Refinance Trust

Mortgage Applications uo 3.4%

2010-07-21T22:02:00.000-07:00

New mortgage applications are up 3.4% from last week. Refinance applications are up 9% from last week. It seems home owners and home buyers are taking advantage of record low mortgage rates.

However, many people seeking a mortgage are still having difficulty obtaining financing. Tight guidelines are preventing many people from benefiting from these record low rates.

Unfortunately, the people who need these these lower rates are not always able to obtain these rates.

Refinance Applications Jump

2010-07-12T20:15:00.000-07:00

Refinance applications jump 6.7%. With refinance rates near an all time low many home owners are taking advantage of these low rates. Expect refinance applications to continue with a strong pace if mortgage rates remain low.

30 Year Mortgage Rates Drop to 4.57%

2010-07-08T07:40:00.001-07:00

It's time to refinance. The average 30 year mortgage rate is at a record low. Rates dropped to 4.57%. Homeowners should look at their numbers to see if their is an opporunity to save.

Mortgage Rates Hit Record Low!!!

2010-07-02T06:43:00.000-07:00

This week the average rate for a 30 year mortgage dropped to 4.58%. This beat the previous record which was 4.69%.

Even with this low rates many consumers can't take advantage of these unprecedented rates. Tighter lending guide lines and declining home equity have made it difficult for many borrower to refinance or obtain a new mortgage.

If you are able to qualify you may want to take advantage of this phenomenon. It's very unlikely we will continue to stay at these low rates and see these rates again for a very long time.

Today's Mortgage Rates

2010-05-27T15:39:00.000-07:00

Rates are almost at an all time low. If you need to refinance this may be a great opportunity for you. Todays rates are very attractive. The average 30-year fixed-rate hit 4.78 percent this week, which was the lowest this year. It was just above the record of 4.71 percent set in December.

15-year loans are at their lowest rates in two decades. Borrowers thinking about refinancing should calculate their savings versus the cost of the transaction. Prospective home buyers can save thousands in financing charges over the life time of the loan by taking advantage of the rates. You may want to contact your mortgage professional to look at your numbers and see what you qualify for.

When to Refinance - The New Paradigm

2010-05-17T22:08:00.000-07:00

In the past many it was common place for borrowers to refinance if they were able to obtain a new interest rate at least 1 point below their present rate. However, with rates at all time lows many people are recommending to refinance if your able to obtain a rate of at least .5 lower than your present mortgage. This has become the new paradigm because rates are so low that a small change is a greater percent of the mortgage.

To check your refinance rates, you can contact some of the mortgage companies below:

North Carolina Mortgage Quote
Georgia Mortgage Quote
Florida Mortgage Quote
Texas Mortgage Quote
Oklahoma Mortgage Quote
Florida Mortgage Quote
New York Mortgage Quote
St. Petersburg Mortgage Quote
Pennsylvania Mortgage Quote
Native American Mortgage Quote

Can't Refinance Due to Low Appraisal

2010-05-15T13:02:00.000-07:00

Many borrowers are having difficulty refinancing in today’s economic climate. One issue plaguing borrowers trying to refinance are low appraisals. One way to help prevent a low appraisal is to be proactive.

Prior to the appraisal being complete, provide additional information that could help the appraiser with their valuation. You are going to be more familiar with the area than the appraiser. Let your appraiser know if a low sale occurred due to a high pressure reason, such as a divorce. Also let them know of any foreclosures or short sales that may of occurred as well.

You also may want to request that a lender use a appraiser located in the same geographic area that is more familiar with the location. Keep in mind that the lender isn't obligated to use an appraiser from your area.

Be courteous to the appraiser. Although, the appraiser shouldn't be swayed by nice clients they are only human. Offer your appraiser a refreshment such a glass of lemonade. If they’re in a good mood they may give you the benefit of doubt when able to.

Say Goodbye To The Home Buyer Tax Credit

2010-05-02T00:26:00.000-07:00

The US government did not extend the tax credit this month as many people predicted. The questions looms, on how how this will effect future mortgage applications. Many people feel that mortgage applications may drop quickly. If couple with rising rates, expect the real estate market inventory to increase and prices to drop. We'll update you shortly when we have some hard numbers to share.

Mortgage Fraud On the Rise

2010-04-26T20:36:00.000-07:00

Incidents of residential mortgage fraud rose 7% from last year. The alarming issue is that despite attempts to curb fraud it still seems to be thriving. Although, fraud cases are down from the 26% jump seen in 2008, this sign is troublesome for the mortgage industry. This insight can cause additional scrutiny and/or government regulations that can have adverse affect for industry professionals and customers alike. Hopefully, the industry continues to regulate itself to reduce fraud so that government doesn't get involved more than it already has.

Tax Credit Sparks Rise in Mortgage Applications

2010-04-22T00:09:00.000-07:00

The expiring tax credit sparked a rise in mortgage applications this month. Mortgage applications rose by the most in seven weeks. The home buyer tax credit has incentivised many home buyers to purchase homes these past few months. It will be interesting to see if mortgage applications fall once the tax credit expires at the end of this month

Refinance Applications Drop

2010-04-08T20:21:00.000-07:00

Refinance applications have dropped dramatically as rates rise. Surprisingly, purchase application remained strong. It will be interesting to see how purchase market fairs once the tax credit is removed on April 30th. I'm curious to if the tax credit is the major reason for purchase applications consistency. Only time will tell.

Tax Credit Ends April 30th

2010-03-31T16:04:00.000-07:00

The Federal Tax Credit for home buyers is ending April 30th. Come April 30th first time home buyers will no longer receive an $8,000 tax credit as a first time home buyer. Also, repeat home buyers will no longer receive a $6,500 tax credit. If your looking to purchase you need to move quickly to receive this benefit. However, don't let the ending of this program push you into a hasty decsion. Purchasing a home is typcially your biggest investment you can make throughout your life time. There is no need to make a hasty decsion. Also, you never know if Obama will look to gain more votes by extending the plan further. Good luck home buyers.

You can contact me with any additional questions about the program.

Points or No Points

2010-03-30T03:25:00.000-07:00

When refinancing borrowers should consider paying points depending on their specific situation. A point is typically 1% of the total mortgage loan. If the loan amount is $200,000 than 1 point would be $2,000. In general, the points a borrower pays should equate to a lower interest rate over the life of the loan. No points typically equates to lower up front costs but a slightly higher interest rate over the life of the loan.

If you plan on staying in your home for several years, you may find it beneficial to obtain a lower interest rate and pay more points. A lower rate will provide the borrower with lower monthly payments and the money you pay for points may be tax-deductible over the life of the loan term.

Obama Administation Expanding Modifcation Program

2010-03-25T17:41:00.000-07:00

The Obama administration is focusing on expanding the mortgage modification program to assist a greater number of unemployed homeowners. Tomorrow, Obama’s administration will provide more information about their plans to assist unemployed homeowners. Obama hopes to help homeowners that have been directly affect by the economic crisis “through no fault of their own”, according to an administration official. This change should provide more flexibility to mortgage servicers to help both unemployed and homeowners that saw a large decline in home values in their local market.

I’ll keep you posted about the program once I hear more.

Bank of American Lowers Princpal Mortgage Balances

2010-03-24T19:35:00.000-07:00

Bank of American announced that it would begin lower the principal balances of 45,000 customers. Although this is a small amount of mortgages that are under water, many feel this may spark a trend among lenders. Banks that accepted TARP money had made promises to assist distressed homeowners, however very few followed through with their promises. Bank of America and other lenders may wait to see how their good faith pans out with the government and public before making a larger attempt to help customers.

Although, Bank of America says that this program is by invitation only, you may want to contact the customer service to see if you can qualify for the program. The squeaky wheels gets oiled.

Refinance Tip

2010-03-23T22:39:00.000-07:00

Some borrowers can deduct in full those loan fees from a refinance in that same year of the refinance if you did not deduct loan fees from a previous home loan refinance. Speak with your accountant for more details about this benefit.

203K Program - Rehab Loan

2010-03-18T22:49:00.000-07:00

The 203k program is one of the hottest loan products out today. This product is relatively new and provides a unique opportunity to home buyers interested in the rehabilitation of a property.

The borrower can get just one mortgage loan as opposed to obtianing seperate financing for the purchase of the home versuses the rehabilitation of the property. The borrower can obtain a long-term fixed or adjustable rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.

This loan program provides an important service to communities. It provides the opportunity to revitalize and improve areas while expanding homeowner opportunities. I expect to see many more 203k loans funded in the next several months.

Mortgage Tip - Pay Off Your Mortgage Early

2010-03-03T21:26:00.000-08:00

Borrowers can pay off their mortgage early and save $1,000's of dollars on finance charges. Borrowers that choose to pay off their mortgage early save on the interest they would of paid over the entire life of the loan. Many borrowers will pay an additional payment per year applied to the principal to pay down their loan early.

However, not every person is able to pay an addtional payment. Borrowers can receive a benefit bay paying a small amount to the principal every month. Just make sure that you write on the check that the money should be applied to the principal balance. If you do not write this on the check, mortgage companies will apply the additonal payment to the princpal and you'll loose the benefit fo saving on future finance charges.

Fannie Mae will Purchase Delinquesnt Loans - Quick Update

2010-03-01T15:53:00.000-08:00

Fannie Mae announced that it will significantly increase its purchase of mortgage backed-securities with loans that are least four months delinquent.

Guidelines Maybe Loosening

2010-02-28T19:33:00.000-08:00

Many borrowers and mortgage professionals alike did not expect guidelines to tighten and were planning to refinance out of their adjustable rates. Although several years ago guidelines were very loose and almost anyone was able to qualify for a mortgage within the past few years guidelines have conversely changed making very difficult for borrowers to obtain financing.

Borrowers in this difficult situations are caught between rising monthly payments and the inability to refinance. Luckily, the pendulum swings both ways. Recently, MGIC Mortgage insurance lifted their DTI cap from 41% to 45% for FICOs of 740 or higher. Although this is not a significant change to guideline across the board it is potentially a sign that guide line may be loosening.

Hopefully, we see more positive changes to guidelines and the mortgage industry as a whole.