Here is a quick "non-formatted" Market insight for everyone...
FNMA 4.5% bond is near 2009 HIGHS despite the record number of auctions this week. We are astounded at the interest in the bond. As I explained in my last issue, there is simply less "supply" right now due to the securitization process and numbers of loans to securitize being down a few months ago. Supply vs. Demand in economics...is like "Debits vs. Credits" in accounting.
Rates as a result of this are very good...but watch for some serious selling tomorrow for the holiday profit preservation. With sell off, we do see some pricing deterioration.
42 billion in 5 year T-notes were auctioned today and the market just seemed to gobble them up...possibly in part due to supply comments above.
DOW is down 17 points on the session but holding out at about 10,433 points.
RD loans...what are they? I am sure everyone out there has been getting some really great lessons on how the RD loans process works as it is really the only 100% financing option available (without involving a 3rd party Down Payment Assistance program). I hadn't done RD loans for years and never did an RD loan in the Bozeman area until late last year. Year-to-date: WE have done more RD loans this year than in all the other years in my finance career combined.
It has been great to coordinate with the team over there at RD. USDA loan programs are very much worth looking into and getting familiar with. Government guaranteed loans in general are really on the rise and with conventional loans under the same scrutiny...they don't seem to be much more or less difficult.
RD loans do seem to take a little bit more time and planning. I closed one today for a lucky couple who got into a beautiful home. Because the amount of seller concessions was too much...we actually paid down their loan by $700 at the closing table. However, due to processing hold-ups...we closed a little late on this particular one. (I never close late...so this is uncomfortable to admit!)
Income restrictions for RD loans in Gallatin County, Bozeman Montana in a 1-4 person family are set at just over $73,000.
See what they are in your area here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do The site at the link is very helpful. Check this site for national RD news. Type your state in the search line for more localized info: http://www.rurdev.usda.gov/
If you have more questions, please feel free to call me for a consultation. I can lend in all 50 states and appreciate the opportunity to meet with new people or visit with old friends about this program.
Thanksgiving! I am heading out to see family for the weekend and am excited to share time in reflection as to what I am truly and deeply thankful for. Gratitude is so close to feelings of Love and commitment. When we connect with the things and people we are grateful for...there is a natural appreciation or greater sense of value for them. We understand what it is that drives us and it can provide the lift we need whenever we need it. What are you thankful for?
Have a great holiday!
Chad
--
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
