Mortgage Blog

I started this subject a few days ago. And I did not have the time to finish it. Anyway, it is not too late.

I listened to a radio show,and the host talked about the business planning for the 2016. Yes, normally we planned a little bit earlier. I do not how the other business do the planning, but for the mortgage business, we might not be able to do much since we do not know whether the rate will go higher or lower. And also how the job market will affect the buyers' intention to make the decision for the purchase. 

But still we can prepare something ahead of the time.

It did remind me of the two big opportunities when I started my loan business. The first one was in around 2006-2007, a lot of loan agents focused on the 3 months fixed ARM program(very low rates, like 1.99%, but you will have to do it every 3-4 months). Since it was easy money, and they were too busy with other loans. Though they might have made more money, since I took care of the other loans, my client base increased dramatically.  The second was in 2008-2009, when the initial interest rates were low, and then it went up. Instead of waiting for the rates going lower, and then took the applications, I took a lot of the applications, processed the loans with lower than market rates, and paid those appraisals, and when the rate indeed went lower, I could close those loans right away. And I became the "big" loan agents after that. And I have been one of the top loan originators.

So this time, I would do the same thing. I am collecting some loan applications for Rental Jumbo refi for 3.25% for 7/1 ARM, or Jumbo 7/1 ARM 2.875%, and expect the rates will go lower after Dec fed meeting. I will pay all the appraisals. And the borrower will not lose anything if we can not get the rate we expected.