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Oregon Mortgage Rates Update: Home Refinancing Options with FHA Loans
The current foreclosure crisis has affected lending markets nationwide, with record setting home loan delinquency and foreclosure rates. Oregon, while not yet struck by this trend as hard as many other states, has shown a steady rise in foreclosure rates in the latest market statistics. Much of this activity has centered on the subprime lending market, with adjustable rate mortgages showing the highest rate of default within this category.
Many Oregon residents are trying to find refinancing solutions for their adjustable rate mortgage payments to avoid becoming part of this trend.
Oregon home refinancing options are not as plentiful as they once were, as qualification standards for borrowers have been tightening in response to the foreclosure crisis. The wave of subprime mortgage lenders going out of business has not helped the situation, leaving no secondary market in some areas, contributing to a decline in 100% refinancing options available. Decreasing property values are contributing to the market woes, making home equity loans difficult to obtain for many homeowners.
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Oregon mortgage rates have dropped and FHA refinancing guidelines have expanded for West-coast borrowers searching for competitive home loans.
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FHA refinancing has helped many of these struggling homeowners transition into fixed rate mortgages to stabilize monthly payments. HUD has seen a sharp increase in FHA refinancing, as borrowers convert their conventional loans into these government insured products, with the number of these transactions tripling since the beginning of 2006. Homeowners in many of Oregon's troubled markets, such as Portland, Bend, and Eugene, can take advantage of the newest government loan program, FHASecure, developed specifically in response to the foreclosure crisis to assist homeowners whose mortgages are in danger of default.
Beginning on August 31st 2007, the FHA has extended its underwriting protection to borrowers who have fallen behind after steep payment increases due to an ARM rate adjustment, as long as payments were kept current before the rate reset. Homeowners must have at least three percent equity in the home to qualify for FHASecure, as determined by an appraisal. Homeowners whose credit scores have been damaged during the struggle to meet higher ARM payments can often qualify for FHA refinance loans more easily than they can for other options, and these loans are given at competitive Oregon mortgage rates.
FHA refinancing products can be an invaluable resource for homeowners who have become financially stressed by the current woes in the lending market. The added security provided by these government loans can provide many homeowners with the means to acquire a safe and affordable financing product to save themselves from becoming a statistic in the current wave of home foreclosures.
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