Omayra Zermeno

Long post but very much needed so that you can understand how the Fed Fund Rate and Mortgage Rate function. Yes, the Fed has dropped interest rates to nearly zero. However, the Fed rate is not directly tied to mortgage rates. The Fed rate affects Variable (Short Term) interest rate loans and savings accounts. The bigger news is that the Feds announced that they are buying back Mortgage-Backed Securities. Let me explain...Mortgage rates are more directly tied to what is ca...lled "the secondary market." Basically, when you actually purchase or refinance a home, they put you on their "warehouse line of credit." The lenders then either take the mortgages off of their own line of credit and service them themselves, or they sell them to someone else to service. When the fed cut the interest rate last week, the mortgage rates were ALREADY very very low and many Homeowners took advantage of the opportunity and submitted their application for a refinance. This overwhelmed most lenders, some stopped taking new applications others increased their interest rates but also, their "warehouse line of credit" was becoming obsolete. Since investors got spooked by the stock market, they weren't buying these mortgage backed securities in the secondary market. Lenders were running out of capital on their warehouse lines; no money = no funding. Therefore, last week, rates went up, up and up to dissuade people from refinancing. For this reason the big news is the Fed purchasing mortgage backed securities. For the time being let's remain optimistic about the rates and all of the uncertainty going around our world. I will continue to monitor the rates and the market but I also encourage you to get your application in so that as soon as the opportunity arises we are ready to lock you in. If you are thinking of refinancing, buying or selling a home, now is the time to speak to a professional and evaluate your options. I would love to help you reach your goal, message me today! DRE 01465636 | NMLS 360623 #TheBrokerBoss #StayInformed #EducateToEmpower #BrokersAreBetter

The rumor is true Interest Rates are at an all time LOW! If you have been thinking about purchasing a home or refinancing, NOW is the time! ... Reasons to refinance: Get rid of Mortgage Insurance you no longer need. Cash-Out: consolidate debt, update home, travel, savings, etc. Lower Interest Rate/Term and payment. Get a LOW fixed rate: Maybe your adjustable loan/loan modification is about to recast and your payment is going to skyrocket Whatever your scenario might be, I am here to help! Message me for a complimentary Mortgage Evaluation. Pass along the great news and let’s help our friends and family take advantage of the low rates. También hablamos español! Omayra Zermeno | Broker DRE 01465636 | NMLS 360623

Deseándoles una Feliz Día de la Madre a todas!