3 Big Things: What the loss of 300 basis points means for interest rates, Whether you are buying your first home or your fifth, you’ll want to join my Real Estate Mastery Class on 2.24 and *NEW* outreach program to educate young adults and get them financial independence.
Hey there, Bruce Woodburn, with CrossCountry Mortgage, WDBO radio and it’s time for the three big things you need to know. And I’m gonna tell you something three is definitely a number and it isn’t a loan with a 3% interest rate, I can tell you that.
- First big thing you need to know, if you don’t know already, then you are not listening to the news, reading the newspaper or looking at the Internet because interest rates are rising and they’re rising quick. So the number three on that would be that we have lost 300 basis points in the last three weeks. And really, that’s as of today, yesterday we lost another 61 basis points in the bond market. So let’s just put that in perspective for you for every 100 basis points that we lose in the bond market, it costs somebody that’s getting a mortgage one point more. Now, nobody wants to pay three points when they’re getting a mortgage. As a matter of fact, mortgage companies can’t even really charge you anymore than that. That’s about the maximum by law that you could ever charge. As a matter of fact, all closing costs, lender costs, including any points, cannot exceed 3%. So, it would be ridiculous. So what happens is it just raises the interest rate up to keep the, the points down. But that’s essentially what we’ve lost. So that’s gotten really a lot of attention. First of all, it’s not a situation where I’m not unsympathetic to what’s going on in the industry because I feel the pain every day, especially for people that I qualified when rates were 2.99 and now they’re 4%. So it just is what it is, you and I cannot control this situation. But let’s talk about why this is happening. The Fed is tapering on mortgage backed securities, we got hyperinflation and the Fed is going to raise the Fed rate. They have to, because it’s the only way to curb inflation and that’s what curbs inflation. So that’s the first big thing you need to know.
- Second big thing you need to know is that on March 24th, I’m doing a class called Real Estate Mastery. Now you don’t have to be a first time homebuyers, this is for anybody that wants to amass real estate and know how to do it the easiest way with the least amount of money down. So I’m teaching a class on that. That is March 24th, 6PM on zoom go to WeBringYouHome.com, that’s WeBringYouHome.com.
- Then I’m going to teach a class, that I’m really passionate about. I’ve been telling you guys that I’m I’m committed to helping more. First time homebuyers now, how does one help more First time homebuyers than he’s ever helped in his career in an environment where interest rates are rising in houses are getting out of reach for them. So I got a really tough job if I’m gonna break my record on helping first time homebuyers. So I need you to help me. I need my clients, my past clients, my referral sources, my real estate partners, all of you that trust that I’m going to take good care of your family and your friends to help me. I need deacons, pastors, priests, youth groups to help me find more young people that I can help. So on April 13th I decided that I’m going to teach a class to young adults between 15 and 35 years old on things that nobody taught you, that you really need to know. Such as how to maintain credit, how to build credit, how to establish credit, how to balance a checkbook, how to maintain credit so that you keep your scores high, the tricks of doing that what to do when you’re building credit versus what to do when you already have credit, but you want to keep your scores high, how to get into a home for the least amount of money down, how can you obtain down payment money if you don’t have a lot of money of your own, what programs are available? I’m going to go through all those steps and why houses are getting out of reach for first time homebuyers, but you know what’s getting worse cost to rent. Cost of rent is going up 20%, it did last year, it’s gonna do it this year. And you’re either gonna rent and keep going up and rent, or you can get a mortgage that’s a fixed payment. So your payment never goes up. That’s your options. Now, there’s something else that I want to bring to your attention because a lot of you guys own homes and you have adult Children that are renting now, this is the time where you step in to help them now. Why? Because if rents keep going up, they just might have to move back in with you and that’s gonna be a problem.
So call me, The Loan Arranger, Bruce Woodburn, with CrossCountry Mortgage. And don’t forget to subscribe to my Youtube channel. Go to Bruce Woodburn, The Loan Arranger on YouTube and subscribe. That will be a big help for me and I’m here to help you and your family. Let’s get it done. Those are the three big things you need to know. Have an amazing weekend!