ABBA First Mortgage News

Our Holiday gift to you

December 13th, 2018

Here is a holiday business opportunity as our gift to you. Do you have a debt elimination plan? Credit card balances are up but so may be your home equity. The average increase in credit card debt last holiday season was over $1,000.  Home equity is at a peak!  How can we help you?  Can we help you try a plan to eliminate all debt?  Here is a quick, but wonderful illustration (comparison) about the impact of a refi.

If you have a $300k mortgage at 4% ($1,432) and $50k in credit card debt at 18% ($1,250), that total monthly payment is $2,682.  Without any negotiating and just for comparisons sake, after refinancing both of these debts together at 5%, your payment will be $1,879, saving you $803 monthly.  And here’s the beautiful part of this equation- if you take the additional $803 that you were paying (which totaled the $2682) and put it towards your mortgage by pre-paying down your principal, you will pay off your 30 year mortgage in 18 years and 2 months.

Please let ABBA First make your dreams come true.  Use a debit card instead of a credit card and follow the steps that we’ve outlined for you above and you will be the recipient of our Holiday gift for you which simply put is a plan for big savings.

Oil prices drop! So do mortgage rates!

November 28th, 2018

As you drive down the street, pass a Gas Station, and see the price per gallon, have you noticed that it seems to be going down a few pennies almost daily?  This drop in price is because the selling price of a barrel of oil on the stock exchange has also dropped and eventually the domino effect typically reaches the MBS market.  In turn, mortgage interest rates have dropped causing a down turn in long term interrest rates.  Today, ABBA  First is offering a discounted rate of 4.50% for a 30 year mortgage.  That’s another industry leading rate in NC for qualified clients.  Call us at 910-332-0650 and apply today for your mortgage.  Don’t delay!  We have seen this happen before where the see-saw principal comes into play.  Start your application process now and set the table before the market takes an upswing.

We saw rate improvements for Thanksgiving which are continuing on so far this week

November 27th, 2018
Rates fell back with the recent stock market turmoil.  For the week ending November 21, Freddie Mac announced that 30-year fixed rates decreased to 4.81% from 4.94% the previous week.  The average for 15-year loans fell to 4.24% and the average for five-year adjustables eased to 4.09%.  A year ago, 30-year fixed rates averaged 3.92%, close to one percent lower than today.  ABBA First Mortgage has been offering one of the lowest rate and term combinations (4.625% with 0 pts.) available for the right clients when they are ready to lock in their mortgage loan transactions. Please give us a call at 910-332-0650 and find out for yourself just what we can do for you whether purchasing or refinancing your home!  Attributed to Sam Khater, Chief Economist, Freddie Mac — “The downward spiral in oil prices and a volatile equities market caused rates on 30-year fixed loans to decline 13 basis points to 4.81 percent, the largest weekly drop since January 2015. Rates on home loans are the lowest since early October and the dip offers a window of opportunity for would be buyers that have been on the fence waiting for a drop in rates.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes

Personal Post from ABBA First

November 26th, 2018

Today is Monday and we are back in work and looking forward to serving you well for all your mortgage needs this week.  We hope that you all had a wonderful extended Thanksgiving weekend which was one of the few 4 day weekends that ABBA First acknowledges during the year.  No.  It isn’t necessarily a Holiday that is recognized by the state, the church, or all school systems for that matter.  And we know it certainly isn’t recognized by the reatail industry- for Friday is one one of the biggest selling days of the year.  But for ABBA First, we make it a time for family to get together as we celebrate the blessings that God has allowed us to have over the past year and, as a family with our children and grandchildren, we give thanks on Thanksgiving to Him for His provisions.  Besides that, we also celebrated Christmas this year so we called it “Thanksmas”.  We decorated our house for Christmas and exchanged gifts with our children with Christmas music sofly playing in the background (well actually it was blaring but with six grandchildren…well, you get the picture).  It was wonderful.  Now come Christmas Day, our children can be with their in laws without fear or having meet deadlines to get from place to place.  It will be peaceful for all!  I hope that your holidays will be blessed and that you too will have a peace as you celebrate these wonderful days with your loved ones.

Rates are stable-after they rose and then they fell.

November 20th, 2018
Rates stabilized this week after rising the week before, but rates were falling as the survey period ended. For the week ending November 15, Freddie Mac announced that 30-year fixed rates remained at 4.94%. The average for 15-year loans rose to 4.36% and the average for five-year adjustables was stable at 4.14%. A year ago, 30-year fixed rates averaged 3.95%, close to one percent lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Despite recent market volatility, rates on home loans remained steady this week. The stability in rates reflects the moderation in inflationary pressures in the economy due to lower oil prices and subdued wage growth. On the margin, lower energy costs are a positive for the home sales market, particularly for lower-middle income suburban buyers who spend proportionately more income on transportation costs.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices for Adjustable Rate Mortgages

Updated November 16, 2018

What happens when rates rise to 7 year high?

November 13th, 2018

Mortgage rates rose significantly for the week ending Nov. 8, with the 30-year fixed mortgage rate surging to a seven-year high, according to the Primary Mortgage Market Survey released by Freddie Mac.  When there is good news for the economy, there is typically bad news for mortgage interest rates.   We have seen a great improvement in economical growth since the Trump administration took over a mere 22 months ago.

“The economy continued to show resilience as strong business activity and growth in employment drove the 30-year fixed mortgage rate to a seven-year high of 4.94% – up 11 basis points from last week,” Freddie Mac Chief Economist Sam Khater said. “Higher mortgage rates have led to a slowdown in national home price growth, but the price deceleration has been primarily concentrated in affluent coastal markets such as California and the state of Washington. The more affordable interior markets – which have not yet experienced a slowdown home price growth – may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher.”

Rates for the 30-year fixed-rate mortgage averaged 4.94%, with an average 0.5 point, up from the 4.83% average in the previous period. The average rate also increased year-over-year from a 3.9% average.

The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased to 4.14%, with an average 0.3 point, from 4.04%. The 5-year ARM averaged 3.22% in the same period in 2017.

ABBA First Mortgage would like to request that new clients give us a chance to earn your business and your trust as we find the lowest rate and terms available for your needs.  Call us at 910-332-0650 and prepare to be pleasantly surprised!

Take advantage of where the rates are NOW!

November 5th, 2018

Although almost 1% higher than last year, mortgage interest rates have slighty come down this past 9 day period between October 22nd ending Nov. 1, falling back after increases in the previous period, according to the Primary Mortgage Market Survey released by Freddie Mac.

The average rate for 30-year fixed-rate mortgages fell to 4.83%, with an average 0.5 point, from 4.86%. The mortgage averaged 3.94% in the same period in 2017.  However on Novermber 2nd, we saw the rate spike up a half percent (5o+ pts).  With rates going back up and taking away all the improvement that we had been privvy to, the concensus by many industry leaders is to take advanatage of the rates that are available NOW before they climb higher and get into the range that may be outside of your comfort zone.  Call ABBA First and allow us to quote you the BEST rate that you can imagine for your needs!

Finally- rates did NOT increase this past week and the market saw a little reprieve.

October 23rd, 2018

While rates saw a slight improvement, ABBA First still has the lead in overall low rates.  Call 910-332-0650 and get the rate that you want and deserve just by asking and being approved for that rate and term.  We WANT to meet your mortgage needs and desires!

Rates fell back in the past week after several increases which brought rates to levels not seen for several years.  For the week ending October 18, Freddie Mac announced that 30-year fixed rates decreased to 4.85% from 4.90% the week before.  The average for 15-year loans fell to 4.26% and the average for five-year adjustables increased to 4.10%.  A year ago, 30-year fixed rates averaged 3.88%, close to one percent lower than today.  Attributed to Sam Khater, Chief Economist, Freddie Mac — “The modest decline in rates on home loans is a welcome respite from the rapid increase in rates the last few weeks.  While the housing market has clearly softened in reaction to the rise in interest rates, the economy and consumer sentiment remain very robust and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Rates up to highest in 7 years but ABBA First is towing the line (and the Feds might too!)

October 22nd, 2018

Last Week in Review: 
Rates hit seven-year highs midweek on the heels of a confusing Fed message.

Market_Trends_2018-10-22

Our Federal Reserve has a dual mandate – to maintain price stability (inflation) and maximum employment. They also have a 3rd “unstated” mandate, which is to maintain market calm.

This past week, the Fed came up a bit short on that “unstated” mandate and created quite a bit of confusion and market turmoil midweek upon releasing the Minutes from the Sept 26th Fed meeting.

In that meeting we learned there is a group of “hawkish” Fed Members that want to hike the Fed Funds Rate more aggressively into 2019. At the same time, there were other Fed members who think the current Fed Funds Rates is “about right” – meaning no more hikes for now. The Fed talking out of both sides of their mouth was a source of confusion for the markets and home loan rates.

Adding to the confusion is the Fed’s very own inflation forecast which suggests inflation will remain close to current levels through 2021. If we recall the Fed mandate to maintain price stability, one could argue there is no need to raise the Fed Funds Rate if inflation is not rising.

Food for thought – If the Fed’s modest inflation forecast comes to pass, we will likely see home loan rates remain near historically attractive levels.

To our clients for advertising improperly due to a clerical/posting mistake

October 16th, 2018

It had come to our attention that due to an error between the rates that we advertise and how the rate is posted online after calculations, that there was an error in the final tabulation.  It has been corrected and going forward, the rates page and the advertised rates on our advertised websites have been corrected.  We apologize to those of you that saw a rate and/or a term that was advertised this past weekend that was sadly too good to be true.  If you would like, I am willing to offer you better than market rates if you were one of those that were affected and had made yourself known to us this past Monday or Tuesday.