Mister VA's Mortgage News

Why Can't You Get What You Want?

For the past two months, it has been all over the news.  Record low interest rates.  But, not everyone qualifies.  And that means that waiting is the best option for some.  For now, just be aware that if an advertiser is promoting a certain rate, that there is a very good chance that a 'bait and switch' tactic is being employed.  And often, the 'switch' comes AFTER you have provided a non-refundable deposit.  Rates have been increasing over the past 10 days or so, and while they are still good, they may not justify a refinance.  Remember that you are spending money to refinance, whether or not the lender is 'paying your closing costs'.  [You are paying in the form of a higher rate.]

What do you gain by waiting?  If you missed out on the rush to refinance, there is a very good chance that the employment cutbacks in the mortgage industry are hampering the ability to process the huge volume in a timely manner.  A rise in rates slows down the volume of new applications.  Once that volume has been absorbed, there is a good likelihood that rates will recede once again.  You just need to have your mind made up and be ready to move quickly.  But, if you see any changes in your housing plans in the next 3 years, you may be better off NOT refinancing as the payment savings will not cover the closing costs.

Loan to value, credit scores, whether or not cash is taken out are 3 factors that will go into pricing your loan.  It is no longer one size fits all with regard to mortgage rates.  So, if your loan to value is over 60%, your credit scores are below 720 and you plan to take cash out, expect 3 pricing adjustments.  [The credit score threshold will vary by lender].  Sometimes, you CAN get what you want, but be prepared to ask the right questions and to work with an experienced loan officer to get the best results.

I Am Not A Number! I Am A Free Man!

Those words were uttered many times over the course of the 17 episode run of The Prisoner.  How often have we heard customers complain about being just a number.  Or companies claiming that customers of THEIRS are NOT just a number.  With the passing of Patrick McGoohan this week, so went a unique individual who lived up to his frequent statement.  Turning down the roles of James Bond, The Saint, Dumbledore & Gandalf, McGoohan embodied the desire of every human on earth, past or present--that desire to be free.  His life could have been very different had he accepted those roles, but he turned the John Drake role on its head with the emergence of The Prisoner aka Number 6.  As Danger Man, McGoohan was the everyman of the spy world.  Even the theme music, unknown in the US until the emergence of boxed sets, was unique.  And that continued with the theme music from The Prisoner.

What roles have we taken and what roles have we turned down?  Will we take just any role just to have a role?  Or will we be selective so that we can not end up as a number?  How will we treat our customers?  Will they be numbers or free men?  Art does imitate life.  And Patrick McGoohan was the consummate artist.  Be seeing you.

A New Voyage

As I head south for a week tomorrow, I will be embarking on a new adventure.  I am seeking to find a position in Florida which may or may not be the type of work I am doing in Vermont.  I may look into the aset side of the financial services field.  I may focus exclusively on Reverse Mortgages.  And I may do something completely different.  I really do not know what the future holds.  Our house sold last week.  So I am blessed in that regard.  To sell a home in northern Vermont during the holidays for a price near the asking price is certainly not common.

I have made several contacts already and will focus in earnest once I am there.  I will miss some minus 20 degree weather up here.  And I am not upset about it.  This column is likely to change its focus somewhat over the coming months, too.  But, that is all a part of change.  No more shoveling of driveways or rooftops.  No more mowing lawns and raking leaves.  It will seem a bit strange.  I have mapped out my route and will see some of the countryside I have never seen.  It should be a lot of fun.