Refinance loans. Refinance cash out loans may have a higher rate. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Rates advertised are as of May 27, 2020. Rates are subject to change without notice. 178 Trinity Pass, Pound Ridge NY 10576 * Registered Mortgage Broker, NYS Department. of Financial Services *Loans Arranged Through Third Party Providers . NMLS# 1375 & 42481.  Copyright © 2018 NorthAtlanticMortgage.com





															

		
		
	





	
		



	
	


		
		

							

					
				

			
			
Fake News and Mortgage Rates


							

					Posted on   by  				

			
		


					

				




March 26, 2020  – (6 minute read)


For years the media has been misinforming the public on mortgage rates. They continually state that the rates are controlled by the Federal Reserve.  And they continue to beat the drum of FAKE NEWS as I watched this mornings business news shows like CNBC.  Read on and learn how this market really works and its effect on mortgage interest rates.


Mortgage Crisis & Fed Unintended Consequences  


The Coronavirus Meltdown


The current Coronavirus crisis is having a critical impact on the Mortgage Industry, which could potentially make the 2008 financial crisis pale in comparison. The pressing issue centers around capital that’s required by Mortgage Lenders to be able to function and meet covenants that are required for them to continue to lend.










Here’s How the Mortgage Market Works


Let’s begin with the mortgage process. A borrower goes to a Mortgage Originator to obtain a mortgage. Once closed, the loan is handled by a Servicer, which may or may not be the same company that originated the loan. The borrower submits payments to the Servicer, however, the Servicer does not own the loan, they are simply maintaining the loan. This means collecting payments and forwarding them to the investor, paying taxes and insurance, answering questions, etc. While they maintain or “service” the loan, the asset itself is sold to an aggregator or directly to a government agency like Fannie Mae (FNMA), Freddie Mac (FHLMC), or Ginnie Mae (GNMA). The loan then gets placed inside a large bundle, which is put in the hands of an Investment Banker. That Investment Banker converts those loans into a Mortgage Backed Security (MBS) that can be sold to the public. This shows up in different investments like Mutual Funds, Insurance Plans, and Retirement Accounts.


The Servicer’s role is very critical. In order to obtain the right to service loans, the Servicer will typically pay 1% of the loan amount up front. The Servicer then receives a monthly payment or “strip” equal to about 30 basis points (bp) per year. Because they paid about 1% to obtain the servicing rights and receive roughly 30bp in annual income, the breakeven period is approximately 3 years. The longer that loan remains on the books, the more money that Servicer makes. In many cases, the Servicer might want to use leverage to increase their level of income. Therefore, they may often finance half of the cost of acquiring the loan and pay the rest in cash.




Servicing runoff, or even the anticipation of it, can adversely impact the market valuation of a servicing portfolio.






Servicer Dilemma


As you can imagine, when interest rates drop dramatically, there is an increased incentive for many people to refinance their loans more rapidly. This causes the loans that a Servicer had on their books to pay off sooner…often before that 3-year breakeven period. This servicing runoff creates losses for that Mortgage Lender who is servicing the loan. The more loans in a Mortgage Lender’s portfolio, the greater the loss. Servicing runoff, or even the anticipation of it, can adversely impact the market valuation of a servicing portfolio. But at the same time, Lenders typically experience an increase in new loan activity because of the decline in interest rates. This gives them additional income to help overcome the losses in their servicing portfolio.


But the Coronavirus has caused a virtual shutdown of the US economy, which has created an unprecedented amount of job losses. This adds a new risk to the servicer because borrowers may have difficulty paying their mortgage in a timely manner. And although the Servicer does not own the asset, they have the responsibility to make the payment to the investor, even if they have not yet received it from the borrower. Under normal circumstances, the Servicer has plenty of cushion to account for this. But an extreme level of delinquency puts the Servicer in an unmanageable position.










I’m From the Government and I’m Here to Help


In the Government’s effort to help those who have lost their jobs because of the Coronavirus shutdown, they have granted forbearance of mortgage payments for affected individuals. This presents an enormous obstacle for Servicers who are obligated to forward the mortgage payment to the investor, even though they have not yet received it. Fortunately, there is a new facility set up to help Mortgage Servicers bridge the gap to the investor. However, it is unclear as to how long it will take for Servicers to access this facility.


But what has not been yet contemplated is the fact that a borrower who does not make their very first mortgage payment causes that loan to be ineligible to be sold to an investor. This means that the Servicer must hold onto the asset itself, which ties up their available credit. And with so many new loans being originated of late, the amount of transactions that will not qualify for sale is significant. This restricts the Lender’s ability to clear their pipeline and get reimbursed with cash so they can now fund new transactions.




The Fed’s desire to bring mortgage rates down isn’t just damaging servicing portfolios because of prepayments, it’s also wreaking chaos in Lenders’ ability to hedge their risk.






Mark to Market


This week, due to accelerated prepayments and the uncertainty of repayment, the value of servicing was slashed in half from 1% to 0.5%. This drastic decrease in value prompted margin calls for the many Servicers who financed their acquisition of servicing. Additionally, the decreased value of a Lender’s servicing portfolio reduces the Lender’s overall net worth. Since the amount a Lender can lend is based on a multiple of their net worth, the decrease in value of their servicing portfolio asset, along with the cash paid for margin calls, reduces their capacity to lend.










Unintended Consequences


The Fed’s desire to bring mortgage rates down isn’t just damaging servicing portfolios because of prepayments, it’s also wreaking chaos in Lenders’ ability to hedge their risk. Let’s look at what happens when a borrower locks in their mortgage rate with a Mortgage Lender. Mortgage rates are based on the trading of Mortgage Backed Securities (MBS). As Mortgage Backed Securities rise in price, interest rates improve and move lower. A locked rate on a mortgage is nothing more than a Lender promising to hold an interest rate, for a period of time, or until the transaction closes. The Lender is at risk for any MBS price changes in the marketplace between the time they agreed to grant the lock and the time that the loan closes.


If rates were to rise because MBS prices declined, the Lender would be obligated to buy down the borrower’s mortgage rate to the level they were promised. And since the Lender doesn’t want to be in a position of gambling, they hedge their locked loans by shorting Mortgage Backed Securities. Therefore, should MBS drop in price, causing rates to rise, the Lender’s cost to buy down the borrower’s rate is offset by the Lender’s gains of their short positions in MBS.


Now think about what happens when MBS prices rise or improve, causing mortgage rates to decline. On paper, the Lender should be able to close the mortgage loan at a better price than promised to the borrower, giving the Lender additional profits. However, the Lender’s losses on their short position negate any additional profits from the improvement in MBS pricing. This hedging system works well to deliver the borrower what was promised, while removing market risk from the Lender.


But in an effort to reduce mortgage rates, the Fed has been purchasing an incredible amount of Mortgage Backed Securities, causing their price to rise dramatically and swiftly. This, in turn, causes the Lenders’ hedged short positions of MBS to show huge losses. These losses appear to be offset, on paper, by the potential market gains on the loans that the lender hopes to close in the future. But the Broker Dealer will not wait on the possibility of future loans closing and demands an immediate margin call. The recent amount that these Lenders are paying in margin calls is staggering. They run in the tens of millions of dollars. All this on top of the aforementioned stresses that Lenders are having to endure. So, while the Fed believes they are stimulating lending, their actions are resulting in the exact opposite. The market for Government Loans, Jumbo Loans, and loans that don’t fit ideal parameters, have all but dried up. And many Lenders have no choice but to slow their intake of transactions by throttling mortgage rates higher and by reducing the term that they are willing to guarantee a rate lock.


Furthering the Fed’s unintended consequences was the announcement to cut interest rates on the Fed Funds Rate by 1% to virtually zero. Because the Fed’s communication failed to educate the general public that the Fed Funds Rate is very different than mortgage rates, it prompted borrowers in process to break their locks and try to jump ship to a lower rate. This dramatically increased hedging losses from loans that didn’t end up closing.


It’s been said that the Stock market will do the most damage, to the most people, at the worst time.






Even Stephen King Could Not Have Scripted This


It’s been said that the Stock market will do the most damage, to the most people, at the worst time. And the current mortgage market is experiencing the most perfect storm. Just when volume levels were at the highest in history, servicing runoff at its peak, and pipelines hedged more than ever, the Coronavirus arrived.


Lenders need to clear their pipelines, but social distancing is making it more difficult for transactions to be processed. And those loans that are about to close require that employment be verified. As you can imagine, with millions of individuals losing their jobs, those mortgages are unable to fund, leaving lenders with more hedging losses and no income to offset it.










What Needs to Be Done Now


Fortunately, there are many smart people in the Mortgage Industry who are doing everything they can to navigate through these perilous times. But the Fed and our Government needs to stop making it more difficult. The Fed must temporarily slow MBS purchases to allow pipelines to clear. Lawmakers need to allow for first payment defaults, due to forbearance, to be saleable. And finally, the Fed must more clearly communicate that Mortgage Rates and the Fed Funds Rate are not the same.


We have faith that the effects of the Coronavirus will subside and that things will become more normalized in the upcoming months.


.


.


.


Source: MBS Hwy













															

		
		
	





	
		



	
	


		
		

							

					
				

			
			
Breaking News -Today Mortgage Rates Dropping


							

					Posted on   by  				

			
		


					

				
March 21, 2020 8:30am


The Fed announce it will buy Treasuries and Mortgage Backed Securities today.


Mortgage Backed Securities are rallying with the price up 92 basis points this morning to $103.68.


The stock market futures reversed losses and were up as much as 497 points.


If the rally holds, it will result in lower mortgage rates today. Mortgage rate pricing come out between 10am and 11am.


Source: John Sauro