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San Diego Mortgage Rates Report: February 28, 2008

I had a complete meltdown on my Twitter feed, yesterday.  Bernanke told the House that he was concerned about inflation but more concerned about a recession.  I initially reversed my float recommendation and subsequently changed it back to lock because I thought Wall Street would hate Ben's remarks; I was wrong.  I violated the first principle; don't fight the Fed.

The Federal Reserve is worried about a recession.  I think we can expect the Fed to cut rates next month.. The anticipation of that cut gives us a chance to see mortgage rates drift lower.  You should CAUTIOUSLY FLOAT your mortgage rate if your closing is over 7 days away; I think you'll have some room to get a mortgage rate that is .125% to .25% lower than it is today.

We're you paying attention to my Valentine's Day gift of love? I pointed out the hot curves on the 10/1 ARM; it was a full 1% lower than a 30 year fixed.  She's not as sexy as she was last week but the 10/1 ARM is still .5% better in rate than the 30 year fixed.

This morning's report is a bit more dry than the others because today will be busy.  The Gross Domestic Product showed that the economy is teetering on the brink of recession.  That news will be good for mortgage rates.  The market is volatile so always check Mortgage Rates Report for updated recommendations.

BREAKING NEWS: I'll be offering this syndicated column for Home Gain as "National Mortgage Rates Report", every Monday and Thursday.

San Diego Mortgage Rates Report: February 25, 2008

I haven't posted much because I'm still locking all mortgage rates at application.  The market is so volatile because some on Wall Street believe that we're NOT going to have a recession and that the Fed will reverse course and start raising the Discount and Fed Funds rates.

Say What?  Well, I don't make the rules, I follow them.  While I expect to see lower rates in 6 months, today, they're rising faster than a popstar's audience grows.  Of course, what goes up can come crashing down (ask Britt) but today, we're dealing with higher mortgage rates.

The strategy I recommend is to obtain a 10/1 ARM at 5.375% (5.62% apr) with no discount points.  You can lower the rate on that loan to 5.125% by paying a point upfront but it will take over 5 years to recoup that cost; I think you'll sell or refinance during that time (or have an opportunity to do so).  I just can't understand why anyone would want a 30 year fixed AT EXACTLY 1% HIGHER than the 10/1 ARM.

Okay, let's get back to Britney Spears; she'll illustrate my point about the 10/1 ARM.  In 1999, she was 17 years old and the hottest thing since Elvis.  She released her debut album, Baby One More Time, and was the darling of kings and Presidents.  Today, Britt's struggling in rehab and dealing with custody issues.  In ten years, she will find God, get re-married, remake her career, and be considered one of the most influential artists of all time (only in America).  Now, I'm exaggerating to reduce the ten year time frame to the ridiculous.  I only wish the best for Britney and certainly wish the best for you.

That's why I'm so adamant about the ten year ARM.

PS- Want the fastest response in this volatile market?  Apply online and call me at 858-777-9751 right after you apply online.

YOU Magazine: February, 2008 Issue

Six Simple Ways to Retire Rich By Mary Beth Franklin Retirement savings plans are undergoing an extreme makeover. After decades of trying to teach Americans how to save and invest for their own retirement -- with mixed success -- employers have come up with a simple solution: They'll do it for you. Thanks to automatic enrollment in 401(k)s and other retirement plans, plus streamlined investment options, saving is so effortless that you can't help but succeed. Keep Reading »
Jumbo Loans: Upgrade to the House of Your Dreams With house prices cooling, it may be time to upgrade to that dream home which suddenly appears within reach in this buyer’s market. But with more property comes more mortgage – as well as more options and more pitfalls. The difference between a "conforming" and a "jumbo" loan could directly affect your monthly mortgage payment. To shed light on how loans are priced and sold, YOU Magazine turned to Barry Habib, an expert in the mortgage-backed securities market and CEO of Mortgage Market Guide. Keep Reading »
Ten Commandments for Better Networking By Ivan R. Misner, Ph.D. Do you suffer from "Butterfly-itis" at the very mention of networking at business functions? If you answered yes, you are not alone! Many business people and entrepreneurs get a bit uncomfortable when it comes right down to walking up to someone and starting a conversation. Many others are concerned about getting effective results from the time they spend networking. The process doesn't have to be traumatic, scary, or a waste of time. Keep Reading »
Preparing Your Home for the Spring Selling Season The days when you could throw a “For Sale” sign in the front yard and have your home sell quickly are over, at least for now. Around the country, home inventories are up, and the result has been a drastic increase in average selling times. Add to that the fact that your home may not be worth what it was a year ago, and you’ve got the makings of a rather lengthy, and potentially miserable, sales process. But, it doesn’t have to be that way. Keep Reading »
Grapho-therapy Change Your Life by Changing Your Handwriting As Americans, we put a great deal of effort into transforming ourselves for the purpose of improving our lives. Termed as "self-improvement", it is a 10-billion dollar a year industry that encompasses a variety of methods for changing any number of personality traits. One method we've recently stumbled across is Grapho-therapy, the practice of improving our personality by making changes in our handwriting. Keep Reading »
A Valentine’s Dinner The Perfect Gift for Someone Special By Kirk Leins Valentine's Day is a wonderful concept, in theory at least. While the idea of a holiday dedicated to couples in love is sweet, its purity has given way to the pressure of creating the perfect evening. If this strikes a chord, fear not. My gift to you this Valentine's Day is a game plan for creating a great night for your special someone. Keep Reading »
Winter Workouts Bringing Your Exercise Indoors It's a vicious cycle. You get into shape for summer only to fall out of shape by the following spring. The holiday season has something to do with this ebb and flow, but there's more to the story than a short-lived increase in gatherings and gastronomy. Truth be told, wintertime weight gain is due in large part to a seasonal decrease in our daily exercise. Keep Reading »

Courtesy of Loan Toolbox

San Diego Mortgage Rates Report: February 14, 2007- ARMs Building Muscle

I fell in love with ARMs again, after a five month hiatus.  Hey!  It's Valentine's Day so I can tell you a love story.  This love affair has been going on since I was in my 20s.  The sexy allure of adjustable-rate mortgages were replaced by the stability of that old battle-axe, the fixed rate loan.  The culprit was the flat yield curve.  I dig curves so my eyes popped out of my head when I opened my e-mail this morning.

Adjustable-rate mortgages walked into my life like a wild-eyed, long-haired, bombshell on a Harley, toting a bottle of tequila.  Normally, I balance her beauty with the risk she presents but I promise you, she's a changed woman.  This time, she promises to stay put for a ten-year period.  Frankly, ten years is plenty of time for me to outlast a few bumps in the economic road; it's a relationship worth having.

I'm talking about the spread between a 30 year, fixed rate loan and an ARM with a ten-year fixed period.  The 30 year mortgage is around 6.0% while the ten-year fixed rate ARM is offered at 5.25%. Ten years is a LONG time, regardless of the economy, so I'm recommending that over the fixed rate loan.  Let me illustrate how long ten years is for you.  In 1998:

1- Smoking was banned in all California bars and restaurants
2- Mark McGwire broke Roger Maris' single season home run record
3- The Belfast agreement for peace in Northern Ireland was signed.
4- The Padres were in the World Series.
5-  Apple Computer unveiled the iMac
6- Microsoft was convicted of monopoly.
7- Monica Lewinsky redefined the phrase "sexual relations"
8- Google was started.
9- Jesse Ventura was elected Governor of Minnesota
10- The movie Titanic won the Academy Awards.

Do you see where I'm headed with all of this?  Ten years is a long time.  Forget 30 year fixed rate loans if you think you might move, retire, refinance, or send a kid to college between today and 2018.

The ten year loan at 5.25% (5.51% apr) is just too damned sexy!

Please contact me:

Call me at 858-777-9751

E-mail me at brian (at) californialoanconnection (dot) com

Apply for a loan online at http://www.californialoanconnection.com/apply