Mortgage Refinancing Applications Drop
By · CommentsWith mortgage refinancing activity rising each week, we were bound to see a drop one of these days and we finally did. The MBA reported that loan applicants seeking home refinancing declined to 78% last week from 79.4% the prior week, which was the highest level since April 2009. The average mortgage refinance rate on a 15-year fixed mortgage rose to 4.12% from 4.05%, and the interest rate on a one-year adjustable home loan fell to 7.15 % from 7.17 %
The Mortgage Bankers Association’s index fell 4.4% in the week ended July 23, the Washington-based group said today. The mortgage refinance measure fell 5.9% from the prior week’s one-year high, but the home purchase index did increase 2%. The average mortgage refinance rate with a 30-year fixed rate increased to 4.69% from 4.59% the prior week, which was the lowest since data began in 1990.
Best Jumbo Mortgage Refinancing in Years
By · CommentsJumbo mortgage rates declined significantly over the last few weeks. As of July 12th, borrowers could refinance with a 10/1 jumbo rate starting at 4.75%. This was exciting news for California homeowners looking for the best jumbo mortgage refinance opportunity in years.
Jumbo Mortgage Rates Available at 4.75% and Fixed for 10-Years
According to iServe Lending’s George Kaganovich, a mortgage lender in California, “This is wonderful news for thousands of California homeowners who have been stuck in adjustable jumbo mortgage rates for years.” In high costs areas like California and New York, borrowers have been unable to refinance out of their variable rate loans. The jumbo refinance guidelines were tightened over the last few years and the jumbo mortgage rates were significantly higher than the highly publicized conforming rates. Kaganovich said that for many of their clients it ment saving thousands of dollars a year.
Bloomberg reported that yields on the Fannie Mae bonds have advanced to 3.73% from a record low of 3.63% reached July 6th, down from 4.67% on April 5th. The gain has been slower than benchmark Treasuries, whose yields have begun to jump as stocks rallied.
Freddie Mac reported that the average fixed mortgage refinance rate for a conforming mortgage declined to a record low 4.57% in the week ended July 8th. The MBA report indicated that the average fixed jumbo mortgage with a fixed jumbo declined to a record low 5.25% in the week ended July 8th.
Refinancing Costs for FHA Loans
By · CommentsToday when you refinance mortgage loans above 80% loan to value it requires the borrower to pay additional mortgage insurance. Whether the borrower is refinancing conventional or FHA loans, mortgage insurance will be required. Monthly mortgage insurance has risen over the last few years due to the increase in loan defaults. FHA Loan Pros recommends making sure you have included PMI into the loan payments when comparing mortgage refinance offers from conventional and FHA lenders. In addition, homeowners that refinance FHA must pay an additional 2.25% of the FHA loan amount up-front to cover the mortgage insurance premium. FHA is trying to get Congress to pass a bill to increase for the annual mortgage insurance premium rate. It is important that borrowers consider all of the costs when considering the benefits of home refinancing.
FHA Mortgage Refinance Applications Jump
By · CommentsThe Mortgage Bankers Association released their Weekly Mortgage Rate Report that indicated that FHA mortgage refinance applications rose again last week. This came as a surprise to many brokers and loan officers who anticipated a slower influx of internet mortgage leads because the previous week saw a significant jump in refinance applications.
Jerry Mlinar,a senior mortgage consultant for Woodfield Planning Corporation said, “The rate of applications for FHA refinancing has risen dramatically over the last few weeks and we have attributed it to simple supply and demand. Millions of homeowners are burdened by an adjustable interest mortgage and so naturally they want to reap the rewards of record low fixed rates.”
FHA mortgage refinance rates averaged 4.875% on fixed 30-year terms last week. Even though FHA home loans are more forgiving with equity and credit requirements, many borrowers are still challenged because FHA requires income documentation with all of their refinancing products. Many borrowers have grown accustomed to “stated income” loan programs and that explains why so many applications are turned down.
Do Low Rates Always Translate to Mortgage Refinancing?
By · CommentsThere is no question that 2010 has opened up some great mortgage refinancing opportunities for many homeowners to save money. Home refinancing is not always the answer though, because some borrowers already have low rates and some borrowers simply do not meet the refinance requirements. We recommend considering your mortgage refinance options carefully. Home mortgage rates fell this week to their lowest point on records that mortgage company Freddie Mac has kept since 1971. Today’s mortgage refinance rates when averaged around 4.625%. These rates are for 30-year fixed rate terms. The previous record of 4.71 % was set in December. 15-year mortgage rates average at 4.375% and the 5-year hybrid ARM average 3.875%.
Here are some answers to common questions that come with home refinancing.
Question: How much are the mortgage refinance costs?
Answer: In most cases, a refinance loan will cost $2 -$3,000 in closing cost. The common lending fees are underwriting, processing, escrow, title and appraisal. Many lenders will also charge origination fees, also known as “points.”
Question: Do I qualify for a no cost refinance?
Answer: It depends… Many lenders are offering no cost mortgage refinance loans, but the credit score minimums typically range from 720-740.
Compare Mortgage Refinance Rates
By · CommentsMortgage rates fell to a record-low last week, with the rate of a 30-year fixed loan dipping to 4.69 %. Borrowers who have been waiting for the best time to refinance their home find themselves in a good position.
Is Your Home Mortgage Rate Higher than 5%?
Some economists anticipate that mortgage refinance rates will remain low for at least another six months. However, if you are considering mortgage refinancing and you qualify under the 2010 refinance guidelines then you should not wait.
The current mortgage refinance rates are the lowest they have been since 1971 so the chances of them getting lower are slim. The chances of mortgage lenders tightening home refinance guidelines are much greater. If you are eligible to refinance today, take advantage of these record low interest rates and lower your mortgage payment.
Many home finance analysts feared how the mortgage market would once the tax credit for homebuyers expired on April 30th. A recent published report released earlier this week indicated that new home sales plunged nearly 33% last month. Compare lenders so you can get the best mortgage refinance rates online!
Let’s compare mortgage refinance rates: A year ago, the average mortgage refinance rate was 5.22% and 10 years ago, people were refinancing at 8.15%. Today, the average 30-year mortgage rate is 4.675% and the average 10-year mortgage is now at 3.875%. The banks continue to extend low mortgage rates because to the instability in the market and the European debt crisis.
Mortgage Refinancing Challenges
By · CommentsMany borrowers who are considering mortgage refinancing options are a bit nervous about the loan process because so many loan applicants are being rejected these days. When comparing home refinancing quotes, you no longer need to be intimidated by lenders or mortgage brokers. The mortgage industry fall-out and stressed financial markets have opened up new opportunities for homeowners to save money with new mortgage refinancing programs. Many of the underwriting obstacles for homeowners have been removed. FHA and VA refinancing products remain flexible for borrowers who may not have perfect credit. However, these obstacles can be easily overcome with a little research and preparation. Here are some of the things to be ready for, and some tips on how you can prepare yourself to go through the mortgage refinancing process with ease:
1) Income – Today it is more important than ever for home refinancing to be able to document your income. You must be able to document that you can afford making payments on your personal and housing obligations to qualify for a refinance loan.
2) Credit Score – Even more than in previous years, credit scores are the driving factor for lenders to approve a homeowner for a refinance loan. Underwriters like the credit score system because it measures the borrowers payment history for multiple accounts like home, car and credit card payments.
3) Home Equity- Your current home value is a key component of the refinance process. Homeowners considering refinancing are frequently concerned that their housewill appraise for a lower value than they expected. It’s important that you do your homework so you aren’t solely relying on the information provided by the appraiser. More appraisers are working in areas they aren’t familiar with and that often means they are going to undervalue the property.
It’s important to find a lending company that you trust when you are considering mortgage refinancing. A good loan professional can help you breeze through the refinance process and help you find the option that works for you. Now is a great time for mortgage refinancing because interest rates will likely not get lower.
Home mortgage refinancing can be an excellent opportunity to get a lower interest rate and more financial security for your home during these turbulent times. Getting the best mortgage refinance rates is imperative to maximize monthly savings. That is why homeowners should shop for a refinance loan and negotiate the closing costs. Market insiders have been reporting higher loan fees from mortgage lenders today. Since the housing crisis we have seen fewer mortgage lenders and brokers. Loan companies may be in a better position to offer you a no cost refinance option, but your credit must be stellar.
According to Steve Brown, CEO of Pacific Coast Bankers’ Bank, in San Francisco, mortgage lenders are trying to make up for loan default losses by raising revenues in closing costs on new refinances transactions. The era of no income verification loans is long gone amid tightened regulations.
According to Yahoo Finance, the top 5 mortgage lenders today are Bank of America, Wells Fargo, JPMorgan Chase, U.S. Bancorp and Citigroup, “These banks represent the vast majority of all loans in the U.S.,” Brown said. But these banks sell home loans with largely the same set of borrowing requirements, as nearly all mortgage today are backed by the Federal Housing Administration, Fannie Mae and Freddie Mac. But borrowers should still shop for the best mortgage refinance rates and look for the lending deals. Most mortgage bankers say a borrower should plan for a 30 to 60 day process when home refinancing. With dropping property values and stricter appraisal guidelines, getting an appraisal can be an obstacle for mortgage refinancing. “They might have to have the home appraised a couple of times to get a solid valuation.”
A spokesman for the Mortgage Lead Vault, a mortgage lead company recommended “making sure that you are comparing apples to apples. Verify the interest rate, term and of course the closing costs when comparing lender quotes.” According to Zillow the survey indicated that borrowers spend about 5 hours shopping for a home loan online, yet they spend 10 hours shopping for a car. 31% of borrowers spent less than 2 hours researching their refinance loan. About 50% of all borrowers “only got one or two mortgage quotes.” Many loan professionals suggest getting four refinance quotes.
Shopping Online for a Mortgage Refinance Loan
By · CommentsMortgage refinance continue to tumble, but which borrowers qualify? Unfortunately, even with a significant amount of home equity, most borrowers will not qualify for home refinancing because of the tougher credit guidelines that were recently implemented by mortgage lenders on conventional and FHA mortgage products.
Homeowners who saved up equity consider mortgage refinance loans. Many homeowners typically look toward a debt consolidation or home equity loan to roll their credit card debt or to get additional cash out. Current second mortgage guidelines do not lend to the needs of most borrowers because most do not have enough equity in their home. Credit score requirements have also been raised for equity loans, so many homeowners have been turning back to refinance loans to accomplish debt consolidation or to finance home improvements.
Mortgage rates remain favorable for home refinancing. Today’s home refinance loan terms are as follows: 30-year fixed at 4.875 % with no points or a 15-year at 4.375 % with no points or fees.
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