Marry the Home – Date the Rate!

Marry the Home – Date the Rate!  You’ve probably heard that ever since mortgage rates started to climb during the Biden administration. Believe it or not, due to a stubborn Mortgage Backed Securities (MBS) market, that phrase is still what we in the business are promoting! Are we greedy? NO! It makes sense! Marry the Home – Date the Rate, is solid advice for today’s real estate market. Here’s why. Purchasing your dream home may cause short term pain for your pocketbook, but rest assured, you most likely were the only one making an offer! This probably allowed you to negotiate the price of the home downward in your favor. Now, you have the home you wanted, and if rates go up, well, you know your did the right thing by receiving the lowest mortgage rate available. However, if rates go down, you will be a double winner as you can refinance into the long – term financing you were always hoping to get! So call Michael Mitchell at Mitchell Mortgage today and say, “Mike, I found the home I want and I’m ready to Marry the Home and Date the Rate! I am waiting to hear from you so we can write your pre-approval letter that you can hand to your realtor and make that offer! Call 707-337-5970 Mobile, 530-406-2200 & 707-259-1117 landlines.

 

Will tariffs help you get a home loan?

Will tariffs help you get a home loan? As with everything else in lending, it depends on the Bond market! As this is written, large investors that move the Bond market are selling bonds when it appears the tariffs won’t be to strong and buying bonds when it appears the tariffs will be high. Since there is so much uncertainty, there has been very little movement in mortgage interest rates. Lenders aren’t waiting around on if rates will lower or not, they are coming up with programs that haven’t been used with any regularity for quite some time. For instance, Interest only mortgages that will help lower your monthly payment. Equity sharing, buydowns and home equity loans are also part of the picture. In short, lenders are doing anything they can to generate business! You have heard me say it before, but I will say it again…if you can afford the payment for a new home that is to your liking, then purchase now! If rates go down afterward, then refinance, but if rates go up, you can rest assured you received the lowest interest rate! Those over 55 and with a good amount of equity can also consider how a “Reverse Mortgage” can help them! Competition for homes is up due to scarcity of inventory, but that will be temporary. Call me today to get pre-qualified so you are a leg up and can make an offer right away! Don’t forget, at Mitchell Mortgage, “The Broker is always working on your home loan!” 707-337-5970 mobile or 530-406-2200 and 707-259-1117 landlines.

New Administration could bring new opportunities!

A new administration could bring new opportunities for borrowers!  Long term mortgage interest rates have been stuck on the higher side of where any of us in the business expected them to be ever since the Fed cut short term rates!  This hasn’t made sense, but since long term rates are only moved when large investors buy or sell mortgage backed securities, there’s been more selling than buying.  It could just be that investors are waiting to see if the new administration will bring new opportunities that are bond friendly.  Such as an economic atmosphere that doesn’t scream “inflation”!  If we can count on anything, it is that change with a new administration does usually bring about new opportunities, so if you are looking to purchase or refinance your property, now would be a good time to pay attention to the bond market.  If you see that yield drop on the 10 year treasury bond, then that is the time to call me, Michael Mitchell and let me run numbers for your situation!  I’ll be standing by!  Call 707-337-5970 mobile or 530-406-2200 & 707-259-1117 land lines.

Put your mortgage in Reverse!

Put your mortgage in reverse if you are 62 or older and you can forget about mortgage payments for as long as you live in your home! The caveats being: 1) you continue to pay your homeowners insurance, your property taxes and (if you live in a community with a homeowners association) any HOA dues. 2) and, most importantly, you have a lot of equity in your current home. This FHA Reverse Mortgage product can help you stay in your home if your income is stagnant or declining. If you meet the requirements, or simply want to know more, than call me, Michael Mitchell at 707-337-5970 mobile or 530-406-2200 & 707-259-1117 land lines!
Don’t forget that Mitchell Mortgage also handles conventional and VA mortgages as well, so don’t hesitate to call for those products as well! Let’s make 2025 a great year for you by putting your mortgage in reverse!

Spooky Rates!

Spooky rates…that is, spooky mortgage rates, remain frustratingly high ever since the Fed lowered short term rates by 1/2 point! In trying to figure out why, it appears, at least to me, that large bond investors are fearful of making big decisions and scared to commit to a plan until after the coming election! So expect the spooky rates to continue until after November 5th. They don’t want to find themselves haunted by betting on the wrong candidate to win! That’s my ghostly prediction for the next few days…don’t let it scare you! We can calm your nerves when you call for your prequalification today! Just dial 707-337-5970 mobile or 530-406-2200 or 707-259-1117 land lines. Mitchell Mortgage has programs for Fannie Mae, Freddie Mac, FHA, VA, Reverse Mortgages, hard money and more!  We are the treat, not the trick!  Happy Halloween! Image by Freepic

Stocks or Bonds battle could be good news for you!

The current winner of the stocks or bonds investment strategy goes to ——- Stocks! Know how to tell? Long term mortgage rates have gone up, not down, ever since the Fed lowered the borrowing rate by 1/2 point! If the situation was reversed, the bond yield would be lower, which puts pressure to purchase mortgage backed securities, which, then, lowers long term mortgage rates. Right now, large investors feel they can make more money in the stock market than by purchasing a 10 year treasury bond. Until this reverses, or until it at least evens out, then look for current mortgage rates to stay in the malaise they currently occupy! This does open the door for anyone willing to purchase a home right now, because they will face less competition for that dream home. As soon as rates start to fall, you will have competition for that same home, and a bidding war usually drives up the price! If you would like to get pre-qualified now and you don’t care about the stocks or bond yields, then call me at 707-337-5970 mobile or 530-406-2200 and 707-259-1117 land lines! Mitchell Mortgage handles Fannie Mae, Freddie Mac, FHA, VA, Reverse Mortgages and Hard money too! Talk to you soon!

If Fed drops rate and mortgage rates don’t drop…did it happen?

In a rates update from last week, I promised to keep you abreast on when the mortgage rates dropped as well.  This is that update…nothing has changed and if there’s been any movement at all, it has been slightly up, meaning you are paying more to borrow on your mortgage…not less!  How can this be?  Go back to my comments about what really moves the mortgage rates…large investors buying U.S. T-bills and usually in unison, Mortgage Backed Securities.  That is not happening and therefore, we are stuck in “Groundhog Day” (a salute to the Bill Murray film) with the same mortgage interest rates day after day.  So here is the most likely cure…I will not predict when this will happen, and most likely, the mortgage rates will soon come down to an expected quarter to three-eighths correction!  As promised, when and if that happens…I will be right back here to encourage you to call Michael Mitchell, Mitchell Mortgage at 707-337-5970 mobile, 530-406-2200 & 707-259-1117 landlines, and find out how I can get you in your next home loan!  Talk to you soon!

Rate Drop Could Be Good News For You!

There was rate movement finally and the Fed just dropped by .50%! Although it could affect long term rates immediately, so far we have only seen lenders sending out emails, such as this blog entry, stating the same headline! We will see, probably later today or sometime tomorrow how bond buyers feel about this latest rate movement. For it is buyers of U.S. Treasurys bonds and at the same time, Mortgage backed securities that will determine how low home lending rates will be. We will monitor this and let you know as soon as a direction is established…but for now, let’s celebrate what we all though should have happened quite some time ago…Rate movement in the right direction! If you would like to discuss now, then call Michael Mitchell at Mitchell Mortgage, 707-337-5970 mobile and 530-406-2200 or 707-259-1117 land lines! Talk to you soon!

Let’s get a Backup Your Income Plan!

Backup your income? With a Reverse Mortgage? You bet! The caveat is you must be 62 or older, but for those that are, and have a lot of equity in their home, this kind of financing might just be what you are looking for to supplement your income and have no mortgage payment! Federal regulations prevent us from going into much detail so we are speaking in general terms here, but the fact remains, a Reverse Mortgage can tap into your home equity, backup your income and even if you use up all the equity in the home, you still can stay in the home and not have a payment for as long as you remain in the home. Backing up your income with a Reverse Mortgage could be the answer to staying in your home! Not everyone will qualify, but if this interests you, give a call to Michael Mitchell at Mitchell Mortgage where we can answer all your questions! Evening and weekends are not a problem if you call the mobile line at 707-337-5970! You can also use 530-406-2200 or 707-259-1117 land lines!

The Here and Now, is Here!

The rate is the rate is the rate!

Let’s face it.  To most people the future would be nice to think about, but the reality is, you still have to deal with the Here and Now!  Take mortgage interest rates for instance…Please! (a salute to Henny Youngman)  If you are in a situation where you have to buy a home now, then you will have to work with current rates, no matter what they are.  Lucky for you, there is an upside to that.  Because when rates are higher than you would prefer, that means they are higher for everyone else as well.  Those potential buyers that don’t have to purchase now make you a hot commodity.  You might be lucky enough to be the only bidder on a home that hasn’t had offers for months.  That’s negotiating power!  Now when you buy that home at current rates, then if the rates go down, you can refinance, but if they go up, you received the lowest rate possible at your purchase close of escrow!  Same thing for refinancers.  If you just can’t wait to take some cash out to upgrade your home now, then use the mindset of the purchaser in the before mentioned scenario.  In your case, you had to make the changes, your home is now worth more, and if rates come down, you can refinance to the lower payments for the long term!  If the Here and Now is affecting you in the above situations, call Mitchell Mortgage today!  Michael Mitchell will guide you through your next real estate transaction with speed and honesty!  Call 530-406-2200 or 707-259-1117 land lines or even better, 707-337-5970 Mobile!  Don’t forget the Mitchell Mortgage handles not only conforming loans, but “Reverse Mortgages” for those 62 and over, and also FHA, VA mortgages!  Let’s talk soon!