Mortgage Blog

Some of you might have already known that the government wanted to share the profits from the refinance business. Basically they wanted to have 0.5% for each loan. And because of that, the rate will go up around 0.125% for each loans. The rental rates has not been stablized yet. 

See the link below. http://www.mortgagenewsdaily.com/consumer_rates/951943.aspx  

For me, I am still doing great, for my exercise and business. I rode bikes a lot recently, mainly because that it is too hot. I will be back to running when it cools down a little bit. For the refinance business, June business increased 25% from May; And July's business increased another 20%. August is expected to have another 20% increase. The only problem is that I am no longer young any more. Otherwise, I can finish the twice of the volume. On the one side, I am missing the old days when I have endless energies. And on the other side, I am still happy about what I accomplished.

Glad to talk to a few of the clients. The basic topic was : do not think too much about the refinance rate. The mortgage business is only very very tiny part of your financial picture. You will need to think BIG, think the long run and think for the future.

Two things are for sure now: 1)The debt is cheap. When the interest rate is below 3%, borrower as much as possible. 2)Do not be afraid of the financial markets. If you take a look of the RE market, the stock market 20 years ago, everything was cheap. Just purchase it, and keep it. This is for long run. If you purchased a house in the bay area, it does not matter how much you paid for it. 300k or 400k purchase price, it does not matter. Right?