Rates dropped today. Got an email from lenders all over the place saying that conforming loans hit 5.5%. That's great news for a down market.
I was dealing with a contractor at my house today when the email hit the phone. We began discussing rates, and he asked what that does for him. I asked if he's conforming and if so then he should call one of the multiple mortgage guys that emailed me today.
He looked at me and asked what conforming means. Now I'm NOT a lender or mortgage broker, but conforming generally means if Fannie and Freddie will buy your loan and that generally means you have to be under the magic 417K number.
Apparently he's not so that ended our discussion. I do have a lot of buyers who need a place over 417K. It is becoming a problem for them to get a loan. Russ Martin, of Perl Mortgage, explains why non-conforming loans have become No Man's Land.
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1 comments:
great post Ben. It is always SHOCKING to me how many real estates professionals know so little about the mortgage (my) industry. I am glad you make it your responsibility to do so.
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