Valleywide Lending

Great read regarding why mortgages rates did not and will not drop to zero after the Fed cut. It's like comparing apples to oranges folks. Remember that banks are NOT non profit organizations so even with all of this pandemonia going on, they cannot afford to drop interest rates as they cannot operate on negative margins. In addition to capacity issues and not being able to handle the influx of every homeowner in the country wanting to take advantage of lower rates by refinan...cing, they also have to address the losses they would incur by loans being paid off early which is why we saw an increase in rates last week. With that being said, rates are still great so I would advise anyone that is thinking about refinancing to contact a local independent mortgage broker or myself and at the very least discuss what options are available and get your application in and underwritten so that once the market settles down and rates eventually come down, you can lock in a lower rate. #valleywidelending #independentmortgagebrokers #brokersarebetter "In and of itself, the Fed’s rate cut won’t cause mortgage rates to fall. Because mortgages are long-term loans, their interests rates tend to track long-term bond yields rather than short-term interest rates such as the federal funds rate. The yields on the 10-year Treasury note BX:TMUBMUSD10Y and the 30-year Treasury note BX:TMUBMUSD30Y both fell in reaction to the stock market declines as investors fled for these government bonds, which are see as safe havens." https://www.marketwatch.com//the-fed-cut-interest-rates-to

Folks, with today's announcement of the Fed rate cut, please be very careful of solicitations of 0% mortgages. They DO NOT exist! The Fed cut the Federal Funding rate also known as the Prime rate which is what banks charge each other. Mortgage rates are tied to MBS (mortgage backed securities), not the Prime rate. We shall see how the markets react to this news tomorrow but understand that banks are not in a position to slash mortgage rates to 0%. We may actually see the opposite and an increase in mortgage rates depending on how the 10 year treasury reacts to the news.

Excited to announce that Valleywide Lending now offers stand alone 2nd mortgages! And the best part is that we can offer them up to 100% CLTV! If any of you have been turned down by your bank or credit union for a 2nd mortgage, we may be able to help. This is a fantastic option if you exceeded the max cash out LTV guideline of 80% on a refinance & need to payoff high rate credit cards or need some funds for home improvements. For any Realtors reading this post, if you have clients that need a piggy back 2nd on a purchase transaction, reach out to us to find out how you can help them with another low down payment option & avoid MI. #independentmortgagebrokers #brokersarebetter

Why is an independent mortgage broker better? Because we work with lender partners that focus on closing your loan in less than 30 days, even if it means working past 11pm Eastern time! #independentmortgagebrokers #brokersarebetter #uwm