Tag

Steve Mohabir

Interest Rate Worries Recede (at least for now)

30-Year Mortgages Below 4% for 1st Time Since Election According to Edina Mortgage’s Steve Mohabir, long-term interest rates for well-qualified Buyers are once again below 4%. So much for the fear of skyrocketing rates derailing the housing market any time soon (the bond market has also rallied as interest rates have dropped — repeat, dropped — the...
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Interest Rates Rocket Higher in Wake of Trump Win

Post-Election Aftermath:  Stock Market Boom, Bond Market Bust Overshadowed by all the political fallout the last week is the election’s effect on interest rates:  up, quickly. According to Edina Mortgage’s Steve Mohabir, subsequent to the election, interest rates for a 30-year mortgage for well-qualified borrowers jumped a huge (“Yuge??“) 50 basis points, from 3.5% to over...
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When It Makes Sense for Home Buyers to Pay a HIGHER Mortgage Rate, Especially in Multiple Offers

The Opposite of Buying Down Rates Wait a second! Isn’t borrowers’ goal to pay the lowest interest rate they can on their mortgage? Yes, but — especially for first-time home Buyers — there’s the added consideration of closing costs. On a $200,000 home, a typical amount would be 3%, or $6,000. Conserving Cash A popular...
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Investors’ Pain = Borrowers’ (and Housing Market’s?) Gain

Flight to Safety Keeps a Lid on Interest Rates The flip side of a (very) rocky stock market so far this year is cheaper mortgages for home buyers. That’s because investors seeking safety pile into bonds. That drives bond prices up . . . and interest rates down (bond prices and interest rates move inversely...
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The Difference Between Qualifying For a Mortgage & Not? A Good Lender

Housing Comp’s vs. Lender Comp’s To Realtors, a Comp (“Comparable Sold Property”) is a nearby, recently sold home similar in size, style, and condition to the “subject home” (the home being valued). What’s a “Comp” to a lender? The borrower’s annual income for any given year. Excluding a Harmful Comp Just like the key to...
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Making Sense of Jumbo Mortgage Rates

From Steep Premium to Discount In the wake of the 2008 Financial Crash, rates on jumbo mortgages (over $417k in most parts of the country) skyrocketed to 7% or even higher. Assuming you could find one. Fast forward to Fall 2015, when jumbo’s can now be had for as little as 3.75% — a slight discount to...
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