The last time mortgage rates were this bad compared to Treasury rates, dinosaurs roamed the earth…and this morning it continues. After Jobless Claims fell 24,000 to a much lower-than-expected 351,000, we find the 10-yr at 3.67% but 30-yr mortgage prices worse by .50 in price. Fixed income investors need to be reminded why they should
Option ARM
Last month, we talked about Active Mortgage Management, the process of adjusting your mortgage strategy as the markets and your own circumstances change. We talked about this process in the context of a market cycle from 2002 to 2006, during which time rates hit all-time record lows then rose off of those lows. Because many
In recent months, you can’t turn on the radio or pick up a newspaper without being told about so-called Option ARM home loans. The radio ads tell you if you’re paying more than $1608 per month for your $500,000 loan, you’re paying too much. And the newspaper headlines warn of financial doom from negative amortization.