Sunday, December 11, 2011
Tuesday, May 31, 2011
Home Prices Continue Downward Trend in 2011
As much as we all hoped for a strong beginning to 2011 for the US housing market, home prices hit another new low in the first quarter. This is down 5.1% from a year ago to levels not reached since 2002! What makes matters even worse is that there seems to be no relief in sight, as the average home price is down 32.7 percent from the peak price set five years ago.
The culprit is of course, the huge number of foreclosures that continue to hit the market, sell at bargain prices, and bring everyone’s home values down.
Reduced home values are also hampering many refinancing opportunities for homeowners that could cash-in on today’s historic low refinance mortgage rates.
Yes, mortgage-underwriting standards are much tougher than we have experienced in many years, yet the overall toughest hurdle for borrowers continues to be home value.
There remain two refinancing programs that can provide great opportunity for high loan-to-value (LTV) borrowers. One is the FHA mortgage program and the other is the Fannie Mae DU Refi Plus program. Both of these programs allow individuals to refinance at great refinance rates with an LTV up to 97.75 percent for an FHA loan, and 105 percent for the Fannie Mae program.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
The culprit is of course, the huge number of foreclosures that continue to hit the market, sell at bargain prices, and bring everyone’s home values down.
Reduced home values are also hampering many refinancing opportunities for homeowners that could cash-in on today’s historic low refinance mortgage rates.
Yes, mortgage-underwriting standards are much tougher than we have experienced in many years, yet the overall toughest hurdle for borrowers continues to be home value.
There remain two refinancing programs that can provide great opportunity for high loan-to-value (LTV) borrowers. One is the FHA mortgage program and the other is the Fannie Mae DU Refi Plus program. Both of these programs allow individuals to refinance at great refinance rates with an LTV up to 97.75 percent for an FHA loan, and 105 percent for the Fannie Mae program.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Friday, April 29, 2011
Pull-Back on Treasury Yield Bringing Down Refinance Mortgage Rates Again
I must say that every time I feel that the 10-Yr Treasury Yield along with refinance mortgage rates are set to rise, the exact opposite occurs. That is why I always tell my clients not to try to read where refinance rates will go, just react to the current market. If you are sitting on a rate lock opportunity that meets your financial and short/long term refinancing goals, then it’s time to move forward with the application.
The Fed recently announced that the end of the 600 Billion dollar treasury buyback program will end this summer. On that news, coupled with a continued upswing in the stock market, one would suspect bonds to get crushed, yet there is still a flight to security in bonds, which is always good news for refinance mortgage rates.
So, in a nutshell, if you’ve been sitting on the fence waiting to refinance, rates are swinging down closer to the all-time historic lows reached last year.
Housing is still a muddied mess in my opinion. Although we have experienced better sales numbers, home prices continue to decline. Supply has shrunk a bit, but there are still an undisclosed major number of bank owned properties on the sidelines, yet to hit the market. Unfortunately, I don’t see a rising home value market for at least another year and quite possibly longer.
I continue to see those crazy refinance mortgage ads stating rates lower than 3.0 percent, with no fine print. I would suggest that you don’t be suckered in to those lenders/lead companies looking to get your business. You will quickly find out that the mortgage rates listed in the ads are for risky short-term adjustable rate mortgages and/or interest-only programs. The old “used-car salesman trick”, or “bait and switch”.
Depending upon your refinance loan scenario, you can most likely get in on a 30 Year Fixed Rate mortgage at under 5.0% with no points and around 4.0 % for a 15 Year Fixed Rate. Yes, there are some extremely nice benefit options still available for a lot of homeowners out there.
Risks to mortgage rates rising continue related to inflation and the economy. I’m sure you have noticed the $4 per gallon gas prices. This condition in addition to the Fed money-printing machine could spell significant inflation down the road. An improving economy and stock market could also put a big kibosh on current historic low refinance mortgage rates. I am all for an improved economy and hope it comes sooner rather than later, but inflation is the nasty after-effect I could do without.
All in all, still a great time for great mortgage rates for the time being.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
The Fed recently announced that the end of the 600 Billion dollar treasury buyback program will end this summer. On that news, coupled with a continued upswing in the stock market, one would suspect bonds to get crushed, yet there is still a flight to security in bonds, which is always good news for refinance mortgage rates.
So, in a nutshell, if you’ve been sitting on the fence waiting to refinance, rates are swinging down closer to the all-time historic lows reached last year.
Housing is still a muddied mess in my opinion. Although we have experienced better sales numbers, home prices continue to decline. Supply has shrunk a bit, but there are still an undisclosed major number of bank owned properties on the sidelines, yet to hit the market. Unfortunately, I don’t see a rising home value market for at least another year and quite possibly longer.
I continue to see those crazy refinance mortgage ads stating rates lower than 3.0 percent, with no fine print. I would suggest that you don’t be suckered in to those lenders/lead companies looking to get your business. You will quickly find out that the mortgage rates listed in the ads are for risky short-term adjustable rate mortgages and/or interest-only programs. The old “used-car salesman trick”, or “bait and switch”.
Depending upon your refinance loan scenario, you can most likely get in on a 30 Year Fixed Rate mortgage at under 5.0% with no points and around 4.0 % for a 15 Year Fixed Rate. Yes, there are some extremely nice benefit options still available for a lot of homeowners out there.
Risks to mortgage rates rising continue related to inflation and the economy. I’m sure you have noticed the $4 per gallon gas prices. This condition in addition to the Fed money-printing machine could spell significant inflation down the road. An improving economy and stock market could also put a big kibosh on current historic low refinance mortgage rates. I am all for an improved economy and hope it comes sooner rather than later, but inflation is the nasty after-effect I could do without.
All in all, still a great time for great mortgage rates for the time being.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Wednesday, March 30, 2011
FHA Monthly Mortgage Insurance Changes in April 2011
The HUD department certainly has been busy over the past couple of years with many underwriting guideline changes, as well as changes to the FHA Upfront Mortgage Insurance Premium (UFMIP) and monthly mortgage insurance (MI). The next change will occur on April 18, 2011, and applies to the monthly mortgage insurance percentage rates.
· Currently for FHA loans with a term over 15-Years with a loan-to-value ratio that is Under 95 percent, the monthly MI is .85 percent, which will change to 1.10 percent in April.
· For FHA loans with a term over 15-Years with a loan-to-value ratio that is Over 95 percent, the monthly MI is currently at .90 percent, which will change to 1.15 percent in April.
· For FHA loans with a 15 Year term or lower with a loan-to-value ratio that is Under 90 percent, there is no monthly MI requirement. That will change to a MI percentage of .25 percent in April.
· For FHA loans with a 15 Year term or lower with a loan-to-value ratio that is Over 90 percent, the current MI percentage is .25 percent. That will change to a MI percentage of .50 percent in April.
The current FHA UFMIP will not change from the current 1.0 percent.
How long will you have monthly MI with an FHA mortgage?
FHA monthly mortgage insurance will be required for a minimum of 5 years and will drop off your payment once your loan-to-value ratio falls to 78 percent through repayment of the loan.
FHA rates are still in a great range, so now might be a good time to get moving if you’re considering an FHA refinance. Get the rates while they are still near historic lows and miss-out on the monthly mortgage insurance increase, which goes into effect on April 18, 2011. Your loan doesn’t need to close by then, all you need is to have your FHA case number assigned by then.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
· Currently for FHA loans with a term over 15-Years with a loan-to-value ratio that is Under 95 percent, the monthly MI is .85 percent, which will change to 1.10 percent in April.
· For FHA loans with a term over 15-Years with a loan-to-value ratio that is Over 95 percent, the monthly MI is currently at .90 percent, which will change to 1.15 percent in April.
· For FHA loans with a 15 Year term or lower with a loan-to-value ratio that is Under 90 percent, there is no monthly MI requirement. That will change to a MI percentage of .25 percent in April.
· For FHA loans with a 15 Year term or lower with a loan-to-value ratio that is Over 90 percent, the current MI percentage is .25 percent. That will change to a MI percentage of .50 percent in April.
The current FHA UFMIP will not change from the current 1.0 percent.
How long will you have monthly MI with an FHA mortgage?
FHA monthly mortgage insurance will be required for a minimum of 5 years and will drop off your payment once your loan-to-value ratio falls to 78 percent through repayment of the loan.
FHA rates are still in a great range, so now might be a good time to get moving if you’re considering an FHA refinance. Get the rates while they are still near historic lows and miss-out on the monthly mortgage insurance increase, which goes into effect on April 18, 2011. Your loan doesn’t need to close by then, all you need is to have your FHA case number assigned by then.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Sunday, February 27, 2011
Current Dip in Refinance Mortgage Rates
Since the rock-bottom historic low refinance mortgage rates of November of last year, rates have been slowly edging their way up to mirror the movement of the 10-Yr Treasury yield. The yield actually increased over 1.0% in the time-span between November and the beginning part of February 2011.
Yet, even at the high point of refinance mortgage rates so far in 2011, historically speaking, they were still at awesome levels. We have, in the past week, experienced a nice dip back down in interest rates by an average of one-quarter point and the average 30-Year Fixed Rates are now hovering solidly under 5.0% once again.
The reason for the recent fall in refinance mortgage rates can be attributed to the recent global unrest in Egypt and Libya along with other global issues. The unrest is leading another investor flight to quality in US bonds and driving the yield down.
How long this dip in rates will last is anyone’s guess, but there could be another anti-bond factor working in the background…. Inflation. Oil prices have surged recently and fuel costs seem determined to match or beat their all-time highs. One would guess that the US corporations have sucked every last ounce of labor-savings out of the workforce by this point as well. These two factors, combined with the Fed’s money printing factory may lead to a bout of significant inflation. This is not good for the economy or for refinance mortgage rates.
There have also been some rumblings from the Fed that they may put an end to the $600 billion bond-buying program. Again, this would not be a good sign for refinance mortgage rates.
Refinance mortgage program offerings have not laxed yet, but the Fannie Mae DU Refi Plus program is still available. This program is essentially a streamline refinance that is a huge help for those that do not currently have private mortgage insurance on their mortgage and also have had a decline in home value, creating a loan-to-value refinancing scenario that is over 80%. For those eligible, you can refinance into the great current refinance rates and will not have PMI attached to your loan. Also, in many instances, one will not need to have a home appraisal done.
FHA refinance loans can also be a good option in today’s market, although one might want to act fast. The FHA required monthly mortgage insurance (PMI) is set to increase in April of this year.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Yet, even at the high point of refinance mortgage rates so far in 2011, historically speaking, they were still at awesome levels. We have, in the past week, experienced a nice dip back down in interest rates by an average of one-quarter point and the average 30-Year Fixed Rates are now hovering solidly under 5.0% once again.
The reason for the recent fall in refinance mortgage rates can be attributed to the recent global unrest in Egypt and Libya along with other global issues. The unrest is leading another investor flight to quality in US bonds and driving the yield down.
How long this dip in rates will last is anyone’s guess, but there could be another anti-bond factor working in the background…. Inflation. Oil prices have surged recently and fuel costs seem determined to match or beat their all-time highs. One would guess that the US corporations have sucked every last ounce of labor-savings out of the workforce by this point as well. These two factors, combined with the Fed’s money printing factory may lead to a bout of significant inflation. This is not good for the economy or for refinance mortgage rates.
There have also been some rumblings from the Fed that they may put an end to the $600 billion bond-buying program. Again, this would not be a good sign for refinance mortgage rates.
Refinance mortgage program offerings have not laxed yet, but the Fannie Mae DU Refi Plus program is still available. This program is essentially a streamline refinance that is a huge help for those that do not currently have private mortgage insurance on their mortgage and also have had a decline in home value, creating a loan-to-value refinancing scenario that is over 80%. For those eligible, you can refinance into the great current refinance rates and will not have PMI attached to your loan. Also, in many instances, one will not need to have a home appraisal done.
FHA refinance loans can also be a good option in today’s market, although one might want to act fast. The FHA required monthly mortgage insurance (PMI) is set to increase in April of this year.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Friday, January 28, 2011
$600B Bond Purchase Program Still On the Table – Good for Mortgages
The Fed’s $600B bond purchase program has come under tremendous political heat over the past month. There was talk of ending the program altogether, which would have been a big punch in the gut for refinance mortgage rates. As the Fed buys back large chunks of US Treasuries, the bond price increases and the yield declines. Since the yield is a major force behind mortgage rate pricing, this is a big deal for the home finance market.
Wednesday’s assessment of the Fed policymakers was that the economy isn't growing fast enough to lower unemployment and still needs help from the Federal Reserve's $600 billion Treasury bond-purchase program. The Fed noted that the economy still faces risks. The biggest: that high unemployment will damp consumer spending, which accounts for 70 percent of national economic activity.
Fed policymakers said Wednesday they'll continue to monitor the bond-buying program. They have left open the option of buying more bonds if the economy weakens, or less if it strengthens. An ending of the program had the potential to send mortgage rates up significantly, further damaging an already fragile housing market.
In the end, mortgage refinance rates are still near historic lows, yet there appears to be the risk of an increase to rates as the stock market breaches the 12,000 mark on the Dow.
On the housing front, new-home sales in 2010 fell to lowest point in 47 years. Sales for all of 2010 totaled 321,000, a drop of 14.4 percent from the 375,000 homes sold in 2009, the Commerce Department said Wednesday. It was the fifth consecutive year that sales have declined after hitting record highs for the five previous years when the housing market was booming.
Builders of new homes are struggling to compete in markets saturated foreclosures. High unemployment and uncertainty over home prices have kept many potential buyers from making purchases. High foreclosure rates and lackluster buying continue to bring housing prices south.
For refinancing homeowners that have suffered significant home depreciation and fall into the high loan-to-value scenario camp, there are still great deals available with FHA loans and possibly by utilizing the Fannie Mae DU Refi Plus program.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Wednesday’s assessment of the Fed policymakers was that the economy isn't growing fast enough to lower unemployment and still needs help from the Federal Reserve's $600 billion Treasury bond-purchase program. The Fed noted that the economy still faces risks. The biggest: that high unemployment will damp consumer spending, which accounts for 70 percent of national economic activity.
Fed policymakers said Wednesday they'll continue to monitor the bond-buying program. They have left open the option of buying more bonds if the economy weakens, or less if it strengthens. An ending of the program had the potential to send mortgage rates up significantly, further damaging an already fragile housing market.
In the end, mortgage refinance rates are still near historic lows, yet there appears to be the risk of an increase to rates as the stock market breaches the 12,000 mark on the Dow.
On the housing front, new-home sales in 2010 fell to lowest point in 47 years. Sales for all of 2010 totaled 321,000, a drop of 14.4 percent from the 375,000 homes sold in 2009, the Commerce Department said Wednesday. It was the fifth consecutive year that sales have declined after hitting record highs for the five previous years when the housing market was booming.
Builders of new homes are struggling to compete in markets saturated foreclosures. High unemployment and uncertainty over home prices have kept many potential buyers from making purchases. High foreclosure rates and lackluster buying continue to bring housing prices south.
For refinancing homeowners that have suffered significant home depreciation and fall into the high loan-to-value scenario camp, there are still great deals available with FHA loans and possibly by utilizing the Fannie Mae DU Refi Plus program.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Tuesday, December 28, 2010
High LTV Refinancing Options as Home Prices Continue to Weaken
As we near the end of another year, two vital home refinancing factors have stayed rather constant throughout the year. The first being that refinance mortgage rates have held near the all-time record setting lows. The second factor being that home prices continue to fall. As they say, you have to take the good with the bad!
For those that have been hit hard with regional home valuation dips that will cause a high loan-to-value (LTV) ratio scenario for your refinance, there are a couple of alternatives that will allow you to cash-in on the great refinance rates without paying the penalty in private mortgage insurance (PMI) and higher adjusted rates.
The first of those options would be to utilize a conventional streamline refinance program. You can refinance a loan amount up to 105 percent of the appraised value of your home and you still get access to the best rates with no PMI. To be eligible for this option, you only need to be currently in a Fannie Mae home loan.
The second option would be to refinance with an FHA loan. With FHA loans, the borrower can refinance a total loan amount up to 97 percent of the home appraisal amount with no big hit to the qualified rate. In fact, FHA rates have been outperforming conventional rates of late, especially in the 80-plus LTV scenario range. Yes, you will have PMI with an FHA loan, but the PMI rate is up to 50% less than what you would get with a conventional mortgage, and it will be eliminated in as little as 60 months, once your LTV drops to 78 percent. Also, for those looking to refinance into a 15-yr FHA loan, you will not be charged any PMI at all if your final LTV is at 90 percent or lower. Yes, Virginia, there is a Santa Claus!
To the most recent housing numbers, U.S. single-family home prices fell for a fourth straight month in October pressured by a supply glut, home foreclosures and high unemployment. It still could be some time until the supply and demand curve changes to a more promising direction.
All in all, it’s been a great year to refinance for thousands of homeowners, thanks to historic low rates. Yes, qualifying those loans has been more difficult, but the reward has been definitely worth it.
The year ahead in refinancing will be dependant once again on the housing market and employment. A potential curveball could be a rise in mortgage rates, as the 10-year treasury yield begins to bounce of its 2010 lows.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
For those that have been hit hard with regional home valuation dips that will cause a high loan-to-value (LTV) ratio scenario for your refinance, there are a couple of alternatives that will allow you to cash-in on the great refinance rates without paying the penalty in private mortgage insurance (PMI) and higher adjusted rates.
The first of those options would be to utilize a conventional streamline refinance program. You can refinance a loan amount up to 105 percent of the appraised value of your home and you still get access to the best rates with no PMI. To be eligible for this option, you only need to be currently in a Fannie Mae home loan.
The second option would be to refinance with an FHA loan. With FHA loans, the borrower can refinance a total loan amount up to 97 percent of the home appraisal amount with no big hit to the qualified rate. In fact, FHA rates have been outperforming conventional rates of late, especially in the 80-plus LTV scenario range. Yes, you will have PMI with an FHA loan, but the PMI rate is up to 50% less than what you would get with a conventional mortgage, and it will be eliminated in as little as 60 months, once your LTV drops to 78 percent. Also, for those looking to refinance into a 15-yr FHA loan, you will not be charged any PMI at all if your final LTV is at 90 percent or lower. Yes, Virginia, there is a Santa Claus!
To the most recent housing numbers, U.S. single-family home prices fell for a fourth straight month in October pressured by a supply glut, home foreclosures and high unemployment. It still could be some time until the supply and demand curve changes to a more promising direction.
All in all, it’s been a great year to refinance for thousands of homeowners, thanks to historic low rates. Yes, qualifying those loans has been more difficult, but the reward has been definitely worth it.
The year ahead in refinancing will be dependant once again on the housing market and employment. A potential curveball could be a rise in mortgage rates, as the 10-year treasury yield begins to bounce of its 2010 lows.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
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