mortgage information: Rural Mortgages Get Boost from CFPB - 10/02/15 07:47 AM
The Consumer Financial Protection Bureau, with changes to some current rules, will help buyers in rural areas get financed for home purchases. The CFPB made changes to its rules to increase the number of financial institutions that would be eligible to offer loans in rural areas. To do this, they broadened the definitions for lending as well as expanding the definition of a rural area.
The CFPB has expanded the definition of small creditor, raising the definition from 500 first-lien mortgage loans to 2,000, freeing up additional lenders to make rural loans.
They also expanded the definition of a rural area. They will … (0 comments)

mortgage information: Fed Keeps Rates Near Zero, Mortgage Rates Fall - 09/29/15 04:25 AM
In light of the Federal Reserve’s decision to not raise the Federal funds rate, mortgage rates for a 30 year fixed rate mortgage fell to 3.86 percent this week.
The Federal Reserve continued to hold off on raising their interest rates, choosing to keep rates close to zero percent. The Fed attributed their lack of action to the lack of global growth that could potentially slow the domestic economy as well as the fact that inflation in the US remains subdued. The Fed committee also wanted to see additional evidence from the labor market to make sure it has and continues to … (2 comments)

mortgage information: 91% of US Homes Have Equity - 09/23/15 08:29 AM
After 759,000 properties regained equity in the second quarter, almost 45.9 million homes now have a higher property value than the remaining balance on their mortgage. In essence, 91% of US homes with mortgages now have equity—great news for the recovering US Housing Market.
At the end of 2014, 89% of US homes had equity, totaling 44.5 million homes.
Ninety five percent of mortgaged homes valued at 200k or more currently have equity. At the end of 2014, that number was at 94 percent of mortgaged homes.
Homeowners with lower home values struggled to get over the equity hump in comparison to those buying … (3 comments)

mortgage information: Refinancing Drives Mortgage Application Increase - 09/01/15 04:23 AM
Homeowner’s looked to take advantage of low mortgage rates in late August and their attempts to refinance their loan helped raise total mortgage applications by 3.6 percent. Mortgage applications were 18% over numbers seen from a year ago.
As rates have dropped, homeowners have tried to take advantage and lock in low interest rates. According to CNN, turbulence in China caused these lower rates, allowing US homeowners a great opportunity to refinance. Refinancers surged over the week of the 16th, having 7% more applications than the week before – a large shift for an entire country.
The more mortgage activity, the better off … (0 comments)

mortgage information: Mortgage Rates Still Below 4% - 08/28/15 04:04 AM
After a volatile July, loan interest rates have stayed below 4% for the 5th consecutive week. This week, the 30-year fixed-rate mortgage averaged 3.93%, just a tick below last week’s 3.94% average. Movement has been relatively small over this time period, but buyers will want to stay in the loop should rates trend upwards again.
Housing markets across the US have responded well to the low rates as home buyers have tried to lock down favorable rates while many homeowners have tried to refinance. All year, lenders have tried to keep rates low to keep attracting prospective buyers but they have been … (2 comments)

mortgage information: Jumbo Loan Market Still Booming in 2015 - 08/06/15 09:31 AM
The US Jumbo Loan market continues to perform extremely well in 2015 after an already wonderful 2015. A jumbo loan is any loan where more than $417,000 is borrowed for a home purchase. In high priced markets, jumbo loans are not counted until someone borrows $625,000.
In 2014, jumbo loans took 19% of the total mortgage market, which had not been seen since 2002. In 2015, that number has risen to 20%. Even more enlightening, after only taking 1% more market share for total mortgages, jumbo loans took 36% more dollar volume than in 2014, reaching 160 billion in the first half … (1 comments)

mortgage information: Mortgage Rates and Loan Applications Have a Volatile July - 07/21/15 05:08 AM
Both mortgage rates and loan applications have seen big up and down swings over the first few weeks of July.
Earlier in the month, mortgage interest rates fell and continued to be on a downward trend. On July 10th, the rates fell to 4.04 percent. However, the past weeks since then have given a sense that mortgage rates may once again be trending up. This week, mortgage rates hit their highest level since October of 2014—hitting 4.09% this week. For now, its clear that at the very least, mortgage rates have been volatile and should be watched closely over the follow weeks … (0 comments)

mortgage information: Mortgages Rates Rising, Still Below 4 Percent In March - 03/17/15 04:30 AM
Mortgage rates in the United States have fluctuated over the last few weeks, but with a general upwards trend. Homebuyers will want to keep their eyes on the mortgage rates over the next few weeks to see if they continue to remain low. If they do not, home buyers may want to speak with lenders sooner as oppose to later, to lock in a more favorable loan.
30 year fixed rate mortgages returned to the start of year averages (to see January rates click here). A 30 year fixed rate mortgage gave a 3.86% interest rate in the week ending March 14th. … (0 comments)

mortgage information: More Mortgages Taken Out in 2014 - 03/13/15 08:11 AM
According to Federal Reserve Bank of New York’s Household Debt and Credit Report, outstanding mortgage debt rose a good deal in 2014 and should continue to do the same in 2015. When the mortgage debt rises, it usually does not mean that people with mortgages are getting into worse debt or aren’t paying their bills. Instead, the numbers reflect the total number of people taking out mortgages across the United States. When people take out more mortgages, it shows they, and the economy alike, have seen more prosperity in recent years—the best sign for any market, housing or otherwise.
Total household debt … (0 comments)

mortgage information: Home Experts Predict Positive Outcome from Mortgage Insurance Drop - 02/04/15 03:55 AM

Earlier this year, the Federal Housing Administration announced they would lower mortgage insurance rates and now many housing experts believe that change will bring thousands of new real estate buyers to the US housing market. The FHA lowered their insurance premium from 1.35% to 0.85 percent.
According to the National Association of Realtors, the fee reduction could bring as many as 90,000 to 140,000 additional home purchases to the market annually. The fee reduction could also make 1.6 to 2.1 million renters eligible—renters who have been struggling with high prices and low availability. The NAR provided a pretty enlightening example … (0 comments)

mortgage information: Foreclosed On Home Buyers Returning to Market - 01/28/15 02:43 AM

 
According to Realtytrac, nearly 7.3 million people who have had their homes foreclosed on during the recession will once again be able to buy a home in the next 8 years. More than 500,000 foreclosed on homeowners will be eligible for a new home loan this year.
In general, homeowners can recover from a foreclosure in as little as three years. Realtytrac gives a more conservative number—seven years—for how long it will take these people to rebuild their credit score. By doing the math, homeowners who lost their homes in 2007 and early 2008 should now be able to … (1 comments)

mortgage information: Mortgage Rates Hit 20 Month Low - 01/12/15 08:16 AM

 
Freddie Mac announced the average rate for a 30-year conventional loan fell to 3.73% this week. The average rate fell from last week’s number of 3.87% and from 3.89% in later December, thanks to another strong week for the domestic economy, especially in comparison to continued financial struggles in Europe and Asia.
The average rate for a 15 year fixed loan also fell this week to 3.05 percent--down from 3.15 percent. 15 year mortgages are most popular with those looking to refinance and the low rates should be noted by anyone paying a 30 year fixed rate mortgage. Many … (0 comments)

mortgage information: Mortgage Principal Write-Downs - 11/28/11 02:07 AM
 
Mortgage Principal Write-Downs
 
20 Democrats of the House of Representatives are urging for Fannie Mae and Freddie Mac to reduce the mortgage principal of borrowers who owe more than their home is worth. The 

Representatives argue that this action would reduce the risk of defaults for 20% of Freddie and Fannie mortgages.
 
On the other side of the debate, the regulators of Fannie and Freddie, the Federal Housing Finance Agency, refuse to act due to concerns that writing down principal balances will create a ‘moral hazard by prompting other borrowers to cease in making loam payments on … (2 comments)