Ed's Blog

Wow! I feel like I'm on Mr. Toads Wild Ride every day lately. “May you live in interesting times” seems like a mild admonition compared to what continues to transpire on the economic and political fronts, and, therefore, the mortgage front.

Mildly good news on the economy, the Fed pumping massive quantities of money into the system, record high deficits, continued high unemployment, revolution in North Africa and the Middle East, and the Japanese troika of earthquake, tsunami, and radiation leaks, are all pushing and pulling on interest rates, home values, and underwriting sentiment.

Add to this the massive regulatory changes that continue to hit the mortgage industry, and you have a very volatile lending environment.

What does this all mean for you on the mortgage front? An odd combination of very low rates, but continued, and in some cases, increasingly difficult underwriting standards.

"Ed, can you say that in plain English?” you ask. Be glad to!

It's still a great time to refinance or buy and get a low rate. Just be ready for delay and frustrations. And, as we rather indelicately say in the loan business, the financial "strip search" you’ll be asked to endure. It's kind of like traveling by air these days. You can either get the body scan, the pat down, or as I did just recently-both!

What a country! We went from letting anybody who could fog a mirror get a loan any time anywhere and with nothing down, to making you give your firstborn, a pint of blood, another pint of blood, and the kitchen sink so that you maybe can get a loan-if the banks like it, and it's a blue moon, and you have the right astrological sign, and it's the fifth Thursday of the month.

I could go on, but we’re still actually closing loans for refinances and purchases. (And yes, I think it's a good time to buy given how affordable prices are.)

So contact me if you or someone you know could use a loan. We have a great team that can navigate the obstacle course that has become the new lending reality. And if you're willing to hang in there, so are we!