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January 11, 2012

Record 30-Year Interest Rates Driving Lenders Business

Category: Financial News,Mortgage Rate Report – Lending Staff – 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 30-year fixed 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 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. Mortgage rates tend to follow the yields.

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.

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December 5, 2011

Ноw tо Qualify for Todays Low Ноmе Mortgage Interest Rates

Category: Home Loan Guidelines,Mortgage Lender Tips – Jenny King – 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 prequalify fоr а hоmе mortgage loan іs lооk аt уоur credit rating оr credit history. Today is it is difficult to secure a bad credit mortgage, 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.

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November 27, 2011

Higher FHA Loan Amounts Extended by Congress

Category: FHA Mortgage,Mortgage News,Published Articles – Jenny King – 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 loans 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.

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November 15, 2011

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

Category: FHA Mortgage,Mortgage News – Lending Staff – 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 loan 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.

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 loan limits would have little impact. These jumbo loans account for only 5% to 6% of the FHA portfolio. She also said reinstalling them wouldn’t necessarily be a negative 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.”

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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.

New loan programs for people with less than perfect credit! Competitive Home Loan for Bad Credit Get Approved for a record low rate loan with rates starting at 3.875%
Home Mortgage Rates

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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September 13, 2011

More Obama Mortgage Refinancing Programs

Category: Mortgage News,Mortgage Reform News – Lending Staff – 2:23 pm

According to the Wall Street Journal, nearly 25% of all U.S. borrowers could eventually gain access to an Obama mortgage refinance program to secure low rate mortgages. At issue are millions of so-called “underwater” borrowers who owe more than their home is worth and can’t refinance to current low rates using traditional means.

The Obama administration’s Home Affordable Refinance Program, also known as HARP, has sought to provide home refinance loans options to some of these underwater borrowers who have no equity in their homes.  To qualify, borrowers must have a mortgage is backed by Fannie Mae and Freddie Mac.

HARP currently only allows borrowers to refinance at lower rates with a mortgage that is at most 25% more than their home’s current value. However, that may soon change and millions more could be eligible. The FHFA, the regulator for Fannie and Freddie, said last week it is analyzing whether it would allow borrowers who are even more underwater those homeowners owing even more than that cap to participate.

Approximately 9.8 million mortgages or 25% of all U.S. homeowners have home loan financing that are 20% or more underwater. RealtyTrac reported that almost half of all U.S. home loans 16 million of the 40 million U.S. mortgages are underwater.

Analysts at J.P. Morgan said Friday that they believe changes to HARP mortgage financing are coming, but those changes will happen in “weeks” rather than days.  However, both groups of analysts believe another idea that has been floated to encourage banks to refinance underwater mortgages is likely off the table.

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August 17, 2011

Mortgage Rates in California

Category: California Mortgage News,mortgage rates – Jenny King – 10:29 am

You need to be careful in securing mortgage rates in California. With the ups and downs in the housing markets, lenders are skittish in providing mortgages in certain areas. Moreover, when they do provide lending, they may charge higher mortgage rates in California areas with an unstable housing market. It is important to contact as many lenders as possible when applying for home mortgage loans. You will see a wide range of interest rates from different California mortgage lenders for a single borrower on a particular house.

Common Mortgage Myths When Shopping for a Loan Online

Fallacy #1: The more lenders you contact the better your options will be. Contacting a dozen loan companies will not lower California mortgage rates.

Fallacy #2: Each California lender has its own criteria for determining the interest rate they charge a borrower on a particular house.

Home prices range widely from one end of the state to the other. For example, the median home price in Santa County in June 2011 was $511,750. If you live in Shasta County, on the other hand, the median home price for that month was $155,000. The choice of community within the same county can have a significant difference as well. In Los Angeles County, median home prices in Brentwood were $1,286,500. If you live near Compton, the median price was $185,000. Of course, the type of housing differs greatly. However, when shopping for California mortgage rates in you need to understand your purchase and mortgage refinance options.

With today’s real estate market, lenders are going to check you out carefully. In order to get the best California mortgage rates, they will expect you to have stellar income and very low debt to income rations. You will need a higher than average credit rating. To land those rates, your best option is to go shopping. Ask for quotes from several different lenders and see what they say. You may get the surprise of a wide range of rates from different lenders. Make sure you know about all the fees, discount points, and surcharges involved. An innocently low rate can hid extremely high fees.

Expect the California mortgage lenders to be extra careful before lending money. They will require income verification. That means bringing in pay stubs or business documents. Your employer may need to provide verification of employment. They will want to check your personal information thoroughly. All of this is in an effort to keep the lender’s risk at a minimum. In order to get the best home loan rates for borrowers in California, be open to what the lenders ask.

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August 5, 2011

Lowest Mortgage Rates of the Year on Fears of Another Recession

Category: Freddie Mac,Mortgage Rate Report – Lending Staff – 12:39 pm

Home mortgage rates have dipped once again to a generational low. The mortgage refinance rate has actually fallen to its lowest point since Freddie Mac started tracking interest rates in 1971. Will these record low refinance rates entice homeowners to refinance again? Americans have proved time and time again that if you give them an opportunity to save money then they will move forward with a home refinance transaction.

According to Freddie Mac Market Survey, the fixed 30-year rates averaged 4.39% for the week ending August 4th while the 15-year fixed fell to 3.54% amid falling bond yields and signs of a weaker-than-expected economy.

Greg McBride, senior financial analyst at Bankrate said, “Anyone who refinances at these historically low interest rates is a beneficiary of concerns about the economy and poor results on Wall Street,” said. By now most people know that home mortgage rates are great, but the real question for most borrowers is, “Do they qualify?”

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July 7, 2011

Rising Home Mortgage Rates?

Category: Published Articles – admin – 5:15 pm

Lenders reported home loan rates rose upward this week after remaining steady at 4.5% for the last month.  The fixed 30-year mortgage rates inched up to 4.625% according to Freddie Mac.  The mortgage rates rose from 4.50% a week earlier and back to where it was at the end of May, before the latest dip down. The interest rates tend to track the yield on the 10-year Treasury bond, which has moved higher since hitting a recent low June 24.

Freddie Mac, which asks lenders each week about the terms they are offering to well-qualified borrowers, said the fixed 15-year mortgage rates were being offered at an average rate of 3.75% this week. Last week the rate averaged 3.69%.  The borrowers in the survey would have had solid credit, 20% down payments or home equity and would have paid 0.7% of the loan amount upfront on average in fees and discount points to the lenders.

According to Freddie Mac’s chief economist, Frank Nothaft, “Interest rates on all mortgages outstanding in the1st quarter of this year averaged just under 6%.” “With today’s rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, fixed 30-year mortgage.”

However, the trend of rising rates seemed likely to further cut into the already deflated mortgage refinance loan activity.  Since most homeowners have already refinanced their mortgages already have done so with rates below 5% for much of the last two years.  MBA published a report that indicated a 9.2% drop in new applications for home refinance transactions compared to the previous week. It should also be noted that refinance volume has now fallen for three consecutive weeks.

See the original article at the LA Times Online.

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June 13, 2011

Getting a Home Loan with Bad Credit and No Money Down

Category: Mortgage Tips – admin – 5:40 pm

Getting a home loan with bad credit isn’t as easy as it used to be. However, it is still an option that you have. In order to get the most from your home loans, you need to make sure that you take the time to explore all of your options. Financing a home with low credit scores has changed a lot in recent years due to the huge mortgage crisis. By taking the time to learn about the process and find the best lenders, it will be easier for you to get the results that you need from your research. To get a home loan with bad credit,

Buying a house with less than perfect credit is more critical now than ever for many people. Because of the recession, so many people are facing bad credit that it is often argued that it isn’t an accurate representation of people’s ability to pay anymore. Many claim that ‘everyone has bad credit’ these days. While the situation isn’t that extreme, there are certainly more people who have bad credit than ever before. In order to figure out how to buy a home with bad credit, you have to find lenders that will work with you and help you get the most from your lending experience.

Many people choose bad credit FHA loans, which are loans that are much more lenient and offered by the U.S. Department of Housing and Urban Development (HUD). These loans give people more power to own a home when they might not otherwise be able to get approved. Of course, the reins have tightened here, as well, so a little research will be required for you to know whether you qualify or not. As long as you take the time to learn your options, it will be easy to get a home loan with bad credit.

In the past, a no money down loan for first-time buyers was no big deal. In fact, in order to encourage buying, many lenders preferred to market those loans to people. Today, there is much more caution in lending to people who have less than perfect credit or who don’t have the money down to give. When you find a reputable broker or lender that you can trust, it will be easy for you to explore your options for home ownership and find the perfect home loan, regardless of your credit or the money that you have (or don’t have) to put down.

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May 23, 2011

Financing a Home in California

Category: California Mortgage News – admin – 5:36 pm

If you are looking for a housing bargain you will find no better opportunity for financing a new home in California. The fact is that property values have significantly fallen in the last five years and California mortgage rates are at record lows. If you are unfamiliar with the stats of this state located in the West, then you should know that this is a state that has been battling bankruptcy for the last few years.  While the economic climate may have been better in the past, it remains a destination state for people looking to buy a home in Southern California because of the ocean, the weather and its Hollywood magnitude.

When you are thinking about financing a home in California, the first thing you are going to want to consider is the kind of environment you want to live in. Remember that California actually offers wonderful urban and rural environments. Even the largest urban area in the state, Los Angeles offers a wide range of climates from the mountains to the ocean. California is one of the unique states where a person could snow ski and surf the same day. If you are looking to be separate yourself from the hustle and bustle of Southern California, consider Central or Northern California. What’s important when you are looking to finance a house in California is that you find a property that you can afford in an area that meets your needs.

If you are looking into California home financing, you are also going to want to be sure that shop for a loan online with local lending companies. There are many experienced California mortgage lenders that have the ability to service your needs. This means that you are going to want to make sure that you can make only the kind of monthly payments that truly work with your lifestyle. When you are considering a California home loan, you should think about going outside of the major national banks and loan companies, because there are great local lenders in the Golden State. This is smart because you will find the lowest mortgage rates that way. You can find a good lender that you can trust when you look on the internet. The internet can be a very valuable resource when it comes to finding a lender in the great state of California.  The FHA loan in California is the most popular home finance programs for first time home buyers in the state. For many people, the first step will be to sit down and go over finances. You will need to make sure that you have enough money after taking out all of the expenses, loans, and credit that you have to pay back. The most important thing is that you are honest about your financial situation.

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May 18, 2011

Lenders Report Lower Mortgage Rates for Refinancing

Category: Mortgage News,Mortgage Rate Report – admin – 8:55 am

Just when you though it couldn’t happen again –refinance applications shot up again last week.  Most financing insiders attribute it to the falling interest rates. Many homeowners are making a last ditch effort to improve with a mortgage rate refinance. The Mortgage Bankers Association announced lower than expected rates in their report of seasonally adjusted index of applications for home financing activity.  The MBA report monitors the demand for purchase loans and home refinancing, climbed 7.8% in the week ended May 13.

Can Mortgage Rates Get Any Lower?

The MBA’s seasonally adjusted index of house refinance applications rose 13.2%, while the gauge of loan requests for home purchases dipped 3.2%. The refinance share of loan activity increased to 66% of total applications, the largest amount since late January. Michael Fratantoni, MBA’s vice president of research said, “The 30-year fixed mortgage rate is now 53 basis points below its 2011 peak, and has decreased for five straight weeks.”  He also noted that the mortgage refinance activity has risen nearly 33%.” The 30-year fixed interest rates averaged 4.60% in the week and that was the lowest rates reported since November 2010, when low rate records were being set.

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