ANCHOR: THE ECONOMY SEEMS TO BE STEAMROLLING ALONG AGAIN. BUT THAT COULD BE BAD NEWS FOR HOME BUYERS AND HOMEOWNERS LOOKING TO REFINANCE.
ANCHOR: OUR MONEY AND REAL ESTATE EXPERT ILYCE GLINK IS HERE WITH SOME WAYS FOR YOU TO MAKE THE MOST OF YOUR MORTGAGE DOLLAR. GOOD MORNING
ILYCE: ACCORDING TO DOUG DUNCAN, CHIEF ECONOMIST OF THE MORTGAGE BANKERS ASSOCIATION OF AMERICA, THE ECONOMY MAY GROW THIS YEAR AT ABOUT AT 4 PERCENT PACE. BUT THE BOOMING ECONOMY MEANS MORTGAGE INTEREST RATES COULD RISE BY HALF A PERCENTAGE POINT OR MORE THIS YEAR. WHEN INTEREST RATES GO UP, THE AMOUNT YOU CAN BORROW GOES DOWN. SO HOW DO YOU MAKE THE MOST OF YOUR MORTGAGE DOLLARS? START BY SHOPPING THE MORTGAGE MARKET.
SOT1: DOUG DUNCAN, CHIEF ECONOMIST/MORTGAGE BANKERS ASSOCIATION OF AMERICA
“Tell them, be honest with them, look I’m shopping for the best deal in the market, these are the kinds of things I’m hearing from other lenders, what kind of a deal can I get from you? The lender doesn’t make any money if they don’t make you the loan, so you have power as a consumer in the transaction.”
ILYCE: “TECHNOLOGY HAS ELIMINATED COOKIE-CUTTER LOANS AND GIVEN LENDERS THE ABILITY TO CREATE ALMOST A UNIQUE HOME LOAN THAT WILL SUIT YOUR PARTICULAR FINANCES.
SOT 2: DOUG DUNCAN, CHIEF ECONOMIST/MORTGAGE BANKERS ASSOCIATION OF AMERICA
“So if you want a loan that has a monthly adjustable rate and is interest only, you can get it today. If you want a loan that’s fixed the first three years and variable after that, you can get it. If you want one that’s variable for the first seven years and fixed after that, you can get it.
That’s w hat we call mass customization, in other words, you can, on a massive scale, tailor loans to a specific need of the borrower.”
ILYCE: BUT SOME DEALS SEEM TOO GOOD TO BE TRUE. BEFORE YOU SIGN A LOAN APPLICATION BE SURE TO MAKE SURE YOUR LENDER IS LEGIT.
SOT 3: WILLIAM NEWMAN/ABN AMRO MORTGAGE GROUP
“You can ask the mortgage broker for references, you can also call the local BBB in that community, that’s really the best ways to do it and also talk with related professionals such as real estate professionals, they’ll have a good opinion of any particular provider whether it’s a broker or a lender.”
ILYCE: ANOTHER WAY TO MAKE THE MOST OF YOUR MORTGAGE DOLLAR IS TO AVOID A BAD LENDER. A NEW FREE PUBLICATION FROM THE MORTGAGE BANKERS ASSOCIATION CALLED “STOP MORTGAGE FRAUD” GIVES YOU THE BORROWER’S BILL OF RIGHTS AS WELL AS 10 WARNING SIGNS OF PREDATORY LENDING. THESE INCLUDE BEING FORCED TO BUY CREDIT INSURANCE, SURPRISE EXPENSES THAT POP UP AT CLOSING AND BEING ENCOURAGED TO INCLUDE FALSE INFORMATION ON YOUR APPLICATION. THE PUBLICATION IS AVAILABLE TO THE PUBLIC AT ITS WEBSITE, STOPMORTGAGEFRAUD.COM.