Mortgage Blog

In the middle of the Jan, when the rate was high
and the business was slow, I talked to one of the
underwriters from Provident Funding, and I told
her that I would send 8-10 ARM loans to PF in the
next two weeks, and then "luckily" the ARM rates
headed lower. And later I predicted that ARM rates
would hit history low,  and then I predicted
the ARM will hit the bottom and will bounce
back. You can see those posts from the history blogs.

In late May, I talked to some of my loan agent
friends and told them to close those PF loans
asap and the ARM rates would go up. And at the
same time, when other agents were promoting
those great PF loans, I started origination
of those fixed loans. If you follow my blogs,
I predicted the 30 yr fixed rates will be lower
aroudn 4.375% level. And indeed it hit the
targets.

For the last a few days, if you read my blogs
and rates, I promoted those 10 yr fixed loans
and 15 yr fixed loans. For 10 yr fixed rates
around 3.375%; and 15 yr fixed rates around
3.625% to 3.75%.

Those markets may not be big, but it hit the
nitch of the following scenarios:
loan amount around 200k to 250k; they don't like
ARM rates; and also not that attractive(because
of the small loan amounts); but the 10 yr fixed
or 15 yr fixed program will help them to ease
the worry of future inflation and still get
a very good rate and payoff the loans faster.

My next target program, maybe 10/1ARM conforming
loans. The target clients will be those with 30 yr
fixed clients. And it will be another market
if 10/1ARM hit 3.625% to 3.75% level. Let's wait and see.