Hey everybody. It’s me, Jamie, with the real four, one, one (411). I usually wait until Monday’s is sending out my weekly mortgage update. But we got some news today that is just too important to wait. I’m sure you’ve seen the news that the fed cut rates again. And they are zero. But what you need to know is that mortgage rates don’t correlate to the fed rate. Fed rate is usually a good indicator, but it doesn’t mean that mortgage interest rates are zero.

As I mentioned in a post a couple of weeks ago, we are seeing; 50-year lows in the mortgage interest rates. And lenders and our industry as a whole were not prepared for it. So what do lenders and banks do in a situation like this? Well, they inflate their interest rates. They inflate them for two reasons. Number one, there are only so many funds available to fund such a large amount of mortgage loans at one time.

And two, there’s a human issue. They only have so many staff to process all the paperwork. And frankly, they can’t hire fast enough. So what this means to you is that it is temporary. And at any given time, some lenders price out better than others on a given day or a given moment. And as mortgage brokers, we shop every lender; every day to find the lowest and best interest rate for your given situation. A bank or a mortgage banker cannot offer you that. They’re basically limited to the options that they have within their bank. And they’re only going to be able to perform on the interest rates that they choose to offer. This is when we as, independent mortgage brokers, really shine. And when you, as our customers, benefit the most.

When the lenders hire enough people, and they catch up, yes, they will lower their rates and become more competitive. But who knows when that will be. And there is always a chance that by the time that happens, the market may have moved away again. And that opportunity will be gone. Our best advice to you, our clients are not to wait, to be proactive and prepare yourselves. I would send an application in and get your paperwork ready. For a lot of you, a refinance already pencils out. Interest rates may not be zero, but they are amazing. And they are still at 50-year lows. If for any reason, to refinance, don’t pencil out at this exact moment. Rest assured, we will put you on an individual RateWatch, and you will get a phone call from us at the very moment that it is time to lock in that rate. Be ready to lock-in. Don’t wait; that is what has cost some of our customers a lot of money. And a lot of headaches.

By way of example, we had quite a week in the mortgage industry last week. A huge week for us. A huge week for a lot of our clients. Clients who took our advice and locked in their rates on a Monday are already locked in secured. And in the process of saving a ton of money. Other clients who chose to wait are still waiting to lock in that low rate and hoping that the market rebounds and comes back again for them. You know, I love to push out value to my community, and I rarely asked for anything in return.

Today, I’m going to ask you to do something for me. Please be proactive. Get ahead of this. Be prepared, contact your trusted mortgage advisor, fill out an application, send in your documentation, and be ready to strike while the iron is hot. Be available. When your mortgage advisor tells you; that it’s time to lock. I’m always here to serve you.

And the most important thing you can do right now is to stay safe in this crazy environment that we’re in right now. I hope this information has been helpful. Have a great week.


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