Archive for November, 2016

November 23rd, 2016


May your hearts be filled with gladness and your homes be filled with joy this holiday season!!
The Bloomington, Waterville, and Plymouth offices of Fairway will be closed Thursday and Friday in celebration of the Thanksgiving holiday.


A new direction for mortgage rates…

November 18th, 2016

lores_rollercoaster_variable_rate_kkAs we all know, the mortgage rate market can sometimes be compared to a roller coaster ride! During the first part of 2016, our interest rates were climbing into the 4% range. Then the market settled, and rates dropped to near historic lows throughout the balance of 2016 – until just recently. Prior to the election, the market had priced in the effects of a Democratic President. It was anticipated that stocks would lose some ground and mortgage bonds would gain ground. Now, we are faced with the outcome of a historic election that caught the markets by surprise. Here is a short recap of how the markets are reacting to what is being labeled as Trump-Flation:  The risk of inflation due to the president elect’s economic policy.  This plays into several areas:

Tariffs:  The possible end to the Free Trade Agreement. This agreement allows for trade with other countries that provide goods and services without the taxes that normally would be imposed. If the agreement is lifted, and tariffs (taxes) are imposed, the costs of these goods and services will rise.  Rising prices are inflationary, and bonds do not like inflation.

The GDP and the US National Debt.  The Trump administration is looking to reduce taxes while increasing spending to create jobs. If you reduce the amount of money you take in from taxes, and increase spending, you need to borrow the money. Currently, our national debt is about 19.6 trillion – with 5.4 trillion of that borrowed from ourselves, and 14.2 trillion borrowed from other countries.  Increased spending supported through increased borrowing increases our overall deficit, and the market is concerned.

The Taper effect:  The risk of the Federal Government slowing or stopping their purchase of mortgage bonds. The Federal Government has purchased some 30% of the outstanding agency bonds, helping to keep mortgage rates around 1-2% lower than they should be. When the Federal Reserve talks about raising the Federal Funds Rate, or signals that they will ease the amount of bonds they will purchase or exit the mortgage bond market all together, we will see the cap lifted and rates increase.  Read the rest of this entry »

This Veterans Day, Fairway Honors all Who Served

November 11th, 2016


This Veterans Day we honor the brave men and women, both past and present, who have graciously served our country and continue to protect our freedoms.

Fairway is committed to serving our Nation’s veterans and gives back through the American Warrior Initiative (AWI). Through this initiative, Fairway has donated thousands of dollars in grants, provided service animals to help with PTSD, and donated funds for home upgrades and repairs.

On this day, and every day, our Fairway Branches in Bloomington, Waterville, and Plymouth extend our sincere gratitude to all Veterans for their service. We recognize the sacrifices you have made to ensure the freedoms shared by all.


Click the video below to see how AWI is changing lives, and remember to thank a Vet!

It’s time to prepare for the colder months ahead!

November 4th, 2016

leaf-rakingThis Sunday, November 6th marks the end of daylight savings time – don’t forget to “fall back” an hour. This change is always an eye opener that winter is just around the corner! While we are still experiencing some warm weather, now may be a good time to begin preparing your home for the colder months ahead. Your electricity bill and your family’s safety are affected by the condition of your home in the winter. Follow these quick tips to make sure that your home is ready for cold weather:

Clean your gutters – Fallen leaves and other debris from the autumn months could clog up your gutters. Not only can clogged gutters decrease efficiency, they can also create an ice dam on your roof during freezing temperatures.

Seal cracks around doors and windows – Any cracks around doors and windows in your home could be letting cold air in and warm air out. Use caulk or weather-stripping to seal the openings.

Give your furnace a tune-up – Sediment buildup can cause your heating system to work less efficiently and become a fire hazard. Cleaning your furnace annually can help prevent this. Also remember that dirty filters can decrease airflow and energy efficiency, so make sure to change those regularly.

Plumbing – Frozen pipes can be a nightmare. If you have exposed pipes in areas such as a crawlspace, attics, or outside walls, make sure that they are covered with insulation to prevent them from freezing.

Even simple preparations for your home can make a big difference in energy costs and sustainability. If you could use some extra money to make needed repairs while preparing for the cold weather ahead, please give me a call. Now may be the perfect opportunity for a mortgage checkup to see if a refinance could help. Let’s plan to talk soon! – Randy Cullen NMLS #326128