July 23rd, 2013 3:49 PM by Eric Fang
First, the RE Market is slowing down.The reason was that the interest rateis up and also the price was too high.But for some areas, even though the price was up 20% to 40% from the lows, the houseprice is still below the building cost.
Work on one purchase loan for Sacramento area.It makes sense for the borrower to purchasethe property. It is over 2300 sqft. But withthe current 30 yr fixed interest rate of 4.125%,the PITI is only $1939.33, and his current rentwith 2000 sqft house is $1900. Then why not owna house with very similar payments?
I plan to either quit insurance or spend lesstime on insurance and focus more on the loans.And I made good progress, the volume is pickingup a little bit now. And we also applied a good lender so that we can take advantageof the good ARM rate. Believe it or not,lots of borrowers will like ARM ratesin the next 5 years.
Will work on a Mortgage Rate Trend Newsletterthis week.