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Mortgage Market Update/Purchase and Refinance Mortgage info

srttruck

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So kinda going off a limb here and post some terrible service I received from Wenhe mortgage and realty., not!!! I was treated terribly good like I was their only customer, updated on every event that took place, what to expect along the path of our business, best and worst case scenarios even though I never saw the worst case because their awesome and handle it like its supposed to be done!, not one time did I feel like I was getting worked over or they were trying to hide anything. It was odd, just straight up honest people delivering what they provide.... These kind of people are very hard to come by these days. If you are ever in need of any mortgage or real estate needs please contact Wenhe mortgage and realty, they WILL NOT disappoint. Scott (aka tamalewagon) and family have a great time at the river this week, you deserve it and are great people, hope to see you soon!*

Jeff
 

Tamalewagon

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Thanks Jeff! I really appreciate that. We had a fantastic vacation. Needed to untie a few knots in my rope...mission accomplished. :thumbsup
 

Tamalewagon

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Greetings! Here's your Daily Commentary report compliments of
Wenhe Mortgage and Realty!
Contact us at (619) 255-3182 for today's competitive interest rates!​

Tuesday's bond market has opened in negative territory again even though this morning's economic data showed weaker than expected results. The major stock indexes are in negative ground with the Dow down 14 points and the Nasdaq down 33 points. The bond market is currently down 3/32, which should push this morning's mortgage rates higher by approximately .125 of a discount point.

Today's important economic news came from the Commerce Department, who announced that retail-level sales rose only 0.2% last month when analysts were expecting to see a 0.6% increase. This means that consumers spent less last month than many had thought, making the data favorable for the bond market and mortgage rates.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now...
 

Tamalewagon

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Greetings! Here's your Daily Commentary report compliments of
Wenhe Mortgage and Realty!
Contact us at (619) 255-3182 for today's competitive interest rates!

Friday's bond market has opened fairly flat despite weaker than predicted economic news. The stock markets are showing minor gains with the Dow up 49 points and the Nasdaq up 28 points. The bond market is currently almost unchanged from yesterday's close at 2.47% but you may still see a slight increase in rates if your lender improved yesterday afternoon.

We saw a big move in bonds late yesterday as geopolitical events took center stage. The airliner that was shot down over Ukraine and the Israel/Gaza crisis both contributed to an investor flight-to-safety late yesterday that drove stock prices lower and bond prices higher. This is where investors move funds from the volatility of stocks into bonds that tend to thrive during global turmoil. The result was a fairly wide range of lenders making an intraday improvement to mortgage rates. While that is welcomed news for mortgage shoppers, it should be taken cautiously as these flight-to-safety rallies almost always reverse course when the crisis appears to have stabilized or at least stops escalating. In other words, it is not an event that usually starts a downward trend in rates. It is more or less a temporary event that eventually corrects itself.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now...
 

Tamalewagon

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Greetings! Here's your Daily Commentary report compliments of
Wenhe Mortgage and Realty!
Contact us at (619) 255-3182 for today's competitive interest rates!

To see the entire report, visit http://www.wmrloans.com/mortgage-commentary/

Monday's bond market has opened in positive territory due mostly to early stock weakness. The major stock indexes are starting the week with noticeable losses of 69 points in the Dow and 12 points in the Nasdaq. The bond market is currently up 5/32, but due to weakness late Friday we should see only a slight improvement in this morning's mortgage rates.

There is nothing of relevance to mortgage rates scheduled for release today. However, the rest of the week brings us four pieces of economic data that have the potential to influence rates.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now...
 

Tamalewagon

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To see the entire report, please go to http://www.wmrloans.com/mortgage-commentary/


Monday?s bond market has opened flat with no relevant economic data scheduled for release today. Stocks are helping the cause with early losses of 74 points in the Dow and 34 points in the Nasdaq. The bond market is currently unchanged from Friday?s close, but we should still see an improvement in this morning?s mortgage rates of approximately .125 of a discount point due to strength late Friday.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now...
 

OldSchoolBoats

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nowski

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Hey little buddy, how far do you have to be into a 15 year loan where the interest rate is just a number (interest Vs. principle) and a refi makes little or no sense ???
 

Tamalewagon

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Hey little buddy, how far do you have to be into a 15 year loan where the interest rate is just a number (interest Vs. principle) and a refi makes little or no sense ???

If you are referring to "daylight", that usually takes between 5-7 years depending upon how much extra you have been putting down on principle. If you are within 5 years of loan origination and your interest rate can be reduced by at least 3/4% or better than it may be worth looking at depending on your financial situation.
 

Ivan Dan

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Out of curiosity, what is your 15 year rates look like on a $460,000 loan amount?
 

Tamalewagon

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Sorry for the delay. I'm assuming you're at 80% LTV and a decent fico? Currently looking at 3.375% at zero or 3.125% at 1 point.
 

saucedaddy

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Is your loan currently based on the CODI?

Edit: please be more specific about what you want to know about the CODI.

Yes, I have a CODI loan with Wells Fargo for past 10 yrs. I am really familiar with my loan but have recently heard that there is no longer a CODI index? Also that these loans will be moving over to a LIBOR?
 

Tamalewagon

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Yes, I have a CODI loan with Wells Fargo for past 10 yrs. I am really familiar with my loan but have recently heard that there is no longer a CODI index? Also that these loans will be moving over to a LIBOR?

I have not heard of this at all. In fact the CODI is a much better index than the LIBOR because it is widely known to be less volatile than the LIBOR. Sounds like your bank is trying to squeeze a few extra $$'s out of you in the future.
 

saucedaddy

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I have not heard of this at all. In fact the CODI is a much better index than the LIBOR because it is widely known to be less volatile than the LIBOR. Sounds like your bank is trying to squeeze a few extra $$'s out of you in the future.

Can you explain this?

Cost of Deposit Index Has Been Discontinued

On Dec 5, 2013, Federal Reserve announced that that it will no longer be publishing 3-month CD rate, which formally ended the CODI index. In its announcement, the Federal Reserve stated that the number and type of institutions that provide the quotes have reduced and the available information does not allow constructing a statistically robust estimate of CD rates. There seems to be no indication of resuming publication of 3-month CD rates in the future.

Federal Reserve?s December 5, 2013 announcement1

"Discontinuance of CD rates (secondary market): As of the release on December 16, 2013, the H.15 will cease publication of the 1-month, 3-month, and 6-month CD rates. Recent attrition has reduced both the number and types of institutions that provide quotes creating a challenge to construct statistically robust estimates of CD rates, and it is not feasible to resume publication. The historical rates will remain available through the Federal Reserve Board's Data Download Program (DDP)."

This announcement came after 5 months of lack of data. The 3-month CD rates had been unavailable since July 2013. On July 2, 2013, the Federal Reserve announced "Rates for "CDs (secondary market)" are not reported (and "n.a." is shown) when the number of respondents is too few to be representative. Footnote seven has been updated to reflect this." June 2013 was the last published value of CODI.
 

Tamalewagon

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Can you explain this?

Cost of Deposit Index Has Been Discontinued

On Dec 5, 2013, Federal Reserve announced that that it will no longer be publishing 3-month CD rate, which formally ended the CODI index. In its announcement, the Federal Reserve stated that the number and type of institutions that provide the quotes have reduced and the available information does not allow constructing a statistically robust estimate of CD rates. There seems to be no indication of resuming publication of 3-month CD rates in the future.

Federal Reserve?s December 5, 2013 announcement1

"Discontinuance of CD rates (secondary market): As of the release on December 16, 2013, the H.15 will cease publication of the 1-month, 3-month, and 6-month CD rates. Recent attrition has reduced both the number and types of institutions that provide quotes creating a challenge to construct statistically robust estimates of CD rates, and it is not feasible to resume publication. The historical rates will remain available through the Federal Reserve Board's Data Download Program (DDP)."

This announcement came after 5 months of lack of data. The 3-month CD rates had been unavailable since July 2013. On July 2, 2013, the Federal Reserve announced "Rates for "CDs (secondary market)" are not reported (and "n.a." is shown) when the number of respondents is too few to be representative. Footnote seven has been updated to reflect this." June 2013 was the last published value of CODI.

Unfortunately no I can't explain that. I have called around to several lenders and they have not heard of this either. I'm sorry I can't be of more assistance. You may want to inquire with a financial advisor. They may have more insight on this as they deal with this on a daily basis.
 

saucedaddy

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Here you go Tamale.... As we talked about before my CODI loan will be switched do to the fact there is no more CODI. It is switching to the 1 month Eurodollar? Any info on this index?
Thanks
 

Tamalewagon

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Here you go Tamale.... As we talked about before my CODI loan will be switched do to the fact there is no more CODI. It is switching to the 1 month Eurodollar? Any info on this index?
Thanks

That's very interesting that it changed to the Eurodollar index. That means the index itself escapes regulation by our FRB. :hmm This could actually be good for the lenders to change to this index. Read on...

"Originally, dollar-denominated deposits not subject to U.S. banking regulations were held almost exclusively in Europe; hence the name eurodollars. These deposits are still mostly held in Europe, but they're also held in such countries as the Bahamas, Canada, the Cayman Islands, Hong Kong, Japan, the Netherlands Antilles, Panama and Singapore. Regardless of where they are held, such deposits are referred to as eurodollars.

Since the eurodollar market is relatively free of regulation, banks in the eurodollar market can operate on narrower margins than banks in the United States. Thus, the eurodollar market has expanded largely as a means of avoiding the regulatory costs involved in dollar-denominated financial intermediation. "
 

saucedaddy

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That's very interesting that it changed to the Eurodollar index. That means the index itself escapes regulation by our FRB. :hmm This could actually be good for the lenders to change to this index. Read on...

"Originally, dollar-denominated deposits not subject to U.S. banking regulations were held almost exclusively in Europe; hence the name eurodollars. These deposits are still mostly held in Europe, but they're also held in such countries as the Bahamas, Canada, the Cayman Islands, Hong Kong, Japan, the Netherlands Antilles, Panama and Singapore. Regardless of where they are held, such deposits are referred to as eurodollars.

Since the eurodollar market is relatively free of regulation, banks in the eurodollar market can operate on narrower margins than banks in the United States. Thus, the eurodollar market has expanded largely as a means of avoiding the regulatory costs involved in dollar-denominated financial intermediation. "

Isn't Regulation good for me? I thought it was a little weird they chose this index and also lowered my margin .02?
 

Tamalewagon

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Isn't Regulation good for me? I thought it was a little weird they chose this index and also lowered my margin .02?

Regulation - yes. Over regulation - no (read "U.S. mortgage market") The lower your margin, the lower your rate is. Rate + margin = fully indexed rate (the rate you pay on). Wait it out for a little while and see how it plays out. If you get nervous, you can get another lender to refi your HELOC or just refi the first and second into one loan. Keep me informed on the updates of your HELOC please. I'm intrigued.
 
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