Archive for Featured Mortgage Articles
Mortgage Refinancing Benefits
Posted by: | CommentsMortgage refinancing can offer significant opportunities for homeowners to save money and get access to cash. Through home refinancing, it may be possible to reduce your monthly home loan payments and provide the ability for you to own your home outright quicker. Consider the peace of mind you obtain by refinancing an adjustable rate mortgage into a mortgage featuring a fixed interest rate. Many homeowners have benefitted from the debt consolidation option that is available with most cash out refinance loans. We recommend consolidating variable rate credit debt into a fixed rate home equity loan or mortgage.
- Record low rates starting at 4.625% fixed
- FHA refinance programs offer additional flexibility
- Choose from 30 and 40 Year fixed rate terms
Which Mortgage Refinance Loan is the Best for You?
Posted by: | CommentsThere are many important determining factors in choosing the best refinance loan for you and your family. The first question you need to ask yourself is which refinance programs do you qualify for. The second question to consider…What is the purpose for refinancing the home loan? What are the various options for refinance loan programs?
| • | Rate and Term Refinancing for Lower Payments |
| • | Cash Out Refinancing for Debt Consolidation |
| • | Save Money by Refinancing Home Equity Credit Lines |
| • | FHA 203k Loans to Finance Cash for Home Remodeling |
| • | 30-Year Fixed Rate Home Loans |
| • | 100% VA Mortgage Refinance |
| • | FHA Streamline Loans for FHA Borrowers |
| • | Combine 1st & 2nd Mortgage Loans for 1 Lower Payment |
Our mortgage refinance team offers a free consultation that usually reveals the best solution based your financial needs, goals and lending qualifications. Our experienced loan professionals can help you understand the details and differences between conventional and FHA mortgage loans. If you are considering a cash out or FHA streamline refinance, we will help you review the FHA requirements for mortgage refinancing.
Refinancing Second Mortgage Loans
Posted by: | CommentsIf you took out an equity line or second mortgage in the last five years, we recommend you refinance it while rates are so low. Home equity loans and HELOCs were pretty easy to get a few years ago, but with the credit crunch and subprime mortgage melt-down, 2nd mortgages have become tough to obtain and even more difficult to refinance unless you have enough equity to refinance it into your first mortgage.
A second mortgage provides you the ability to eliminate your variable rate 2nd mortgage into a fixed rate mortgage with more stable terms. In most cases, refinancing adjustable rate loans and HELOC’s will save you thousands of dollars a year in interest by converting the compounded interest to a simple interest loan. If you are considering mortgage refinancing and want to get cash out with a FHA mortgage that lets you to borrow up to 95% of LTV. Take advantage record low rates and refinance your second mortgage and enjoy the financial benefits.
California Mortgage Rates Rebounding
Posted by: | CommentsAccording to California mortgage lender, Bryan Dornan, “Record low rates have made a significant impact on the housing recovery statewide.” 30-year fixed California mortgage rates have been reported as low as 4.5% for conforming and FHA loans. Unfortunately for many local residents, California home loans are more difficult to qualify for because stated income and no document mortgages have all but disappeared. The higher California FHA loan limits have been able to broaden the scope for many new borrowers to qualify for refinancing.
Yesterday, the Federal Reserve announced they were keeping mortgage rates unchanged and extending the government mortgage buying program which is good news for Americans but great news for borrowers living in California. 2010 may be the year that California home values rebound and many distressed homeowners have found comfort with the Home Affordable Refinance Program because it enables borrowers with no equity to refinance their Fannie Mae or Freddie Mac loans up to 125%.
Fed Keeps Mortgage Rates Low
Posted by: | CommentsThe Fed announced today that they were keeping mortgage rates unchganged. Refinance loan applications rose respectively due to the demand for distressed homeowners to refinance into a more affordable loan featuring a fixed interest rate. Conforming and FHA lenders have announced tighter lending guidelines for refinancing and home buying.
According to Mortgage Bankers Association, the home mortgage rates rose for the 2nd straight week to 4.92% from 4.88%, based on the MBA weekly interest rate report Home loan applications held relatively steady, too, increasing only .3% on a seasonally adjusted basis. Applications for refinancing represented 75.2% of all applications.
Mortgage refinance rates for a fifteen-year loan maintained 4.33%. These fixed-rate mortgage loans accounted for nearly 20% of refinance mortgage applications in October, Ruth Simon reports in today’s Wall Sreet Journal. That’s up from 9.1% a year earlier and 7.5% in October 2007.
Many loan applicants are interested in the fifteen-year mortgage rates because they have reached such low levels. However, borrowers who are used to a 30-year mortgage payment may suffer from sticker shock, because even with a 4.375% rate, the 15-year mortgages have a higher monthly payment. Mortgage rates have been at near-record low territory for the last couple of months, but the good news for 2010 was received as the Federal Reserve announced they were extend their program in which the government buys mortgage loan securities in the upcoming year.
Refinance and Combine First & Second Mortgage Loans
Posted by: | CommentsMortgage rates have dropped to 4.75% so why haven’t you consolidated your 1st and 2nd mortgage into a fixed rate mortgage that is affordable? Many people bought their first home with the 80-20 combo loans. Everyone loves no money down and the 20% second mortgage is as clever loop-hole for avoiding the costs of private mortgage insurance. The goal of course is for you home’s equity to appreciate 20% as quick as possible, so you can refinance both loans together for one new mortgage with a rate reduction, and lowered monthly payments, and still avoiding private mortgage insurance.
* Simplified 1st and 2nd Mortgages
* Low Rate Refinance Loans
* FHA Mortgage Refinancing
* Home Loan Consolidation
Fortunately the Fannie Mae & Freddie Mac 30 year fixed rates haven’t spiked too much as it still hovers in the 6% range. The 3/1, 5/1, and 7/1 interest only arms have been affected adversely by the Fed’s new rate policies. Just a few years ago these hybrid mortgages were well over a 1% lower than the 30 year fixed rates. Add the interest only feature to those adjustable rate loans, and homeowners were saving hundreds of dollars every month with those historically low terms.
As the popular 3/1 hybrids reach the period when the fixed rate disappears, and now the adjustable rate kicks in with high margins from the Libor and MTA Indexes. The bottom line, the average Americans are waking up one morning only to find their mortgage payments have jumped up $350-$600 a month. Now you have two adjustable rate mortgages with increased monthly payments that you can no longer afford. Now you are you feeling what mortgage executives call “payment shock” and now the topic of “housing Affordability” has shifted into a bad topic. Talk to a loan officer now and discover what refinance opportunities are available for you.
Refinancing Adjustable Rate Home Equity Lines with a Fixed Rate Mortgage
Posted by: | CommentsAt the end of the mortgage day, we know that one way or another, your variable rate home equity line of credit is getting refinanced. For a few years, every time the Federal Reserve sneezed the interest rates tied to the Prime Rate would go up. Your fun loving home equity line of credit rates increased almost 4% between 2006 and 2008. Yes the equity line rates started to drop again in 2009 but we all know when Mr. Inflation arrives in 2010, that the adjustable rates will go through the roof. Now that you can admit your maxed out line of credit has lost its luster it time to consider some fixed rate mortgage refinancing options.
The fact that this HELOC once helped you avoid a down-payment and mortgage insurance has long been forgotten. You need to convert this out of control credit line into a fixed rate FHA refinance loan that guarantees simple interest and fixed terms for loan repayment. If you want a cash out refinance or have high interest equity loans and credit card with compounding interest, now is the time to consolidate your debt.
When FHA Streamline Makes Sense for Mortgage Refinancing
Posted by: | CommentsOne of the more frequently asked questions I get revolves around the timing for mortgage refinancing with FHA streamline loans. Borrowers want to know when to time streamline refinancing. The first question I ask them is, “Do you currently have a FHA mortgage.” If they say no, then I remind them that FHA streamlines are for homeowners who already have a FHA home loan. If they say yes, then I ask them, “Are you seeking cash back in the refinance loan?” If they say yes, then I remind them that streamline loans are only for rate and term refinancing, meaning, no cash out is allowed.”
The best time to streamline refinance your FHA mortgage is when you are saving a significant amount of money each month without adding on additional years with the new loan terms. As far a percentage goes, (ie if you can reduce your rate by 1%) I tend to stay away from that type of a rule, because it depends on what type of mortgage you have (ie. Fixed or adjustable rate) and how big your loan amount is. For example, a borrower reducing their rate half a percentage point on a $500,000 mortgage will actually save more money a month than a borrower who reduces their rate by 2 percentage points on a $100,000 loan because the loan amount is so much greater. FHA streamline refinance loans were developed in an effort to automate the refinance process for good FHA customers and reward them with a reduced cost FHA mortgage at a very low interest rate.
Mortgage Refinancing Modifications and Obama Home Loans
Posted by: | CommentsFormer Ditech executive, Jeff Morris, says “When the average borrower with a jumbo mortgage can qualify to refinance at a competitive interest rate, I’ll know we have turned the corner.” Morris continued, it’s a mess out there…Many homeowner think that Obama is going to give them 2% fixed rate even if they are 120 days late on their mortgage.” FHA mortgage rates have been low, but not that many borrowers qualify because the credit crunch is still preventing mortgage refinancing and new home loans for many 1st time home buyers. Mortgage loan modification requests are piling up higher than refinance applications.
According to Lawrence Yun, chief economist of the Realtors’ group, the number of home foreclosures may rise to 2.5 million this year and that would be the highest since keeping records of home loan defaults. “The foreclosure wave we’ve been through is not over,” said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School in Philadelphia. “That’s why we don’t see a bottom in housing yet.”
According to Seattle-based real estate data service Zillow.com. About 20.4 million of the 93 million houses, condos and co- ops in the U.S. were worth less than their loans as of March 31st. After the Federal Reserve pledged to acquire as much as $1.25 trillion in mortgage-backed securities to free up money for mortgage loans, mortgage interest rates fell to a record low of 4.78 percent twice in April. Rates began climbing last month on investor concern federal spending will fuel inflation.�
More Mortgage Loans May Qualify for Refinancing
Posted by: | CommentsThe Government released a statement that more homeowners with high LTV mortgage loans could soon be eligible for refinancing under the Obama administration’s plan to stem foreclosures. According to a Bloomberg, the government is thinking about how to expand the existing foreclosure prevention initiatives to help homeowners who are more deeply underwater on their mortgages than the current program allows. Millions of homeowners have lost their home equity with the housing crisis hindering loan to value levels significantly.
Right now, homeowners with mortgage loans guaranteed by FHA, Freddie Mac or Fannie Mae – and who meet various other criteria – can qualify for the government’s Making Home Affordable plan as long as their loan is equal to 105 % or less of their property’s value. The program has already helped tens of thousands of borrowers refinance into new home loans with reduced monthly mortgage payments. And now, even more people could qualify. “We’re actively considering how to structure a refinance program that makes sense over 105%,” James Lockhart, directory of the Federal Housing Finance Agency, told Bloomberg.
Recently, rising mortgage rates have become a potential roadblock to the program’s success, he added. The most recent figures from the Mortgage Bankers Association show that refinancing activity fell by nearly one-quarter (23 %) in the week ended June 12. The proportion of mortgage applications to refinance home loans declined to 54.1 % from 59.4 % one week earlier. Despite the fact that average rate for a 30-year, fixed rate mortgage decreased slightly to 5.5 %, it could not match the record-low rates seen in April. “Higher mortgage rates will keep re-fi activity under pressure,” economist Tom Porcelli of RBC Capital Markets told Bloomberg.
New Mortgage Loan Bill Explained
Posted by: | CommentsObama Administration launched a 75 billion dollar called “Make Your Home Affordable Plan.” Struggling homeowners may have two home loan options:
1. Mortgage refinancing option that promotes a fixed rate home loan
2. Restructuring their mortgage with a federally backed loan modification.
Borrowers need to be at 105% Loan to Value or Less to qualify for the refinance option. Borrowers need to be able to document income. Must be current on your mortgage and have your mortgage backed by Fannie Mae or Freddie Mac.
With the home affordability mortgage loan modification, the housing payment must exceed 31% of your monthly gross income. Mortgage rates are 2% with 30 or 40 year terms. Principal reductions may be available as well. Maggie Rodriguez spoke to Ray Martin about how to find out if you are eligible for help from President Obama’s mortgage plan.
FHA Loans with Cash Out Refinancing
Posted by: | CommentsNationwide Mortgage Loans offers affordable FHA mortgage loans with opportunities for homeowners to qualify for cash out refinance that enable borrowers to pay for home improvements or to consolidate high rate credit card debt.
Watch Mortgage Loan Video with Bryan Dornan Examining FHA Cash Out Opportunities in 2009
We suggest borrowers take advantage of these once in a lifetime FHA mortgage rates that have reached record levels. Now borrowers can get access to money with 95% FHA refinance loans. Ask your loan officer to lock you into a thirty-year fixed mortgage loan that features interest rates below 5%.
Don’t be surprised if your FHA home loan takes longer in process than previous refinancing did. FHA refinance loans continue to dominate the home refinancing spectrum, because FHA insures these mortgage loans and helps minimize the loss mortgage companies could have if the borrowers foreclosed. Most lending companies are reporting that FHA underwriters are more critical than usual when evaluating your credit and expect the appraisal review process to take a few extra days.
If you were recently turned down from another lendet or mortgage broker qualify, consider Hope for Homeowners or a mortgage loan modification that extends loan relief and rate reductions to borrowers with bad credit and/or no equity.
FHA Mortgage Loans to Stem Credit Crunch with Hope for Homeowners Plan
Posted by: | CommentsHUD can finally implement plans to expand foreclosure prevention programs, like Hope for Homeowners. These new FHA home loans were designed to make loan payment more affordable for struggling homeowners. FHA mortgage lending continues to rework their refinance programs so that more homeowners can benefit from refinancing bad credit mortgages with negative amortization and adjustable rate mortgage loans.
Watch Mortgage Interview with HUD Secretary Steven Preston
With the FHA H4H program, homeowners would have to share any equity gained if a hold is sold or refinance before 5 years. Hope for Homeowners loans are written down to 90% of the today’s market value. In many cases, homeowners are under water with their mortgage exceeding the value of their home because property values have declined so much in the last two years. Distressed homeowners are frustrated because they want to complete a mortgage refinance transaction while interest rates are at record low levels. FHA mortgage rates remain very low at 5% for thirty year fixed rate home loans. For homeowners that don’t qualify for the H4H loan, Nationwide recommends a mortgage loan modification that would be negotiated with the loss mitigation department from your lender.
The Mortgage Meltdown Continues to Fuel Foreclosure Crisis
Posted by: | CommentsForeclosures jumped 81% from the previous record year and neraly a million homeowners negotitated a loan modification that lowered their mortgage payments. Yet after 6 months, almost 50% of these homeowners re-defaulted on their mortgage modification. Does anyone out there not think this a real crisis. What started with subprime mortgages going bad has spread into a global crisis that threatens a lot more than just home equity. We have mortgaged our great grand kids economies with devastating financial impacts that will impact many generations to come.
CBS’s Scott Pelley reports on the mortgage crisis that has yet to find a resolution and has spun into a serious foreclosure crisis that is far from over, with a second wave of expected home loan defaults on the way that could deepen the bottom of the U.S. economic recession.
Mortgage Financing with a FHA Home Loan
Posted by: | CommentsFHA home financing continues to be the most popular first time homebuyer loan, but now FHA has become the loan of choice for experienced borrowers buying new homes as well as homeowners seeking FHA home refinancing. Most new home buyers like the fact that FHA down-payment requires only 3.5% of the sales price.
FHA continues to approve seller concessions up to 6% of your home purchase price. First-time home buyers can get a tax credit up to $7500! “First-time home buyer loans” actually refer to any borrower who hasn’t owned a house in the last three years. Need a more affordable mortgage payment? FHA refinance loans may be the only opportunity for borrowers with bad credit scores to finance or refinance into a low rate mortgage loan. Ask a loan officer about FHA mortgage rates and FHA streamline loans if you currently have a FHA mortgage on your primary residence property and have not been late on that mortgage in the last 12 months. FHA offers responsible fixed rate mortgages with no pre-payment penalties and limited lender fees.
Last year, Congress increased 2008 FHA home loan limits to $729,750. This year, HUD called for 2009 FHA loan limits to be reduced to $625,000 in high cost areas nationally. Even though HUD reduced the loan limits slightly in 2009, most real estate evaluators believe that the revised mortgage limits will still help millions of homeowners refinance their home with record low interest rates below 5% on thirty year home mortgages. FHA mortgage loans ensure borrowers they have an affordable loan that is insured by the U.S. government.
Nationwide Mortgage -- Mortgage Loan News Reported by NBC News
NBC Nightly News discusses the effect of credit crisis on mortgage rates for FHA home loan and conventional mortgages that help borrowers finance a new home.
A Sr. HUD official recently defended the performance of the FHA at a congressional hearing looking into questions raised in a magazine article about mortgage originators. A November published Business Week article said that the Federal Housing Administration allowed the market for FHA-insured mortgages to be infiltrated by abusive mortgage brokers and loan originators from the subprime mortgage market. The deputy assistant secretary of HUD Phillip Murray said that these types of articles “misrepresent a well-respected federal program that has provided untold benefits to millions of Americans.” Murray criticized the shallow stories that parallel and compare FHA-insured mortgage practices to those seen in the subprime market. “FHA mortgages are not high-cost loans nor high-risk for homeowners,” he said.
Most people understand that FHA home loans have regained their popularity, with first time homebuyers and subprime borrowers, but most Americans do not realize that FHA is offering prime rate loans up to 97.75% of your home value or sales price with fixed rates below 5%. HUD still offers FHA loans with cash out refinancing to 95% but HUD now requires two URAR appraisals from FHA-approved appraisers. Take advantage solid government home financing loans that promote homeownership and responsible fixed rate refinancing. FHA guidelines could change at any time and this economy; waiting could cost you thousands of dollars.