Last time, I gave you the first two questions to ask your Bay Area Mortgage Professional. Here are the final two questions to help gauge your Mortgage Professional’s financial understanding and the affect the current financial market will have on your financial situation.
- When the Fed changes rates, what does this mean for mortgage interest rates?
You may be surprised, but when the Fed changes the Fed Funds Rate, mortgage interest rates often move in the opposite direction due to the dynamics within the financial markets. However the Fed Funds Rates will have an affect on short term rates such as credit lines, credit cards, auto loans etc.
- What is happening in the market today and how do you see rates in the near future?
This question has the biggest impact on the borrower. Having the ability to explain how mortgage bonds and interest rates are performing at the present time as well as any foreseeable market events that could affect interest rates will determine if locking in your rate today is advisable. Again, we cannot predict the future, but we can help you make logical decisions based on where the market is today and where we see it going.
In this rapidly changing real estate market, it is more important than ever to choose a Mortgage Professional who has a solid understanding of the financial markets. The person you choose will make a considerable impact not only on how successful your transaction will be, but also on your financial future.
My next post will continue to explore the art of mortgage shopping. Until then………….Keep asking questions!
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