mortgage rate | Lanning Financial https://lanningfinancial.com Mon, 21 Jun 2010 01:00:34 +0000 en-US hourly 1 https://lanningfinancial.com/wp-content/uploads/2023/07/cropped-LFI_Logo_Vertical_Small-32x32.png mortgage rate | Lanning Financial https://lanningfinancial.com 32 32 Mortgage Money Comes From The Same Source https://lanningfinancial.com/mortgage-money-comes-from-the-same-source/ Mon, 21 Jun 2010 01:00:34 +0000 http://lanningfinancial.wordpress.com/?p=184 Consumers are somehow lead to believe that the various sources for mortgages—from banks like Bank of America to mortgage brokers like Lanning Financial at Guarantee Mortgage—get the money…

The post Mortgage Money Comes From The Same Source first appeared on Lanning Financial.]]> Consumers are somehow lead to believe that the various sources for mortgages—from banks like Bank of America to mortgage brokers like Lanning Financial at Guarantee Mortgage—get the money to lend to consumers from different places.  Somehow consumers are lead to believe that this is why some institutions offer higher or lower rates.  Not really true.

Business decisions drive mortgage rates

The actual money source from mortgages is pretty small.  It’s like a spring coming out of the side of the mountain.  In strong precipitation years, the spring flows freely and in low precipitation years, it flows more slowly.  Pretty much everyone goes there to get water.  Some years there are lots of people going to get water and in other years, few people are going to get water.  In comparison to the years 2002-06, we’re in a mortgage money draught. There’s not a lot of water.  There are also very few people going to get water.  But the water is pretty much the same.

Now, what each institution does with the water is different.  Some give it away for free. Some of them charge a reasonable fee.  Some overcharge for it.  That’s the difference in interest rates.  I often tell clients that we provide a competitive rate for our mortgages.  I never say we’re the “best rate” because some days we are and some days we aren’t and it’s impossible for me to know what’s so from day to day or even moment to moment.  Yet, I know that if we price ourselves in the market and remain competitive, and I know that my clients are well-served, if for no other reason than I need to sleep at night with a clean conscience.

The post Mortgage Money Comes From The Same Source first appeared on Lanning Financial.]]> The State of the Mortgage Market https://lanningfinancial.com/the-state-of-the-mortgage-market/ Mon, 04 Jan 2010 17:00:32 +0000 http://lanningfinancial.wordpress.com/?p=77 We’ve had a very successful year doing mortgages.  We’re lucky to have a high-quality client base, great clients who refer us business, and respectable business practices. Mortgage Rates…

The post The State of the Mortgage Market first appeared on Lanning Financial.]]> We’ve had a very successful year doing mortgages.  We’re lucky to have a high-quality client base, great clients who refer us business, and respectable business practices.

Mortgage Rates and Products

My prediction is that rates will remain relatively low for 2010 and probably 2011. There will the usual ups-and-downs of mortgage rates, but historically speaking, rates will remain low.  A few pieces of advice:

  1. If you can’t refinance your adjustable rate mortgage and its getting ready to reset, don’t panic.  Your rate may be adjusting lower or very close to what you have now.  You might want to keep that loan for a while.
  2. If you have an equity line of credit that allows you to do a “fixed rate partition”—that is, fix the interest rate on all or a portion of the loan—consider doing this when you see the prime rate bump up a quarter to a half percent. Call your lender.
  3. If you want the 30-year fixed-rate loan and haven’t gotten it, get it now. Give us a call.
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