ZFG Mortgage: Toll Free 1-877-205-7266
5807 S Garnett Rd Suite I
Tulsa, Oklahoma 74146
Simply put, there has never been a better time to refinance your existing mortgage. Call us today to see if refinancing your mortgage is right for you.
http://www.youtube.com/watch?v=5y7V5trYmik
Additional Information: How lenders set rates.
Generally speaking, the most commonly asked question in the mortgage industry is this, �How do lenders set mortgage rates?� And the answer is simple, �Lenders do no set mortgage rates?�
Well, if lenders don�t set the rates, who does?
And here is how it works my friends. Your mortgage lender will determine whether they will approve you or not for a loan and on what terms your loan will be approved (based on your credit score, reputation etc�), however the actual mortgage rates and interest rates are determined based on a variety of market factors on the secondary market (and fun place where mortgages are bought and sold).
As disturbing as this may sound, the Federal government setup 2 incredibly infamous organizations (as of 2008) known as Fannie Mae and Freddie Mac (I don�t know why they didn�t name on them Bernie Mac). Fannie and Freddie were created many moons (decades) ago to help really stimulate the lending process through increased government efficiency (which is a contradiction in terms). Fannie and Freddie and a few other major Wall Street Mortgage Investment companies would then actually go around buying up the loans that your lender has made to people like you and me. These mortgages and loans were then bundled together into this exciting things called �tranches.� These tranches were then either held as part of an investment portfolio orthey were sold to Wall Street, mutual funds, and other financial investment organizations where they were then traded just like Treasury bonds and securities.
Are you following me here?
- Government set up Freddie Mac and Fannie Mae to increase the efficiency of the private mortgage industry (government and efficiency just don�t mix well together)
- Freddie and Fannie then bought these mortgages, bundled them together and sold them to Wall Street where they were bought up my mutual funds and various other investment groups. Thus when foreclosures began happening, Mutual Funds nose-dived. When scared investors began pulling their cash out of the Mutual Funds the other companies� stock held by these Mutual Funds nose-dived as well resulting in �real� people get layed off from �real� jobs as their companies became cash strapped without their investor�s capital.
Back to the story�
Zeshu Financial Group
5807 S Garnett Rd Suite I
Tulsa, Oklahoma 74146
Toll Free 1-877-205-7266 | Fax: 918-459-6535
Thus my reader friends, interest rates go up and down based on those exciting fluctuations of the secondary market, not based on the lender�s emotions or feelings on any given particular day. Essentially when the economy is going down (and is tanking like a �Sherman�) rates will drop to get people like you and me motivated to refinance our homes, and to buy things with this �cheap money.� When the economy is bullish (and is moving upward like Lebron James jumping up for a monster dunk) the investors and various other humans who stand to benefit from this bullish economy will raise their rates to maximize their investor�s profitability during an economic upswing.
Basically patterns for interest rates almost always follow the economic cycles that we have all grown accustomed to. When the market doing well, rates go up. When the market is doing poorly rates go down. Thus, the best time to get the best rate is when the market is down (which just happens to coincide with the best time to buy the most property for the least amount of money).
Written by Clay Clark
SBA Entrepreneur of the Year and Founder of DJ Connection
Tulsa, Oklahoma 74146
Toll Free 1-877-205-7266 | Fax: 918-459-6535
Zeshu Financial: Your Tulsa Mortgage & Lending Resource 