Eleanor Thorne 919-649-5057 Cary Mortgage Loans

There are tons of first time homebuyers out there negotiating the best deal on their new home, and now it's time to get a mortgage.

Most of them only know how to ask one question: What's the Rate?

We've been in the mortgage business for over 20 years - and the only thing most people know to ask is - "What's the Rate?"

While that's a great question, it's kinda' like going into a shoe store and asking if they have any shoes in a size 9. Just shopping the rate is not necessarily going to get you the best price.

And what is the best price anyway!?! Most of the clients that call us speak to my husband, Steve. The first thing he ALWAYS says is, "hey, thanks for calling! So you were referred to us by (insert name of friend, co-worker, agent, builder)? That's great!

So, tell me a little bit about what you're trying to do."

I share an office with him - and after listening to him say this for like the 90th time I turned and looked at him saying, "THEY WANT TO BUY A FREAKIN" HOUSE!" He wasn't amused.... but once calmed down he explained to me why he askes that question, that way (and why it will help you when shopping for a loan).

Most clients answer the question of what they are trying to do one of these ways...

• They want to buy or refinance but keep their payments at a certain amount
• They want to buy or refinance but they don't have a ton of cash to work with
• They want to buy or refinance but they can't verify all of their income
• They want to buy or refinance but they need it to happen in like 5 days
• They want to buy or refinance but they think they have some credit issues

Each of these items will help the loan officer determine which mortgage program (like those different kinds of shoes) will work for you! The PROGRAM will then help us get to a mortgage interest rate... and knowing your credit score and how much money you want to part with for closing costs will determine your rate.

So let's assume you figured out which program you are going to use to finance your home - YIPPEE! One more step in the process! Now you can just call loan officers and ask for their rate on that program and those terms with your credit and compare - it's not even that easy!

You want to be certain that you are working with an experienced loan officer. The largest fianancial transaction of your life is far too important to place into the hands of someone who is not capable of doing more than just quoting you a rate.

So here are some other questions for your loan officer:

What's the next Economic Report coming out that might effect the direction of Mortgage Interest Rates? A seasoned loan officer will have this information at their finger tips, and will know, for instance, that the FED says it will slowly stop purchasing Mortgage Backed Securities, which could cause rates to go up...

When Bernanke and the Fed "change rates," what does this mean... and what impact does this have on mortgage interest rates? The answer is not obvious. The Fed has some impact over SHORT TERM rates, like those on your credit cards, however very little actions the Fed takes (especially recently) has created a lower movement of Mortgage Bonds. Because of the "bad name" associated with Mortgage Bonds in the SubPrime market, fewer people are purchasing these bonds... That's why it's important to note that the Fed says it will slowly stop purchasing Mortgage Backed Securities (If you have other questions about this just call us!)

Once you believe that you are working with a seasoned loan officer, there are other points to consider... If you talk to 3 lenders who all tell you the rates are at 5.25% and you talk to another person who says they are at 5%... well, you've got to question what that lower priced lender is doing. For the most part, rates are rates. The cost of money is pretty close to even across the board - so, if it sounds too good to be true, it probably is. There could be extra fees, or they could be quoting a rate that is only good for the next 12 days.

You get what you pay for! If you are looking for the cheapest deal out there, understand that you are placing a highly important process into the hands of the lowest bidder. (If you've ever had a cheap haircolor job or a cheap haircut, cheap pair of shoes that KILLED your feet or fell apart - you know what I mean).

All too often, you don't know until it's too late that the cheapest isn't BEST. Remember that missed closing dates in NC can now mean a FINE to the buyer. Most "internet companies" do not operate in the State of North Carolina and do not know our laws - or even how we close loans.

If someone mentions closing at the Title Company - you know you're dealing with someone who's not from here, and some delays and differences in quoted closing costs and actual closing costs will likely occur.

Understand that Interest Rates and Closing Costs go Hand in Hand. When someone asks me for a rate - I ask them which one they want. I'm not being sarcastic (well, okay maybe a little) but we have interest rates from 2% to 10%. It depends on the program and the amount of money you want to pay out of your pocket.

Many first time homebuyers want the smallest amount of closing costs (so they can buy a hot new leather sofa!) and will therefore take a slightly higher interest rate - so that the lender pays the closing costs. A professional lender will be able to offer the bst advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals.

So our advice is to be smart. Ask questions... but don't just ask what the rate is!

Call Steve and Eleanor Thorne with First Financial Services in Cary, NC. Call us at 919-649-5058. We've been mortgage Lenders in North Carolina with the best mortgage rates for decades!

I tried to find some really cool way to actually draw a line on this Google Map - but allas, I'm not that technically advanced.

The "A" on the Map above represents where you should draw a line for properties that qualify for USDA No Money Down, mortgage loans.  If you can "imagine" a line from Highway 1 (Claude E Pope Memorial, also known as the Beltline) over to Kildaire Farm Road... everything BELOW that line qualifies for USDA financing.

This is a different view of the Holly Springs, Apex, NC qualifying areas for USDA. Everything ABOVE it (towards Cary) does not qualify for USDA home financing. The USDA line then pretty well follows Ten Ten Road over to Fuquay Varina. here's a map of that area.

If you are considering a home purchase in this area, we strongly suggest that you consider USDA for your Mortgage Financing options, even if you want to make a down payment! For more information about a specific address, please click here.

A substantial portion of our business is Government financing, and we have the best Investors, underwriters and the LOWEST RATES in the area! Please call Steve and Eleanor Thorne, 919-649-5058 for more details!

In an interview with CNBC this morning, Nouriel Roubini, a leading Global Economist, speculated that today's job numbers, though dismal - could be setting us up for a U shaped recovery.

This is interesting, as others on CNBC this morning, also speculated that we've hit the bottom, and are due for a bounce upwards.

In fact, according to the Bureau of Labor Statistics:

"Although job losses continued in many of the major industry sectors in August, the declines have moderated in recent months."

What this means for the Immediate Housing Market: Fortunately, or Unfortunately, housing has ALWAYS been tied to jobs. In areas where people have jobs, and the unemployment rate is realatively low - people will continue to purchase homes. In areas where people are afraid of losing jobs, well, those first time homebuyer incentives probably won't help.

What this means for Mortgage Interest Rates in the Near Future: Again, Fortunately or Unfortunately, mortgage interest rates have ALWAYS been a little sadistic during times like this. I tell customers to think about it this way... At a Hospital, Business is Good = Everybody's Sick. In mortgage lending, Bad News in the Economy means Good News for Mortgage Interest rates.

The question becomes, how long will it last. The Government announced in whispers in June that they were NOT going to purchase as many Mortgage Backed Securities (MBS) as they earlier claimed they would, and in fact that the program would likely END in September.

If the Government stops purchasing MBS, we could see rates spike quickly... and after reading this, I'll bet there's pressure for them to stop the program.

Best advice?? ACT NOW! If you've been considering a 15 year refinance now is your chance to grap 4.5% on a Conventional Loan! If you're a first time homebuyer - read this, you don't want to wait!

Call Steve and Eleanor Thorne, Meridian Residential we have the Lowest Rates (right now they are CHEAP!)! 919-649-5058

Most buyers know that once they choose their lender and their mortgage program, they will be given the option of locking in that rate - or floating until they get so close to closing that they must determine which interest rate they are going to keep for the life of their mortgage (we must normally know the exact rate you choose 10 days prior to closing).

If you lock into an interest rate, with most institutions, and rates drop before you close - "oh well." Conversly, if you meet with your lender on Monday morning, and rates are at 5% - then on Wednesday you decide you'd like that 5% rate and call the lender back... well, rates might be at 5%, or they might be at 5.5%!

We offer borrowers a unique option... if you lock into your rate with us today, and rates drop (up until 10 days prior to closing) we'll let you float down to a better rate! There are a few strings attached, but not many, and we have saved our clients THOUSANDS of dollars because of a slight movement in interest rates.

If you are interested in getting the BEST mortgage interest rate in NC, call us! With the First Time Homebuyer Tax Credit ending soon - we are seeing a TON of activity in the Triangle Housing Market!