New Bottom for Mortgage Rates

New Bottom for Mortgage Rates

RECBL - Real Estate News

Mortgage rates overall hit a new bottom first week of September, with the 30-year, fixed rate averaging 3.78 percent, a decrease from 3.82 percent the week prior, according to Freddie Macs recently released Primary Mortgage Market Survey(R) (PMMS(R)).

The 15-year, fixed rate averaged 3.08 percent, down from 3.12 percent the week prior, while the 5-year, Treasury-indexed hybrid adjustable rate averaged 3.15 percent, up from 3.14 percent the week prior.

"The 10-year Treasury yield fell nine basis points this week, reaching a new 2017 low for a second consecutive week," says Sean Becketti, chief economist at Freddie Mac. "The 30-year mortgage rate followed, dropping four basis points to a year-to-date low of 3.78 percent."

The movement of mortgage rates is related, to an extent, to the movement of the key interest rate, which is set by the Federal Reserve and will be voted on at its quarterly meeting in September. Employment data for August suggest the key rate, and mortgage rates, as a result, will stay low.

"It has been a humdrum economy so far this year, seesawing between good to tolerable, yet certainly not great," said Lawrence Yun, chief economist of the National Association of REALTORS(R) (NAR), in a statement on the August jobs report. "Nonetheless, the 12-month job gains total still tops 2 million, and that will likely grow household formation and home-buying demand. The job figures...assures that interest rates will remain low for a longer period."

Source: Freddie Mac

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Struggling With Mortgage Payments? HARP May Help

Struggling With Mortgage Payments? HARP May Help

RECBL - Real Estate News

(TNS)-HARP, or the Home Affordable Refinance Program, is a great way to refinance your mortgage and save a ton of money in interest charges. HARP allows homeowners who have little or no equity in their homes to refinance their mortgages and get lower interest rates. You can even refinance if your mortgage is upside down.

The program was due to expire in September, but it has been extended through December 2018, adding 15 months to this popular initiative.

The 2008 housing crisis left many homeowners owing more on their mortgages than their homes were worth. The rate of foreclosures rose 81 percent in 2008 alone and more than 860,000 homeowners lost their homes.

In 2009, mortgage finance giants Fannie Mae and Freddie Mac launched HARP. More than 3.4 million homeowners have refinanced their mortgages through HARP since then.

By refinancing your home through HARP, you may be able to reduce the interest you pay.

If you don’t want to start over with a 30-year mortgage, that’s OK-your loan terms can be set from 10 to 30 years. HARP also offers a streamlined refinancing process that requires less documentation than traditional refinance programs.

For homeowners whose mortgage rates are much higher than current interest rates, they’re likely see an immediate drop in their house payments.

HARP loans are specifically designed for homeowners whose mortgages have a loan-to-value ratio of 80 percent or more.

To calculate your loan-to-value ratio, divide the amount of money you owe on your mortgage by your homes appraised value. For example, if you owe $170,000 on your mortgage and your homes appraised value is $200,000, your loan-to-value ratio is 85 percent.

You may be eligible to refinance your mortgage through HARP if you meet the following criteria:

• You’re up to date on your mortgage payments, have not been 30 or more days late in the past six months and have not been late more than once in the past 12 months.

• The home is your primary residence, a one-unit second home or a one- to four-unit investment property.

• Your loan is owned by Freddie Mac or Fannie Mae.

• Your loan-to-value ratio is 80 percent or greater.

• You had the mortgage before May 31, 2009.

Many people don’t know if their mortgage is owned by Fannie Mae or Freddie Mac, but you can use their online tools to find out.

If you were previously denied a HARP-sponsored mortgage because you were upside down on your mortgage, it may be time to apply again. Borrowers who owe more on their loan than their homes values are now eligible.

Like with refinancing any mortgage, you’ll have to pay closing costs (which can be rolled into your loan). While a lower mortgage payment reduces your monthly expenses, you’ll want to calculate whether the savings in your monthly payment outweigh your costs.

When you apply for your loan, the lender will give you a "good faith estimate" and a "truth in lending statement." This outlines your costs for the life of the loan. Compare these documents to your current loan terms to determine if you’ll come out ahead with your new refinancing package.

If your existing mortgage includes mortgage insurance, you’ll be required to have the same amount of mortgage insurance with your new loan. If your existing mortgage doesn’t have mortgage insurance, you won’t be required to carry it for the new loan.

If you think a HARP refinancing might save you money, gather your most recent financial records, including mortgage statements, pay stubs and income tax returns. Contact your lender and ask if it participates in HARP. If your lender doesn’t, contact a HARP lender approved by Fannie Mae or Freddie Mac on their websites or on the Federal Housing Finance Authority website.

Visit Bankrate online at www.bankrate.com.

(C)2017 Bankrate.com
Distributed by Tribune Content Agency, LLC




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Fed hike will co$t consumer$

It's a trap

Fed hike will cost consumers $1.6 billion in credit card interest

#realestate #cashbuyerslists #interestrates #carloans #creditcard #schoolloan #mortgages #studentloans #credit #card #debt #billion #million

For the 157 million Americans who carry a balance on their credit cards, Wednesday's Fed action is bad news.

With credit card debt rising steadily, the quarter-percentage-point increase in the federal funds rate will cost consumers roughly $1.6 billion in extra finance charges in 2017, according to...

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FAVORABLE LENDING STANDARDS, LOW RATES TO LIFT HOUSING THROUGH 2016

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A recently released forecast expects the economy to regain ground through the remainder of the year, boding well for the housing market in the months to come. According to Fannie Mae's Economic & Strategic Research Group's recent 2016 Economic and Housing Outlook, the economy is on track to grow 1.8 percent this year, boosted by an improving employment landscape and higher levels of consumer spending-both of which will give lift to housing.

"Housing market fundamentals remain a mixed bag," Doug Duncan, Fannie Mae's chief economist, explained in a statement about the Outlook. "During the second quarter of 2016, both new- and existing-home sales rose to expansion highs, while single-family starts pulled back, remaining historically low for an expansion.

"Tight housing inventory from a lack of new construction continues to create affordability challenges, particularly at the lower end of the market," Duncan continued. "Robust rental demand during the second quarter of the year has created the lowest rental vacancy rate in decades. In addition, the homeownership rate dropped to below 63 percent in the second quarter, but we are seeing some tentative signs of older millennials moving toward homeownership.

"We expect homebuyers will benefit from improving job and wage growth, more favorable lending standards, and continued low mortgage rates through the rest of the year, with the 30-year fixed-rate mortgage rate projected to average 3.4 percent during the fourth quarter."

Source: Fannie Mae

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