Agent Short Sale
Secrets
Part 14 of 30: Consumer Info
by: Tim and Julie Harris
Agent Short Sale Secrets
#14 of 30: Info For Your Consumers!
yields has helped push mortgage rates lower,
But, I Thought Rates
the decline in long term rates hasn't been in
Were Falling. Won’t That lockstep thanks to the fact that these
mortgages are securitized and sold on the
Help Me?
global market. Investors now demand a
higher risk premium on these mortgages due
The Federal Reserve has been lowering rates
to higher delinquencies and foreclosures.
to bail out the economy. Does this mean that
those mortgage rates will fall?
Next let’s take a look at 7 and 5-1 Adjustable
Rate Mortgages (ARMs) Yes, this is good news
In some cases yes in most cases if your 5-year (or 7 year) ARM is pegged to a
no…read on. treasury index. So if you’re facing a reset
on, say, a $200,000 loan, you’re now getting
Let’s start with the 30-year fixed rate a payment increase of about $150 a month,
mortgage. The 30-year fixed rate mortgage is as opposed to $370 a month, which you
not tied to short-term treasuries. Fixed would have had before the Fed started
mortgage rates are tied to long-term bond cutting rates.
yields that move based on the outlook for the
economy and inflation. True, even as the Fed Do the Fed Rate Drops
has lowered rates, the 30-year fixed has
come down, but that’s because of the Help Sub-Prime mortgage
outlook for slower economic growth in the Holders?
months ahead. While the decline in treasury
Unlock all of the secrets now! Click Here for Instant Access
Agent Short Sale Secrets
#14 of 30: Info For Your Consumers!
Nope. Unfortunately if you have a sub-prime well. That’s because HELOCs are
ARM it is more than likely pegged to LIBOR, predominantly pegged to the prime rate,
which has moved in the opposite direction. which moves in step with the Federal
Because of the liquidity issues in global Reserve.
financial markets, LIBOR rates have actually
increased at the same time that treasury and
Free Ebook!
other benchmark yields have been declining,
This is another free ebook from Harris Real
so the Fed lowering rates today would not
Estate University. This is a portion of the
help too many sub-prime mortgage holders.
valuable content and information that our
members and students get.
Even with lower rates, the home still must
appraise for the amount being borrowed plus
We give this book away because we want to
another 10 to 20%. In most places,
help make sure that Realtors have the tools
depreciation alone has eliminated the
to survive the Worst Market Since the great
opportunity to refinance and take advantage
depression. Our university is all about giving
of rate adjustments.
you the power to make a difference in your
business and personal life.
How are Home Equity Lines of Credit
Effected?
Why is this book Free?
How about my Home Equity Line of Credit When you benefit from the content that
(HELOC): Yes, if you have that home equity you get in our free book, you can imagine
line of credit that you used to renovate your what would happen when you plug into the
bathroom/kitchen recently, then when the University. Unlike most Real Estate Training
Fed lowers rates, your rate comes down as programs, there’s no big startup fee and our
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Agent Short Sale Secrets
#14 of 30: Info For Your Consumers!
best programs are just $97 per month. Join
today and take advantage of what thousands
of Realtors nation wide know as the best
training available for real estate agents.
Our BIG LIST of Loss Mit
Contacts...is available here.
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