3 BIG Things You Need to Know This Week- September 18th, 2020

Hello there, Bruce Woodburn with CrossCountry Mortgage and WDBO Radio 107.3FM and 580AM, Saturdays from noon to one o’clock. As usual on Fridays, I always give out the three big things you need to know.

  1. So, number one thing Fannie Mae and Freddie Mac are definitely going forward with the half a point increase on all refinances. Any conventional loan that is not closed by December 1 is going to be subject to a half a point increase in fees. This will equate on the average loan to about 14-1500 dollars extra money out of your pocket. So if you want to avoid that, I highly suggest that you refinance your house now, so that you do not have to pay that extra fee. Now, having said that, mortgage companies across the country are in all time overload right now, and underwriting and turn times are longer than I have seen them in quite some time. I think the the volume of business is probably at its all-time high, at least it is for my office. That means extended turn times for appraisals and extended turn times for underwriting, which could put off closings. So if you’re going to refinance don’t wait, get it done right now. Now’s the time to do it.  Even for purchases. You want to make sure you’re giving yourself ample time to close on a purchase. I’m hearing extended turn times across the country for national mortgage companies in excess of 60 days in underwriting, that’s ludicrous. I’m still running a little longer than I would like to in underwriting I’m running about 24 to 48 hours,  but I’ve seen as long as 72 hours, which is way out of my comfort zone. Typically though I’m getting them in 24 to 48 hours. So if you want quick underwriting, come to me! I promise I’ll get the job done and close on time.
  2. Second thing is good news for you. The Fed has announced that they’re going to keep interest rates low through 2023. Now, let’s just put this in perspective, folks. Does that mean that you can sit back and wait and interest rates for mortgages are going to stay low? If you believe that you are 100% incorrect. Keep in mind, when the Fed keeps fed rates low, that’s giving the bank’s more money, not you and me. Mortgage rates are still tied to the treasury bonds. So, if the stock market continues to rally through the election, then you’re going to start to see interest rates climb. The Fed can’t control that, it’s the bond market that’s in control of it. If the bond is in a positive yield, you’ll see improvements on rates. In a negative yield, you’re going to see a deterioration of interest rates, meaning they’re going to rise, because the stock market is bolstered and equity money flows from bonds into equities. If that’s a little esoteric for you, feel free to call me and I’ll explain to you so you can become a trusted advisor when informing your clients or yourself.
  3. Now on to the third big thing you need to know. I have decided to go back to doing some seminars and webinars. Now I’m going to start off by doing them on zoom. So, on Wednesday the 23rd at 10am is “Advanced Mortgage Strategies for Realtors.” If you are not completely up to speed on mortgages, different types of mortgages, PMI, down payment assistance, etc., you better enroll. I only have 100 seats available, and I’ve got about 50 people already booked for the zoom event. So if you’re in real estate, and you don’t know everything you need to know, you better get into that class, it’s going to be an awesome class for you to get up to speed, on what you need to know for financing so you can become a trusted advisor to your clients. Another class that I’m going to be teaching is “Retire as a Millionaire.” In this class I will share my story as to how I gained wealth in real estate. It helped me amass more wealth than I ever expected I could make as a 10th grade dropout. It worked for me and I’m going to share with you my successes and my failures, so that you can get yourself or someone you care about into a position to make $2.1 million in 20 years. All right, So if you’re interested in that program, sign up, that is also only 100 seats available, and I’m almost full. That will be Wednesday October 21st at 6pm.

Thank you very much my team is here to help you and I’m committed to your success and to closing your transaction on time.

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