Friday, January 15, 2010

Negative impacts of new RESPA could hurt buyers

Experienced mortgage professionals have technology and experience to track rate trends.
Experienced mortgage professionals have technology and experience to track rate trends.
AP Photo/.Eugene Hoshiko

Every home owner or home buyer should be concerned about the interest rate on their mortgage. Even though the idea of floating the rate, a practice long used to anticipate lower interest rates, has been greatly hampered by the new Real Estate Settlement and Procedures (RESPA) "improvements" it is still possible for an experience mortgage professional to await a better rate.

Mortgage interest rates are locked when the mortgage officer asks for the lender to temporarily hold aside the amount of the loan for a specific number of days. You may have heard of ten day, thirty day or even forty-five day lock periods. Once the loan is locked there generally is little flexibility in adjusting that rate downward even if the overall rates change

Posted via web from FHA Loans and Social Media

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