current mortgage rates

What Is the Mortgage Appraisal Process?

                    Today, we are going to talk about appraisals and the mortgage appraisal process. When you go to get a mortgage, lenders approve YOU, and your specific financial situation. A lender will begin by looking at your credit, your income and your debts, the sources of your income, and the specific property you are buying or refinancing. The lender will check that the cost of the home is where you need it to be from a financial standpoint, and that it comes in at the right value by doing an appraisal. Finding an Appraiser When doing an appraisal, a qualified appraiser is brought in to appraise the value of the home. Previously, we could pick the appraisers that we brought in to do the appraisal that knew the area well. However, today there is more of a blind system: appraisers are…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending March14th, my take on the week’s financial news and how it affected Illinois mortgage rates. Do you remember the scene in It’s a Wonderful Life where they had the run on the bank? In the movie Jimmy Stewart was on his way out of town, just about to go on his honeymoon, when he noticed the crowd of people swarming around the Building and Loan. The rumor was that the bank was out of funds, so the town’s people were in a panic as they tried to get out with whatever they could before they lost everything. Jimmy stepped in and calmed the people by doling out his honeymoon savings and assuring them that they were all in this together. We had a similar situation in the mortgage backed securities market this week with Fed Chairman…

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Illinois Mortgage Rate Weekly Update

Welcome to this week’s Illinois Mortgage Rates and News week in review, my take on the week’s financial news and how it affected Illinois mortgage rates. The great physicist Isaac Newton described gravity by noting, what goes up, must come down. This week gravitational forces were at play in mortgage interest rates. After moving up strongly (and strangely) most of the month, mortgage rates are now falling like the proverbial apple. Mortgage rates jumped up based on fear of inflation. The strange part of this has been that inflation may be a problem down the road, but the credit crunch and recession are crucial problems now. As Fed Chairman Bernanke said in congressional testimony this week, “You fight the enemy in front of you, not the one over the hill.” Inflation may become a problem, and there are signs of inflation especially in fuel and food costs, but it is…

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Illinois Mortgage Rates Weekly Update

Have you heard of the Law of Unintended Consequences? The idea that when you try and do something good, something entirely unforeseen results from your actions? This is a variation on Murphy’s Law, whatever can go wrong, will go wrong. I think we are seeing a great example of this in the financial markets. Conventional wisdom now tells us several things about the economy: 1 – Our economy is almost surely now in a recession. 2 – The recession is largely a result of all the problems in the real estate market. 3 – In order to get our economy back on track, we need to get the real estate market moving again. 4 – One of the best ways to get the real estate market moving again is through lower interest rates. Makes sense, right? The Fed has moved aggressively to cut short term rates – cutting an astounding…

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