I’m continuing my series on the low level of mortgage rates this week.
The yield on the 10-year Treasury bill is 2.93 percent as of this writing. After poking around the Internet, it looks like that’s the lowest yield since 1965. Because mortgage rates follow the movement of Treasury bonds, it’s no surprise my telephone is ringing off the hook.
Despite the credit crunch - which has improved, but still persists - plenty of homeowners are eligible for a refinance and should take advantage of these great rates. It’s not as easy as it used to be. Here’s a random sampling of changes that are making the refinance process more difficult.
While this may have been a minor problem, it certainly wasn’t a significant cause of the mortgage meltdown. Appraisers have to support their opinion of value through real comparables and value adjustments that are accepted in the industry.
Gone are the days when I could call an appraiser who could pull up some comparables and give me an idea of whether a particular value could be accurately and fairly supported. A borrower now must pay for an appraiser who may not know the area and unfairly valuate the property, killing the opportunity for a homeowner to lower his rate and waste the money he spent on the report.
These are examples off the top of my head, and they show one thing: Common sense in lending still doesn’t exist.
Don’t, however, let this column scare you away from refinancing. Rates are unbelievable, and they won’t last.
Henry Savage is president of PMC Mortgage in Alexandria, Va. Send e-mail to Henry Savage” href=”mailto:email@example.com” target=”_blank”>henrysavageHenry Savage” href=”mailto:firstname.lastname@example.org” target=”_blank”>@Henry Savage” href=”mailto:email@example.com” target=”_blank”>pmcmortgage.com.
© Copyright 2013 The Washington Times, LLC. Click here for reprint permission.
'Your papers, please' must never be heard in America
Independent voices from the TWT Communities
Reviews, insights and commentary from an eclectic observer.
Join the Communities. We want to hear from you.
How does our 50th state view D.C. politics?
Life lessons, adventures, people places and observations as I undertake my personal quest to travel to 100 or more countries before I die.
Benghazi: The anatomy of a scandal
Vietnam Memorial adds four names
Cinco de Mayo on the Mall