Tuesday, December 23, 2008

Mortgage Rates Los Angeles

The Fed meeting last Tuesday was a watershed event in monetary & fiscal policy, and could perhaps signal the bottom of the credit turmoil plaguing the financial system. The Fed announced its new Fed Funds target of between .25-.50% from 1.00%, and more importantly announced other stimuli to lower the cost of credit.

The media have been doing a good job of keeping the public informed of the significant drop in mortgage rates of late, and the opportunities it presents for those who can take advantage either by purchasing a new home or refinancing at the lowest rates in recent history. Please keep in mind that while the trend of mortgage rates is downward, the daily and weekly volatility are likely here to stay for awhile.

I am encouraging all of our agents to inquire about how these rates can benefit your clients as soon as possible, even if they think rates are likely to drop more. It is best to be ahead of the curve to not only ensure credit and value qualification, but also as capacity becomes an issue as lenders get busier. Preparing and planning ahead will enable you to execute the best terms and fees possible.

Additionally, while the drop in rates has been confined to Conforming loans (loans up to $625,000 in Los Angeles County), we believe that the overall health of the credit markets are improving significantly , and it is just a matter of time before we see Jumbo rates follow suit.

Feature Program - Conforming 30 Year 4.750% @ 4.88% APR
On loan amounts up to $417,000

Jeff Fink
LA Mortgage Inc.
15300 Ventura Bl. #101
Sherman Oaks, CA 91403
E-fax 206-203-4720

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