Mortgage Bonds are showing us some love this morning, as prices are near unchanged and up from the worst levels seen earlier in the session.  A look at the chart shows prices are above the $96.78 area, which posed as a very strong ceiling of resistance last week.  We are watching closely to see if prices can remain above this level, because if it does – that once strong area of resistance would serve as a floor of support, helping to buoy prices.  It is important to note that prices dropped down and just nearly kissed the $96.78 level, but were then able to move higher, confirming that the Bond is trying to stabilize above this level -  this is an encouraging sign.

The Obama Administration is set to deliver a $3.7T budget to Congress later this morning.  The budget is supposed to reduce the deficits by $1.1T over the next decade.  It appears the plan will immediately be confronted with resistance by House Republicans, who say the plan doesn’t do anywhere near enough.  For we in the mortgage business or investors in government bonds – let’s hope there is a serious, bi-partisan debate that can set forth a plan to make the significant cuts needed to address the budget deficit.  Why?  Because if the Bond market feels good and confident about the deficit being handled, rates won’t climb as sharply over time – and we can avoid the US getting a “negative” Bond rating outlook by either Moody’s or Fitch Ratings services, which would be devastating on many fronts.  Our own national debt would become increasingly more expensive to service, and rates on all types of loans would climb…none of this is good for a nation working hard to see economic recovery and job creations.  Remember, Moody’s and Fitch have both repeatedly pointed fingers at the US, saying that we must get our deficit in line, or risk being given a negative outlook.

Enjoy this fun video that shares a few of the services that Fairway Mortgage offers its valued clients.

Call us today – 520-696-8974 and allow us to be the solution for your lending and refinancing needs.

Let’s begin by taking a closer look at what a mortgage is. A mortgage is typically thought of as the loan used to purchase a home. The property is used as a sort of collateral meaning if you don’t make your payments the property may be confiscated by the lender who set up your mortgage. Mortgages are typically long-life leans meaning they can last anywhere from 15-30 years. Because of this you’ll want the lowest rate possible as you are going to be paying this for a long time.

Here are some factors that will affect your mortgage rate. Some of these factors are under your control and you can actually make choices about them. Others aren’t. Here are the major ones…

• The amount of money invested in a down payment
• The income of the borrower
• The life of the proposed loan
• The total loan amount
• The type of loan meaning is it an adjustable or fixed rate
• The “Fed Funds Rate” which is the amount of interest that banks and depository institutions charge each other

The easiest way to get a mortgage and mortgage rate that best fits your situation is to work with a mortgage specialist. The specialist will analyze your financial situation, consider your goals and work with lending institutions to find you the best possible rate and product for your particular situation.

When you are working with your lender make sure that the proposed mortgage payments are well within your budget. The lower the interest rate, the lower your payments will be. Another factor to consider is 15 year mortgages typically have lower interest rates as compared to a 30 year loan. However your payments will be higher each month. You will save money and have your home paid of sooner with a 15 year mortgage but make sure you can easily afford the payments.

Of course every situation is different. You can negotiate the best possible mortgage interest rates by being acutely aware of your personal financial situation, knowing your long-term goals and by working with a person who specializes in getting they type of mortgage you are looking for.

Call Meister Mortgage today and together we’ll find you the best mortgage rates possible.