The headlines of an Associated Press article found on MSNBC.COM this morning shouted "MORTGAGE RATES AT LOWEST IN FIVE DECADES". This article reported that the last time we saw rates this good was in the 1950's.
But also reported within the article? Low rates are still not causing much of a stir amongst consumers. They're just not taking action.
I am here to make the plea to all current homeowners ... or those thinking of entering the housing market for the first time ...
PICK-UP THE PHONE OR CONTACT A PROFESSIONAL MORTGAGE LENDER TODAY!
If you currently own a home and hold a mortgage, make that call! Have a complete and thorough Mortgage Planning session (which should include a FREE credit report) with your current lender ... or find a new mortgage lending professional that offers this service. POINT TO NOTE: IT SHOULD BE A FREE SERVICE! 
It is so very important that you take this action at minimum once per year. My objective when performing my mortgage planning sessions is not to sell you on any action or new loan. It is to review the current status of your credit, your mortgage program, your finances as a whole ... and how they all impact one another. It is a discovery session and chance to communicate.
The end result of our session should be one of two positive things. The best result is that we discover you are in the optimum financial position for your personal scenario at that time. That means the best mortgage program available to you, your credit is in good shape, and no errors found upon it.
The second result is one where ACTION is being taken to improve your financial positioning. Discovery has been completed and courses of action are being discussed. Suggestions to increase credit scores or correct an error discovered on your annual report may have been made. New options or positioning regarding a lending program are being discussed for possible future action. Details, such as PMI and escrow accounts, have been reviewed and assessed. Wheels are in motion to enhance y
our financial health in some manner.
Again ... this Mortgage Planning session should be a FREE annual service from your mortgage lender. The cost to you to should be nothing except your time. These annual reviews can easily be held in the comfort of your own home ... so it would be un-wise NOT to take advantage of this pro-active action.
For those thinking of entering the housing market for the first time, it is very important that you talk to a mortgage lender in advance to starting the search process. Communication with a lender in as much as 6 to 12 months ahead of your planned target starting date is very good.
When started this early, a professional mortgage lender can begin you on the best and smoothest path to homeownership. Credit histories can be better established, FICO scores can be addressed and improved, errors found on credit reports can be corrected, debts can be paid down in the manner to best maximize your credit scores.
As with the Mortgage Planning ... pre-qualification for homebuying should be FREE or at maximum, the cost of running a credit report. The more preparation done ahead of the actual property search and transaction processing, the better the conclusion and outcome will be for you. And with the service being FREE ... why n
ot contact a lender?
It may seem cliche' to relate this message once again ... but these unbelievably low rates cannot last forever. History has proven that. SO IF AT ALL POSSIBLE ... now is the time to see if you can take advantage of these rates and benefits.
Pick-up that phone. Text that plea for help. Write that email. Start today to find out what possibilities are available for you ...
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Skype! 630-219-1316
Why not? Find out what rates are doing and as you say get a financial tuneup/checkup/diagnostic. New buyers - time to step up to the plate.
Amen Lyn! This is a good time to be totally investigative and nosey. Rates like this might disappear at any time. Thanks for your comment ...
Gene
Gene, great call to action. Interest rates won't be this low forever. "Do yourself a favor" is right!
Great post, I hope you are also emailing this to all your clients and get some business!
Lottie and Leslie: Thanks for the comments! And yes, this will find its way to my database! Feel free to borrow anything from the blog that might assist you in your sales too ...
Gene
With rates like this, it's amazing that buyers (or would-be buyers) still aren't coming forward. Great post - I'm going to reblog.
Margaret: Greatly appreciate the re-blog and you're spreading the message. Sure hope it helps! Thanks much ...
Gene
Keep preaching Gene! We just closed one for 4.75%! Talk about a happy buyer!
Damon: Good job! The difference you made in getting that loan closed for them (instead at a higher rate) is huge huge money. They will benefit in so many ways through your efforts. Remember that ... Thanks for writing, Damon.
Gene
Gene, you jogged my thoughts to thinking about refinancing a rental house we own in Ringwood, NJ, with an interest rate of 5.75% since we purchased it in '07. if you don't mind, could you comment on whether the old rule of thumb of having to see a 2-point drop in interest rate before refinancing makes sense still holds?
Thanks!
Amy,
Great question. The 2% rule is a thing of the past given that loan values have increased over the years, meaning that on higher loan amounts, even a full percent is worth looking at ... the real answer to your question is a series of other questions that you have to answer honestly. What is the loan amount?, how far into the term of your loan are you? how much longer do you expect to own it? Since you are only three years into the loan, it still makes sense to consider another 30 year term. If you want to take the term down to a 25 year term with the refi, you already are saving 24 mos. of payments at ??? a month. Don't forget though, Investment property Interest Rates are higher, typically 3/8 - 1/2 % or more than principal residence refinances... so your margin of savings is even smaller. Lastly, if your Lender can cover the closing costs and lower your rate even a 1/4%,... what are you out? If you're planning on keeping the property and paying it off, using it as a retirement funding plan, then whatever you can do to save interest, payments, or reduce the term, the better off you'll be. Hope that helps!!!
Take care, Gene