All Forum Posts by: Stephen Rinaldi

I am not someone who thinks the interest buydown makes sense imo

Best rate lender in the country is at 5's so you are mistaken,  may be with large amount of points or buydown

I have to imagine the recent trend of lenders attempting to incite business will continue, this will likely manifest itself in more adjustable rate mortagages (ARMs) becoming available.  Currently I'm seeing along of incentives to take 3/1 7/1 and 10/6 ARMs.  The first number is how long the rate is fixed for and the second is how often it adjusts 1=1yr and 6= months.  The logic is that these ARMS are usually a much better rate then the fixed equivalent.  Here is an example based on today's rates"

30yr= 6%   10/6= 5.375%   3/1= 4.99%

There are alot of factors to consider when taking on an ARM, first is length of ownership and second is loan amount. From there I like look at the client and talk out worst case scenarios and if they would have a way out. The misconception is that ARMs always adjust negative, its market dependent so in some cases it can adjust positively. Also these loans dont usually have prepayment penatalies, so you can refi or pay off at any time.

The truth is you should weigh out all options when making a purchase, and make the best strategic decision for YOU.  Right now that 10/6 at 5.25-5.375% is attractive to many buyers... 10 years is alot of time to be fixed.

The reason why this industry brings some of the best and brightest is that is so dynamic, no changes in the market are in a vacuum.  Clients that are expecting rates to slip, a sentiment that I agree with, are missing the point.  When rates drop demand will increase and that means more competition.  I always feel as investor or first time buyer that there is value in buying in the off season, since you arent selling a house.

Be wary of be focused too much on rate and not enough on VALUE

Less than a 6 month gap is no worries

Im not 100% sure of the question...fulltime income can be used immediately. I dont see any other big issue here.. gaps arent the end of the world FHA

Full time/salary employement is the key in the industry.  YTD/current income always carries more weight

30yr fixed is showing with most lenders in low 6's, with out paying points. as long as the client has strong credit score 740+. Recently priced a 10/6 ARM at 5.25%, costing .5%. So basically pay .5% to get .75-.875% better on rate. For many buyers thats no brainer.

Its going to be an interesting spring and we are projecting a strong Q2, but in this market options matter.