Certified Mortgage Planner

Shopping Around for a Mortgage? Ask Four Simple Questions

Here’s the inside scoop on how to shop for a mortgage today.

Always make sure you are working with an experienced, professional mortgage loan originator. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way.

But how can you tell?

Here are four simple questions your lender absolutely must be able to answer correctly. If they do not know the answers immediately leave and go to a lender that does.

1. What are mortgage interest rates based on? The only correct answer is Mortgage Backed Securities or Mortgage Bonds, not the Fed or the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. Do not work with a lender who has their eyes on the wrong indicators.
2. What is the next Economic Report or event that could cause interest rate movement? A professional lender will have this at their fingertips. To receive an up-to-date weekly calendar of weekly economic reports and events that may cause rates to fluctuate, contact a Certified Mortgage Planning Specialist (CMPS) professional today.
3. When Bernanke and the Fed “change rates”, what does this mean… and what impact does this have on mortgage interest rates? The answer may surprise you. When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Mortgage rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets. For more information and explanation, contact a CMPS professional today.
4. What is happening in the market today and what do you see in the near future? If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as what is coming up in the near future, you are talking with someone who is still reading last week’s newspaper, and probably not a professional with whom to entrust your home mortgage financing.

Be smart… Ask questions… Get answers!

More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life but CMPS professionals do this every single day. It’s your home and your future. It’s our profession and our passion. We’re ready to work for your best interest.

Certified Mortgage Planner

Word of the Day – Modify

It seems as if every news item surrounding the housing market entrenches the word modify. Therefore, what does modify mean. According to Dictionary.com Unabridged (v1.1) the word modify is defined as:

1. to change somewhat the form or qualities of; alter partially; amend: to modify a contract.
2. to reduce or lessen in degree or extent; moderate; soften; to modify one’s demands.

Every piece of legislation has been modified in the last 24 hours to buoy the housing industry and frustrated homeowners on the brink of foreclosures. Let’s take a look at some of the prominent headlines.

• HOPE for Homeowners Program of the Home Economic Recovery Act 2008, which became effective October 1st has had minimal participation. It was noted that only 42 applications out of the 400,000 the program was targeted were received in the first 2 weeks. Accordingly, the program is in the process of being modified to be more friendly to banks to want to move forward. NY Times, Nov. 12, 2008
• Henry Paulson announced today that the $700 Billion TARP Program was being modified to be more accommodating to the changing needs of the financial market. Paulson stated “Over these past weeks we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets. Our assessment at this time is that this is not the most effective way to use TARP funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role, relative to other potential uses of TARP resources, in helping to strengthen our financial system and support lending. But other strategies I will outline will help to alleviate the pressure of illiquid assets.” CNBC, Nov 12, 2008
• Streamlined Modification Program was announced yesterday by the Federal Housing Finance Agency in conjunction with the efforts of major banks. The objective is for servicers to take a proactive approach to assisting homeowners who are in risk of losing their homes. The main purpose of the program is to create a managable housing payment no greater than 38% of total debt to income. MarketWatch, Nov. 11, 2008
• The Department of Housing and Urban Development today New Mortgage Rules to curb costs and provide greater clarity of fees. Not only is the Good Faith Estimate and the HUD-1 Settlement Statement getting a modified look, but also a 10% cap on the adjustment of certain fees from the initial estimate. The new rules go into affect January 1, 2010. HUD No. 08-175

With all of the changes throughout the legislation landscape, you must wonder if the consumer is really being serviced. It is tough enough for professionals to absorb and comprehend the impacts of all the changes. Does Congress and Capitol Hill honestly believe that consumers have a clue on how they can initiate and benefit from all of the legal modifications?

Certified Mortgage Planner

The Barath Group

…was created with the specific purpose to help homeowners achieve their dreams. We lend with integrity, customer centricity and competitiveness. Our product is ADVICE. Our special valued service is a TEAM approach through a growing synergy of influence. Our competitive edge is a qualified staff of Certified Mortgage Planning Specialists. We are trusted mortgage planners to an ever-broadening base of clients nationally.

Our vision is to become an industry leader and one of America’s premier mortgage planning companies. We will journey towards greatness with the support of people who care while openly sharing our successes.

Our clients will come to The Barath Group for personal, responsive and attentive service. We want to assure them that we will respect the confidentiality of their private choices. Additionally, our unique philosophy gives us the opportunity to enhance our relationships, to bridge paths, and to offer poignant advice. While most lenders spend their time looking for the “next” client, we spend our time implementing systems designed to nurture our client’s aspirations for all of their life successes.

Our mission is to facilitate prosperity, to empower ideal growth and to promote community stewardship. We will achieve these goals collectively by the process of our passionate interconnected outreach.

We pledge to be advocates for our customers. We want to put them at the center of everything we do. We strive to develop Clients For Life by exceeding our client’s expectations. We want our clients to be so satisfied that they become Ambassadors to our success. Accordingly, our clients will gladly REFER us to their family, friends, and business associates who are in need of a certified mortgage planning specialist.

We want to be known as Life Facilitators offering sound financial advice, implementing innovative & highly competitive mortgage strategies and fostering an affinity towards success for all. We also want it known that The Barath Group understands the value of people and that we encourage building deep relationships. In conclusion, we want to totally satisfy our customers’ mortgage needs as the gateway to their dreams.