How do you rate? and some News

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Interest rates are published at least daily on many websites. Mortgage interest rates are a major factor – likely the most important variable – in a home buyer’s choice of loan programs and lending sources. A real estate professional like me should have a good working knowledge of mortgage products and a mortgage calculator or device app can come in quite handy when standing in the kitchen of a home for sale discussing what a buyer can afford.

More to the point, a buyer standing in a kitchen of a home for sale should already have a pre-qualification letter in hand from a reputable mortgage lender. Any written purchase offer from a buyer prospect that is not accompanied by a pre-qual letter will not be taken seriously by the owner of the listed property.

So yes, get a pre-qual letter  before you start looking, by all means. And it’s very easy to do. I know a number of mortgage loan officers, brokers and bankers that would love to visit with interested buyers and discuss what loan program and rate might be available.

And now for the NEWS: mortgage rates are going up. On any given day or week, they are slightly up or down from the last time you looked, but over the long haul, they and heading upwards. That is the opinion of almost all of the money and mortgage experts out there.

We will see about one percent in rate increases over this new year (2014) as we saw about a one percent increase last year.

By the end of 2014 and into early 2015, most expect rates two percent above what they were at the historical low of 12-18 months ago. Still, even a full percent increase from todays levels (around 4.2 to 4.5%) will still be below average rates from the last 25 years.

Would you like to read more about this? Try the “” site for a clear explanation –

The National Association of Realtors chief economist has been saying the same thing for months. Forbes, CNN Money writers, probably even Donald Trump are all predicting the uptick in rates.

This matters to buyers because it has a direct effect on how much home they can buy. Every fraction of a percent in rate increases lowers the amount of available mortgage money for the vast majority of home buyers.

Contact me if you would like to know who the best lenders are that know the Santa Fe market. And if your present home is not a joy to come home to, let me know when we can start looking for a new nest for you and your family.

There are some good deals out there and I know how to find them.  Alan  505-470-7153 or just comment on this blog post… and I will be in touch.

Posted in Mortgage, Posts & Updates, Statistical Data - Santa Fe real estate market and tagged , , , , .

The writer is a 68 year-old young man engaged as an active REALTOR (associate broker) with Keller Williams, in real estate sales and management in the Santa Fe NM market area. My career has been in and around the real estate industry for more than 35 years, ranging from mortgage lending (interim, commercial, residential); residential property management and leasing; shopping center development and leasing; real estate sales; sales training; title insurance as an executive and an escrow officer; various management positions; consulting and other related activities. That plus a bunch of banking experience including our family-owned Bank of Santa Fe in the 1980s. Where has the time gone?
My background means you have my working knowledge of the entire transaction process at your disposal. That comes with honesty and no bullshit.