My New Blog

Hello,

As I have mentioned before, FHA is an amazing product for the right people and is not perfect for everyone.

Conventional loans are generally the loan you want to be in.  Why, they are, for the most part, cheaper in the long run. 

When you are shopping for a loan ask the Loan Officer why they are suggesting the particular program to you.  Ask them if you qualify for a Conventional loan.  If the answer is NO, ask why!  The next step is FHA then Subprime. 

It is your right to get the answer, we work for you!

Have a wonderful day,

Ron

610-825-2389

I have been asked the same question over and over so today seems like a good day to set the record straight.

QUESTION:

The Fed cut the rate by 3/4s today; what do that mean for mortgage rates?

Actually, not much.  Mortgage rates are based on long term debt and the Fed rate deals with short term rates.  So in essence, they are not inter connected.

They work as opposites in many cases.

Rates went down in both markets today in response to the bleak outlook of the economy. 

Stocks fell, the Fed dropped it's rate and Mortgages are very attractive.  The exact opposite could happen tomorrow (although not expected)

I hope this helps!