Where R Rates & Market Knowledge Information To Chat With & Share With Clients & Realtors
MARKET CHANGES
1 BPS = $10.00 change in cost to borrower for the same rate per 100K in loan size.
Take Coupon % & add .75%ish to know the area impacted on your rate sheets.
GREEN is GOOD for Rates – RED is BAD for Rates
| YESTERDAY CONV 5.5% – DOWN 2 CONV 6.0% – DOWN 2 GOVT 5.0% – DOWN 8 GOVT 5.5% – DOWN 5 10 YR NOTE – UP 0 DOW JONES – DOWN 159 |
| SO FAR TODAY CONV 5.5% – DOWN 6 CONV 6.0% – DOWN 5 GOVT 5.0% – DOWN 6 GOVT 5.5% – DOWN 3 10 YR NOTE – UP 2 TO 3.86 DOW JONES – UP 202 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
Two days of red on the screen this morning. The good news is. if you combine both days it would barely move the needle on rates so don’t let it get you down.
We had GDP come in a little better than expected today hence the red this morning. A big chunk of GDP (Gross Domestic Product) is consumer spending and consumer spending is up. That is also the reason for the green on stocks.
In case you need a refresher GDP in the simplest terms measures the monetary value of final goods and services that are bought by the end user aka consumer that is produced in a specific country. We were up 3% quarter over quarter. That being said this is also from almost two months ago so it is backward reviewing.
Tomorrow is another big day with PCE (Personal Consumption Expenditures). This is an inflation number that merely represents what consumers are paying for goods and services in their communities.
This could really impact the markets tomorrow if it does not come in as expected. Especially if it comes in higher than expected. This is a morning report that comes out at 7:30 Central and 8:30 AM Eastern. This means before pricing hits tomorrow which means tomorrow mornings first rate sheet will have these results imbedded in your pricing.
Floating in to tomorrow morning could be a little scary especially for short term locks needing to close soon. Of course, it could go the opposite direction as well and be good. The benefit to that is you can always float down if rates get a lot better. I always say it is better to inform than assume.
We also have another treasury auction at 1 PM Eastern that could impact the markets a little.
Make it a great day!
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
CREDIT CARDS FOR CLOSING COSTS
When you know you are going to be tight on cash to close one of the tricks of the trade you can use on conventional loans is putting upfront costs on a credit card to keep more in their bank accounts.
This will help in reducing their cash to close as well as maintain higher balances to verify funds for closing.
Both Fannie and Freddie allow you to pay upfront costs such as appraisal and credit report fee because they are not extraordinary amounts. I would even say possibly pre-paying the insurance for the year outside of closing.
The agencies specifically state that you can use credit card financing for the payment of common and customary fees paid outside of closing allowable up to a maximum of 2% of the loan amount WHEN:
#1 – Borrower has sufficient liquid funds (reserves) to cover these charges
OR
#2 – The credit card payment is updated to account for the new charges in the DTI.
I am thinking option 2 is a good option to be able to use up to 2% on a credit card.
Hopefully, if they have no money they might have some room in the DTI to update the credit card.
Just another ratchet in your tool bag to give options to borrowers that can make or break their dream of home ownership coming true.
Jackism of the Day Truths and Thoughts that make you go hmmm
PREPPING FOR RESULTS
One of the greatest keys to success is the skill of prepping for your day.
As I was pondering the importance of prepping for my day I began to think about how people succeed in business and in life in other areas besides mortgage lending.
If you were the chef at a restaurant that opened for business at 9 AM. How successful do you think that restaurant would be if the chef showed up at 9 AM when the doors opened and did not prep the kitchen for the day?
If you owned a car lot and you opened for business at 9 AM. What would happen to your sales if you did not prep or clean the cars before potential clients walked through the door?
If you worked at a mechanic shop and you walked in the door at the same time that the business opened and you were handed a job to replace a water pump without ever organizing your tools, checking your surrounding and prepping the tools needed to complete the job, what would your mindset be?
The same goes for us every single day. If we wake up, shower or not, get in the car or for most of us walk down the hallway to our office at the same time we become available to our clients. Without prepping for the day we are not prepared for what is to come from a mindset, heart set and overall mental readiness to take on the day.
The importance of prepping for our day is vital to being successful in our business.
How you prep for your day and for your evening will dictate the results of your day or your evening.
About 10 – 15 years ago I started business and life coaching and it changed my viewpoint on life, work balance and pretty much everything I did. I have learned a lot over the years and I have especially learned what works and what does not work for me. It is not the same for everyone.
Some people are empty nesters like myself with a lot more time than those with kids who live in chaos from the time they wake up til the time they go to sleep. Those in that situation do have options as most of the chaos in their lives comes from their own decisions. Just sayin. I say this from experience : )
I like to think of how I prep my day is like the restaurant who makes everything from scratch. They love to get in early and prep the food and create dishes with love. They have a smile on their face knowing that what their clients will receive has come from the heart and are excited for people to experience what they have created. It is special to them.
I start my day around 4:30 – 5:00 AM and for an hour or two I am in prayer, in mediation, in journaling, in reading scripture and other books and after that I can’t wait to make a difference in the lives of the people that I serve.
After my quiet time I write my guideline and Jackism articles for the next day and do my morning reports to make sure my clients are aware of any locks expiring, following up on funded loans to make sure the process went well for newer clients, checking other reports for things I can follow up on and reviewing new registrations to make sure no better product options exist for what was registered the day before.
Then I work on any marketing ideas that might be beneficial to my clients and prepare to send 1 or 2 of those out each week.
It is not until all that is done do I even look at my email or respond to any phone calls or texts. That is usually around 8:30 – 9 AM. It is at that point that my heart is full, my plate is empty and my focus is fully on how I can help and serve my clients.
I like to think of my role as an AE as a making loans like I am making them from scratch, with love and with a desire to truly think about the borrower that is making one of their largest investments in life come to reality.
Of course, it does not always end up that way and we all have our days. I just know that when I do prep this way then the chances of greater success of an abundant life is far better with a little prep before starting the day with those that you serve.
How do you see your life? Are you preparing a business like you are creating a great meal from scratch or are you taking the frozen patty out of the freezer and throwing it on the grill with no seasoning the moment you start your day?
The difference between the two is whether you have a line waiting out the door or you turn on your open sign and it looks like a ghost town with nobody around to see.
There are many reasons that people succeed and fail in business and life. One of those big items is how prepped we are to serve our clients and to live our life.
How do you prep for your day? Are you ready every day when you start your day to make a difference or to just make it through to the end? Likewise and very importantly how do you prep yourself to transition from business to home? One is vital for business success and the other is vital for family success.
PERKS TO GROW YOUR BUSINESS
MBS TRACKING SITE
HANDY DANDY GUIDES
