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Mortgage Interest Rates Still at Record Lows but Mortgage Applications are Down

Jun 24th 2010

By: admin

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Mortgage interest rates are still at crazy cheap record lows. The bad news is that even at the incredible lows, mortgage applications around the nation were down. This indicates that future home sales were also be down, and that a large percentage of candidates for mortgage refinances, are have all ready done so, or cannot qualify for home loans. Here is the latest from the Mortgage Bankers Association:

Mortgage applications declined 1.2 percent last week compared to the previous week on an adjusted basis, according the Mortgage Bankers Association weekly survey.

On an unadjusted basis, purchased applications declined 2.3 percent and they were 36.8 percent lower than they were the same week a year ago.

The decline in purchase applications was driven by a 4.4 percent decrease in applications for government-backed mortgages, according to the MBA. Conventional purchase applications actually increased 1 percent.

Most mortgage rates were at their lowest point since mid-May:

* 30-year fixed-rate mortgages decreased to 4.75 percent from 4.82 percent.

* 15-year fixed-rate mortgages decreased to 4.19 percent from 4.23 percent.

* 1-year ARMs decreased to 7.05 percent from 7.07 percent.

Source: Mortgage Bankers Association (06/23/2010)

via REALTOR® Magazine-Daily News-Mortgage Applications Decline.

These are national averages and I’m not sure how Utah Real Estate numbers compare.

Interest Rates, Mortgage Applications

Mortgage Applications
Hard Money Lenders Option for Bad Credit

Jun 24th 2010

By: John

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Credit requirements have become more stringent in regards to getting a mortgage loan. Individuals who are starting out or who have experienced credit difficulties have few options. Traditional lenders practice these credit standards to both purchase and refinance. Once easy, a cash-out refinance is now more difficult. Individuals who have sufficient equity in their homes are now turning to hard money lenders as the only option of tapping into the equity.

Generally, a hard money lender will require that the equity in the property is sufficient to warrant a 50% to 65% loan to value. Under extra circumstances, an individual can get up to 70% if cross-collateralization is also used. These lenders also charge a substantially greater rate of interest and the loans usually run anyplace from 3 month to one year. In rare situations, the loans are for up to 3 years. Funds from this type of a loan are usually used for a commercial enterprise or investing purpose where the return will exceed the costs of the loan and facilitate the pay back to the lender. enable the borrower to repay the loan within the alloted timeframe.

While private hard money lenders usually emphasise on investor hard money, sometimes these loans are made on owner-occupied homes. The reason the lenders prefer non-owner occupied homes is to deflect the consumer laws that protect individuals, relating to foreclosure and other consumer protections. The accessibility of hard money can be a much better alternate than a pay day loan, because the costs of the loan are considerably less and the borrower can borrow much more money.

Even people who have declared or been adjudicated bankrupt can nonetheless qualify for private hard money. In fact, individuals who have foreclosures can qualify for private hard money. However, if the hard asset that is securing the loan is encumbered by tax liens, or judgements, the lenders prefer not to loan on properties where it is harder for the lender to get the property back and disposed of in the event of a default by the borrower. Investors frequently have credit blemishes and this problem has not afflicted lenders from getting funding through a private money loan source. In that case, the hard money lenders evaluate the strength of the hard asset securing the property. The lender also formulates a quick sale value to determine what can be done with the hard asset should a loan go bad.

Lenders require that investors have an exit strategy. The exit strategy deals with how the loan will be paid back and within what timeframe. This is a major consideration to the lender because it indicates the likeliness and likelihood that the amount borrowed will be the amount the borrower repays . Lenders are generally seeking stronger investor exit strategies and prefer situations where the investor already has a pocket purchaser, or a lender approved buyer for a conventional mortgage loan.

For credit challenged buyers and investors , the key is to concentrate on developing a strong exit strategy that can be presented to the lender. Fortunately, loans of this type can still be completed very quickly and funding within 24 to 48 hours is not uncommon. In addition, rehab hard money loans are also made by these lenders to facilitate the acquisition, remake and sale of bank owned and government owned real estate. Transactional lenders and flash funders also fund investors who have buyers in place with conventional mortgage approval is increasing.

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How To Get A Bad Credit Second Mortgage

Jun 24th 2010

By: John

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We all know banks are not loaning money as easily as they use to when a loan is applied for. In reality, they’re carefully examining people’s credit scores in order to determine who might or might not qualify for a loan. Although it’s possible to get loans with bad credit, it can be difficult. Here is a look at how to get a bad credit second mortgage.

If your credit is not so good and you want to take steps to improve it, a second mortgage can help you to consolidate credit card debts and other payments into a single loan with a single monthly payment without having to refinance your original mortgage. The amount that lenders can loan on a second mortgage usually does not exceed the amount of equity the owner has in the home.

Contrary to home equity credit lines, the second mortgage is a loan you get only once, and it has a regulated payment amount you need to make monthly. Second mortgages can be taken with the same lender as the original mortgage or with a different lender. The amount of money that could be loaned, or the ease of getting the loan, will be dependent on the amount of equity in the home you have and your credit report.

The majority of bad credit mortgage lenders investigate the most recent few years of someone’s credit report to determine whether or not they will work with them. The two most vital factors that determine who can obtain a bad credit second mortgage are whether they make payments on time, and the income to debt ratio. More reading about this article geld lenen met BKR in Dutch.

The other serious factor taken into consideration will be how you intend to use the money if the loan ends up being approved. If your intention is to pay off high interest debts and consolidate things to make payments easier to handle, rather than invest in other projects or plans, your chances for approval of a bad credit loan go up.

Remember when you are applying for a bad credit second mortgage, it’s important to have the necessary information for a loan officer in your hand when you walk in his office. It’s beneficial to bring hard copies of your credit report with any inconsistencies and notes explaining what you will do to remedy them. If there are no errors, a statement of how you are working to make improvements to your credit score should accompany the loan application.

The best thing to do is be totally upfront with your loan officer about any indebtedness and your current situation. Remember it’s important that you include all of your income in the calculations you make about your debt to income ratio. Banks want to avoid lending money that won’t be paid back, because then they would have to foreclose. So it’s up to you to show exactly why the money is needed and how you plan to use it.

It’s not easy to get a bad credit second mortgage, but they can be the best bet for getting an improved credit score in this difficult economy. You can improve these scores legally and quickly by putting numerous high interest rates together into just one lower interest rate loan without refinancing your original mortgage.

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5 Top Reasons To Decide On An Adjustable Rate Mortgage

Jun 24th 2010

By: John

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ARMs have oftentimes been wrongly interpreted previously and you might be surprised to learn many people still choose adjustable rate mortgages. It can be a great financial opportunity for the right someone. This is a list of the leading five reasons you may want to consider getting an adjustable rate mortgage for your new house either as a loan or to refinance.

Why would you choose an Adjustable Rate Mortgage?

1. Interest rates are currently among the lowest in history and adjustable rate mortgage loans are one way to bring them even lower. One of the main things you want to do if you are in the market to get a mortgage is get many free mortgage quotes online so you can compare rates and offers. An adjustable rate mortgage has a fixed period where the rate won’t change, typically 3, 5 or 7 years. The rate is lower, often much lower, than the popular 30-year fixed rate mortgage. The market rate for an adjustable rate mortgage today is lower by a wide margin than for a conventional 30-year FHA mortgage.

2. If you plan on moving on in a few years, because homeowners know they are only in a fixed-rate period for a short amount of time, an adjustable rate mortgage is best used if you know you are moving before the fixed-rate period is over, if you have plans on using the money protected by the lower interest rate to pay more towards your premium or if you’re planning on refinancing before the adjustable rate mortgage begins to adjust.

3. Even including closing costs on a refinance, you are still saving money over a traditional mortgage. For illustration on a $100,000 home loan, if you were to get a 30-year fixed-rate mortgage at 4.75%, your monthly payments would be $522 a month. If you were to get a 5-year adjustable rate mortgage at 3.5%, your monthly payments would be $498 for a 5-year savings of $4,350. Even adding in closing costs you would have been ahead on your hard earned money.

4. ARMs do not always adjust upwards. Most people assume that later on the fixed period expires, their rate will rise. This is not always the situation. You could start with a 5-year ARM at 4.25% and when it becomes time for the rate to adjust, market prices may be considerably lower. This can prove to be rather a bit of savings for you to pay towards the principle of your house, or use the cash to pay off bills.

5. Adjustable rate mortgages are more common than you think. In the United States, may financially savvy people choose an adjustable rate mortgage, mainly because you can save money. In fact, in other nations, like Canada or the United Kingdom, adjustable rate mortgages are the most common form of home loans. This is often due to the fact that you can pay more towards the principle of the loan, early and without penalty. Early reduction payments decrease the total cost of the loan and allow you to pay off your loan in less time. Get an online mortgage quote to see how you would benefit.

Consider This: Adjustable rate mortgage borrowers are able to save money over the fixed-rate period. However, not everyone is suited for them. Speak to your mortgage lender to determine if an ARM is right for you, make sure you know all of the facts before signing. Question if your lender have prepayment penalties. What is the fixed-rate ratio? Make sure you are aware that while rates can go down – this way they also can rise as well. knowing the risks and having a firm understanding of how an adjustable rate mortgage works, grab a mortgage quote online. It can prove to be a very positive experience.

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An Easy Guide in Mortgage Refinancing,mm/

Jun 24th 2010

By: John

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Indicated below are easy process about mortgage refinancing that you as a buyer would like to take note :

Mortgage refinancing for Miami Florida Homes is not an easy choice when it comes to monetary basis . Owning a home that is in a very fine shape can be an important investment that you can own for a lifetime . So why lose it with a mistaken move? Thus , one must be very cautious and try to put in mind these process that I will share to you.

Step 1: Query for people you know

Trying to explore around for a fine and deserving company is the first process in mortgage refinancing Having a company who thinks more of profit than their client can be ineffective even though it has a low fee . Asking help with your family and friends can be a good way to begin in looking for a company . Ask them regarding their mortgage lender. List them down and begin calling companies one at a time .

Step 2: Surf the internet

Internet can be a big help to you. Start searching for companies online and compare . Go over and look if you can get competitive rates . Majority of online companies operate nationwide and has its own offices in major cities .

Step 3: Get to know the figures

Receiving a lower rate is the main basis why you refinance your mortgage , accumulate on monthly payment and accumulate on full amount cost of mortgage. However , buying out your presented loan to get a new one can be at great expense . You must study first the cost of your new loan and compare it with the savings you’ll get each month . There, you’ll know when will be your break-even point. You must be aware on how much you will have to spend on fees and points. Try to ask your lender about the interest rate and know everything you need to know.

Step 4: Focus on the details

List down all possible lenders you have and choose from it . Be familiar with the company . Make an appraisal regarding the company and check if it has the knowledge in the industry. Move on and look somewhere else if you think that it is not worth it . You must always remember that there are a large number of companies who are willing to give you the loan you need, so don’t settle for just one.

Step 5: Bargain

Put in mind : It’s your loan. You are the only one who will pay for it and will also suffer if you failed to get the best term that is arranged for your needs. Do not hesitate to negotiate . If the prevailing rate is low, negotiate further , this might get you a good price. Then, lock the deal so that the mortgage cost will not increase once the loan is being processed. Lenders are not perfect, they also commit mistakes, but at least pick the best one.

Doing some research and canvas will really help you get to a smooth process. Miami Florida Homes For Sale can give you more tips about real estate business.

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Failure to Qualify for Mortgage Insurance?

Jun 23rd 2010

By: admin

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In the real estate world there are lots of reasons that deals fall through. Utah Real Estate transactions fall through all the time because the home inspection comes in unacceptable, or the borrower is unable to get financing. Well now there is a new exciting way for transactions to fail: Failure to Qualify for Mortgage Financing.

Mortgage Insurance is essentially “Foreclosure Insurance.” Borrowers who don’t have a sufficient down payment, usually 20%, must pay for this insurance in order to qualify for a home loan. Mortgage Insurance usually has both an up front premium as well as a monthly payment amount. This insurance money protects the bank in the event that properties default and foreclose.

With all of the turmoil in the real estate market, mortgage insurance companies have taken a beating. They are losing lots of money and many have gone out of business. They never contemplated that the number of short sale and foreclosure homes would ever reach the point that they are at. For this reason, the mortgage insurances are taking a lot more caution regarding who they will give mortgage insurance too. They don’t want any more default loans. In addition to higher premiums, Mortgage Insurance companies are now verifying appraisals. If they don’t like the com-parables the appraiser used, they can and will dill deny the applicant mortgage insurance.

So just because your appraisal came in at the purchase price value, doesn’t mean the deal is good to go. You just don’t know if you can really get financing until the mortgage insurance has been approved.

via A New Way To Lose The Deal – Mortgage Insurance Unapproval – Utah Real Estate Update and Market Condition Watch.

The fact that loans can be denied based on mortgage insurance, and the recent increased MIP payments just give more incentive and reason to find a way to save up to the traditional 20% down payment again.

Mortgage Insurance

mip, Mortgage Insurance, pmi
Simple Ways To Avoid Swindles When Trying To Do Loan Modification

Jun 23rd 2010

By: John

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When the banking concerns started to go under, many homeowners needed to look for an alternative to foreclosure. This option is loan modification.. To be able to pay the monthly costs, you ask your lender to change the conditions of your mortgage permanently. That, in short, is loan modification.. Oftentimes, changing the conditions means lowering interest rates. Also, extending the time of the loan is frequently done to keep the damage for the bank to a minimum. More insight can be found in snel geld lenen where you can see how this in another situation is regulated.

Because of the larger need for mortgage loan modification, a lot of scams are surfacing right now. Individuals that pretend they can help you out, but in reality only want to make quick money without delivering. These scams can hurt your chances of getting a loan modification and lose you a lot of money in the process.

Quick results and guarantees are exactly what most people are looking for when trying to do mortgage loan modification. If you get a guarantee, you can be almost one hundred percent sure it’s a swindle. Because the loan modification is not in charge of the decision, they can’t guarantee anything about the outcome.

It takes a month to two months for a lender to take your loan modification request into consideration. Because they have no intention of making good on their promises, the wrong loan modification companies will say anything to get your signature. They don’t care about anything but the upfront payments.

Don’t be lazy in finding out facts about the company you want to deal with when doing mortgage loan modification. Don’t take the easy path and go with the first business you see. Don’t put your mortgage loan modification in the wrong hands, along with your money.

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Questions for your Real Estate Agent

Jun 23rd 2010

By: John

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Purchasing a house can be a difficult and exhausting process. This is made even more tiring if you try to manage all the different aspects of a real estate transaction by yourself . I highly recommend you work with a certified real estate broker in order to guide you through these tough times .

This list of questions will help you select your agent:

1. How much can you really afford? Lenders will often prequalify you for a large mortgage amount. Being able to afford this loan once you’ve purchased your new property is another issue entirely.

2. How do I qualify for a mortgage ? The mortgage process can be time consuming and complicated. A qualified Woodlands Texas realtor makes this process easy to understand and helps you budget your time accordingly so that everyone can close on time.

3. How is it possible to buy a home with little or zero down? Your realtor has access to a variety of loans and loan providers. Talk with them if you have concerns about down payments.

4. What does it take to get approved for financing? Your realtor knows exactly what banks and other financial institutions are looking for. Ask them!

5. How much will your payment be? Mortgage calculators on line often neglect city and county taxes. Your realtor knows these figures and can help you budget accordingly.

6. What tax advantages are there to buying a property rather than renting? Your realtor has worked for years in the real estate industry and understands how to use the tax code to your advantage. Ask them for some tax hints and tips that will make your investment lower your tax liability.

7. What are the pros and cons of renting vs. buying? Yes, your realtor makes money off of home sales and not off of home rentals (usually). But you should still discuss with your realtor when renting might be a better option for you than buying or selling.

8. How do you negotiate the purchase price of a new habitation Most real estate agents are professionals at acquiring you the best price for your new home. Ask them their advice when fashioning offers or counter-offers. They understand the area best and can help you with this.

9. How should you prepare your home for showings? Realtors know many little tips and tricks that can help your home show better. Ask them what they suggest you should do to prepare your home.

10. What legal hang-ups can slow our transaction down? Sometimes you get to the closing on your home and you find out that a permit hasn’t been closed on the new building you finished last summer. Or you find out someone’s placed a lien on your home and you can’t sell it. Your realtor can help you look out for these problems before they happen.

Buying and selling a home is difficult enough. Don’t make it even more stressful by trying to do it yourself. Leave the dirty work to the professionals. Your realtor can be the key to not only your new home but also a pain-free and empowering sales experience.

Aradio Zambrano is a leading Woodlands Texas Real Estate agent, providing current listings of Homes in the Woodlands. If you’re looking for Woodlands new homes, contact Aradio at WoodlandsRealtyProfessionals.com today!

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FHA Gets OK to Raise Annual Mortgage Insurance Premium

Jun 12th 2010

By: admin

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Mortgage Insurance for FHA Home Loans can now be more expensive. The upfront premium was recently raised, but now the monthly cost will also likely rise. Mortgage Insurance is used to secure the banks, in this case FHA in instances of Foreclosure. Because their reserves are down from so many default loans, they need to raise more funds to meet their reserve limit.

Effective April 9, 2010 those upfront premiums went from 1.75 percent to 2.25 percent. However, the FHA was not able to raise the annual premium without the permission of Congress as it was already at the authorized ceiling. Under the law passed today the agency will be allowed to increase its annual premium to 1.50 percent of the unpaid balance of the loan. This shift will allow for the capital reserves to increase with less impact to the consumer because the annual MIP is paid over the life of the loan instead of at the time of closing.

via FHA Gets OK to Raise Annual Mortgage Insurance Premium.

Government Backed Loans, Mortgage Insurance
Mortgage Rates Go Down Again. Oh So Cheap

Jun 12th 2010

By: admin

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Beleive it or not, but mortgage rates are down again. Five year ARMS average less than 4% interest. How much longer this mortgage rate decline will go, nobody knows.

Home-mortgage rates fell this week along with bond yields, according to Freddie Mac. The 30-year fixed-rate mortgage averaged 4.72 percent, down from 4.79 percent a week ago; while rates on 15-year fixed-rate mortgages fell to another record low of 4.17 percent from 4.2 percent. Also, the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.92 percent, down from 3.94 percent last week. Finally, one-year Treasury-indexed ARMs fell to a new six-year-low of 3.91 percent, compared with 3.95 percent a week ago.Source: Wall Street Journal, Nathan Becker 06/11/10

via REALTOR® Magazine-Daily News-30- and 15-Year Rates Move Down.

Interest Rates

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