10yr ARM Index Comparison

In light of the subprime market shake up and everyone on the news speaking about where the market is going I thought it would be nice to share a picture of where the ARM indexes have been over the last 10 years. I hope this helps you see how the trend line has been shaping up and why rates have been remaining stable for the past 12 months. As you can see we are at a point of resistance right now where we are back at levels similar to 1997 through 2000.
As always if you have any questions about your current mortgage situation or general questions please feel free to call me anytime at 425-289-4602 or visit our companies website at http://www.gofirstrate.com/!
Best Regards,
Ryan Baumgartner
Managing Partner
First Rate Financial LLC
www.gofirstrate.com

Home Selling Tips!

How To Prepare Your Home for its Listing! If you're selling your home, make sure your home has "curb appeal." Remember, you can't change a first impression. If your home looks like a diamond in the rough, think about putting a small investment into cleaning up the outward appearance. Imagine that you are seeing the property as a potential buyer. You'll want to do a little yard work - clear away dead shrubbery, and trim your trees and lawn. Weed the flower beds or plant some flowers that will bloom in season. Make sure the driveway is not stained, and if you can't afford to paint the home entirely, at least make sure the front door and immediate entryway is immaculate. Fresh and clean are still the keywords to making a good first impression once the potential buyer walks through the door. Unless a particular window is facing an eyesore or a neighboring building, open the drapes and let the sun shine in! Put your dog in the back yard or garage so he's not jumping on the new people who just walked in.... they might have allergies! There is much you can do to improve the look of your home, without investing a great deal of money. I'd be happy to share more tips with you and assist you in obtaining financing for your next home as well. Best Regards and have a great weekend!

Ryan

What is a PrePayment Penalty?

A prepayment penalty is a fee charged to borrowers that make full payment on their mortgage, or pay off a substantial portion (generally anything exceeding 20% of the total loan amount), ahead of schedule. This is a clause written into some contracts to protect the lender's book of business in exchange for providing a lower interest rate, or for providing financing to a high-risk borrower. Prepayment penalties vary with different lenders, but generally apply to a one-, two-, three-, or five-year period of time. This fee can be expressed as either a specific number of months' interest or a percentage of the outstanding balance. A 'hard' prepayment penalty applies to either the refinance or the sale of a property. A contract written with a 'soft' prepayment penalty permits the borrower to sell their property without incurring a penalty, but does restrict refinancing for a set period of time. It is important for the consumer to know that a prepayment penalty is the borrower's choice and should never be considered a requirement! Make sure you are working with a reputable loan professional who is aware of your long-term plans before consenting to sign off on an agreement that includes a prepayment penalty! Always ask for a written evaluation of your loan options.
If you ever have any questions regarding lenders or brokers quoting you rates with pre-payment penalties please call me at 425-289-4602 and I will be happy to assist you.
Have a great week!

Ryan Baumgartner
Managing Partner
First Rate Financial LLC
425-289-4602
www.gofirstrate.com