Justin Perry's Mortgage Blog

                                                                                 January 9, 2008

FIRST CALL HELPING CLIENTS GIVE BACK

Portsmouth – On the news that worthy charities expect donations to slide in the coming year, First Call Mortgage announces a campaign that enables local home owners to help their favorite charity while helping themselves.

First Call is donating $100 to the charity of their client’s choice with each home purchase and refinance, a pledge that could provide a significant fund-raising boost to local charities.

“We are seeing an increased need for donations to local charities, and we feel a strong need to address this issue, to become proactive and find a way to help,” said David Keslar, manager of First Call’s Portsmouth location.

First Call recently launched its successful “Home Owner Protection Campaign” helping Seacoast home owners replace high-risk adjustable-rate mortgages with secure, more economical fixed-rate home loans. Keslar said First Call’s new charitable campaign is a natural fit. “When First Call can help our clients support their favorite charities while securing affordable fixed-rate home loans -– that’s how we like to measure success.”

In recent years, First Call and its employees have directly supported local schools, hunger relief efforts, and affordable housing agencies like Habitat for Humanity. First Call invites all local charities to contact its Portsmouth office for more information about how the First Call can help expand their good work in the community.

First Call Mortgage Company is a full-service mortgage company with experienced professionals, competitive pricing and numerous programs to suit any borrower’s needs. First Call’s specialty is to not only find the most appropriate mortgage program for their needs, but to provide exceptional service by educating customers about what to expect from every step of the loan process.

Yes the Fed just cut interest rates.  No it did not affect mortgage rates....yet.

The Fed's decision to raise or lower interest rates does not directly affect mortgage rates.  What it does affect is inflation expectations of investors.  The Federal Reserve has a job description and it reads something like "control inflation so we have long-term economic growth and prosperity."  Simple enough.  If the US economy grows too fast, we will get inflation. If the economy shrinks, we just might have a recession. 

The Fed uses interest rates to manage growth in our economy.  Raising and lowering rates will change the rate banks charge each other for loans and also what the Fed charges banks for loans.  As it gets cheaper for banks to borrow money they typically reduce interest rates on everything from savings accounts to loans.  If a loan is tied to the prime index (like equity lines of credit) it will in most cases be the first to change. 

So when The Fed wants to speed up the economy it will lower interest rates, when it wants to slow the economy down it will raise interest rates.  This is done usually for inflation concerns. 

To sum it all up I take a quote from a financial web site I frequent:

"If investors think Fed rate changes will make the economy grow fast enough to cause inflation, the mortgage rates they demand will go up. If they think the Fed's actions will reduce inflation, mortgage rates are likely to fall. There are times when mortgage rates will go the opposite direction of Fed rate changes based on the inflationary impact investors expect."

Please contact me with any questions or concerns.  Remember that mortgage rates are at four year lows so call me if you or someone you know is thinking about refinancing.  Think rates will be lower tomorrow?  At First Call Mortgage we give you the best of both worlds.  If you lock today and rates go down before you close we will give you the lower interest rate. 

Can you refinance my mortgage?  I have heard that question many times in the past week.   The very first question I ask the homeowner is: Do you currently have an FHA mortgage?

Most people with FHA (Federal Housing Administration) loans don't realize that FHA offers what is called a streamline refinance.   First and foremost you must currently have an FHA loan and you can not be behind on your payments.  When people think of the process of refinancing they usually assume piles of paperwork and fees.  That might be true in most cases, but not with a streamline FHA refi.  

Time.  The biggest thing you save with the FHA streamline program is time.  In fact, you don't even need an appraisal. 

There is also NO: Credit Underwriting, Qualifying Debt Ratios, Credit Check or Income Verification.

Yes you read the above paragraph correct.  This is just one more great reason to get an FHA mortgage.  Because you never know when you might have to consolidate bills, send a child to college, make home improvements or just take advantage of lower interest rates.  If you have an FHA loan and are in good standing you know that if when the time comes you will have no problem refinancing.

For more information on FHA loans or to see if you qualify please give me a call.  You can also go to FHA's homepage to read more.