Archive for FHA Mortgage Lending
Government Mortgage Help
Posted by: | CommentsGovernment home financing continues to play a major role in rehabilitating the mortgage industry. In the wake of a severe financial crisis, the Federal Reserve lowered government mortgage rates to record levels. The two most popular U.S. government mortgage programs over the last seventy years are the VA and FHA loans. VA mortgages are only available to military veterans who qualify with their VA loan eligibility. However, all Americans are eligible for FHA mortgage loans if they can demonstrate they have the ability to repay the loan. Government mortgage help is more available and accessible than most people realize.Nationwide brings a significant amount government mortgage loan experience to the table with home financing opportunities for consumers seeking fixed rate refinancing, debt consolidation, new home purchase and cash out refinance loans.
Take Advantage of Record Low Goverment Mortgage Rates
Take advantage of low FHA mortgage rates available for fixed mortgage refinance and new home purchase mortgages. FHA first time home buyer loans are a popular choice for new home financing. FHA has been insuring American mortgages since 1934.
The U.S. government guarantees veteran loans and VA mortgage rates have never been better! If you are a military veteran consider the 100% VA mortgage for refinancing or new home financing.Both FHA and VA streamline loans are available to borrowers seeking a rate and term refinancing who already have existing government mortgages in good standings.
Take advantage of the Nationwide Mortgage Lender’s government mortgage experience and lock your mortgage rate now before the interest rates rise.
FHA Mortgage Refinance Solutions
Posted by: | CommentsMortgage interest rates have dropped to record lows for three weeks in a row. Unfortunately the benefits of low home loan rates are not able to be realized by a high percentage of homeowners because they do not meet the current mortgage refinance requirements. For the most part, today borrowers need higher credit scores and more home equity. For borrowers who have the credit but not enough equity, Mortgage Refinancing Buzz recommends considering a FHA refinance loan. Many borrowers are migrating from a conventional mortgage to an FHA mortgage, because the conventional guidelines restrict rate and term refinancing between 80 and 90%. FHA loans do have a small mortgage insurance payment in addition to the mortgage payment, but FHA mortgage rates are just as low as the conventional rates.
FHA Mortgage Rates Are Prime for Mortgage Refinancing
FHA loan programs remain more flexible than conforming home loans because the conventional guidelines have been tightened significantly more for borrowers seeking low rate mortgage refinancing solutions. FHA approves mortgage refinancing of up to 97.5% loan-to-value for qualified borrowers. With FHA refinancing, borrowers must always document their income, but these days’ conventional loan programs have eliminated stated income and no income refinancing programs any way.
30-Year Fixed Rate Home Loans and 5-year ARMs Fall to Record Low
Posted by: | CommentsInterest rates on fixed rate 30-year home loans for refinance or purchase officially hit record lows today! On Thursday, Freddie Mac released their report that also indicated the 5-year adjustable-rate mortgage dropped to record lows this week acccording to the survey of conforming mortgage rates. The 30-year fixed rate mortgage reported averages of 4.69% for the week ending June 24th. This was lower than the low rates of 4.75% from the previous week and 5.42% a year ago. Fifteen-year fixed rate mortgage loans averaged 4.13%, down from 4.20% last week and 4.87% a year ago. The 10-year fixed rate mortgage has fallen to 3.75% and 3.875% on the no cost mortgage option.
VA home loans are still available at record low rates as well. If you already have a VA mortgage and want a lower rate talk to one of our VA lenders about qualifying for the VA streamline.
Freddie Mac Says Lowest Fixed 30 Year Mortgage Loans Since They Began Recording Rates in 1971
Conventional and FHA mortgage lenders reported averages of the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.84% this week, down from 3.89% last week and 4.99% a year ago.
One-year Treasury-indexed ARMs averaged 3.77%, down from 3.82% last week and 4.93% a year ago. While not a record, this is the lowest the ARM has been since the week ending May 6, 2004, when it averaged 3.76%.
To lock into these home mortgage rates, the 30-year fixed-rate mortgage and both ARMs required payment of an average 0.7 point and the 15-year fixed rate mortgage required an average 0.6 point. A point is 1% of the home loan amount, charged as prepaid interest. According to Frank Nothaft of Freddie Mac “Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the home-buyer tax credit”. “Freddie Mac began collecting rates for 30-year fixed loans in April 1971, 15-year fixed home loans in September 1991 and 5-year ARMs in January 2005.”
Will Mortgage Refinance Rates Improve?
Posted by: | CommentsLetter to the Lender: We were recently shopping for a home refinance loan online and we received a handful of mortgage quotes. Obviously we want the lowest mortgage refinance rates possible. We also want a fixed interest rate on a 30-year term and if we can qualify for a no cost refinance mortgage that would be another benefit. One of the lenders offered us a FHA refinance at 5% fixed on a 30-year term with no points and no fees. Another lender offered us a FHA loan at 4.875% on a 30-year term with no points, but there is $3,000 in closing cost that we would either have to pay out of pocket or we could roll into the loan. Which option do you think we should go with? Is no cost mortgage refinancing always the best choice when shopping for a mortgage loan? Do you think we should wait for refinance rates to drop more?
First of all, if you have the opportunity to save money with a fixed rate while interest rates are at all-time lows, you should jump for the opportunity and move forward. Although mortgage interest rates are extremely low today, it is very difficult to qualify for mortgage refinancing, because lenders have tightened guidelines significantly in an effort to minimize loan defaults and foreclosures. Just because you qualify today does not always mean that you will qualify to refinance tomorrow. For example, What if you are approved for a FHA mortgage at 96% loan-to-value now and FHA changes the guidelines to 95%? What if there were several foreclosures on your street that brings your value down so that your loan to value balloons to over 100%? These are both real reason why borrowers don’t qualify for a refinance loan that they once were approved for.
To answer your second question, I must understand your big picture first.
1. Do you plan on selling your home or moving any time soon? No, we would like to retire in this home.
2. What is the balance on your first mortgage? $385,000
3. What is your home’s appraised value? $495,000
4. Do you have a second mortgage and if so did you want to refinance the second mortgage with the new loan? No second mortgage
5. Have the lenders ran your credit and sent you loan disclosures with a Good Faith Estimate? Yes, we have 739 middle fico score and believe it or not we received loan disclosures from both loan companies.
Lender Recommendation: First of all I would recommend rather than going straight for a FHA loan that you get a quote for a conventional mortgage backed by Fannie Mae or Freddie Mac. FHA loans are great but you are below 78% LTV and you qualify for a prime rate loan with no mortgage insurance. Unless you get a 15-year loan, FHA guidelines requires that you pay a mortgage insurance premium when you close the loan, in addition to a monthly insurance charge. In your case that would save you over $100 a month by choosing a loan backed by Fannie or Freddie. Regarding which refinance option to choose — While the no cost mortgage refinance is appealing but if you keep this loan for the life of the term you would save money by paying the $3,000 in closing cost and go with the lower rate option. These are great refinance options and you could not go wrong with either mortgage loan. Mortgage refinance rates are at record lows so the chances of interest rates improving are slim. It certainly is not worth the risk of refinance rates rising, because there will be a time when they go up and do not come down…
First Time Home Buyer Loans
Posted by: | Comments2010 has been a good year for Americans to get a first time home buyer loan for several reasons. First the silver lining of the housing crisis is that new home buyers were suddenly in a position to purchase a home at a discounted price. For the most part, 1st time home loans have been more affordable in 2010 than it had been in the previous five years. The other good news for first time home buyer loans has been that home mortgage rates were at all time lows.
Several government home financing programs enabled borrowers to finance a home with hardly any money down. The FHA first time home buyer loans were available to borrowers who could come up with a 3.5% down-payment. The VA home loan requires no money down, but borrowers need a militray backgroud for VA loan eligibility. The other bright spot for new homebuyers was the $7,500 tax credit for first time home buyers. Most industy insiders anticipate that low rat home financing will continue in 2010, but many are forecasting higher interest rates and tighter home loan guidelines in 2011, so if you are considering buying a home there could not be a better time!
No Cost Mortgage Refinancing
Posted by: | CommentsIf you have good credit, home equity and your interest rate is above 5%, chances are that you will benefit from no cost refinancing. Qualifying for a no cost mortgage is not as easy as it was a few years ago. For conforming, FHA and VA home loans you will need to document your income if you plan on qualifying for no cost mortgage refinancing. Fannie Mae and Freddie Mac no longer allow no income mortgage refinancing so you will need to document your income if you want to qualify for a no cost mortgage. For most of the conventional mortgage products you will need over a 700 fico score if you want to be eligible for the no cost mortgage refinancing incentives.
FHA and VA have never allowed stated or no income mortgage options, so nothing has changed for income documentation requirements with government home mortgages. FHA guidelines changed recently, so you will need good credit scores (0ver 640) if you work with a lender like Nationwide who offer no cost refinance options with the FHA loan program.
We continue to offer no point mortgage loans with most of our refinance programs. With no point refinancing, a borrower will have no origination fees, but the 3rd-party lending fees like title, escrow and appraisal will be the borrower’s responsibility. In most cases we can offer home refinancing with no closing costs out of pocket. With mortgage refinance rates so low and no cost refinancing incentives, we strongly recommend taking advantage of our discounted loan refinance.
FHA Mortgage Loan Programs Expand
Posted by: | CommentsConsumers and mortgage lenders continue to reap the benefits of FHA home loans that boast low FHA rates. The Association of Mortgage Investors announced their support for the second mortgage program announced by the Obama administration to provide a path for reduced principal through a mortgage refinancing program for homeowners who owe more on their mortgage than their house is valued at. Micah Green, an attorney who represents the Association of Mortgage Investors said, “Investors have long felt that the only way to provide homeowners further mortgage relief is to address the affordability and loss of equity issues.” Many home finance executives believe that this step is crucial for the housing market to mend itself long-term.
A few days ago, FHA announced a variety of new home purchase and refinance programs intended to help reduce the number of new home foreclosures. The FHA loan initiatives range from a forbearance plan for unemployed borrowers, to new incentives that encourage principal reductions, to a new FHA refinance option, for which lender participation is voluntary. “Importantly, there are many details of the FHA guidelines that need to be clarified from the latest FHA announcement like, how second mortgages are treated, to ensure that the homeowner’s total debt burden is not excessive,” Green said. 1st and 2nd mortgage investors must be committed to sharing the burden of providing principal reduction in order for troubled homeowners to achieve sustainable relief that will be provided by a properly sized refinanced FHA mortgage, Green says. “This program should also respect the priority of liens. Therefore, principal reductions of senior and junior liens should be carried out accordingly,” he says. FHA mortgage refinancing remains popular with lenders and brokers across the coountry, so chances are HUD will keep FHA lending around.
Second Mortgage Refinancing
Posted by: | CommentsJust a few years ago second mortgage loans were relatively easy to qualify for and many homeowners utilized them for debt consolidation and to receive cash out. Borrowers with good credit could qualify for a low rate second mortgage or an interest only home equity line of credit with no equity required. Some borrowers actually qualified for a 125% second mortgage that enabled consumers to borrow more than their homes were worth. Homeowners liked these 125 home equity loans for consolidating debt and financing home improvements. Borrowers also used second mortgages as purchase money in an effort to avoid private mortgage insurance when buying a home.
Today second mortgages are hard to find. First mortgage refinancing is back in style again. Very few traditional lenders are offering home equity loans or credit lines because of the credit crunch and the high default rate of second mortgage liens over the last four years. It is unfortunate because thousands of borrowers are looking for second mortgage refinancing, because they got stuck with an adjustable rate HELOC. Refinancing these 2nd mortgages into a fixed interest rate makes sense financially. If you have a little bit of equity we recommend refinancing your 1st and 2nd mortgage together with a FHA mortgage. The government loans enable borrowers to get cash out with refinance loans at 85 to 95% loan to value.
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%.