Main Street Mortgage Company - Texas Mortgage Broker since 1996

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Economic/Market Commentary (6/28/2010):

Mortgage Rates Drop to Record Low:

30 year fixed mortgage rates dropped to their lowest levels in 39 years according to a new survey released by Freddie Mac, the second largest mortgage finance company.

Interest rates on 15 year fixed rates and hybrid adjustable rate mortgage rates reached fresh lows as well. While record low rates and high housing affordability helped the housing market gain ground over the last year, the sector is struggling since the popular home buyer tax credit expired on April 30th.

According to a Freddie Mac survey, the average 30 year fixed rate for conventional (non-FHA and VA) mortgages averaged 4.69 percent for the week ended June 24th and is the lowest since Freddie Mac started the survey in April 1971. Still, Freddie Mac's data is at least a week old before they publish it and it has been another week since then. Rates do vary depending on credit, debt ratios, down payment, area of the country, property type, points paid and many more factors.

GDP, Economy Grow at Slower Pace in 1st Quarter:

U.S. economic growth was slower than previously estimated in the first quarter of 2010. In its final estimate, the Commerce Department said the Gross Domestic Product (GDP) expanded at a 2.7% annual rate instead of the 3% pace it reported last month.

Although the growth pace was below market expectations it still marked three straight quarters of of expansion as our economy digs out of its most brutal downturn since the 1930s.

The Federal Reserve left their key interest rates unchanged this week and struck a cautious note on the economy and said that the recovery was "preceding" and that the economy is not expected to to fall back into a recession. Fears of a "double-dip" recession is one of the factors that have kept mortgage rates so low.

Main Street Mortgage Company continually monitors trading in the Mortgage Backed Securities (MBS) market in order to advise our clients on both current rates and the trend for rates in the future

1.	Why should I choose Main Street Mortgage Company? Answer
2.	Should I borrow as much as I qualify for? Answer
3.	*When can I lock an interest rate?* Answer
4.	*How long does it take to process and close a mortgage?* Answer
5.	*How much does it cost to close a mortgage loan?* Answer
6.	*What are points?* Answer
7.	*How are interest rates determined?* Answer

Q :	Why should I choose Main Street Mortgage Company?
A :	Personal Service, Customer Satisfaction and Results - Here is what some of our customers say: "Excellent service & follow through and top notch results" and "Paul - You exceeded my expectations, Thanks" - Kyle V. "Paul - I will let other friends know about you and your services. You did a great job" - Nidya S. "Paul - I was extremely pleased with the service you provided - how easy you make it and especially pleased with the results. Thanks for your help" - Bob R.

Q :	Should I borrow as much as I qualify for?
A :	Only borrow as much as your are comfortable with after looking at your monthly disposable income (income after expenses) and considering unforeseen expenses and savings strategies

Q :	*When can I lock an interest rate?*
A :	After completing a loan application and choosing a loan program. On a purchase, you will need to have executed a purchase contract and have an estimate of the closing date

Q :	*How long does it take to process and close a mortgage?*
A :	Generally between 10 and 30 calendar days but every situation is unique. Your Main Street Mortgage loan officer will give you an estimate based on your circumstances

Q :	*How much does it cost to close a mortgage loan?*
A :	Most loans require a down payment of least 5% of the sales price but some loans can finance 100% of the sales price for a higher interest rate. Closing costs are items such as loan origination, discount points, appraisal fees, credit report fees, attorney fees and title charges will be paid in addition to the down payment. Generally speaking the closing costs will run approx $2000 not including the loan origination fee or any discount points. You can obtain a Good Faith Estimate (GFE) for your loan request to get a better estimate and itemization of these amounts.

Q :	*What are points?*
A :	A percentage of loan amount you can pay to lower your interest rate. One point equals 1% of the loan amount. Example: $100,000 loan amount, 1 point = $1000 ($100,000 x 1%)

Q :	*How are interest rates determined?*
A :	Interest rates are determined by the bond market and other financial indicators. Rates can change daily and even more than once in the same day. Mortgage rates are primarily driven by the trading of mortgage backed securities. Typically, mortgage loans are packaged together into a mortgage backed security instrument which is then sold to investors. That investor earns a return on their investment by collecting the principal and interest payments that all the individual mortgage borrowers make on a monthly basis. In order to get investors to buy those mortgage backed securities, they must pay rates of interest that are competitive with alternative interest paying investments such as Treasury bonds. Of course, since mortgage borrowers are not as good a credit risk as the US Government, rates on mortgages are somewhat higher than those on US Treasury bonds. In summary, US Treasury bond rates often are a good indicator for the direction of mortgage rates. Another crucial element that helps determine interest rates and mortgage rates is the outlook for inflation. If investors believe that inflation is on the rise then interest and mortgage rates will rise as well.

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RESIDENTIAL LOT LOAN PROGRAM

Purchase financing for a residential lot to be a future Primary Residence or Vacation Home

If you are seeking a Lot Loan in Texas, You need to contact our office to explore your options. We work with several different underwriters with several different financing options.

MSMC offers a variety of residential lot loan programs to meet your specific needs. Lot Loan Rates vary by the amount of down payment, length of term and the individual's credit and income qualifications