lending: Mortgage Rates Fall Again - 03/17/10 02:00 AM
The 30 year rate fell from 4.97 to 4.95 this week. This is the 2rd week in a row where rates have fallen. The expectation has been (for several months) that rates were going to rise. It looks like an economic recovery, which is somewhat more tepid than expected, has stopped rates from rising. Instead at least the 30 year rate has remained remarkably stable. For most of 2010 the 30 year rate has stayed between 4.9 and 5.1. The 15 year dropped from 4.33 to 4.32. The 5 and 1 year arms dropped from 4.11 to 4.05 (5 year arm) … (0 comments)
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lending: Evaluating Mortgage Lenders - 02/24/10 12:43 AM
Foreclosures in the real estate market have made it more difficult to obtain a home loan if your credit score is not up to some lenders standards. With the collapse of the sub-prime market, lenders are more diligent and strict with their lending standards. Thrown into the mix are unscrupulous lenders.
Yes, you have to be careful when applying for a home loan. A clue that a lender is unscrupulous is boastful ads that say they lend to anyone and other such ads. If no one is turned down, then something is wrong with this company. They may also not … (0 comments)
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lending: How Mortgage Loan Rates Are Determined - 02/01/10 02:06 AM
It is a common misperception by the general public that fixed rate mortgage interest is tied directly to Federal Reserve interest rate movement. On the contrary, the determinant is the performance of mortgage backed securities (MBS), most of which are issued by Ginnie Mae, Fannie Mae and Freddie Mac.
What does that mean in layman's terms? MBS are securities traded on the open stock market and are backed by assets, like real estate. When you obtain a home loan, it is typically sold, pooled into a group of home loans as a securities package called MBS to be sold as … (2 comments)
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lending: Fannie Mae, Freddie Mac and Ginnie Mae - Who Are They? - 01/25/10 01:36 AM
Fannie Mae, Freddie Mac and Ginnie Mae are common names associated with federal lending and home loans. They have offerings that stem from no down payment home loans to helping dislocated residents of disaster areas, to providing assistance to the elderly. If you are any age and are considering a home loan, you're struggling with mortgage payments and need assistance, or you're elderly and cannot afford repairs on your home, one of these entities may be able to assist.
Who Are Fannie, Freddie and Ginnie?
The Federal National Mortgage Association (FNMA), better known as Fannie Mae, and the … (2 comments)
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lending: When Does It Make Sense To Refinance? - 01/16/10 06:53 PM
There are certain instances where it would be an advantage for you to refinance your home. Even in the midst of a down economy, homeowners are finding lower interest rates and opportunities to incorporate balances on high-interest unsecured debt to a lower interest rate home loan. Some homeowners are finding the benefit of a higher credit rating after incorporating debt into their refinanced home loan, reducing their debt-to-income-ratio. There are other reasons to refinance, however.
Your primary consideration in refinancing your home will be to save money. How can this be achieved? Several ways for savings might be to lower … (0 comments)
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lending: Reverse Mortgage - Is It For You? - 12/15/09 01:06 AM
Reverse mortgages have been around for a while and the Department of Housing and Urban Development (HUD) under the Federal Housing Administration (FHA) was one of the first to offer them.
Before diving into the deep end of a reverse mortgage, you need to make sure you understand what it is, if you are eligible, and what will be expected if you decide on one.
A reverse mortgage is a home loan that allows you to borrow against the equity you've built up in your home over the years. The main differences between a reverse mortgage and a … (0 comments)
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lending: Financial Regulation: What Went Wrong? - 12/06/09 02:30 AM
In 1803, Lazare Carnot began the the study of entropy in thermodynamics, suggesting that natural processes become disorganized over time, leading to waste and inefficiency. So too, in economics does this now taken-for-granted law seem to be in clear effect: recession's end has thus far led to little change in the regulatory structure of the Fed and other responsible bodies. The notable exception is the bill now before the House which aims to severely curtail the role of the Fed. Opinions on the extent and type of reform necessary are vehement and divisive. Suffice it to say that the US regulatory … (27 comments)
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lending: Mortgage Lenders Bailed Out By the U.S. Government - 11/28/09 06:10 AM
Beginning October 2008 through October 2009, the U.S. Treasury Department has been bailing out U.S. banks. In efforts to undergird the economy, and stabilize the struggling institutions, over $200 billion has been paid out to over 600 mortgage lenders through the Treasury's Capital Purchase Program.
Surprisingly, almost $71 billion has been paid back to the U.S. Treasury so far. That's almost 36 percent of $200 billion being paid back by 41 different banks. Interestingly to note, almost 7 percent of the banks who borrowed federal money owed 36 percent of the government's capital purchase.
Looking at the extensive list … (2 comments)
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lending: Preparing to Buy a Home - 11/16/09 01:06 AM
Are you preparing to buy a home for the first time? Or have you closed on a number of homes in the past and are preparing to buy your next home? Regardless, you'll want to keep in mind the steps necessary to successfully navigate the preparations for buying that next home.
Initially, you'll want to determine your income, debts and savings and decide what you can afford. Instead of doing all the calculations and attempting to make the determinations yourself, you may want to decide on a reputable lender and have them do it for you through a prequalification. If … (4 comments)
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lending: Mortgage Rates Continue to Fall - 11/16/09 12:51 AM
While the expectation has been that mortgage rates would start to rise they have fallen for the last 2 weeks. This week the 30 year rate fell from 4.98 to 4.91 (last week it fell from 5.03 to 4.98). Besides October 8th its the lowest rate we have seen since the start of the summer. So how does 4.91 fit in with historical mortgage rates. Its lower than any point before March 26, 2009. Its also the 11th lowest recorded rate in history (all of the 10 lower recorded rates occured in 2009).
While the 30 year mortgage rate is … (0 comments)
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lending: Mortgage Rates Fall Back Below 5.00 - 11/06/09 03:06 AM
After rising steadily for the last 3 weeks mortgage rates fell back down this week. The 30 year rate fell from 5.03 to 4.98. The 15 year rate fell from 4.46 to 4.40. The 5 and 1 year arm fell from 4.42 to 4.35 and 4.57 to 4.47 respectively. This looks like more of a hiccup as mortgage rates steadily start there rise. At this point the overwhelming consensus is that mortgage rates are going to rise in the next six months. But the lowered rates do provide an opportunity for potential homeowners to lock in rates at sub 5.00 rates. … (1 comments)
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lending: Traditional Home Loan or ARM? - 11/02/09 01:16 AM
If you're obtaining a mortgage and contemplating whether to get a traditional home loan or adjustable rate mortgage (ARM), there are definitely some things you'll want to consider.
Before deciding on either, you'll want to understand the dynamics and look into the advantages and disadvantages of each. Some considerations to keep in mind are how long you intend on keeping the home; whether one of your intentions in buying a home is to build credit and what will give you the best annual percentage rate (APR) in the beginning and throughout the lifetime of the loan.
Traditional home loans … (1 comments)
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lending: Mortgage Rates Continue to Fall - 10/07/09 01:18 AM
Mortgage Rates Fell yet again this week. The 30 year fell from 5.04 to 4.94. This marks the 5th week in a row where mortgage rates have either fallen or held steady. For the most part rates have been slowly falling. In fact this week accounts for half of the total fall in the last five weeks. So how does 4.94 look in a historical context. It is the lowest rate we have seen since May 28th. More importantly though it is lower than any rate we have seen prior to March 26, 2009 in the 40 years we have been … (0 comments)
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lending: Mortgage Rates Remain at Summer Lows - 09/30/09 12:52 AM
Mortgage rates remained steady this week. The 30 year again was at 5.04 which is a low for the summer. The other mortgage products remained relatively stable this week except for the 1 year arm which fell from 4.58 to 4.52. Below are rates for the last few weeks. As we can see overall for the last month rates have been steadily falling. But overall the movement has been very small with 30 year rates only dropping 1/10 of a point in the last month.
Sep 24, 2009
30-yr 5.04 15-yr 4.46 5-yr ARM 4.51 1-yr ARM 4.52
… (0 comments)
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lending: Mortgage Rates Continue to Drop - 09/22/09 02:51 AM
Mortgage rates have now dropped for 3 weeks in a row. We are not seeing a lot of movement. 30 year rates have only dropped from 5.14 to 5.04 in the last 3 weeks. What is interesting is that rates are dropping at all. Most of the news have focused on how inflation is pending for the US because of unprecidented government spending. But while the news has focused on pending inflation (and corresponding higher mortgage rates) mortgage rates have continued to drop. Mortgage rates are lower than at any point before 2009 (they were lower in April 2009). Below are … (1 comments)
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lending: Mortgage Rates Stay Down - 09/14/09 11:28 PM
There were some expectations that mortgage rates would fall this week. Instead rates not only did not rise but fell slightly this week. The 30 year rate fell from 5.08 to 5.07 hitting a new low for the summer. The 15 year rate fell from 4.54 to 4.50. The 5 year arm fell from 4.59 to 4.51 while the 1 year arm rose slightly from 4.62 to 4.64.
The continuing fall of the 30 year rate is good news for the national real estate market which is in the midst of a lukewarm recovery. The 5 year arm is seeing … (0 comments)
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lending: Mortgage Rates Hold Steady - 08/29/09 11:47 PM
For the most part mortgage rates held steady this week after dropping sharply last week. The 30 year rate rose slightly from 5.12 to 5.14 after dropping from 5.29 the week before. The 15 year rate rose from 4.56 to 4.58. The 1 year arm held steady at 4.69 and the 5 year rate (the only mortgage product that saw much movement) rose from 4.57 to 4.67.
The general consensus is still that rates are going to eventual move up rapidly when the economy recovers. As long as the economy stay in the doldrums there is a decent chance … (1 comments)
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lending: Mortgage Fraud at All-Time High - 08/10/09 11:29 PM
From sea to shining sea, lenders struggle with costly mortgage fraud. Although, the fraud itself is not new, a recent FBI report reveals that the numbers are mounting and the methods used by scammers are becoming more, well, creative.
From 2007 to 2008, the FBI's annual report showed that the industry experienced an increase of more than 83.4 percent in actual mortgage fraud dollars. Last year mortgage fraud cost lenders in excess of $1.4 billion in liability, says the FBI report, and higher figures are expected for the 2009 fiscal year. Just through June of 2009, fraud figures exceeded … (2 comments)
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lending: Mortgage Rates Stay Even - 08/10/09 11:23 PM
The saying "No news is good news" might be applicable with the recent trend with mortgage rates. For the last 2 or 3 weeks for the most part rates have stayed pretty much unchanged. The reason why this could be considered good news is that the economy and stock market seem to be improving. There was a lot of discussion that an improving economy would lead to inflation and in turn higher interest rates. While I still think we are eventually headed to higher interest rates it's nice that at least that is not happening now. This week the 30 year … (1 comments)
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lending: Mortgage Rates Start to Trend Upward Again - 08/03/09 09:17 PM
Although we are not seeing too much movement it looks like mortgage rates are starting to trend upward. It's interesting to note that the stock market had its strongest July in several years. Once the economy has a full recovery there are some predictions that inflation will spike and mortgage rates will hit double digits. We are a ways from that but its interesting none the less to see rates slowly moving up and the economy slowly moves into recovery mode. All four of the major mortgage products moved up this week. The 30 year mortgage went from 5.20 to 5.25; … (0 comments)
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