Investment Mortgage Guy

The Fed met this week and decided once again not to make any changes to the federal funds rate. The Federal Funds rate does NOT directly affect mortgage rates however. Mortgage rates are determined by supply and demand for mortgage backed securities on Wall Street. The Fed has been buying these securites in large quantities [...]

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According to the Star and Tribune, median homes prices for the Twin Cities increased from $150,000 in February of 2009 to $159,000 in February of 2010. In general, I agree with the article. I think we will see the median home prices continue to rise as the foreclosures move from inner city properties to the [...]

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I got into work on Monday and see an urgent email from our secondary marketing department (the department at our company that works with all of our lenders)  that stated Wells Fargo was not going to purchase ANY more of our Non-Owner Occupied Loans. Even the ones we had already locked!  Apparently with the new RESPA laws that [...]

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Many investors have contacted me with the drop in interest rates to see if I can help them refinance their investment property. Unfortunately for most, the equity position in their property is too negative for me too help. Fannie Mae however, has implemented a program called DU Refi Plus to try and help the real [...]

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We are close to half way through 2009 and we have seen rates lower than they have been in a long time. Many homeowners have been able to take advantage of rates in the 4% range.  Lenders are busy again all over the country.  The concerns for refinancing today are different than those of previous refinance booms. The number one [...]

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Beginning April 4th, 2009, Fannie Mae is allowing borrowers who currently have a Fannie Mae backed mortgage to refinance their investment property even if there is no equity in their property. This is great news! Especially if you have a current adjustable rate mortgage and you want to get it locked at a great low [...]

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I continue to be impressed at Fannie Mae’s willingness to find creative ways to get more real estate investors into more investment properties in an effort to stimulate our suffering housing market.
Fannie Mae has created a new investment property financing program called Fannie Mae Home Path. This program allows the real estate investor to purchase [...]

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Mortgage rates dipped to 4.875% today on a 30 year fixed mortgage. The Fed has committed to buying up mortgage backed securities which is causing interest rates to be lower than we have seen in 60 years. Depending upon your current interest rate, A mortgage rate in the 4% range could have a huge impact on the amount of [...]

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In this tough economy, getting credit for a small business or a new rental property is getting harder and harder. Most banks have put a complete halt on new business credit lines. Worse yet, some banks have decreased the amount of their credit limits or cut the credit lines that they have with their current [...]

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The interest rates on investment property mortgages dropped significantly however, Fannie Mae is now requiring up-front discount points to be paid on all loans.  The discount points have always been included in Fannie Mae’s risk and pricing model, but until recently, those discount points could be avoided by charging the customer a slightly higher interest rate.  In [...]

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