Important Trend!

If you have been watching mortgage rates trying to figure out when they are going to get better, the below chart may tell you what you need to know.  As you can see, over the last 3 months the 30 year FNMA bond has hit a ceiling of resistance you see at the top of the chart as a red line.  It corresponds to 101.45 on the left or R2 on the right. 

This ceiling effect tells us the chances are slim the 30 year FNMA bond will improve past this level. 

When the bond price is up, rates go down. 

So in this chart, our best mortgage interest rates were seen on March 4^th (last Thursday/Friday), Feb 5^th, and Dec 18^th. 

Mortgage rates are at the present levels because the government has been buying bonds at a lower return than what investors were willing to take.  This buying has kept mortgage rates artificially low since this started in January of 2009. 

The Fed has made it clear they intend to stop purchasing these bonds in 21 days (March 31).  Consensus among the analysts is rates will go up .50% following the Fed's exit. 

What is your strategy for getting the best rate for your refinance or purchase? 

I strongly suggest you consider taking action now, as all indicators point to higher rates in April. 

 What do you think rates will do after March 31st?

Score one for the IRS!

Yes, I am referring to the Internal Revenue Service - the people that have all those confusing tax codes. 

They have produced a very helpful 1 ½ minute video about the homebuyer’s tax credit that delivers a great summary of the program in a short amount of time. 

Check it out and let us know your thoughts: http://www.youtube.com/IRSvideos#p/u/2/FEceiZW9e3w

Nobody seems to know where this mysterious 2% rule of thumb came from.  We have never found anyone who can actually explain why one needs to save 2%.  The facts are that most of this decision goes back to what your specific objectives are for looking into refinancing.  You might be considering a home improvement.  You might be trying to consolidate some of your other debts.  You might be exploring an alternative method for financing your child's education.  There are many different reasons to consider refinancing your home loan.

To determine if it makes sense to consider refinancing, you should carefully review the available options and take note of two (2) specific savings areas – Monthly Payment and Ending Balance.  Most people only look to see if they are saving money monthly.  But even though you save monthly you could end up owing much more by increasing your term, adding to your balance, or both.  To make the best decision, we suggest comparing the ending balance of your existing loan against the ending balance of the proposed loan at a selected point in the future (5 years from now).  If you are saving some money monthly and keeping your loan term about the same, and the proposed loan has a lower ending balance than your current loan at the selected point in the future, there is true savings available.  If you are shortening the term of your loan, comparing the ending balance is the best way to see your true savings.

If you would like assistance in finding out if refinancing can bring you true savings give us a call at 1-888-562-6200 or head to our website www.churchillmortgage.com to Request a Call Back and one of our Loan Specialists will contact you at a time that is convenient for you.

You may be wondering why Churchill Mortgage would have information about divorce on our blog.

The answer is really simple; we are in the business of helping people.  And part of that commitment involves sharing good advice and information we find so you can avoid costly mistakes in your decisions regarding real estate.

Tuesday, February 2 Churchill Mortgage partnered with Attorney and Harvard Law School graduate, Kelly Lise Murray, and held a community outreach event to educate and empower others regarding the reality of joint real estate.  Divorce does not automatically cancel or sever your joint mortgage or any joint ownership of your house.  Major mistakes are being made that are not fixable and often result in damaged credit, mortgage default, foreclosure, or event bankruptcy.

The great news is these critical mistakes are preventable. 

Kelly Lise Murray, co-founder of DivorceThisHouse.com, shared the best way to protect yourself is to get good information before you start the divorce negotiations. You need to know all the different issues that can affect the value of the property.

·         Can you get approved for a new loan?

·         Getting an Appraisal is only the first step. What 5 other actions need to be taken to correctly value the property?

·         What is a CLUES report, and how can it affect my property?

·         What is the difference between a mortgage and a deed?

·         What are the pitfalls to avoid when a “quitclaim deed” is used to transfer ownership?

·         How can my ex-spouse ruin my credit after the divorce is final, and how to avoid this possibility?

… and that is just a start.

February 23, 2010 we will be partnering once again with Kelly Lise Murray for a second Community Outreach event that will empower you to make informed decisions to protect you and your family. Whether you are divorced, thinking of divorce, are somewhere in between, or know someone going through a divorce - this Free Community Outreach event is for you.

For more information visit our special information page on our website www.lawofdivorce.com.

We're excited to officially announce that the new Churchill Mortgage website is live.  We've designed it to help people get the mortgage information they're looking for as quickly as possible whether they're looking our free mortgage reports, loan applications, or calculators. 

One new addition to the site is a great video conversation between Dave Ramsey and Churchill's founder, Mike Hardwick.  Most people don't know that Mike and Dave have known each other for a very long time and the video shows the depth of their friendship with each other.

Beyond the new Churchill website, there are several new ways to connect with Churchill. We're using Facebook, Twitter, and this blog to provide current mortgage information, reactions to news that impacts mortgages, perspectives from behind the scenes at Churchill, and personal connections to help people who have home loan needs.

We'd love to hear your feedback on the site. Thanks for checking it out.