Yes, falling interest rates can hardly be called news anymore as they have declined seven of the past eight weeks and have spurred record home sales all around the country.

So, how low are rates right now? Generally, the folks who monitor rates are saying they're around a point lower than last year at this time (which we all thought was pretty low). But as every interest rate article I've read over the past year always points out, rates are expected to eventually start climbing by the end of 2005 (and the "experts" can only be wrong for so long you know).

As such if you've been thinking about refinancing or getting a home loan, do yourself a favor and consider getting the ball rolling while the rates are low. If you are refinancing, you may also want to think about refinancing your credit card debt to a lower (and potentially tax deductible) interest rate. The same might also apply to your car payment as well. The key is getting someone who is knowledgeable and trustworthy to help you determine what solution is right for you. As hard as it may be to believe, a good lender will want to make you happy in the hopes that you will work with them again or give them a referral- so be honest and open with them to see what they recommend doing.

This brings me to the topic of internet lenders. There are a lot of place out there you can get a loan from on-line and I’m sure many of them are good. However, I personally (and this is just my opinion) don't see a huge difference between the programs internet and out-of-state lenders are giving in comparison to what the local lenders are offering. Truth is, rates tend to be higher on the coasts, where many of the internet companies are located, than here in the Midwest.

The one thing to realize when working with any lender is that it's easy for them to give you a low rate when there are high processing fees, or low processing fees when the rate is high- i.e. a lot of companies play a shell game with financing, so make sure to read the fine print and know all your costs. Also, I strongly encourage you to shop around. Talk to three lenders- it’s a nice number. If someone is offering “too good to be true” programs, get things in writing. My experience is that the guy who “guarantees” you a low rate before he’s even runs your credit score is more than likely trying to “reel you in” and will make up for the low rate with processing fees. (At this time I should also point out that I’ve seen clients who have hurt themselves by talking to too many lenders. Be careful about having your credit score pulled by dozens of lenders because it can get your credit score lowered).

But back to the local guys… I personally hate working with out-of-town lenders. Why? Because things go wrong- that’s life. Imagine showing up to a Friday home closing with movers lined up to move you that weekend only to find out documents that were suppose to be Fed Ex’ed by the out-of-town lender didn’t make it off their receptionist’s desk the night before. When that happens, you don’t have a home to move into until Monday. Period. (fyi, faxing or e-mailing isn’t an option with legal documents). With a local lender, emergency documents can be couriered the same day- or for that matter, you can drive over yourself and get them. As my husband says, “if things go wrong, it’s good to be able to drive across town and wrap your fingers around someone’s neck!”

So, if you want my recommendations, below are the three primary lenders I work with (in no particular order). All have their necks located here in the St Louis area. Feel free to give one or all of them a call to see what they can do for you.

Russ Miller
Infinity Mortgage Funding
Phone: 314-439-9999
russ@infinitymortgage.us

Michael Hanrahan
Plaza Mortgage
Cellular: 314-518-3086
Email: mhanrahan@plazamortgagegroup.com

Elena Sordo-King
Pulaski Bank
Phone: 314 878-3523 x3034
esordoking@pulaskibankstl.com