Heres the inside scoop on how to do it right.




[ N ST r r tT E

•• III



Always make sure you are working with an experienced, professional lender. The largest financial
transaction of your life is far too important to place into the hands of someone who is not capable of advising
you properly and troubleshooting the issues that may arise along the way. But how can you tell?

Here are four simple questions your lender absolutely must be able to answer correctly. If they do
not know the answers immediately leave and
go to a lender that does.

What are mortgage interest rates based on? The only correct answer is Mortgage Backed
Securities or Mortgage Bonds, not the Fed or the 1 O-year Treasury Note. While the 1 O-year Treasury
Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move
in completely opposite directions. Do not work with a lender who has their eyes on the wrong

What is the next Economic Report or event that could cause interest rate movement? A
professional lender will have this at their fingertips. To receive an up-to-date weekly calendar of
weekly economic reports and events that may cause rates to fluctuate, contact a Certified Mortgage
Planning Specialist professional

When Bernanke and the Fed “change rates”, what does this mean … and what impact does this
have on mortgage interest rates? The answer may surprise you. When the Fed makes a move, they
are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit
cards, credit linesyauto loans and the like. Mortgage rates most often will actually move in the
opposite direction as the Fed change, due to the dynamics within the financial markets. For more
information and explanation, contact a CMPS professional today.

What is happening in the market today and what do you see in the near future? If a lender
cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as what
is coming up in the near future, you are talking with someone who is still reading last week’s
newspaper, and probably not a professional with whom to entrust your home mortgage financing.

Be smart ... Ask questions ... Get answers!

More than likely, this is one of the largest and most important financial transactions you will ever make. You
might do this only four or five times in your entire life but CMPS professionals do this every single day. It’s
your home and your future. It’s our profession and our passion. We’re ready to work for your best interest.

Robert Phillips, CMPS ®
Preferred Empire Mortgage

200 Broadhollow Road
Suite 300

Melville, NY 11747
6315896757 direct
6315475151×208 alternate
6318249235 fax


What are mortgage rates
based on?

What is the next Economic
Report or event that could
cause interest rate

When Bernanke and the
Fed “changes rates”, what
does that mean?

What is happening in the
market today and what do
you see in the near future?


Shopping Around for a Mortgage – CMPS Institute – Robert Phillips