Low Interest Rate Train is Leaving the Station

If you currently are or have been considering refinancing your home loan but have put if off because life happens, your opportunity may be coming to a close. Trump's victory speech in the early hours of Wednesday included a pledge to spend on rebuilding America's infrastructure — a plan that should stir economic growth and mean substantial new debt. These comments might be what the US economy needs to get moving again after 4+ years of relatively flat growth. They are also inflationary in nature. Which is bad for borrowing rates.

This new exacerbates the fact, mortgage application volume fell 1.2 percent last week from the previous week, according to the Mortgage Bankers Association and was down nearly 11 percent in the past four weeks, as rates have already climbed from historic lows.

As of this morning (November 10, 2016), the 10-year note was yielding 2.07 percent, the highest level since Jan. 14, and the 30-year was at 2.86, also a January high in afternoon trading. It was the biggest one day jump in the 10-year yield since Aug. 11, 2011.

"Globally, rates have begun to creep upwards as investors anticipate less aggressive monetary policies from central banks, and U.S. rates are being pushed upwards in response," said Michael Fratantoni, the MBA's chief economist. "Additionally, new data shows continued positive signals regarding the job market and rising inflation, indicating that the Fed is likely to hike in December and will continue increasing rates next year."

In closing, the interest rates in the mid-3’s for government loan programs, such as FHA & VA, could be gone as quickly as months end as upward pressure on the 10yr gains momentum. If, as many expect, President-Elect Trump rolls out the trillion dollar infrastructure plan, we may very well be looking at interest rates in the upper 5% range by this time next year.

It's SUMMER TIME!

It's SUMMER TIME! Many of our Mortgage clients are asking us about financing pools. There are a few different options for this.

For those of you buying a new home and leveraging a conventional loan, Efinity Mortgage offers the Fannie Mae Homestyle program. This allows our clients to finance the cost of improvements (pools included) into the home loan. The original appraisal is completed subject to the improvements being completed. Additional downpayments may be required depending on the final valuation.

If you are an existing homeowner and looking to add a pool to your home, there are a number of different home equity and specific pool financing options for you.

As for the type of pools, many people are not aware there are several different types available.

1) Natural pools
Natural pools are chemical-free, low-tech and affordable alternatives to conventional models. You can build a natural pool with gravel and clay instead of concrete and fiberglass. Aquatic plants keep the water clean instead of chlorine or a filtering system. Plants are also a natural purification system that introduces oxygen and good bacteria into the water. You can also include additional elements like green pool roofs and vertical gardens to increase the health of your pool.

2) Moss-filtered pools
Moss-filtered pools cut down on the need for chemicals like chlorine. Having moss in your pool also reduces water use and decreases how often you need to backwash the pool for cleaning. According to statistics from the University of Maryland, moss systems reduce chemical usage by 40 percent, water consumption by 75 percent, and save about $6,700 annually in bills.

3) Saltwater pools
Like the ocean, saltwater pools use a saline composition to keep water clean without chemicals. Saltwater pools use a mixture of chlorine and table salt to create electrolysis, which gets rid of algae and bacteria. If you want a mild saline pool, clean your chlorine cell once a year to prevent calcium buildup and add salt to the water once a month. Reducing chlorine usage helps to minimize overall chemical consumption.

4) Ozone sterilization
Installing an ozone sterilization system is another enviro-friendly method of cleaning your pool. An ozone system uses electricity to convert oxygen into bacteria-destroying ozone. These systems can reduce the need for chemicals by at least 80 percent, if not altogether. This will save on your pool maintenance costs and help keep the environment clean.

5) Efficient heating
Efficient condensing boilers can help to cut down your pool heating costs by almost 20 percent. You can use alternative heating methods like solar blankets and energy-efficient heat pumps to keep your pool warm. Enviro-friendly heating methods can lower your bills and reduce carbon dioxide emissions. Efficient heating isn’t a type of pool, but it’s a simple way to help your pool remain friendly to the environment and your wallet.

We hope you find this information helpful and feel free to reach out to us with any questions you might have.

What Makes a Good Agent

As many of you know, within Efinity Group there exists a full service Insurance firm, Efinity Insurance. One of the questions we are often asked is; "What makes a good insurance agent?" It's an interesting question. We pulled the following information from the Independent Insurance Agents & Brokers of America website and believe it best represents both the expectations and professionalism one should expect from his/her personal insurance agent. http://www.independentagent.com When it comes to financial security and insurance protection, most people want a long-term relationship with a trusted adviser they can turn to many years into the future. In fact, a survey by the Independent Insurance Agents & Brokers of America (IIABA) found that: Three out of four insurance consumers use an agent when purchasing personal insurance. More than half the respondents over age 55 have purchased insurance from the same agent for at least 20 years. More than 60 percent say they value the opportunity to discuss insurance with a real person. If you’re like most people, you want to develop a long-term relationship with an agent, too. So, how do you make sure the agent is professional and reputable? Here’s what to look for: 1. Independence. Independent agents represent an average of eight different companies-not just one. They can evaluate and compare the products of several insurance companies to find the right combination of coverage and value. 2. Licensing by the state. 3. Number and names of companies the agent represents. 4. Number of years the agent and agency have been in business. 5. The agent’s professional designations. For example, CPCU (Chartered Property and Casualty Underwriter) and CLU (Chartered Life Underwriter) are among the industry's most rigorous and prestigious designations. 6. Areas of specialization. Some agents and agencies have experience in specialized products, such as insurance for a farm, a classic car, or a home business. 7. Recommendations and referrals. How did you hear about the agent and the agency? Did someone you trust refer you? Ask the person for specific details about the experience. 8. Full-service capability. Is this a full-service agency for auto, home, health, and disability products? 9. Service representatives. Ask who will handle your account for routine updates and transactions. 10. Hours. Emergency numbers. Claims service. Ask if you can contact the agency after- hours for claims or other emergency needs. 11. Claims help. Ask if the agent plays a role in handling and tracking claims. Will the agent help resolve disputes that might arise with an insurance company, for example? 12. Policy review. Does the agency occasionally review and update policies to make sure your insurance is keeping pace with changes in your situation? 13. Community involvement. Does your agent participate in any local organizations, boards, volunteer activities, or other civic endeavors? 14. Industry associations. Does your agent participate in any local, state, or national trade associations? These activities often signify professionalism and a commitment to continuing education in the insurance field. We hope you found some of this information valuable.