Mortgage rates fluctuate daily – sometimes even multiple times a day. Have you ever wondered where those rates come from or why? The answer lies on Wall Street – specifically the trading of Mortgage Backed Securities. Mortgage rates are tied to the stock market. When Mortgage Backed Security trading is in high demand rates go down, when trading slows down they go up. Supply and demand for Mortgage Backed Securities determine the ultimate price you pay for interest on home mortgages. Therefore, when you lock an interest rate determines what you will pay in real time. Please remember rates fluctuate every day.
Many Raleigh home buyers believe to get the best mortgage rate they need to shop around lenders. However, this can be an exhausting and frustrating time wasting experience because it is a lot like driving all over town trying to find the cheapest gas at the pump. The reality is that gas prices at every pump are all within pennies of each other. Gas prices like mortgage rates are based on the price oil sells for per barrel.
To get the best mortgage rate you need a lender that knows how to advise you when to lock the interest rate and time the market based on Wall Street trading. This is why our Team carefully screens mortgage lenders and develops relationships with the best in Raleigh. Lowest interest rates, on time delivery, and no surprises at closing is what you will get from our proven lender referrals. To get the best home mortgage rate and service call us for a reference. We close hundreds of house per year and know who delivers what they promise and who doesn’t.
When you work with a RateAlert guided Loan Originator, Andy Borter at Primary Residential, you are working with someone that you can trust to look out for YOUR best interests – and interest rates!
Today I had an email from a REALTOR friend who works in another state telling me that an 88 year old man had walked into a local real estate office and shot the Broker in Charge because he wanted his earnest money back. I have seen many home buyers and home sellers dispute over who should receive the earnest money when a purchase contract is breeched. Usually the home buyer or home seller hires an attorney to write a strong letter stating their case for why it should be returned to them and it is settled outside of court or in small claims court. Shooting the Broker in Charge of a real estate company over a dispute that is totally between a buyer and seller is the most extreme case I have ever heard of. What is the world coming to?
What is Earnest Money?
Earnest money is the deposit a buyer makes to secure his contract to purchase a home. The purpose of earnest money is to show that the buyer is “earnest” about making the purchase. Earnest money is held in a trust account (Normally by the listing company but, can also be held by the buyers agent’s company or an attorney) the earnest money is held until closing and is then credited to the buyer’s purchase.
What Happens to the Earnest Money?
Real Estate contracts are written very clearly when and how buyers forfeit their earnest deposit. However, when a contract is breeched both the buyer and seller must agree in writing to whom the earnest money shall be released to. Until this agreement is made (in writing) the Broker in Charge must hold the money in a trust account. It can never be released until the buyer and seller have agreed in writing how and to whom it will be released or until it goes through the judicial system. Many real estate companies hold earnest money for years until disputes are resolved between home buyers and sellers.
Evidently this elderly man changed his mind about buying a house, believed he was entitled to his money, didn’t like following the trust account rules and regulations and decided to take action against the Broker in Charge instead of the seller. I wonder if he wishes he had kept his gun in his holster and called an attorney instead. Life in prison does have the same sting when it starts at 88 years of age.