The Fed (Federal Reserve) has kept rates the same in their latest meeting. No up, no down…so what does this mean for you and me? Well, since they at least hinted that they might raise rates again at their next meeting, then the obvious action to take is do your purchasing or refinancing now, not later! Remember, because of where interest rates are currently, you have less competition for that home you are dreaming about. Less competition means you might get seller concessions for closing costs, or maybe a lower purchase price…or maybe…BOTH! This of course only applies to the folks that have to do something now. Over the long run, I think we will see lower rates. The ones who buy now, can take advantage of a refinance if this scenario proves out. At any rate, “rates” are what they are for now! If you want to discuss how all this might affect your current situation, then call Michael E. Mitchell at Mitchell Mortgage today and use my cell phone of 707-337-5970. Good luck!

Thinking Points!  What goes up, must come down!  The reverse is true as well.  Remember the Covid-19 years?  Mortgage rates hit all-time lows and stayed that way longer than they should have.  This created the need to raise rates rapidly to cool down the economy.  It should have never come to that, but it seems no matter who is in charge of the Federal Reserve, they all seem to make the same mistake of never anticipating an end to a cycle…therefore, low rates for too long and then high rates for too long!  The cycle we are in now, high rates, will most likely continue until well past the obvious signs that the economy has slowed down, if history has anything to say about it.  Sooooo, here is my suggestion.  If you are purchasing, and can afford it, buydown the interest rate with discount points.  A one percent discount point will, in almost all cases, drop your mortgage rate by 1/4 percent.  Usually it takes around five years to make that back in the form of lower payments verses the money output of the discount point.  For example:  a $500,000 loan on a $625,000 primary residence property purchase today would be 7.25% for a 30 year fixed rate at zero points.  If you were to pay one discount point ($5,000.00) then your mortgage rate would drop to 7.00%.  The difference is $84.78.  That means after approximately 59 months (just under five years) you will have made that discount point back.  Also, make sure you tell your tax-preparer because you most likely will receive a deduction for paying any points on a mortgage purchase loan!  Mortgage rates change daily and sometimes several times a day.  This could also benefit you if you happen to hit a day when the spread in interest rate for that discount point is larger than normal.  That means your one discount point will get you 3/8’s lower interest rate!  In those cases, you will make that discount point back, in the above scenario, in around 39 months with the same tax advantage!  If rates come down after you have purchased your home, then hallelujah, you can refinance to a lower rate.  This is a lot to take in if you don’t do it everyday, so that’s where Mitchell Mortgage comes in to help guide you.  Call Michael E. Mitchell at 530-406-2200 or 707-337-5970 cell, and we will get you in that new home with financing that works for your pocketbook!

Pre-qualifying for a home loan is always a smart thing to do, but today’s real estate market makes it even more important. Pre-qualifying for a real estate loan in a buyer’s market is wise, but not as necessary, because you are likely to be the only person making an offer on the home. But today, the real estate market has low inventory, which makes it a seller’s market. This means you are likely to be compared to several other offers on the home you want to buy, and if you don’t have your pre-qualification letter handy, yourchances of winning a bidding war are diminished! Don’t make the mistake of waiting until the last minute. Make sure you are considered at the same time as all the other offers! Call Mitchell Mortgage today at 530-406-2200 Work or 707-337-5970. We will get you Pre-qualified for that dream home right away!

Make sure you put out your flag for Veterans Day today!  As the old saying goes, “If you love freedom, thank a veteran!”.  Veterans Day is the perfect time to bring out Charles M. Province’s poem, “It is the Soldier,”:  It is the Soldier, not the minister, Who has given us freedom of religion. It is the Soldier, not the reporter, Who has given us freedom of the press.  It is the Soldier, not the poet, Who has given us freedom of speech.  It is the Soldier, not the campus organizer, Who has given us freedom to protest.  It is the Soldier, not the lawyer, Who has given us the right to a fair trial.  It is the Soldier, not the politician, Who has given us the right to vote.  It is the Soldier who salutes the flag, Who serves beneath the flag, And whose coffin is draped by the flag, Who allows the protester to burn the flag.  

While you are at it, it would be a good time to donate to your favorite veterans charity!  Mitchell Mortgage thanks all Veterans, past and present for their contributions to this great nation!

Veterans can take advantage of VA financing at Mitchell Mortgage as well.  Up to to 100% of the value of the home can be borrowed in purchase circumstances, with no mortgage insurance!  Call Michael E. Mitchell at 530-406-2200 or 707-259-1117 cell, to discuss Veterans Options for purchase or refinance.

 

 

Spent the day yesterday with a Napa realtor.  He told a story of a couple he represented that wanted to buy a home in Napa during the recent time period where multiple offers were the norm.  In a nutshell, and against his advice, the couple he represented did not give their final and best offer for the home they really wanted.  Consequently, they did not win the bidding war for their dream house, even though they could have afforded it.  So they ended up buying a home in another close by community.  But guess what, to this day, they lament not going all out for the home they really wanted.  So the lesson is, “See home you must have…Give best offer if you must!”  Certainly that applies to markets like the multiple offer market we were in, but does it apply now?  Yes, the only difference is, in today’s market, you probably have some negotiation tools to use.  Just don’t go so far to upset the seller so that they would never sell the home to you no matter what you offer!  Make your dream home happen while you are the only buyer.  If interest rates go down after you purchase, then you can refinance to the lower rate.  Call Michael Mitchell at 530-406-2200, 707-259-1117 or 707-337-5970 cell to pre-qualify today!

Yesterday I told you the Federal Reserve had raised short term interest rates, but long term rates (mostly affected by treasury bonds) had remained little changed.  Well, they caught up today!  In most cases rates went up anywhere from 1/8th to 1/4 of a point.  That still keeps them in the low 6’s, but not as comfortable as yesterday. Seems the Fed not only spooked the stock market, but the bond market too.  The fed’s stated goal is to reign in inflation, so buckle up everybody…they are dedicated.  It probably makes sense to start considering 7 year fixed and 10 year fixed (both amortized over 30 years) to keep payments down.  If you have questions about that or want scenarios run, give Michael Mitchell a call at 530-406-2200, 707-259-1117 or 707-337-5970 cell!

The Federal Reserve raised short term interest rates again today…another .75% of a point.  Although this usually puts pressure on long term rates (30 year fixed, etc) those rates basically stayed the same today as they change when the 10 yr treasury bond changes.  In a nutshell, if bonds are purchased by big investors, then long term rates usually fall.  If bonds are sold by these same investors, long term rates will rise.  As of today, a no point 30 year fixed rate up to $715,000.00 would be in the low 6’s for an interest rate at no points.  We will see what the future brings.  In the meantime, people still need to buy, sell and refinance real estate, so give Michael Mitchell a call at 530-406-2200, 707-259-1117 or 707-337-5970 Cell, to discuss what financing path will work best for your current needs!

Don’t forget to pre-qualify before you talk to your realtor!  Realtors want to make sure they are working with a buyer in the correct price range.  If you don’t have a pre-qualify letter, they will want you to get one before you shop for new homes.  Call Michael Mitchell today and I will get you that letter today!  530-406-2200, 707-259-1117 or 707-337-5970 Cell!

The Federal Reserve is on a mission to curb inflation.  To do that, they have been raising short term interest rates.  This in turn puts pressure on long term rates to go up…which they have.  So how to combat this in a world where most homeowners have current interest rates in the 4% arena and a good share have less then 3%?  Well lenders are coming up with programs to try and help get buyers into homes, and refinance prospects who need options other than getting rid of their wonderful current low rate, even if they need cash out.  For buyers this could mean Two-One Buydown.  This means you would start with an interest rate, two percentage points less than the current market rate for the first year of the loan.  Year two would be one percent below the rate when you received the initial loan, and years 3 though 30 would be at whatever current rates was when you received the initial loan.  The thinking is, while you receive payment relief the first couple of years, if rates go down, you could refinance into a lower rate for the total length of the new loan.  For cash out refinance borrowers who don’t want to give up their current low rate but need some money now, Home Equity Lines of Credit (Heloc, usually adjustable rate) are becoming popular as well as straight second mortgages ( fixed rate term and must take all the money at one time).  For explanation of these options, give Michael Mitchell a call at 530-406-2200, 707-259-1117 or 707-337-5970 cell!

Rates started a little higher today, but if you have 20% down, your conforming 30 year fixed interest rate would be 5.99% at zero points today.  Your APR will be higher depending on your loan amount.  For more scenarios please give Michael Mitchell a call at 530-406-2200, 707-259-1117 or 707-337-5970 cell!