Archive for FHA Mortgage Lending
MGIC Adjusting to Compete with FHA Loans
Posted by: | CommentsFixed rate refinancing remains in high demand for homeowners who have an adjustable rate mortgage, but have not been able to qualify to refinance because their home is worth less than the their mortgage balance. Reuters reported last week that MGIC Investment Corp who is the largest home mortgage insurer in the United States, reduced its premium rates in an effort to recapture market share lost to FHA loans insured by the Federal Housing Administration. FHA mortgage rates have remained competitive with conventional interest rates since 2007.
The low mortgages rates have been available to consumers with high credit scores. Higher interest rates will be offered to borrowers with lower credit scores under the new pricing system. According to mortgage advisor, Sandy Sarconi, “MGIC may be too late reacting to FHA because they have taken 30% of the market-share.”
Presently, FHA loan guidelines do not consider credit scores when pricing its insurance for FHA mortgage loans. The new prices will be effective May 1, the company said. In January, MGIC reported its tenth straight quarterly loss because of increasing delinquencies. More and more homeowners are failing to make their mortgage loan payment on time. The company did make a statement that they anticipate home loan delinquencies to reduce towards the end of 2010.
FHA Premium Rising for Bad Credit Mortgage Loans
Posted by: | CommentsFHA loan programs may see changes in 2010. The HUD is seeking White House approval to increase the upfront mortgage insurance premium charged by the Federal Housing Administration to borrowers. FHA officials announced more changes, including tighter underwriting standards for refinance mortgages and new home loans. If approved by the White House, FHA mortgage loans will see an increase to 1.75% upfront mortgage premium paid by borrowers who do not have enough equity to mitigate the risk of a loan default.
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.
Mortgage Rates Creeping Up
Posted by: | CommentsThe 30-year mortgage rates rose above 5% for the first time in a while. Conventional, jumbo and FHA mortgage rates rose slightly across the board. The Treasury department has announced that they will stop buying mortgage backed securities as 2009 winds down. The Feds will continue to purchase mortgage backed securities until March 31, 2010, as pledged earlier this year. But what happens after March 31st?
There really is no security in this investment anymore. Few, if any investors actually service the loans, and with the housing industry still very weak, and loan servicers holding almost all the power over the loans, investors are no longer flocking to purchase the loans from the original lenders. The lenders control modifications, payment forebearance rights, collections pricesses, foreclosure proceedings decisions, etc.
It is predicted that in order to entice investors, mortgage rates will have to rise dramatically in the near future. We are hearing rates numbers in the mid 5% range up to “the sky’s the limit” types of rates.
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%.
FHA Mortgage Rates Dip
Posted by: | CommentsAfter four days of rising home mortgage rates ended today as consumers can now lock 30-year mortgage rates starting at 4.375% today. Conforming and FHA mortgage rates increased 0.25% to .375% last Friday and many borrowers put their refinance loan on hold hoping for rates to come back down. News came from HUD Friday that the Federal Housing Administration has decided to tighten credit standards for FHA home loans. In 2010 FHA lenders will be required to carry large bonds with significantly higher net-worth requirements for companies that plan to originate FHA loans in the future.
FHA loan defaults and foreclosures have caused HUD to reconsider FHA requirements and loan guidelines. Mortgage refinancing activity continues to be robust even through the Christmas season, because so many borrowers stand to benefit from a refinance loan that reduces their mortgage payments by hundreds of dollars.
North Carolina Mortgage Rates Decline for FHA Loans
Posted by: | CommentsFHA mortgage rates continue to decline across the nation. Mortgage brokers reported North Carolina mortgage rates and Virginia mortgage rates dropped below 5% on thirty year fixed rate FHA loans. According to, Virginia mortgage broker, Trip Freeman, “FHA mortgage rates have helped millions of Americans become homeowners with their flexible loans and affordable interest rates,” Freeman continued, “If mortgage rates can remain below 5%, 2010 will be a banner year for the mortgage industry.
There are so many borrowers who still need to refinance into a fixed rate loan because their current interest rate had rest to an adjustable rate mortgage. ARM loans are risky so homeowners who find themselves with a variable rate loan will benefit from the mortgage refinance loans available from FHA, VA and conventional lenders. With low rates and flexible guidelines, FHA mortgage loans will continue to support borrowers across the nation.
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.
Streamline Refinance with Low Mortgage Rates
Posted by: | CommentsFreddie Mac reported that interest rate averages for home mortgage loans dipped to 4.86% for thirty-year terms. Streamline refinance activity is on the riise because this is the lowest mortgage rates reported by FHA and VA mortgage lenders in quite a while. Fifteen year mortgage rates declined to record levels at 4.36%. Borrowers are scrambling to refinance their adjustable rate mortgages because many will save hundreds of dollars each month simply by refinancing and locking into a new fixed rate mortgage.
FHA streamline possibilities look great for borrowers who already have existing FHA home loans. If you are a veteran that has a VA home loan above 5.25%, we strongly recommend talking with a VA lender about refinancing into a great VA mortgage that will save you money every month. Mortgage rates can’t get much lower, so wake up and talk to a loan officer about refinancing today!
Mortgage Refinance Rates
Posted by: | CommentsMortgage rates remain low and the housing crisis has caused home prices to drop to a more affordable level. The Fed cannot continue to lower interest rates and most experts agree that as soon as we say real signs of the economy turning, the Fed will start raising key interest rates.
What does the Fed raising rates mean to the average American borrower? It means that mortgage lenders and banks will begin to hike the mortgage rates.
Right now a 5% 30-year year fixed rate mortgage is a reality with FHA home loans, conventional and VA mortgages. When the Fed starts jacking the rates, mortgage refinancing rates will rise as the cost of borrowing could sky-rocket.
Refinance while the rates are low. If there are opportunities now for you to save money, get off your but and refinance your mortgage. If you are considering buying a home, discuss your eligibility with a loan officer and find a house to make an offer on. Now is the time to maximize home financing with affordable mortgage rates that will save you money.
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.
Refinance Your Mortgage Now
Posted by: | CommentsIf you want a better interest rates or lower mortgage payment then wake up and talk to your lender or loan officer about mortgage refinancing programs that may be available to you whether you have good, fair or poor credit. Stop thinking about home refinancing and make the call before inflation makes the record low home mortgage rates disappear.
If you are a 1st time home buyer, consider FHA home loans because the rates are low and the FHA lenders require very little down. If you are in the military or are considered a Veteran, we strongly recommend VA mortgage programs, because the rates are great and no money down is required for home purchases and no equity is required for mortgage refinancing,
If you have an adjustable rate mortgage than it really is time to get out of bed and call a mortgage company that provides affordable refinance terms that you can lock in for 30 year term. The standards for mortgages are changing, so likely the lender will require full income documentation.
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.�
Mortgage Refinancing Applications Drop as Interest Rates Rise
Posted by: | CommentsMortgage refinance loans continue to make up the majority of the market with both VA home mortgages and FHA home loans dominated. A according to industry data released today, mortgage loan applications dropped last week as mortgage rates crept up. The mortgage market composite index, a measure of mortgage loan application volume, fell 16.2% on a seasonally adjusted basis compared with a week earlier, according to the Mortgage Bankers Association. The drop was reflected mostly with the home refinancing activity. The home refinancing index fell 24.1% last week, while the home purchase index increased 4.3%.
According to the MBA the rate hike comes as the average thirty-year fixed-rate mortgage interest rate increased to 5.25% last week from 4.81%, That was the most significant mortgage rate increase since October 2008.
Mortgage interest rates have been slowing rising up as demand for long-term government bonds has eased in recent weeks, analysts have said. Bonds are a traditional safe haven during market turbulence, but stocks have been buoyed by optimism that the recession was easing. Also, investors have also begun to shy away from government debt on fears the government and FHA was taking on too much to fund federal recovery efforts. “If you were looking for mortgage refinancing for under 5%, this puts the brakes on that,” said Guy Cecala, publisher for Inside Mortgage Finance. Refinance mortgages have been in high demand as adjustable rate loans have been resetting in 2009 at an alarming rate.
Mortgage refinance rates are still low by historical standards and could fall again as the government continues to buy up mortgage-backed securities and government bonds, Cecala said. The housing market has remained weak this year, though a plummet in home sales prices has attracted buyers in some of the hardest-hit parts of the country. Although some mortgage insiders and esteemed economists believe sales could begin to show improvement later this year, prices are expected to continue to fall.