Posts Tagged ‘Interest rate’

Direct Lender or Mortgage Broker–What’s the Difference??

Suppose you were in the market to buy a new car. Would you go to a single dealership and expect to find the perfect car at the perfect price simply because you’re buying directly from the dealer? Of course not. It is very similar with mortgages and mortgage lenders.

There are countless mortgage programs based on countless ‘guidelines’ for determining acceptance. The variety of programs and rates varies greatly from lender to lender. Because of this, the odds are very much stacked against you finding the ‘perfect’ mortgage from a single direct lender. Direct Lenders have one group of programs. That’s it.
direct lender mortgage brokerBut why are direct lenders in favor right now over mortgage brokers and mortgage bankers?  One word-SPEED. Since direct lenders are using their own money and their own guidelines (most mortgage brokers will need to go through two sets of guidelines-the bank’s and the investor’s), they can close loans very quickly. They normally have their underwriters in-house. Closing loans quickly (or at least on time) is huge, especially on short sales. When a lender(s) approves a short sale, it has an expiration date. If the transaction doesn’t close by that date, an extension has to be requested (which isn’t always easy to get). That can lead to problems with appraisals, credit reports, and financial statements being outdated.

The advantage of a mortgage broker is that they can choose from the thousands of lenders to select the program that offers the lowest rate for your specific loan. Brokers will counsel borrowers on the loan options available from these different lenders and find the best “fit.” Some people fear higher costs by using a broker as opposed to a Direct Lender. This is sometimes the case. What must be kept in mind, though, is that Direct Lenders make their money off of the interest you pay on the loan– over time,  the amount of interest will far surpass your closing costs. In other words, closing costs must be viewed in relation to your interest rate. In fact, interest rates are more important than closing costs (especially since there are laws in place that prevent excessive loan charges). So sure, sometimes a direct lender offers lower closing costs. The interest rate, however, is rarely lower and that is what will affect you the most over the coming years.

My best piece of advice? Shop around for a loan before settling on one lender.

 

For more information on this topic:

619.384.2248
RyanYourRealtor@gmail.com
Visit my Website: http://ryanyourrealtor.com

San Diego Housing Market Update – November 2014 Sales

Below is my monthly analysis of the San Diego housing market. It will show many different metrics to help us get an accurate “feel” for what is happening in our local real estate market!

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-19.5%

+6.0%

-12.4%

Inventory levels (the number of homes on the market “actively” for sale) continues to stay strong. This San Diego housing market update shows san diego housing market updatethere are currently 6933 active residential listings in San Diego county, which continues in a downward trend. There were 7848 last month.

According to Bankrate.com, interest rates continue to trend lower compared to previous months. They are currently at 4.15% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment or see what you can afford, go HERE.

Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 6.0% increase in median prices, compared to over 20% we saw in 2013. However, these higher prices are now resulting in a considerable slow-down of the number of homes sold over a year ago.

The San Diego Association of Realtors analyzes housing market date for San Diego county every month. Below is their monthly report. The figures represent all property types.

San Diego Housing Market update for November 2014

Click To Enlarge

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

San Diego Housing Market Update – September 2014 Sales

Below is my monthly analysis of the San Diego housing market. It will show many different metrics to help us get an accurate “feel” for what the local market is like!

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-7.5%

6.3%

-5.4%

Inventory levels (the number of homes on the market “actively” for sale) continues to stay strong. This San Diego housing market update showssan diego housing market update there are currently 8168 active listings in San Diego county, down slightly from 8350 last month.

According to Bankrate.com, interest rates continue to trend lower compared to previous months. They are currently at 4.08% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment or see what you can afford, go HERE.

Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 6.3% increase in median prices, compared to over 20% a few months earlier. However, these higher prices are now resulting in a slow-down of the number of homes sold over a year ago.

The San Diego Association of Realtors analyses housing market date for San Diego county every month. Below is their monthly report. The figures combine both condos and townhomes, as well as single-family homes.

Housing stats san diego september 2014

Click To Enlarge

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

San Diego Housing Market Update August 2014

The end of summer is here and inventory levels (the number of homes on the market “actively” for sale) continues to climb. This San Diego housing market update shows there are currently 8350 active listings in San Diego county, up slightly from 8295 last month.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-23.7%

8.3%

-4.8%

How's the market 2According to Bankrate.com, interest rates are currently at 4.20% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment, go HERE. Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 8.3% increase in median prices, compared to over 20% a few months earlier. However, these higher prices are now resulting in a slow-down of the number of homes sold over a year ago.

The San Diego Association of Realtors analyses housing market date for San Diego county every month. Below is their monthly report. The figures combine both condos and townhomes, as well as single-family homes.

San Diego House Market Stats August 2014

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For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

San Diego Housing Market Update-July 2014

Summer home buying season is here and inventory levels (the number of homes on the market “actively” for sale) continues to climb. This housing market update shows there are currently 8295 active listings in San Diego county, up from 8062 last month and 7200 in May. This is the most the San Diego market has had in quite a long time.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-23.4%

7.5%

-0.4%

How's the market 2According to Bankrate.com, interest rates are currently at 4.25% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment, go HERE. Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 7.5% increase in median prices, compared to over 20% a few months earlier. However, even with the higher prices, homes continue to sell a a faster pace than a year ago.

The San Diego Association of Realtors analyses housing market date for San Diego county every month. Below is their monthly report. The figures combine both condos and townhomes, as well as single-family homes.

San Diego Housing Market Update July 2014

Click To Enlarge

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

San Diego Housing Market Update-June 2014

Summer home buying season is here and inventory levels (the number of homes on the market “actively” for sale) continues to climb. This housing market update shows there are currently 8062 active listings in San Diego county, drastically up from 7200 last month. This is the most the San Diego market has had in quite a long time.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-17.3%

10.7%

-1.0%

  How's the market 2 According to Bankrate.com, interest rates are currently at 4.19% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment, go HERE. Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 10.7% increase in median prices, compared to over 20% a few months earlier. However, even with the higher prices, homes continue to sell a a faster pace than a year ago. The San Diego Association of Realtors analyses housing market date for San Diego county every month. Below is their monthly report. The figures combine both condos and townhomes, as well as single-family homes.

San Diego real estate blog

Click to enlarge

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com
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