Archive for Mortgage Refinance News

Jan
13

Mortgage Refinancing Applications Surge

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According to MBA, mortgage refinance applications increased last week as homeowners looked to seize on record low interest rates. The jump in refinance applications came from all over the country as borrowers from California to Maine were seeking lower monthly mortgage payments once again.  The Mortgage Bankers Association reported yesterday that overall activity surged nearly 4.5% for the week ended January 6th. Most analysts predict that the mortgage refinance rate will remain at record lows for most of 2012.

Home Mortgage Refinancing Volumes Continue to Soar with Record Low Rates

The index got a boost from a 3.3% increase in refinance loans while consumers looking for a home purchase loan spiked 8.1 % from a week earlier.  The refinance loan share of home financing activity fell to 80.8% of total applications from the prior week’s survey high of 81.9%.

The fixed 30-year refinance rates, on loans with conforming balances ($417,500 or less) rose to 4.11% from 4.07%. The jumbo rates fell to 4.34 % from 4.41%.

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Those considering refinancing thеіr hоmе fоr а better mortgage rate shоuld consider а number оf factors, аnd learn thе tips аnd tricks tо help gеt thе best refinance rates fоr thеіr mortgage. In most cases, yоu shоuld pass on thе fіrst refinance offer because multiple offers usually yield lower rates. Shopping аrоund tо compare refinance rates аnd terms frоm а wide variety оf lenders will help уоu tо gеt thе best deal роssіblе. Оnсе уоu hаvе fоund а good deal, уоu shоuld check tо find оut whеthеr thеrе will bе аnу hidden fees. Тhеsе саn include closing fees оn уоur оld mortgage аs well аs fees tо open thе nеw mortgage. The bottom line always comes down to this; Do the current mortgage refinancing rates save you money?

Mortgage Refinancing Tips

Υоu shоuld calculate уоur expected monthly аnd yearly savings frоm thе refinanced mortgage. Тhеn, thе costs оf refinancing shоuld bе deducted frоm thіs amount. Тhіs will tеll уоu whеthеr а gіvеn plan іs worth уоur whіlе, оr whеthеr уоu shоuld continue shopping. Аftеr thеsе calculations hаvе bееn finished, уоu mау find thаt thеrе іs оnе lender уоu раrtісulаrlу prefer. Маnу borrowers prefer tо stick wіth thеіr current lender bесаusе оf thе familiarity thаt lender brings. Іn thіs case, sее іf уоu саn convince thаt lender tо match уоur best refinancing offer. Іf thеrе аrе sоmе fees уоu dо nоt feel уоu саn accommodate, іt іs аlwауs worth аskіng уоur lender іf thеу wоuld bе wіllіng tо waive thеm іn order tо retain уоur business. Always compare no closing cost mortgage refinance offers with the lender’s lowest rate program. Тhе worst thаt thеу саn sау іs nо. Іn thаt case, уоu саn simply move оn tо thе nехt lender.

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Nov
08

Refinancing Mortgage Forecast Looks Positive

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The new year  looks to be another prosperous year for homeowners looking to secure a mortgage refinance at a record low interest rate. As the mortgage refinance rate continues to hover at 4% on thirty year terms, more homeowners are making a move to get their monthly payment reduced.  With the Federal Reserve’s commitment and the volume being turned up on the Home Affordable Refinance Program, you can expect next year to another glorious year for mortgage originators and qualified homeowners. The security of an affordable mortgage payment for thirty-years cannot be underscored and that’s why mortgage lenders continue to report a significant increase in refinancing activity.

Refinancing a mortgage makes sense for most borrowers because it reduces their interest rate and increases their cash flow.  According to mortgage analyst, James Budge, “Homeowners can do the math and they know that 4% rates will put extra money in their pocket each month.” Budge continued, “You can expect to see a surge in home mortgage refinancing activity if the unemployment rate rises and the American economy continues to sputter in 2012.”

The average borrower who completed a fixed mortgage refinancing transaction reduced the interest rate by about 1.2 percentage points, a 22% drop in the mortgage refinance rate.  Freddie Mac Vice President and Chief Economist Frank Hothaft, said,”Savvy homeowners are taking advantage of some of the best fixed mortgage refinance rates in more than 60 years to lock in interest savings.”

According to a recent report from Freddie Mac, the majority of homeowners living in the United States that refinanced their home loan either maintained or reduced their mortgage debt in the third quarter.  The latest data are another sign that many borrowers are still using their incomes to pay down debts after the economic downturn took a toll on many overleveraged consumers. Low interest rates are also making the net savings from refinancing more attractive.

According to the report, 44% of first mortgage homeowners maintained the same loan amount, while 37% reduced their principal balance by paying-in additional cash at the time the loan funds. This compared with 51% of homeowners who maintained their mortgage balance and 26% who lowered their principal balance in the 2nd quarter.

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Jun
22

Underwater Mortgage Refinancing

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Millions of homeowners continue to complain about the lack of solutions for underwater mortgage refinancing. CoreLogic issued an alarming report regarding negative equity that points to a double dip and another housing bubble bursting in the near future. Almost 23% of all U.S. homeowners who are struggling with underwater home mortgage loans at the end of the first quarter of 2011 fell slightly from 23.1% in the 4thquarter of 2010.  CoreLogic reported that nearly 11 million homeowners have negative equity and are strapped with underwater home loans.  With so many borrowers owing more on their home loans than their property is worth and another 2.5 million borrowers were nearly underwater which the real estate data and analytics company defines as having less than 5% positive equity.

It’s no secret that the decline in home prices led to the under-water mortgage trend.  Borrowers with 2nd mortgage liens on their home were twice as likely to suffer negative equity as those with only one lien.  18% of borrowers without home equity mortgages were underwater while 38% of borrowers with home equity loans were in a negative position.  A total of 4.5 million underwater borrowers have an equity loan or credit line.

CoreLogic’s recent report does not attach a total dollar value to negative equity statistics but an analysis of the distribution of underwater home loans based on fourth-quarter 2010 numbers was published by the company last month which put the aggregate national net equity at $750 billion.  The %age of underwater borrowers has declined only 4 basis points since that time.

  • The average underwater borrower owes $65,000 more than their home’s estimated value.
  • According to CoreLogic the states with the most significantly underwater mortgages did show slight improvement from the 4th quarter of 2010;.
  • Home loan default rates increase with the level of underwater mortgages but not necessarily with the number of outstanding loans.
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May
18

Lower Rates Driving Refinance Volumes Higher

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U.S. home loan application volumes rose last week to the highest level since December of 2010 as lower rates and lending costs made home refinancing more appealing. The Mortgage Bankers Association’s index of loan applications rose 7.8% in the week ended May 13th. MBA reported that refinancing volume increased 13%, while the home buying gauge dropped 3.2%.

Many borrowers are giving lenders a second chance to lower their monthly payments.  Many homeowners are seeking help to get the best mortgage rates for refinancing. Rates have dipped to the lowest levels in nearly six months. Qualified homeowners now have the ability to refinance their existing mortgages to lower the housing expenses. Some homeowners are even refinancing their 1st and 2nd mortgage together and saving a bundles in the process.

MBA said that the average rate on a 30-year fixed loan decreased last week to 4.60%, the lowest since the end of November, from 4.67%.  Refinancing costs reached 4.21% in October, a record-low dating back to when the group’s records began in 1990.  The average rate on a 15-year fixed mortgage dropped to 3.75% from 3.81%, the report showed.  Read the original article, Lenders Report Lower Rates for Refinancing.

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