"RATE WATCH"

No news on the sub-prime fiasco today – although the fallout is still a daily story. Instead, I would like to focus on a new service I have developed.

Over the past several months many borrowers have contacted me regarding refinancing of their current mortgages. Their desire to refinance was based upon multiple reasons - the turbulence in the mortgage market, the tightening of credit, the public awareness of fluctuating rates, Adjustable Rate Mortgages coming due, and just the basic economics of “if I have a lower rate, I will save money”.

I am happy to announce that after several weeks of work, I have now automated the process of keeping track of all the variables that contribute to determining the interest rates that are available to a particular borrower. I am formally launching my “rate watch” program. The timing is excellent, as conforming (<$417,000), rates are at there lowest in 2 years.

Although the program is fairly complex, what it does is simple. It monitors for me (and you) interest rates on a daily basis, including all the important factors that contribute to an individual clients’ rate and closing costs. It then generates a daily report of those customers who are in a favorable position to refinance. I can then contact you by either phone, or email and let you know that market conditions are favorable for refinancing. You no longer have to watch rates and crunch the numbers yourself. I (or the program) will do that for you. Information you will receive include rate, payment, mortgage program (fixed, adjustable, interest only, etc.), and estimated closing costs. It will also include the rate and payment with no closing costs, as well as a break-even analysis to determine if it is beneficial to pay closing costs or not.

If you have an Adjustable Rate Mortgage approaching its adjustment date within the next few years, I can also provides you an analysis showing you the risk reward of refinancing now –even if it is at a rate higher than you currently have, verses waiting until the termination date and risking a higher rate at that time. Last, if you currently have a first and second mortgage, I can perform an analysis to determine if it is worth combining the two mortgages into one lower rate mortgage.

If you would like me to put you on my “rate watch”, please provide me as much of the following information as possible.

Estimated value of your current home;
Property type (condo, single family etc);
Occupancy type (owner occupied, second home, rental, etc.);
Location of property;
Are you in a mortgage tax state?;
Balance on your current mortgage(s);
Rates on your current mortgage(s);
Rate and Term or cash-out refinance. If you have a first and second mortgage and you would like to consolidate them, it is considered a cash-out refinance unless you acquired the mortgages at the same time, or you have not drawn down against the second mortgage in the last 12 months.
Estimated credit score.
Any other factor that you think is important that I know.

All of the above are critical to an accurate quote. Rates have fallen fairly dramatically in the last week – despite the risk premium attached to mortgage backed securities. I look forward to hearing from you.