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!

Any effect on Markets in the Aftermath?

The Aftermath of the assassination attempt on Former President Trump, as expected, has caused a plethora of emotions affecting both public and business responses.  Before we go any further, just so you know, the Mitchell Mortgage response is, let’s all please lower the temperature on “did not, did too” rhetoric, and deal strictly with the facts moving forward.  We believe, to some extent, that has already happened, so fingers crossed…let’s hope that becomes ‘the norm”!  Ok, back to the business side – interest rates have slightly moved down in the last few days.  Federal Reserve Chairman, Jerome Powell, has hinted that interest rates may indeed see some relief before year end.  We have been expecting this, but as we have said many times, we thought it would have happened by now!  Some on Wall Street see as many as two rate drops before the end of the year…others are skeptical.  We are in the first camp!  To wrap this up, The Aftermath finds little change in overall market conditions.  Stay tuned as the number of days get shorter until the election.  For daily updates, give Michael Mitchell a call at 530-406-2200, 707-259-1117 or the mobile at 707-337-5970!  Remember that Mitchell Mortgage covers “Reverse” mortgages, as well as conforming conventional, non-conforming, FHA, VA, hard money and more! 

Maybe yes, maybe no!

Most economic pundits are saying there is a housing shortage…but is there really? Yes and no! Florida and Texas have been building homes rapidly since the beginning of Covid. That was to accommodate all the transfers from mostly blue states, like California and New York. They might have overbuilt, as home prices are starting to see some relief in those states. But the Northeast and the Midwest are still underbuilt for the amount of people that need housing in those areas, so expect home prices to stay steady to rising in those parts of the country. Here in California, we have lost a lot of our population and state tax money with it, but they don’t call it the Golden State for nothin”! We have too many natural resources and great weather to ever have too much exodus. As interest rates come down, more builders will build and homes will become more affordable. I would look for interest rates to start moving down this year as the pendulum towards high rates has just about maxed out. So when you are ready to make that purchase or refinance in California, first make a call to me, Michael Mitchell at 530-406-2200, 707-259-1117 or my cell at 707-337-5972! Don’t forget that we handle Reverse Mortgages (for those over the age of 62) as well as conforming and non-conforming transactions.  We will get you pre-approved to make that purchase, or a refinance if you need cash out or are just trying to get rid of mortgage insurance! Talk to you soon!

Fixed or Adjustable, Long Term or Short Term

Mortgage Decisions Made Simple

What mortgage is best for you?  How do you get that Goldilocks feeling that you did it “Just right”?  It is not as difficult as you might expect and is usually figured out with just a few questions.  For instance, you call me and ask, “Mike, what type of mortgage will work best for me?”  I will answer your question with questions of my own.  The following are three examples of what mortgage is best for you.  1) I ask is it a purchase or a refinance?  You tell me it is a purchase.  I ask if you will make this property your primary residence?  You answer that it will be.  I ask if you plan on owning the home for long term?  You reply that you will keep the home for more than five years.  Then I suggest a fixed rate conforming loan (this, of course, would also mean you had good credit, income and sufficient funds for down payment and closing costs).  2)  If your answers were:  Yes it is a purchase, no you will not keep the property long term, nor will you live in it, your credits not bad, but not great, but you do have plenty of money for the down payment and closing costs….then I would suggest a fix and flip mortgage with the lowest points available.  3)  If your answers were:  You are over 62, you need cash out to consolidate a few bills and you need cash available, just in case, for emergencies.  Then my answer would be an adjustable rate “Reverse Mortgage”.  That way, you would have no mortgage payment (it would be taken out of the equity of your home).  You would still be responsible for the payment of property taxes and home owners insurance, but even if you use all the equity in your home, you would still be able to live in it until your death!  There certainly would be more questions by me, to you, to find what mortgage is best for you, (and there are many more mortgage types to discuss) but rest assured, we would get the right one!  If you have questions on which mortgage is best for you and your current situation, then call me, Michael Mitchell at 530-406-2200, 707-259-1117 or my cell at 707-337-5970 today!  Evenings after work hours and weekends are fine, just use the cell phone please.  Let’s talk soon!

Fed to lower rates?

We once again are hoping!

Federal Reserve Chairman, Jerome Powell, announced today that if inflation will drop sharply, then he and the rest of the Federal Reserve will have no problem in lowering short term interest rates.  This in turn will put pressure on long term (mortgage rates) to drop as well.  We have heard wishy-washy verse from the chairman for several years now, so, that is why the “hope” part of our headline is prominent!  At least for the last month, the 10 year treasury bond has been in a 3/10’s of a point range…meaning rates have been stagnant.  The rates are certainly not as high as they have been during the Biden administration, but they certainly are no where near as low as they were during the Trump administration.  Now with the election going into high gear, my guess is somehow, magically, there will be a reason for interest rates to come down.  To be honest, I thought it would have happened way before now, but we will take what we can get, when we get it!  If you would like to follow the 10 year bond as it moves up or down, you can go to “marketwatch.com” and you will be able to see what movement has been made.  If you want to skip that but still want to know what rates are doing, then call me, Michael Mitchell, at 530-406-2200 or even better, my cell at 707-337-5970.  After hours and weekends are fine, so don’t be shy!  If we all cross our fingers, then maybe our hope will become a reality!

Homebuyer and homeowner spring tips are best gathered by using the “search” option on your phone or home computer.

For homebuyers, you might be reminded that surface beauty does not necessarily mean a well constructed home! Make sure, if you represent yourself, that you order a home inspection and a pest report (they are not the same thing). Homebuyers that take this step will assure themselves, as much as possible, that beyond the beauty of the home you love, you are buying a sound structure…or not! Anyway, best to know upfront and not afterwards!

Homeowners spring tips are bringing current any deferred maintenance, freshening up around the house (such as washing windows) and adding new touches of decor both inside and out. It gets pretty easy to just let things go as they are, but homeowners will feel better when they take a look at their accomplishments. Plus, this is the best weather of the year to complete these projects!

Whether you are homebuying now or a homeowner in need of refinancing, the best tip is to call Mitchell Mortgage!  Mitchell Mortgage covers Conventional financing, FHA, VA, hard money, bridge loans, and if you are 62 or older, you can consider a “Reverse Mortgage”, providing you have enough equity! Call Michael E. Mitchell, Owner/Broker and we can talk today! 530-406-2200, 707-259-1117 and 707-337-5970 mobile

The Federal Reserve (the Fed), led by Jerome Powell will decide tomorrow (4/10/24) whether they will lower interest rates further to help boost the economy. Trouble for the Fed though, is the economy, at least with the numbers they are reporting, seems to be doing quite well for itself! You may not feel that way, and most of the people I have conversations with, don’t feel that way. But, how ya’ gonna fight City Hall“?  Powell, and the rest of the Fed members, have to weigh how much they may spur inflation if they do lower rates.

I am not sure that is the point…the following is how I feel about the situation. While there is a chance that lower rates could spark more inflation and make everything cost more, there is a feeling among many that the current inflation is affecting households in a negative fashion. Meaning, people are noticing it costs way more right now for groceries, gas, clothing…the items we all need on a daily basis…not to mention housing! These people would welcome some relief with lower interest rates. One of the reasons people are paying so much for housing is lack of inventory. Everyone who has a 2,3 4 or even 5% home mortgage, doesn’t want to sell their home and then find another with a higher interest rate! If the Fed begins to cut rates, this could open up the housing market. We will see what tomorrow brings and make our plans for the future based on the outcome.

If you would like to discuss this further or how tomorrow’s fed decision might affect you, call Michael Mitchell at Mitchell Mortgage 530-406-2200, 707-259-1117 or Mobile at 707-337-5970!