Economic/Market Commentary (12/10/2008):

4.5% Rates ? 

The news is abuzz about the Treasury Department and Federal Reserve wanting to lower mortgage rates to 4.5% to stem the foreclosure crisis.  Can they do it?

Well, it is important to note that there has not been any details about a plan to achieve a 4.5% rate.  Also, mortgage rates are determined by price movements of Mortgage Backed Securities (MBS) which compete for investor funds on the open market. 

The Treasury and Federal Reserve can buy MBS on the open market in order to influence rates.  The recent announcement from the Federal Reserve that they will purchase up to $500 billion in MBS did cause mortgage rates to drop by more than .50% in one day.  However, mortgage rates increased the following week due to normal market forces.

The bottom line is the Treasury and Federal Reserve cannot wave their hand and create 4.5% mortgage rates.  But they have already helped move mortgage rates to historic lows and with home prices moderating it is a great time to consider a refinance.

Industry News

October Housing Starts fell to a record low and Building Permits fell 12%.

Fannie Mae and Freddie Mac will suspend most foreclosures until January 9.

Jobless Claims rose to the highest level since 1982.

Oil prices fell below $50 per barrel, down from $147 in July.

THE HIGHEST COMPLIMENT WE RECEIVE IS A REFERRAL OF YOUR FRIENDS AND FAMILY

THANK YOU FOR YOUR BUSINESS!

RESIDENTIAL LOT LOAN PROGRAM 

Purchase or Refinance of lot for future Primary Residence and Vacation Home

If you are seeking a Lot Loan in Texas, You need to contact our office to explore your options.  We work with several different underwriters with several different financing options.

MSMC offers a variety of residential lot loan programs to meet your specific needs.  Lot Loan Rates vary by the amount of down payment, length of term and the individual's credit and income qualifications.

CONSTRUCTION and PERMANENT MORTGAGE LOANS

When you are ready to build on your lot, MSMC can arrange either a Construction Loan or a "One Time Close" Loan for the construction of your new home.

The One Time Close loan program gives you an approval for both the construction and permanent financing at one time.  It also helps to reduce your transaction costs by having only one closing. 

Other benefits of the One Time Close construction - permanent financing program include:

- lower fees

- interest rate cap on the permanent loan

- construction periods of 6, 9, 12 and 18 months available

- many programs offer a float down feature for the permanent rate so when the home is finished if rates are lower you can benefit