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September 9, 2013

Why Jumbo Mortgage Rates Are Lower than Conforming Interest Rates

Category: Financial News,Published Articles – admin – 4:21 pm

Did you know that rates on jumbo home loans are actually lower than lenders are offering on conforming loan amounts? It’s hard to believe that larger loan amounts that typically have a higher rate of default can be accessed at a lower rate of interest. For the better part of the last decade, conventional interest rates were quite a bit lower than jumbo loan rates.

New Mortgage Financing Posts

Interest on FHA Mortgage Refinance Programs Increases
Jumbo Mortgage Loans Expand Credit for Home Financing

According to the Wall Street Journal, conforming mortgages carry a higher interest rate because of policy changes of the federal reserve and government sponsored enterprises, like Fannie Mae and Freddie Mac.  According to Nick Timiraos, Freddie Mac and Fannie Mae, have increased the fees those companies charge to brokers and mortgage lenders, which has in effect caused interest rates to be higher for popular conforming loans that are backed by Fannie Mae or Freddie Mac.

Meanwhile, interest-rate volatility has driven up yields on mortgage bonds issued by Fannie and Freddie as investors brace for a slowdown in the Federal Reserve’s bond-buying program, which has included those mortgage bonds. That has boosted rates on conforming mortgages . Jumbo house loans, meanwhile, are typically kept on banks’ balance sheets, which means prices aren’t usually set by bond markets. According to Brad Blackwell, the executive V.P. of Wells Fargo, “Banks have more deposits than loans today, so the desire to put that money to work, as well as the fact that it’s at a very low cost, allows us to make non-conforming mortgages at a very good interest rate.


May 6, 2013

BofA, Wells Fargo and Others Getting Sued by NY AG

Category: Mortgage Relief News – admin – 11:12 am

The fallout over the home foreclosure crisis continues. New York Attorney General Eric Schneiderman announced their plans to sue Bank of America Corp and Wells Fargo and Co for violating the National Mortgage Settlement brokered last year between the country’s biggest banks and 49 state attorneys general. Schneiderman said that since last October he has documented 339 violations of standards dictating the timeline for banks to process mortgage modification applications. “Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure,” the attorney general said in a statement. There has been much criticism over the relaxed guidelines that encouraged bad credit mortgage refinances prior to the foreclosure crisis.

Representatives of the banks did not immediately return calls seeking comment. Schneiderman said he sent a letter to monitors for the National Mortgage Settlement informing them of his intent to sue the banks. He said he would seek an injunctive and an order requiring the banks to comply with the settlement.
Bank of America and Wells Fargo were among five banks that agreed to the $25 billion settlement in February 2012. The pact was supposed to curb abusive house foreclosure practices and was expected to help roughly one million borrowers. JPMorgan Chase & Co, Citigroup Inc and Ally Financial Inc were the other banks in the settlement. Read the original article from NBC News.



December 3, 2012

What Are 2nd Mortgage Loans?

Category: Published Articles – admin – 5:25 pm

The Consumer Financial Protection Bureau defines a 2nd mortgage or junior-lien is a loan you take out using your house as collateral while you still have another loan secured by your house. Nationwide lenders defines a second mortgage as “a loan taken out in addition to the existing home mortgage.” Home equity loans and equity lines of credit  are common examples of second mortgages. Some 2nd liens are “open-end” and other 2nd mortgage loans are “closed-end.”
The term “second” means that if you can no longer pay your mortgages and your home is sold to pay off the debts, this loan is paid off second. If there is not enough equity to pay off both loans completely, your second mortgage loan lender may not get the full amount it is owed. As a result, second mortgage loans often carry higher interest rates than first mortgage loans.
TIP: Be careful using home equity to consolidate higher interest debts. When you use home equity to pay off other debts you really aren’t paying them off. You are merely taking out one loan to repay another. The 2nd mortgage rates may be lower in the short term, but that’s only because you are using your home as collateral. The risk is that if you can’t repay your equity loan, you could lose your property. Read the original article from the Consumer Financial Protection Bureau.


November 16, 2012

Negative Home Equity Refinancing for Upside Down Loans

Category: Mortgage Relief News,Published Articles – admin – 10:17 am

Comparing HARP and FHA for Refinancing a Mortgage Underwater

By now most people have heard about the “super refi” also known as the Home Affordable Refinance Program. This refinance mortgage was inspired by Fannie Mae and Freddie Mac in an effort to stem the loan defaults that were rapidly increasing from borrowers that had a tremendous amount of negative home equity and were unable to refinance into the lower market rates advertised on television and the radio. If you have a loan owned by Fannie or Freddie, you may be eligible to refinance your “upside-down mortgage.”

According to Marsha O’Hare, a financial service specialist and HUD-certified housing counselor at Apprisen, a Columbus, Ohio, the first step is to figure out who owns your mortgage. She stresses the importance of uncovering what type of mortgage you actually have. If the loan is owned or guaranteed by Freddie Mac or Fannie Mae, you may be eligible for the government’s HARP 2.0. “It allows someone who is not delinquent in their payments to refinance, even if the house is worth less than the mortgage balance.” Having the ability to refinance “1st mortgages” and “home equity loans” together could come in the HARP 3.0 Program in 2013.

Nationwide posted an article for distressed homeowners that need advice on refinancing underwater mortgages. They underscored the opportunity that the HARP 3.0 would afford borrowers that did not have liens owned by Fannie Mae or Freddie Mac. Finding a lender that can process a negative equity loan in less than a month could be challenging.

The second option to refinance an upside down mortgage is the latest relief option insured by the Federal Housing Administration. This is called the FHA Short Refinance, because it reduces the principal amount down to “fair-market value” for a specific pool of FHA customers that have a significant amount of negative equity. This FHA program is offered to borrowers who are current on their loan payments, but owe more than their house is worth. This targeted group must also have a mortgage that is not owned or serviced by Fannie Mae, Freddie Mac or FHA. A key part of the program is that refinance lenders must agree to reduce the principal of the loan, so contact your mortgage provider to see if you are eligible. Read more about short refinancing online at the FHA or Making Homes Affordable website.


October 19, 2012

Romney Mortgage Plan and Vision for Fixing US Housing Sector

Category: Mortgage Relief News,Published Articles – admin – 2:57 pm

Last week Mitt Romney published a report that outlines his plan for the housing sector and his indictment on Obama’s failures in the real estate and mortgage industries over the last four years. Romney recently committed to not repealing the mortgage interest deduction for American homeowners even though his critics have accused him of this. This article is important because it underscores Romney’s vision for solving problems with the Home Affordable Refinance Program and the other government sponsored measures for Americans that are stuck with underwater mortgages. The National Mortgage News posted the following Romney article below online.

The housing crisis has taken an immense toll on the economy, and the impact has been devastating for millions of American families. Since 2009, 8.5 million foreclosure notices have been sent to U.S. homeowners, the average home has lost $13,000 in value, and eleven million borrowers are “underwater,” owing more on their home loans than their homes are now worth. Although there have been some recent signs of life in the housing market, our economy remains stuck in neutral with 23 million Americans struggling to find work, persistently high unemployment that has stayed above 8% for a record 43 consecutive months, and real household incomes falling more than $4,000 over the past four years. The weakness of the recovery has left many in America struggling to make ends meet, pay their bills, or stay current on their mortgage payments. Over 3 million households are currently in the foreclosure process or seriously late on their home loan payment.

Over the past four years, the Obama administration has never offered a clear vision for the future of housing finance policy. At best, the president’s policy response to the housing crisis can be described as confused and reactive. Early in his term, the president stated, according to Washington Post reporter Bob Woodward that “we will not roll out an aggressive plan for under water mortgage refinancing,” and it was not included in his 2009 stimulus. After the president reversed course and did roll out a mortgage relief plan, what followed was a series of confusing new government programs with names like HAMP, HARP, 2MP, H2H and EHLP. Unfortunately these alternative refinance programs have been poorly administered with constantly changing terms and overstated goals that have never been met. In the case of one program, when the goals were not being met the administration’s solution was to expand it, creating HARP 2.0. In his State of the Union Address this year—nearly three years after the program was first launched—the president proposed expanding the program further. While Wall Street needs effective regulation, the president’s solution was the Dodd-Frank Act. The 2,319-page law has produced more than 9,000 pages of new regulations to date, and regulators are only one-third of the way done.  Read the entire article at the National Mortgage News website.


June 25, 2012

Underwater Homeowners Refinancing with HARP

Category: Financial News,Home Refinance Tips – admin – 10:23 am

American homeowners continue to seek refinancing solutions from the new HARP refinance and the streamline program, but will this help the housing crisis disappear? A recent report issued by the Federal Reserve indicates that U.S. households lost 38.8% of their wealth between 2007 and 2010, the largest drop since 1989. Although the Federal Reserve indicates the losses in financial assets and businesses as contributing to diminished net worth, the central banker targets declining house prices as the primary cause.

The bleak housing news comes as no surprise to borrowers that have been struggling to refinance their underwater loans. One of the few positive opportunities in this era of housing woes is that homeowners are starting taking advantage of the Obama’s foreclosure prevention programs, including the Home Affordable Refinance Program. This is a government relief measure that is sponsored by Fannie Mae and Freddie Mac.

FHA and HARP Refinancing Look to Help Struggling Homeowners

The recently revamped HARP 2.0 enables homeowners to refinance without regard for current home value, which enables qualified “underwater” homeowners refinance to today’s low mortgage rates. According to the Mortgage Bankers Association, the HARP refinances are soaring in popularity.

Meanwhile, he Federal Housing Administration doesn’t want its’ customers to be left out with underwater mortgages so they too have eased their guidelines on the streamline program. The FHA streamline loan program now features reduced upfront mortgage insurance premiums for homeowners that choose to refinance their existing FHA home loans that were originated prior to June 1, 2009.  If you are a homeowner that has been unable to refinance because your home loans are “underwater”, then consider the Streamline or HARP refinance because they may provide the best option to reduce your interest rate and monthly housing payments.

Take a minute and get a free loan quote from lenders that will uncover your refinancing eligibilities today.


May 2, 2012

Interest Rates on Home Mortgages Remain Attractive

Category: Mortgage News,Mortgage Rate Report – admin – 7:51 am

Just when you thought home mortgage rates were finally rising.  According to a recent lender survey, 2012 has been quite a year for shattering interest rates. Yesterday, the leading the rate measuring stick online,, said the average rate for fixed-rate thirty-year home loans eased by two basis points last week and at 4.125%. Today’s rates now stand just a hair below the record low. The fifteen-year mortgage rates dipped ever so slightly to 3.125%.

Home Mortgage Rates Won’t Stay This Low Forever

Borrowers seeking adjustable rate mortgage refinancing has cooled a bit, but the pool of homeowners who have variable interest rates has narrowed significantly in recent years. The rate for a 5/1 ARM loan is 2.45%, down from 2.5%. The current FHA mortgage rates have not moved, so first time home buyers and homeowners that have loans insured by the FHA will have opportunities to lower housing costs with rates available 3.875%.


January 11, 2012

Record 30-Year Interest Rates Driving Lenders Business

Category: Financial News,Mortgage Rate Report – – 1:14 am

Zillow Inc. reported today that fixed 30-year home loans dipped once again to another record low last week.  With rates tumbling again, it’s no surprise that refinancing and purchase mortgage activity rebounded as well. Bloomberg reported that mortgage lenders are busier than ever as loan applications volumes have risen as rates have fallen in the first week of the new year.

In reviewing its Mortgage Marketplace, the housing data company said, the fixed 30-year mortgage rate dipped to 3.71%, down from 3.73% a week earlier. Zillow said the 30-year mortgage rates moved between 3.7% and 3.74% for the majority of the last week, falling to 3.67% on yesterday before rising to the current interest rate this morning.  It’s the 2nd week in a row that the Tuesday snapshot rate was the lowest the company has reported since the Zillow Mortgage Marketplace was launched in 2008. Many home mortgage lenders have reported rates at or near historic lows lately. Worries about European debt have been keeping yields on U.S. Treasury bonds low. Keep in mind that the mortgage rate typically follows the yield.

Many consumers are seeking quotes from lenders that offer no cost mortgage refinancing. Since Dodd-Frank has been enacted, we have seen more sources promote no cost lending than in previous years.

Tuesday, Zillow also said that the rate for a 15-year fixed home loan is at 3.03% from 3.07% a week earlier. The rate for a 5-1 adjustable-rate mortgage is 2.59%, down from 2.65%; a 5-1 ARM has an initial rate that applies for the first five years of the loan and then adjusts annually.


December 5, 2011

Ноw tо Qualify for Todays Low Ноmе Mortgage Interest Rates

Category: Home Loan Guidelines,Mortgage Lender Tips – admin – 8:28 am

Getting a low rate on your home mortgage loan seems paramount to being a homeowner, but the reality is that many qualified borrowers are paying a higher interest rate on their home loan than they should be.  Who does not want a low home loan interest rate? Of course all consumers want to obtain the best home mortgage rate, but most don’t know how to actually qualify for the lowest rates online. Today’s record low mortgage rates саn save you a substantial amount of money so consider mortgage refinancing if your interest rate is above 5%.  Think about it the home mortgage rate can have а serious impact tоwаrds thе cost оf уоur total hоmе loan. Тhrоughоut thе borrowing period, уоu аs homeowner must expect tо settle а sіgnіfісаnt amount оf money tо thе lending company аs thе interest fоr thе loan. Well, eventually, thіs іs thе mоst dominant aspect оf dоіng business аs thе lending company. Hоmе loan rates dо nоt hаvе tо bе as excessive as you think. Sure thе lending institution needs to make a profit but let the lender make their money from volume, not your specific home loan.

You will find whеn уоu аrе qualify fоr а hоmе mortgage loan уоu саn lock іntо оnе оf thе option оf low interest rates thе company offered. Υоu mау decide уоu wаnt а lower monthly payment аnd tаkе оut а 30 year mortgage wіth а great interest rate, оr уоu mау wаnt tо gо wіth higher payments оn а 15 оr 20 year loan. Еvеn wіth low mortgage interest rates mоst оf уоur monthly payment will gо tо pay thе interest оn thе loan, аnd а small amount will bе applied tо thе principal thаt уоu borrowed.

One оf thе factors tо pre-qualify fоr a residential loan іs lооk аt уоur credit rating оr credit history. Today is it is difficult to secure mortgages with bad credit, but with a a 10% down-payment or more, there are loan potential government loan programs available from the Federal Housing Administration.  Most first time home buyers start out with a FHA loan because they only require 3.5% down and FHA rates are great as well. However when a borrower has poor credit, FHA will often want ato see a higher down-payment to be considered as a compensating factor. Ѕhоuld уоur record іs clean thаn уоu hаvе nоthіng tо worry аbоut, hоwеvеr іf уоu hаvе аnу charge-offs, оr bills thаt gо thrоugh tо collection аnd officially reported tо thе credit bureau, thаn уоu hаvе nо choice thаt уоu nееd tо clean thаt mishap fіrst bеfоrе trу applying fоr а loan.

Another іmроrtаnt key factor thаt соuld gіvе you a better chance of qualifying for a low rate mortgage іs bу having ready а sizable dоwn payment in case your offer gets accepted. Оnе оf thе wау іs tо save money еасh month іs bу automatically deducted аn amount оf money frоm уоur paycheck іntо а dedicated savings account. А 20%down-payment іs considered a solid еnоugh fоr dоwn-payment for most mortgage lenders to extend you a loan approval. Wіth thіs money, thе lender will usе thеm tо secure thе loan wіth insurance, fоr аnу chance thаt уоu mау meet hard times аnd default оn уоur loan settlement. Ву documenting the ability to make a significant dоwn-payment уоu will be showing home loan lenders that you are a serious borrower who intends to repay the mortgage.

If buying а hоmе аt mortgage rates today іs sоmеthіng уоu wаnt tо dо, іt mау bе tо уоur advantage tо tаkе а lіttlе time аnd prepare. Ву dоіng уоur homework ahead оf time whіlе уоu аrе house shopping, уоu саn аlsо bе shopping fоr thе best аnd lowest mortgage package thаt уоu саn qualify fоr. Gо оn lіnе аnd check thе dіffеrеnt websites powered by competitive lending companies аnd of course you should compare and contrast the thеіr loan programs, product availability and rates оf interest.


November 27, 2011

Higher FHA Loan Amounts Extended by Congress

Category: FHA Mortgage,Mortgage News,Published Articles – admin – 5:15 pm

After months of mortgage relief talk, Congress passed a bill that would increase FHA mortgage limits. This was a government compromise that would help homeowners with less than perfect credit get rid of their bad credit mortgage with a record low fixed interest rate. With higher FHA loans, borrowers will have more home loan choices. The fact is that new home buyers and people looking for an affordable refinance would see higher amounts in more than 660 markets across the country. Congress raised loan limits for FHA home loans while leaving loan ceilings untouched for Fannie Mae and Freddie Mac. In effect, this may make FHA the go-to financing option for borrowers needing loans up to $729,750 with down payments as low as 3.5 % in higher cost regions of California; Washington, D.C.; New York, New Jersey and in other states including Massachusetts, Florida and North Carolina.  Fannie Mae and Freddie Mac home mortgage loan programs in those areas, meanwhile, stay capped at $625,500. Equally important, the new plan raises the FHA ceilings for purchasers in hundreds of more moderate-priced markets. For Seattle-area buyers’ the maximum FHA loan amounts jumped to $567,500, while the Fannie Mae-Freddie Mac ceiling remains at $506,000. In Hartford, Connecticut, the limit for FHA is now $440,000 up from $320,850 yet the maximum loan amount for Fannie Mae and Freddie Main are limited to $417,000.

Home buyers with low down payments in Portland, Oregon, who previously had been limited to FHA mortgages of $362,250, can borrow up to $418,750 under the new plan, $1,500 more than they can get from Fannie and Freddie, which generally require steeper down payments and higher credit scores. The new loan ceilings in hundreds of markets are at the core of the compromise: They raise the maximum FHA loan amount in all areas of the country to 125% of the local median home-sale price, while leaving Fannie Mae’s and Freddie Mac’s limit at 115% of median.

What motivated Congress to create separate and unequal rules that transform FHA traditionally a haven for moderate income, first-time buyers with minimal cash — into a key source of financing for buyers in the upper as well as mid-bracket markets? Nobody in Congress actually proposed this idea at the start. By a 60-38 vote in October, the Senate passed an amendment raising all three agencies’ limits to $729,750 in high cost areas and 125% of the median sale price elsewhere. The goal lobbied aggressively by realty and homebuilding groups was to inject needed oomph into lagging home sales. But Republicans in the House balked at doing anything that might prolong the existence of Fannie and Freddie, both the targets of scathing criticism for their multibillion costs to taxpayers and big bonuses for top executives. What ultimately emerged from the legislative scrum was the current compromise penalizing Fannie and Freddie, while boosting FHA. House Republicans weren’t enthusiastic about helping FHA, either the agency faces its own financial challenges but unlike Fannie and Freddie, FHA is subject to congressional appropriations and closer oversight. Republican critics held their noses and voted for the plan. What will this mean for buyers from now through the end of 2013, when the compromise expires? “There’s no doubt this will drive more business to FHA,” said David H. Stevens, former FHA commissioner.” Read the rest of the Daily Herald Article Here.


November 15, 2011

Will the Government Raise Loan Limits on FHA, Fannie and Freddie?

Category: FHA Mortgage,Mortgage News – admin – 4:50 pm

Many members in the House and the Senate appear to be leaning towards raising FHA loan limits just a month after passing a bill to lower the mortgage limits for Fannie Mae, Freddie Mac and FHA. The Obama administration appears to be all over the map regarding the reduction of FHA limits. After expressing support to extend the higher FHA loan amounts going forward into 2012, the Administration is now saying that they back HUD’s decision to lower the FHA limits in 2012.

Are Stated Income Mortgages Still Available Today? Yes, the FHA streamline is often considered a no income refinance program because income documentation like W2′s and pay-stubs are typically waived for existing FHA customers.

Reuters reported that the Obama administration believes that letting the FHA limits expire will encourage the process of winding down the government’s involvement in the mortgage market and enable new investments with private money driving the mortgage market once again. It’s no secret that FHA reserves sit at all-time lows, so many executives in the mortgage environment have been voicing their concerns about the future role of government mortgage financing.

Will the HARP Rules and Expanded Refinancing Guidelines Help Stem the Foreclosure Crisis?

Many industry managers believe that the Home Affordable Refinance Program could fill the void for many distressed homeowners who needed the FHA loan programs because they are less strict when it comes to equity and loan to value requirements. The new HARP mortgage guidelines have eliminated all loan to value restrictions, so that equity will no longer be an issue for eligible homeowners seeking affordable home refinancing.

The Acting Commissioner at the Federal Housing Administration, Carole Galante reiterated Tuesday the agency’s position that the expired FHA limits would have little impact. These account for only 5% to 6% of the FHA portfolio. She also said re installing them wouldn’t necessarily be a negative jumbo loans either since these are usually higher-credit borrowers.  However, the consequence of expanding the limits for FHA but not Fannie and Freddie is simply unknown, she said. Galante continued, “This is a situation that has never occurred before, where FHA would have the higher loan limits and Fannie and Freddie would not. It’s hard for us to make any kind of prediction for how much of that business would come to the FHA without finding any other sort of alternatives.”


September 14, 2011

More California Homeowners Stuck in Underwater Loans

Category: Mortgage Reform News – admin – 1:08 pm

According to the LA Times, economists consider high loan payments on homes that are less than the mortgage as a risky position for investors because of the likelihood of loan default. The LA Times explained that homeowners in this type of financial situation often feel hopeless and trapped by the poor decisions they made during the housing boom. The underwater mortgages are most likely to default and add to the rising foreclosure rate.

Get Approved for a record low rate loan with rates starting at 3.875% Get the Current Mortgage Rates Now.

President Obama, in his address to Congress last week, said that helping homeowners refinance their loans could free up a considerable chunk of spending each year for families. Home loan rates have fallen to historic lows amid concerns the economy is sinking again. In response, the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, said last week that it would review its policies to see if more homeowners would qualify for the administration’s Home Affordable Refinance Program.

This government loan relief program is only offered to borrowers that have mortgages originated before June 2009 and owned or guaranteed by Fannie Mae or Freddie Mac.  Read the original LA Times Article


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