Archive for Loan Article
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.
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.
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.
Mortgage Loan-Modification Plan Revised for Home Equity Loan Relief
Posted by: | CommentsMany mortgage servicing companies have refused to modify second mortgages and many homeowners have defaulted on their home equity line of credit because their variable rate payments rose beyond their affordability. In a recent article Ruth Simon considers the implications for a new loan modification designed for second mortgage loans. The Obama administration announced new home loan guidelines for its foreclosure-prevention program aimed at offering mortgage relief for borrowers who have a high interest rate equity loan that they have been unable to refinance because of lack of equity or late payments since their second mortgage rate rose after becoming adjustable. Thousands of homeowners tried to qualify for mortgage refinancing that would roll their 1st and 2nd mortgages together into one affordable home loan payment.
The new mortgage loan modification program looked to address a critical component in its efforts to stem the foreclosure crisis. According to Credit Suisse Group nearly 50% of delinquent borrowers have a home equity loan. Many mortgage executives complained to the administration a few months ago because their $75 billion mortgage bailout program had no plans to re-work equity loans in 2nd position. Investors, who include pension funds, insurance companies and hedge funds, say that rewriting the first mortgage without touching the second violates their rights, because second mortgages are supposed to be repaid second. Critics also pointed out that Obama’s first plan had a conflict of interest, because many mortgage loans are serviced by big banks that also hold home equity loans.
Under the revised home equity loan relief plan, mortgage-servicing companies that participate in the loan modification program for second mortgage liens must automatically renegotiate the2nd mortgage when the 1st mortgage was reworked. The US government will share in the cost of reducing the interest rate on second mortgages for five years. As an alternative, it will pay holders of home equity loans to relieve their unpaid debt.
Mortgage-servicing companies that modify second mortgages will receive an upfront payment of $500 and additional payments of $250 a year for up to three years for successful modifications of home-equity loans and other second mortgages. Homeowners who do not fall delinquent on the modified equity loan would receive payments of $250 a year for up to five years that would be used to pay down the balance of their first mortgage. The revised plan also encourages the use of the federal Hope for Homeowners program, which allows borrowers to refinance into a more affordable, government-backed loan, provided the investor who holds the mortgage agrees to a principal write-down.
Mortgage Refinancing Expanded Under Home Affordable Refinance Program
Posted by: | CommentsAccording to recent mortgage lending reports, the Obama administration eased eligibility rules Wednesday for its Home Affordable Refinance program, lifting the maximum loan-to-value ratio to 125% from 105. The shift, which regulators had hinted was coming, is aimed at making refinancing available to more people whose homes are worth less than their mortgage loans. Clearly under the President’s new mortgage relief program, more homeowners will be eligible to refinance their bad credit mortgages or high rate ARM’s that they can no longer afford. 125% mortgage refinancing could pave the road for a quicker recovery.
HARP is open to homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, the mortgage financing giants now under government control. It covers 1st mortgages only. Second mortgage loans are not eligible for the Home Affordable Refinance Program. The mortgage refinance program, launched this year, has gotten off to a slow start, in part because the maximum 105% loan-to-value ratio was too low to include many homes that have fallen sharply in value. The new 125% maximum means an eligible homeowner with a $375,000 home loan can refinance if his or her house is worth at least $300,000. But the borrower still must be able to afford the new loan. Income requirements are an increasing problem as unemployment soars and many workers are dealt pay cuts.
Treasury Secretary Timothy F. Geithner said the move to raise the loan-to-value limit was “a crucial step in our broader efforts to get America’s housing market and economy on the path to recovery.” But refinance activity in general remains vexed by the jump in mortgage rates from their generational lows in April. Refinance applications to lenders have tumbled since mid-May as rates have surged, according to Mortgage Bankers Assn. data released Wednesday. Despite a down-tick in rates in the last two weeks, refinancing activity hasn’t rebounded.
Home refinancing applications fell 30% last week from the previous week, to the lowest level since November. Home loan applications fell 4.5%, according to the report. The average contract interest rate for thirty-year fixed-rate home loans decreased to 5.34% from 5.44% a week earlier. For fifteen-year fixed loans, the rate averaged 4.81%, down from 4.93%. The average upfront fees known as points, including the origination fee, edged up to just over 1%.
The 30-year fixed rate bottomed out at 4.61% in late March, the lowest level since the mortgage group started keeping track in 1990. The recent mortgage rate trends may delay the arrival of a solid housing recovery, Federal Reserve Bank of San Francisco President Janet Yellen said in a speech Tuesday. “I am concerned that FHA mortgage rates, which have risen of late, could place a drag on a still very sick housing market, potentially driving home prices still lower and pushing more borrowers into foreclosure,” she said.
Is this the Best Time for Mortgage Refinancing
Posted by: | CommentsIs today the best time to refinance your mortgage? How is your credit score? What is the current estimated value of your home? Can you document your income with pay-stubs, W2, etc? What is the existing interest rate on your 1st mortgage? Do you currently have a FHA home loan? Are you seeking a cash out refinance or simply a rate and term transaction? Do you have a second mortgage or home equity loans as well? Have you been turned down recently by other lenders? How long do you anticipate staying in your present home?
These are a few key refinancing questions you should expect from your lender when applying for a new refinance loan. Remember, if you don’t qualify for a traditional refinance, ask your loan officer about the possibility of a mortgage loan modification?
Is it a Good Time to Refinance?
With the Federal Reserve continuing to drop interest rates, many homeowners are beginning to wonder whether it is wise to refinance their mortgage again. However, what is the best scenario in which to do this? Can a mortgage loan still be an avenue for wealth-building? Matthew Sapaula comments on Fox News and offers some mortgage refinancing tips and insight on how your mortgage management is a key to building lasting wealth.
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.
Mortgage Loan Programs
Posted by: | CommentsNationwide provides the best refinance terms, mortgage loans, home equity and second mortgages available based on market conditions. Not all programs like the 203k loans will be available to all borrowers depending upon the state and whether or not the home is considered owner-occupied.
FHA Loans – HUD rolled out several new FHA home loans in 2008, like the Hope for Homeowners loan also known as, H4H that is like a mortgage loan modification with a principal write-down to 90% of the fair market value. Take advantage of low down-payment requirements, no minimum credit score, lower mortgage insurance with no pre-payment penalty.
Home Equity Loans – Choose from fixed rate equity loans or flexible home equity lines that enable you to borrow and re-borrow as you see fit. With our HELOCs, borrowers only pay interest on the portion they have accessed.
FHA First Time Homebuyers Loans - Our First-Time Homebuyer Specialists help you with FREE same day pre-approvals, low down payments, and savings on everything from appliances to moving expenses.
Second Mortgage – Leave your first mortgage alone and take out a 2nd mortgage for bill consolidation, cash out or home remodeling. Our second mortgage rates are low as they get online with no upfront application fees.
Debt consolidation mortgage – Consolidate your variable rate debt into one low monthly home loan payment featuring a fixed interest rate.
Fixed rate mortgages – Benefit from secure simple interest amortization that guarantees a fixed interest rate and payment for the life of the loan.
Adjustable rate refinance mortgages – Lower mortgage rates provide lower fixed payments for an initial period of time – Choose from interest-only options for 5, 7 or 10 years.
Interest only mortgage – I/O offer the lowest monthly payments possible. Minimum payments of interest only can increase your cash flow when times are tough.
Nationwide Mortgage Loans cannot guarantee that the mortgage rates or equity loan terms offered will be available unless a full credit package is submitted and reviewed by our underwriting department. Our lenders provide at the lowest interest rates available for mortgage refinancing, FHA loans and second mortgages.
FHA Mortgage Loans Show Mixed Lending Results in 2008
Posted by: | CommentsThe new FHA loan program, Hope for Homeowners was created recently to help minimize foreclosures, but so far there are too many hurdles for the average distressed homeowner to overcome and very little borrowers have been able to qualify. FHA continues to actively consider several mortgage loan modification plans and most lenders believe they will see a good mortgage refinancing solution in 2009. The housing market is complex and when it comes to lending guidelines to decrease loan defaults and foreclosure there is a sharp contrast between loan guidelines and loan work-outs. Hopefully FHA, Fannie Mae, Freddie Mac and the mortgage lenders will work together for a solution that provides foreclosure prevention and loan performing results that will get our economy and housing market back on track
FHA eliminated their down-payment assistance loan Programs on Oct. 1. These mortgage loans designed to help first time homebuyers enabled the seller to offer the buyer down payment assistance. Housing Wire reported recently that FHA commissioner Brian Montgomery criticized DAP, reported the mortgage news site Here’s a clip from that story: Montgomery recently stated, “Data clearly demonstrates that FHA home loans made to borrowers relying on seller-funded down payment assistance go to foreclosure at three times the rate of loans made to borrowers who make their own down payments.” These high risk mortgage loans presently make up one-third of the FHA’s loan portfolio. Montgomery added that the agency booked an additional $4.6 billion in long-term losses when reassessing their annual figures. “No insurance company can sustain that amount of additional costs year after year and still survive,” he argued. “Unless we make corrections to mitigate these losses, FHA will soon either have to shut down or rely on appropriations to operate.”
On a more positive note, DataQuick recently announced a 62% increase since last year with 2,667 SFR home and condo sales were reported in September. This is the largest 1 year gain since DataQuick started tracking this data in the last twenty years. FHA mortgage lending continues to soar with 28.6% of August buyers using the program, up from 27.2% in July and 9.5% in August 2007. According to the Census Bureau, FHA released data for new home sales indicating that homebuyers continued to use FHA home financing 17% of the time in the 3rd quarter which is up from 15% in the 2nd quarter and 4% in the 3rd quarter last year.
Will Obama Save the Mortgage Industry and Curb Predatory Lending?
Posted by: | CommentsObama says he will stop mortgage fraud from mortgage lenders and brokers. He and Biden claims that under his watch, homebuyers get more information related to their mortgage loan options. He offers all this and a promise to provide additional tax credits to all middle-class homeowners. How do you define “middle class” Mr. Obama? $250,000 a year is the line they used on the campaign trail. If stick to that – God Bless him!
Seriously, please elaborate on your “mortgage credit” that is said to be a 10% home mortgage credit that enables homeowners to benefit if they choose not who do not itemize the mortgage interest with their tax returns. They say on average that will yield $500 to 10 million homeowners. One question Mr Obama…Wouldn’t the average homeowner get more back with present tax incentives already being practiced? The answer is yes. So is it a tax credit or increased tax on homeowners?
Obama’s website suggests that they have been examining the sub-prime mortgage lending issues for years. This is good because it is imperative that the next president thoroughly understand the housing sector and mortgage financing. Apparently, Obama introduced legislation to fight the war on mortgage fraud. He vows to protect consumers against abusive mortgage lending practices. The STOP FRAUD Act offers a federal definition of mortgage loan fraud and increases the funding for federal and state law enforcement programs. He vows to implement new criminal penalties for home financing professionals found guilty of fraud while requiring co-workers to report fraudulent activity. Who can argue with this…People want to put a face with the housing crisis that has cost them the equity in their home and in some cases the home themselves.
Obama says he will eliminate laws that prevent bankruptcy courts from introducing loan modifications. This is a good thing if banks are going to modify loans why not do it at this level as well. Obama says he will introduce a HOME score which enables borrowers to compare several home loan products while better understanding the total cost of the mortgage. This is what the Federal Truth and Lending Statement does. It multiplies an average of the borrower’s monthly payment over the months they have the loan. (ie. 3,000 a month over 360 months will cost you $1,080,000) The truth in Lending Law is pretty darn clear. We all should take some responsibility with this mortgage meltdown. Whether you are a homeowner, loan officer, lender, bank or politician, we all played a role that led to this foreclosure epidemic.
Here is the problem Mr. President, the sub-prime meltdown and the foreclosure crisis problem is far more complicated than predatory lending from unscrupulous mortgage brokers. Banks do not like mortgage brokers and for years they fueled the fire that mortgage brokers caused the sub-prime meltdown. For the last decade, Banks have created mortgage guidelines that created a housing boom. American homeowners prospered and what could go wrong. Lending guidelines in 2005 and 2006 went too far in allowing no money down home loans for borrowers with little, no or bad credit. The housing bubble bursted and jobs were lost. The mortgage industry melted and banks tightened their guidelines to the point where average homeowners could not qualify top refinance into a fixed rate mortgage they could afford. FHA home loans have started to require certain credit scores and lenders like to play appraiser and reduce their appraised value to the point where everyone has been wasting their time. Home values plummeted and the foreclosure concerns became an epidemic. Loan modifications have become the modern refinance loan and now when the Fed cuts interest rates, mortgage rates actually rise. Welcome to my world Mr. President….I’m an unemployed mortgage broker who like to write about the truth.
Article was written by Bryan Dornan who is the marketing director with Nationwide Marketing.
Considering McCain’s Proposal for Refinancing Bad Mortgages – By Bryan Dornan
Posted by: | CommentsIn the wake of this catastrophic financial melt-down, John McCain’s proposed to buy bad mortgage loans from the banks in an effort to fight off foreclosures and keep homeowners in their home. The purchase mortgage proposal would also increase the liquidity and cash flow of these national banks and these financial institutions should be able to begin lending money again. McCain said he would utilize almost half the $700 billion from the recent Wall Street bailout package to aid American consumers immediately, rather than rescue the financial markets. The Republican presidential candidate announced in the televised debate he would order the federal government to use $300 billion of specified treasury funds to buy the delinquent mortgages while enabling the struggling homeowners to retain their homes.
Last month, Democratic nominee Barack Obama spoke of a similar plan, when he proposed that the U.S. government take great steps to help homeowners who were fighting to make their mortgage payment each month. McCain’s home loan plan was far more detailed. “I would order the secretary of the Treasury to immediately buy up the bad home-loan mortgages in America and renegotiate at the new value of those homes — at the diminished values of those homes — and let people be able to make those payments and stay in their homes,” he said. McCain called this loan modification proposal the “American Homeownership Resurgence Plan.” Clearly the struggling economy has played a significant role in helping Obama pull ahead of McCain nationally and in critical battleground states as well.
Recent reports indicate that Americans have reacted negatively with great concern regarding the $700 billion rescue for the major U.S. banking institutions. The fact that many Republicans voted against the mortgage bailout package did not stop McCain from going against the grain with his purchase mortgage bailout. Most Republicans objected to the bailout bill’s size and to the basic belief that government intervention in the free market economy would be damaging. McCain’s plan for mortgage refinancing and loan modifying would be committing a much greater role for government and potentially the American taxpayers could take an even greater financial loss. McCain continued, “It’s my proposal,” McCain said. “It’s not Sen. Obama’s proposal. It’s not President Bush’s proposal.” As conceived by Treasury Secretary Henry Paulson and as passed by Congress, the rescue package would be used primarily to purchase mortgage-backed securities. It would allow, but not require direct purchase of mortgages. Under McCain’s plan, the Treasury would be required to modify mortgage loans directly with homeowners whose homes were experiencing declining values.
Economic adviser Douglas Holtz-Eakin remarked that the mortgage refinancing plan projected mortgages in “the low 5 percent” range that should help the sinking property values across the nation. 30-year mortgage interest rates remain relatively low between 5.75 and 6%. It was unclear — either from McCain’s remarks or from the backup materials provided by the campaign — how such a massive plan would be administered. Eakin also said the plan would help stabilize the plunging values of mortgage-backed securities that have been at the heart of the crisis in the financial markets. “Sen. McCain believes this is exactly the right kind of policy,” Holtz-Eakin said. “Provide direct help to homeowners; at the same time, support the financial markets and keep them from further damaging the availability of credit to Main Street America, one of the — the real threats to the economy at this point in time.”
McCain’s plan is bold and risky, but Roosevelt took similar action to end the great depression by purchasing homes from failed banks and those rescuing transactions helped banks find liquidity and helped homeowners keep their homes. The American economy recovered and the era was marked as the “Great Depression.” I will commend McCain for taking the first steps at proposing a solution to the mortgage and housing crisis. Simply handing banks more money will not solve the mortgage crisis. The fact that McCain proposes that “mortgage loans” will be restructured using the current value” signifies that he at least understands some the roots to this problem. Most politicians love to blame the mortgage crisis on corporate greed and predatory lending, but the reality is that we had a housing bubble predicated on low interest rates and loose mortgage underwriting. McCain’s plan is probably not the safest plan for America, but it’s likely not too far away from a solution to this mortgage mess.
Mortgage Refinancing Versus Loan Modification – By Bryan Dornan
Posted by: | CommentsAlright – Raise your hand if you have the ability to pay your mortgage payment each month, but you stopped making your payment in hopes of lowering the interest rate on your current home loan. How many of you have stopped paying your mortgage because one or more of your neighbors reduced their interest rate and lowered their payments? If you raised your hand, you are not alone, because thousands of good credit borrowers who have not suffered from income loss have stopped making their mortgage loan in hopes of receiving quick payment relief.
Home refinancing activity has almost come to a complete stop. FHA refinance loans remain the only bright light for mortgage lenders and brokers, but even the government refinancing has slowed in recent months. Interest rates dropped almost half a percentage point yet refinancing activity reports indicate little increase. Once we get past the foreclosure crisis we expect mortgage refinancing activities to elevate back to normal levels.
Modifying your mortgage is just but those of you who have a stable job, we recommend not taking the approach of not paying your monthly payment in hopes that it will send a signal to the bank that they better modify your mortgage or else…Millions of homeowners are in line to get their loan modified and banks are clearly doing their best to accommodate homeowners with payment vacations and reduced mortgage rates.
Pay your mortgage on time if you can afford your monthly payment because keeping your credit score high is imperative to maximize your future home financing options. When the banks report you 30, 60 or 90 day late on your home mortgage it has a lasting derogatory effect on your credit score. Besides, banks do negotiate loan modification with homeowners who are not late. Times have changed and bank negotiates with homeowners who make their payments on time.
FHA Streamline Refinance as Mortgage Rates Decline —- By Pete Gaddi
Posted by: | CommentsWho would have thought that Fannie Mae and Freddie Mac being seized by the Feds would have leads to lower mortgage rates? Apparently a few financial analysts believed the take-over would cause interest rates for home loans and mortgage refinancing to drop. Financial advisor Scott Deal said, “the market reacted positively to Bush’s move to stabilize these two mortgage giants.”
According to San Diego government employee Donald Flood, “I have been waiting to refinance with a FHA mortgage for 9 months, but the rates kept creeping up.” Flood continued. Now I can streamline my mortgage for a lower fixed monthly payment.” If the interest rates drop a half a percentage point, Mr Flood would save about $300 a month after refinancing his $500,000 mortgage.
FHA interest rates finally dropped below 6% so there is an opportunity for borrowers to save money. FHA streamline refinancing activity rose sharply this week, after the news settled regarding Fannie Mae and Freddie Mac. If interest rates continue to drop, expect to see more borrowers who already have a FHA mortgage to refinance with their streamline option.