How Federal Reserve Rate Decisions Impact Mortgages

September 23, 2019

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As mortgage loan originators, we are often the first phone call when customers hear the Fed (Federal Reserve) has “cut rates” during one of its Open Market Committee meetings.

 

Typically, if the Federal Reserve makes a cut, usually .25% at a time, it is designed to stimulate short term interest rates, encourage investment by businesses and encourage consumers to make durable goods purchases like automobiles, appliances or recreational vehicles. It is also meant to encourage homeowners to dip into home equity for home improvements, debt reduction or possibly college expenses for a child.

 

Short-term financing rates move in the same direction as the Federal Funds rate. So if you are considering a 3-5 Year adjustable rate mortgage (ARM), you may see a dip in those rates. I like to refer to these downward cuts as a “loosening” of credit.

 

As for fixed rate loans at 15-30 Year terms, the Federal Funds rate does not always have an impact. They are not directly linked to each other.

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Lender Tip of the Month: Ease Loan Process with Communication & Organization

July 29, 2019

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Thanks to technology, gone are the days of the slow, clunky mortgage lending process! We can now speed the process and better track the significant number of required documents with relative ease.

 

George Stone, Loan Originator with Jet HomeLoans, has some great tips to help you utilize technology to improve your experience. Here are George’s tips for a smooth loan process:

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Once you are under contract you will likely have just days to make a “Loan Application.” Basically this means you should speak with your lender right away and be sure that they have the required items to process your loan.

 

Documents that are required are things like your paystubs, your most recent 2 years of W2s and/or tax returns, your bank statements, and your un-expired government ID.

 

Send photos of required documents

Lenders accept photos for these items like your ID and your paystubs. Simply take a clear picture that is nice and straight with your cell phone and forward that along in an email or text.

 

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What’s the best time to refinance? Use this simple rule of thumb

June 24, 2019

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As mortgage professionals, we are often asked about refinancing, especially at times like these when interest rates are historically low.

 

In addition, every time you turn on your television or go online, you are bombarded with advertising encouraging you to refinance now! But when should you consider refinancing?

 

In a normal interest rate environment and in Florida, the “rule of thumb” is that if you can reduce your rate by 2%, and plan to stay in your home for more than 2 years, you will begin to realize some actual savings. The math is simple:

 

On a 30-year fixed rate loan of $200,000 at a 6% interest rate,your payment (principal + interest) would be $1,199.10.


If you secure a new rate of 4% on the loan, your payment would go down to $954.83. That is a payment reduction of $244.27 a month.


Over 24 months, that’s a net savings of $5,862.48!

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400 Families in 2019: Meet The Lay Family

May 3, 2019

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Davidson Networking Spotlight: Colby Caltrider of Back in Motion, Injury & Wellness Center

February 7, 2019

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Posted by in Events, News

Since launching our networking events, Davidson Realty has facilitated networking opportunities for hundreds of First Coast professionals. From artists and retailers to lenders and accountants, our networking get-togethers are the perfect way to branch out and spread the word on your products or services—and have fun!

 

We are pleased to feature one of our frequent attendees, Dr. Colby Caltrider. Colby launched his clinic Back in Motion, Injury & Wellness Center last year off County Road 210 and is excited to serve the St. Johns community.

 

A true local, Colby graduated from Fletcher High School and the University of North Florida. He then earned a B.S. and Doctor of Chiropractic from the renowned Palmer College. Colby later earned certifications in Physiotherapy, Trigger Point Therapy (N.I.M.M.O), and advanced certification from Motion Palpation Institute.

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