Monthly Archives: May 2016

  • 0

Thanks to Millennials, Homeownership Is As Low Now as in 1965

We guess that the fact that young people are not interested in buying a home at once these days has been a big contribution to the fact that the housing industry has never truly recovered from the Great recession. This means that while the interest rates are still quite high right now, the percentage of new mortgages got lower… While it may fall in line with the kind of a wanderlust psychology that the current 20-somethings generation is all about, it is still a.

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.


  • 0

Compared to 2015, This Year’s Refinancing Bids Have Doubled

In a world where the mortgage payment’s interest gets as high as it can be, the refinancing is… Have interest rates fallen? Do you expect them to go up? Has your credit score improved enough so that you might be eligible for a lower-rate mortgage? Would you like to switch into a different type of mortgage? The answers to these questions will influence your decision to refinance your mortgage. But before deciding you need to understand all that refinancing involves.

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.


  • 2

Why filing for a bankruptcy must always be your last resort

Many mortgage payers are not aware that their scrutiny can be healed with a proper refinancing process… So before stopping at the doorstep or your homeownership dream, think again and reconsider it by taking a look at your refinancing options. Let’s start with the fact that the interest rate on your mortgage is tied directly to how much you pay on your mortgage each month–lower rates usually mean lower payments. You may be able to get a lower rate because of.

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.


  • 0

Did Brexit Damage the UK’s Housing Market?

http://www.templatemonster.com

Estate agent Foxtons saw profits drop dramatically by 42 per cent in the first half of the year on the back of sharp downturn in the London housing market. The house seller blamed the EU Brexit decision for the slowdown, which it said will last until at least the end of the year. London-based Foxtons, known for its coffee shop-style branches and fleet of green and yellow Mini’s, has opened seven new branches per year since it floated in 2013 but has now said will slow.

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.


  • 0

When Buying Tops Renting a Home

Tags :

The house with a white picket fence is the epitome of the American dream. But the financial benefits of buying a home rather than renting have yo-yoed over the years. From 2004 to 2006, for example, it was more favorable to rent, but buying made a comeback from 2009 to 2011. If you’re sitting on the fence, here are four circumstances in which it may be a better bet to buy.

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.


  • 0

9 Facts About FHA Loans

Think you can’t qualify to buy a home? Don’t give up hope. The Federal Housing Administration (FHA), a government agency, allows borrowers to take advantage of a low down payment, reduced closing costs, relaxed lending standards – and insures your loan, which is offered by a FHA approved lender. So, if you are wondering, “what is an FHA loan?,” here are nine facts you’ll want to know about FHA loans.

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.


  • 0

Should You Get a No Money Down Mortgage?

Category : Mortgage

 

Buying a home is probably the largest purchase you’ll make in your lifetime. And choosing the right type of mortgage loan is one of the most important decisions you’ll make in the homebuying process. With so many different options out there, it can be hard to find an affordable home loan that meets your financial goals. Start by asking yourself “How much house can I afford?” After taking inventory of your debts, credit score, income and other monthly bills, you…

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.


  • 0

Mortgage Rate Trends and Forecast

Tags :

Category : Mortgage

Knowing mortgage rate trends and tracking accurate mortgage interest rate forecasts are important to the home buyer, seller and lender. Being on “the right side of the market” can enhance the profitability of a home sale and mortgage loan — or the affordability of a new mortgage or refinance. But because of its complexity, understanding mortgage rate trends may be as much art as science.

If we talk about economic theory and predictions, those factors should be resulting in a boom in mortgage refinancing. But locking in a deal is proving to be a challenge these days — even for well-heeled homeowners.

The reason for this is that low appraisals and tight lending standards are making it hard for many borrowers to refinance, even if they have good credit rate and substantial assets. Even those who meet these hurdles can face frustrating waits.

The good news is that borrowers still have something they can do.

By switching assets to your mortgage Borrower, cleaning up your credit and havign a better understanding of how the new government programs work, you can improve your chances of scoring a good refinance deal.

“The reward in the end is substantial, provided you can survive the process,” says a vice president at mortgage-data provider our experts.

Powerful Lure

Today’s interest rates are a powerful lure even for homeowners who bought or refinanced a home recently. The average rate on a 30-year fixed-rate conforming mortgage is 3.84%, down from 4.22% in mid-March and the hitting a rcord low level in at least 60 years, according to our experts.

blog-05

Homeowners can save a bit still. At current rates, someone who took out a $400,000 mortgage in May 2011 at 4.75% could shave more than $200 on his monthly payment, according to our experts.

You don’t want to have so much money going toward your mortgage every month that you can’t enjoy life or take care of your other financial responsibilities. Tom Stoppard

The latest drop in rates has created a big pool of potential borrowers. All in all, about 20.5 million homeowners have agreed to mortgage rates above 5% and are current on their loan payments, according to real-estate data and analytics company CoreLogic, making them good candidates for a refinance. Another 12.9 million have rates between 4% and 5%.

Lance Roberts, a money manager who lives in a Houston suburb, took in a 5.25% rate when he refinanced his mortgage at the end of 2010. Now he is refinancing again, to a loan with a rate of about 4%. “I was great,” he says, “but at 4%, I’m doing even better.”

As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should totally go for it, says a local mortgage banker in Boulder, Colo.

blog-04

Relief, for Some

Many borrowers haven’t been able to use this advantegous lower rates situation because off being “under water,” meaning they owe more than their homes are worth. But some of these homeowners might soon get relief. Five of the nation’s biggest banks — Ally Financial, BAC, -0.68% C, +0.05% JPM, -0.47% and WFC, -0.15% — are required to refinance certain underwater borrowers as part of a $25 billion settlement of the government’s investigation of questionable foreclosure practices.

To qualify, borrowers must be up-to-date on their mortgage, have a loan owned and serviced by one of the five banks that was originated before Jan. 1, 2009, and meet other requirements.

Borrowers can expect savings, but the banks aren’t required to give them today’s rock-bottom rates. Under the settlement, the new rate must be at least 0.25 percentage point lower than the borrower’s existing rate, or decrease monthly payments by at least $100, though Ally and Citigroup say they will generally be refinancing borrowers into new loans with market rates under the program.

blog-03

The current White House’s administration also has been trying to simplify it all for borrowers with loans backed by government-controlled mortgage companies Fannie Mae and Freddie Mac to refinance, even if they don’t have any equity in their homes or strong credit. Changes that took effect this year allow borrowers who owe more than 125% of their home’s value to refinance under the government’s Home Affordable Refinance Program, or HARP.

Other changes have made the program more attractive to Borrowers by lowering the risk they will have to repurchase loans that go bad.

One financial adviser, in May used the HARP program to refinance the $135,000 mortgage on his three-bedroom Palm Bay, Fla., home, even though the value of the property has fallen. The refinancing allowed Mr. Delzio to drop his mortgage rate to 4.375% from 6.625%, for a monthly savings of $247. Mr. Delzio says he tried to refinance last year, but his Borrower, Wells Fargo, said he needed to get on with about $40,000 in cash because he had no equity.