With today’s improvement, the most prevalently-quoted conventional 30yr fixed loan for top tier borrowers falls back to 3.75%. Some lenders will remain at 3.875% today, but many feel that those lenders held back from passing on the full effect of the market movement not an uncommon occurrence after a volatile swing like today’s.
Economic data affects rates by motivating investors to seek out or avoid risk. Higher demand means higher prices and lower rates. Investors are looking for clarity on the Fed’s plans regarding raising rates, among other things.
From here on out, volatility becomes an increasing risk heading into the Fed’s Announcement next Wednesday. It can either work for or against us, but the point is that if it does work against us, the potential damage is bigger than normal.
It’s not wise to make any huge purchases or move your money around three to six months before buying a home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible.
If you open new credit cards, amass too much debt or buy a lot of big ticket items, you’re going to have a hard time getting a loan.
Falling interest rates precipitated a major refinancing rally according to the Mortgage Bankers Association’s (MBA’s) Refinance Index. The MBA’s Refinance Index is a weekly measurement put together by the Mortgage Bankers Association, and the National Real Estate Finance Industry Association.
Strong job growth, coupled with low mortgage rates, should reflect now the increase in home sales and purchase originations. Great time for purchases but even better for refinancing.
Federal Housing Finance Agency has been working towards a plan to open what many we see as underwriting standards that are too restrictive.
Mortgage giants Fannie Mae and Freddie Mac, their regulator and lenders are close to an agreement that could greatly expand mortgage credit while helping lenders protect themselves from charges of making bad loans, according to people familiar with the matter.
If the agreement is completed, lenders may be more willing to lend to borrowers with lower credit scores and smaller down payments.
Now that lenders are starting to remove some of the credit overlays, it is time to improve the growth of homeownership in the country
We expect FHFA to report the steps to further move and clarify lender liability and support the return of the 97% LTV product at the GSEs, Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac have recouped tens of billions of dollars in penalties from lenders in recent years over claims that the lenders made underwriting mistakes on loans they sold to the mortgage giants.
However, Lenders have blamed those penalties for tight credit conditions and for prompting them to make loans only to borrowers with near-pristine credit.
We hope these initiatives will have a meaningful impact on the mortgage market, and we can see positive changes in the direction of the mortgages industry after years of tightening credit issues.
Next Tuesday will see the existing home sales report for September, on Thursday the FHFA purchase-only house price index for August, and Friday the new home sales report.
Mortgage rates are historically low, and many owners have the opportunity to take advantage, but not all owners pay close attention to these numbers.
You have the opportunity to investigate the possibility of refinancing through HARP or stream line if your loan is FHA to take advantage of the historic rates.
You can analyze what financial options give you the best interest rate and most convenient terms according to your personal situation, and you do this by comparing these rates from various financial institutions through the Good Faith Estimate. This simple action prompts banks to be more competitive and offer rates lower while they.
Mortgage rates are closely linked to the action of the Federal Reserve – Fed and the economy, so it’s important that you analyze your financial situation to see if you could take advantage of the today historic rates, before they take off.
Let me explain with numbers in this example:
Balance of mortgage: $ 200,000 –
§ Interest @6.5% Monthly Payment $ 1,440.
§ Interest @3.75% Monthly Payment $ 1,014.
§ Total Savings Monthly $ 426.
§ Total Savings Per Year $5,112.
§ 30 Years Total Savings $153.360.
Check your mortgage payments, interest rate, balance and the pending term of the life on your loan, so you can determine if refinancing is best for you. The Government Program HARP that does not require evaluation of the value of the property, conventional and FHA Streamline Refinance are great choices to consider allowing substantial savings.
Don’t Miss It Out!
Highest level of home equity loans since June 2009. A total of 797,865 home equity lines of credit were originated nationwide, up 20.6% from a year ago and the highest level since the 12 months ending June 2009, according to RealtyTrac.
The report also shows HELOC originations accounted for 15.4% of all loan originations nationwide during the first eight months of 2014, the highest percentage since 2008.
“This recent rise in HELOC originations indicates that an increasing number of homeowners are gaining confidence in the strength of the housing recovery and, more importantly, have regained much of their home equity lost during the housing crisis,” said Daren Blomquist.
Among the nation’s 50 largest metropolitan statistical areas with HELOC data available, 49 posted year-over-year increases in HELOC originations in the 12 months ending in June 2014.
Metro areas with the biggest year-over-year increase in HELOC originations were Riverside-San Bernardino in Southern California (87.7% increase), Las Vegas (85.1% increase), Cincinnati (81.0% increase), Sacramento (65.1% increase), and Phoenix (60.1% increase).
In addition, the creators of the so-called Wealth Building Home Loan, allows home buyers to build equity at a much faster clip than they would with a standard 30-year loan. Typically, the monthly payment on a 15-year loan is higher than that on a 30-year loan. But the loan amortizes much more quickly, meaning you build wealth — or equity — faster.
According to the latest Federal Reserve Survey of Consumer Finances, an owner’s net worth is 36 times greater than that of a renter. The survey found that the average owner’s net worth is $194,500, whereas a renter’s is $5,400.
Decorating or redesigning our homes should not be thought as an expensive or complicated activity.
The usage of appropriate color scheme and fabrics to emphasize and provide light for the rooms in our home play a very important role. Balance is the most important part of home decorating, and it applies to colors as well. They have the power to affect how we perceive things.
Room colors can influence our mood and our thoughts. Colors affect people in many ways, depending upon one’s age, gender, ethnic background or local climate. So when it comes to decorating, it is important to choose wisely.
You do not have to worry too much about trends, as they come and go. Make your home beautiful by choosing Colors and styles that reflect your personality. Have fun!
And today was an exception to that recent trend, but it’s tempered by the fact that yesterday’s gains were the best of the month.
The only downside is that the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers remains 4.25% whereas it would have likely moved to 4.125% if rate went the other direction today.
These movement considerations may be small scale compared to what lies ahead. Several big tickets events are coming up in the second half of this week and they stand a good chance to increase the level of volatility.