Rising Home Prices Means Fewer Mortgage Modifications

A few years ago ‘mortgage modification’ was a word on the minds of millions of homeowners. Today in an improving housing market, the need for such modifications to save borrowers in danger of foreclosure is shrinking. But according to the Federal Housing Finance Agency  , those who do still need help are finding fewer options available. There were 13,200 permanent loan modifications made through Fannie Mae and Freddie Mac in February of this year, down 3 percent from the month before. Of Read more [...]

Lower Rates Unable to Boost Home Buying

Even after long-term mortgage interest rates plunged to an almost 18-month low last week, there was no positive effect on the number of home purchase applications, according to the Mortgage Bankers Assocation. The rock-bottom rates did however push refinance applications higher. Rates fell as worried investors turned to bonds, said MBA chief economist Mike Frantantoni in a statement. "Continuing concerns about weak economic growth in Europe and a few U.S. economic indicators that came in below Read more [...]

Lenders Make Homeownership More Attainable

We are finally starting to see some of the first verifiable signs of looser lending standards in the mortgage market since the housing collapse. That’s good news for those who have been scrimping and saving to get into a home of their own. As mortgage lenders saw their refinance traffic slow dramatically after this summer’s spike in interest rates, many tried to drum up extra business on the purchase side, by lower credit score requirements and down payment thresholds. Mortgage data tracker Read more [...]

ARMs May Have Saved Millions From Foreclosure

Adjustable-rate mortgages (ARMs) became a dirty word after the collapse of the housing market and the ensuing onslaught of foreclosures several years ago. Buyers and banks got greedy. Borrowers were allowed to take out loans that were way too big for their incomes, but they were able to qualify because the initial teaser rate on ARMs allowed them to afford the first payments. Millions of Americans then lost their homes when their rates adjusted and they could no longer afford their mortgages. Yet Read more [...]

Rising Home Prices Help 850,000 Homeowners Out of Negative Equity

As low interest rates combined with limited inventory, home prices jumped allowing hundreds of thousands of underwater homeowners to climb out of their negative equity in the first quarter of this year, according to data from real estate information firm CoreLogic. “The negative equity burden continues to recede across the country thanks largely to rising home prices,” Anand Nallathambi, president and CEO of CoreLogic said in a press release. “We are still far below peak home price levels, Read more [...]

Rising Interest Rates Cause Slip in Home Sales

Sales of existing U.S. homes fell in June, according to the National Association of Realtors, as a jump in mortgage interest rates turned off some buyers. Total sales of existing homes dropped 1.2 percent last month to a seasonally adjusted annual rate of 5.08 million, down from 5.14 million in May. Compared with June 2012, however, sales are up 15.2 percent. “Affordability conditions remain favorable in most of the country, and we’re still dealing with a large pent-up demand,” said NAR Read more [...]

How Will Rising Rates Affect Your Mortgage Decision?

Long-term interest rates on U.S. mortgages jumped the most this week in 26 years, according to data from Freddie Mac, with the average rate on a 30-year conventional, fixed-rate loan skyrocketing to 4.46 percent, up from 3.93 percent the week before. Rates have not been that high in roughly two years and have not made such a steep weekly jump since 1987. “Following Fed chief [Ben] Bernanke's remarks on June 19th about the possible timing of reduced bond purchases, Treasury bond yields jumped Read more [...]

Want the Best Mortgage Deal? Shop Around!

Mortgage interest rates are still near record lows, but that doesn't mean you will get the same deal from every lender. Even in an attractive rate atmosphere it's important to shop around to save yourself big time on your monthly payment as well as over the course of the loan. Contact Several Lenders Start your search by calling or emailing several different lenders. Your bank may be a good source of mortgage funding, but don't count out local credit unions and mortgage companies. You could Read more [...]

Three Reasons Why You Should Refinance Now

Now may be the very best time in history to refinance your mortgage. The reason: rock-bottom, all-time record low interest rates. Since the middle of the Great Recession, the Federal Reserve has aggressively kept rates low in order to boost the economy and those low rates can mean big savings for homeowners. Here are three reasons why now is a great time to refinance a mortgage. 1. Low Interest Rates Mean Lower Monthly Payments How much you pay each month to the mortgage company is greatly Read more [...]

Mortgage Rates Hit New Record Lows

Interest rates on long-term U.S. mortgage loan dropped again in the latest week, with some finding new all-time lows, according to mortgage finance company Freddie Mac. During the week ended April 25, 2013, the average rate on a 30-year fixed rate mortgage (FRM) fell to 3.40 percent, excluding fees, down from 3.41 percent the week before and down from 3.88 percent at this time last year. This is the fourth consecutive week of falling rates and the 30-year FRM rate is now back to lows not seen Read more [...]