Utah Real Estate Mortgage Information

Mortgage Rates at a 46 Year Low Today

Jun 8th 2010

By: admin

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I just got an email notifying me that FHA Mortgages are at their lowest point in 46 years! The par rate is 4.5%. That means if you pay more up front, you can get an even less expensive rate.

BankRate.com has the par rate of some 30 year fixed conventional rates at 4.534%, 15 year fixed mortgages at 4.058%, and 5 year arms at 3.1%! Incredible.

From a monthly payment, standpoint, you are going to be paying a lot less on your home. These ridiculously low mortgage rates make it an incredible time to buy or refinance. Who knows how long they will last.

Interest Rates

15 year fixed, 30 Year Fixed, FHA
Tips for Making use of a Mortgage Calculator

Jun 7th 2010

By: John

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When it comes to mortgages, you will find so several various variables that appear into perform, it’s at times challenging to understand what your payments will be. Even in case you already have a home loan, you might desire to gauge how speedily you could pay back your home finance loan in case you elevated your payments to a certain volume or even the volume you’d ought to pay every four week period to repay your home loan inside a specific about out time.

You don’t ought to be a home loan professional to complete these calculations. Applying a mortgage repayment calculator you are able to input data about your home finance loan and the variable you desire to alter and find out amounts you might be seeking.

Kinds of Mortgage Calculators
A mortgage loan transaction calculator calculates the quantity of your month to month check depending on the quantity of the mortgage loan, the interest rate, points charged by the lender, price from the mortgage loan, and the duration in the mortgage. By adjusting these elements in the mortgage calculator, you are able to estimate how your monthly payments will alter. For instance, if you happen to be not sure to your interest price, you are able to test numerous curiosity prices to view how your month-to-month amount are going to be affected. One more scenario it is possible to check applying a mortage calculator is how your monthly transaction will alter if shorten or lengthen the quantity of the loan.

Some mortgage calculators permit you to test the volume you are able to pay for to spend for a home loan. In the mortgage calculator you type in your income information, the amount of down transaction you’d like to spend, debt data, and pay day loan facts. The home loan calculator will return to you the quantity you really should qualify. The calculator also provides you the every month check and tax info for that mortgage loan you happen to be certified for.

Finding a Mortgage Calculator
Locating a mortgage calculator is not tough at all. You’ll be able to effortlessly find a single by entering the phrase “mortgage calculator” into a search motor. The search motor will return numerous results of websites for you. Appear at the different calculators and play close to with the performance provided.

EZmortgagecalculators.com provides a mortgage calculator that is certainly fairly effortless to make use of. You possibly can uncover the calculator by visiting the website and typing “mortgage calculator” inside lookup box. Within the calculator, enter your property finance loan details and month-to-month payments, and then click the “Show/Recalculate Amortization Table” button. You will be proven a table listing your payments for the duration of your mortgage loan, along using the principal and interest with that transaction along with the balance to your pay day loan.

Applying EZmortgagecalculators.com mortgage calculator, you can also calculate the affects of including extra funds for a month to month transaction, introducing a lump sum annual check, or even a one-time transaction throughout a certain calendar month and 12 months. When you recalculate the amortization table you can see the effect on the obligations in your mortgage loan.

A mortgage calculator is a great method to perform with elements associated together with your home loan and see the impact individuals components have on your month to month payment and overall payoff. If you have a mortgage, or you might be thinking about obtaining 1, a mortgage calculator will probably be of assistance for you

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Reverse Mortgages: Fact and Fiction

Jun 7th 2010

By: John

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Reverse mortgage myths – as reverse home loans have increased in popularity, so have the misconceptions about these unique mortgage loans. Ensure you know the truth!

Perhaps you have been considering a reverse home mortgage loan but are uncertain about some of the negativethings you have heard. Unfortunately, there are many misconceptions and just wrong information about this increasingly popular loan option.

Sure, it is true that there are some drawbacks to a reverse mortgage and it is important to investigate the reverse home loan alternatives beforedevising your final conclusion. However, in the right circumstance, a reverse mortgage is an awesome option to have.

We feel that by addressing and clearing up some of the common reverse mortgage myths and misconceptions, you will have a better and more exact understanding of what a reverse home loan really is and make an informed decision, based on the facts!

Reverse Mortgage Myth #1 – The Lender Will Own My Home

Fact: When you have a reverse mortgage loan, you continue to own your home. Their is no change whatsoever in the ownership of the home. A reverse mortgage loan is similar to a traditional mortgage in this regard – the mortgage is secured against your home, but the lender does not own it. The difference is that, instead of you making mortgage payments to the lender, the lender makes payments to you. Whenever you leave the home, the lender receives their money back (with interest) and any left over equity goes to you (or the estate).

Reverse Mortgage Myth #2 – I Could End Up Owing Money

Fact: In a reverse home loan you can never owe more than the value of your home. These loans are known as ‘non-recourse’ loans, which means that your loan amount will notexceed the value of your home. In the unlikely event that your home value fell substantially, the lender may actually lose money – because they will only receive, as a maximum, your house value. As an aside, that is why they set up reverse mortgage loan eligibility requirements.

Reverse Mortgage Myth #3 – My Heirs Will be Burdened

Fact: Once you, as the homeowner, pass away, your heirs will have the opportunity to refinancing or selling the home without any obligation or penalty. If they want to keep the home in the family, they can easily refinance the home (take out a traditional mortgage to pay off the reverse equity loan). On the other hand, they can also sell the home. With the proceeds of the sale, they can pay off whatever is owing on the reverse mortgage. Any leftover equity can be divided up. The only affect that a reverse home mortgage will have on your heirs is that it will reduce the amount of equity in your home – thus reduce the amount of inheritance they get.

In Summary…

Like many popular products, reverse equity loan have their share of myths and misconceptions. While these myths about reverse mortgages are not based on the truth, it is vital to remember that reverse equity loan are not for everyone. If you are considering a Canadian reverse mortgage we suggest you contact a reverse mortgage specialist for further information and advice.

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15 Year Fixed Mortgage Rates at Record Lows

May 27th 2010

By: admin

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Right now just might be the best time EVER to lock in a mortgage rate if you’re looking to buy Utah Real Estate. Interest rates overall are at near record lows, and interest rates for 15 year loans are at their Lowest Rate EVER. Here is the latest on the mortgage market from the Inman News. According to them, mortgage rates are rising, and likely to continue to rise.

Rates on 30-year fixed-rate mortgages were near record lows this week as instability in financial markets overseas had investors seeking safety in bonds and mortgage-backed securities, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey.

Rates were headed back up today, however, as renewed confidence in markets had investors moving funds back into riskier investments.

Freddie Mac’s survey showed rates on conventional, conforming 30-year fixed-rate loans averaging 4.78 percent with an average of 0.7 point for the week ending May 27, down from 4.84 percent a week ago. That's the lowest rate since the 4.71 percent average during the week of Dec. 3.

The 15-year fixed-rate mortgage averaged 4.21 percent with an average of 0.7 percent, down from 4.24 percent a week ago and 4.53 percent at the same time a year ago. That’s the lowest rate registered since Freddie Mac began tracking 15-year loans in August 1991.

via Mortgage rates near record lows | Inman News.

These 15 year fixed mortgage rates are so low that, a house payment with a 15 year fixed payment would be almost the same as a 30 year fixed amortization schedule at a “normal” interest rate.

A 4.21% interest 15 year P&I payment on a $150,000 home loan, would be $1,125.38

A 30 Year fixed payment at 8.25% interest would be $1,126.90.

It might not be a bad time to refinance into a 15 year fixed mortgage and pay your house off much more quickly. Now there’s an idea. Pay your house off.

Interest Rates

15 year fixed, Interest Rates, record lows
Changes That Have Happened in the Mortgage Market

May 26th 2010

By: admin

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Over the past few years, drastic changes in the mortgage market have made it harder to get a loan. The process for approval of a conventional loan includes great credit scores, a lot of documentation, high-income levels and the ability to put down 20 percent. However, thanks to the Federal Housing Administration, it’s not completely out of the question to work towards buying your first home.

The FHA plays a key role in the real estate arena today, and many more families are starting to rely on FHA loans to purchase a new home. Why?

The FHA guarantees the loan in the event a borrower defaults. Lenders find that to be very appealing and are more likely to give out the loan.
In addition, these loans guarantee a considerably lower down payment than most conventional loans. With a down payment as low as 3.5 percent, low to middle income families are far more successful in gathering the needed funds for their new home. Even more attractive is the FHA loan program does not restrict the use of gifted or borrowed money towards the down payment. So, people receiving start up funds from their parents, aunt, uncle or whoever will not be turned down.
With lower closing costs, less strict qualifying standards and no income limits, that is why the FHA loan is becoming one of America’s favorite government-backed mortgage plans.

The Process of Obtaining Your FHA loan
In order to qualify for the loan, you will need a decent credit rating. So, you made some past financial blunders, many lenders are willing to work with you because of the FHA’s insurance on the loan. Improving your credit score to the standards of the FHA program will be a lot easier than the 700 and over credit rating required by conventional loans.
Also expected is a reasonable debt to income ratio. Although, there are no income limits, a family must exhibit the ability to handle past and possible future debt.
Last, but not least, is the application process. There is a lot of paperwork involved with the loan application. You will need:
• A listing of past and current addresses.
• All of your employers’ names and addresses for the last two years.
• The amount of your monthly grossed salary
• Your W2s for the past two years
• Your income tax returns for the last two years

Note that if you’re a veteran, you will be required to submit a DD Form 214 or an official Armed Forces discharge paperwork and the FHA loan application.
Make the process easier for yourself and have all the proper paperwork before starting the application.

It’s All Too Good to be True
Before deciding on any loan, great thought is suggested. The FHA loan is not suited for everyone, especially people with super good credit. If you have excellent credit, you could probably end up paying less with a conventional loan.
A couple of other not so great things about the FHA loan…
• There is limit own how much you could receive, depending on where the house you want buy is located.

• As of April 5, 2010, the upfront mortgage insurance payment (UFMIP) was raised from 1.50 percent to 2.25 percent of the loan amount. That insurance payment is due at the time of settlement.

So, sit down with your family and a mortgage lender today to look over your options.

Government Backed Loans

fha loans
4 Mortgage Questions a Borrower Should Ask a Lender

May 10th 2010

By: admin

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When the borrowers apply for a mortgage for the first time, their minds are full of questions about mortgage. They want to have a basic idea about mortgage, and what it is really going to cost them. In this article, you will find the most common types of mortgage questions that a borrower should ask a lender.

Mortgage questions

The most common types of mortgage questions that the borrowers should ask the lenders are given below:

1. Which type of loan is best?? Generally, the lenders gather information about the borrowers before offering a loan. However, the borrower should ask the lender to explain the pros and cons of different types of mortgage loans (fixed-rate mortgage, adjustable-rate mortgage, interest-only mortgage, negative-amortization mortgage) so that they are able to make the best deal.

2. What is the interest rate & annual percentage rate?
If the interest rate of the mortgage is adjustable, then the borrower must ask about these things: adjustment frequency, margin, index, highest rate (cap). ?The annual percentage rate (APR) is obtained by a difficult calculation. This is calculated by dividing the interest rate and all the other relevant lender fees by the loan’s term. However, the borrower should know that there is no method by which one can calculate the APR for an adjustable loan.

3. What are all the costs??The cost of a mortgage loan include fees that go into the lender’s pocket as well as third-party vendor fees such as: appraisal, credit report, taxes, escrow fees, pest inspection reports, lender’s title policy, recording fees, etc. According to federal law, the lender should give an estimate of these fees to the borrower.

4. Is there a prepayment penalty?? Sometimes, the borrowers try to pay the loan off early through refinancing or by selling a property. Therefore, the borrowers should ask the lenders about the prepayment penalty. In some states, prepayment penalty is not allowed any more. Generally, prepayment penalties allow the lender to collect an extra six months of “unearned interest”. The borrowers should ask the following questions: a) How much is the prepayment penalty? b) What are the terms of the prepayment?

However, if the lender can’t give suitable answers to these mortgage questions then the borrower should find another lender.

- Contributed by MortgageFit Community Member

Mortgage Applications

getting a loan, questions to ask
Mortgage Rates Drift Lower

Apr 30th 2010

By: admin

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- Mortgage Rates Drift Lower
  
  Mortgage Rates actually declined slightly last week.
  
  tags: mortgage rates
  - Freddie Mac reports a slight drop in the 30-year fixed mortgage rate to 5.06 percent during the week ended April 29 from 5.07 percent the prior week. A year ago, rates were just under 5 percent.
    
    The 15-year fixed mortgage rate held steady at 4.39 percent, while the five-year adjustable mortgage rate dipped to 4 percent from 4.03 percent. The one-year ARM rate rose slightly to 4.25 percent from 4.22 percent.
    
    Source: Wall Street Journal, Nathan Becker (04/30/10)
Foreclosures
Despite End of Fed Purchases, Mortgage Rates Still Low

Apr 22nd 2010

By: admin

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There was a lot of talk about a spike in mortgage rates once the Federal Reserve stopped purchasing mortgage backed securities. Well, the purchases ended nearly a month ago, but mortgage interest rates are still really low. In fact, one of the quotes I got emailed me from a lender had rates still below 5% for 30 year fixed mortgages of conventional loans. According to Bankrate.com, the average 30 year fixed mortgage right now is at 5.19%.

The purchase of the mortgage securities by the Federal Reserve created artificial demand which kept interest rates really low. Is there more demand for the mortgage backed securities and treasury bonds? Or does it just take time for mortgage interest rates to react?

According to Greg Mcbride from Bankrate.com, Mortgage rates should remain low for quite some time if the fed raises their overnight borrowing rate as a sign that the economy is improving.

I’m not sure how long this will last, but for now, mortgage rates are still absolutely incredible for people looking to buy Utah Real Estate.

Interest Rates

mortgage rates
Will Rural Housing Get More Funds Sooner than Later?

Apr 16th 2010

By: admin

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There are efforts to try and get more funds available to USDA for the Rural housing home loan.

Two members of the House–one from each party!-separately introduced bills that would raise fees on these USDA loans; the funds would be use to keep the program running. Neither program, put forth by Rep. Shelley Moore Capito R, W.Va. and Rep. Paul E. Kanjorski D, Pa., places additional cost on the taxpayers.The next step is discussion at committee level before a final bill is moved to the House floor. That’s expected to happen quickly, given the money is quickly dwindling during the key spring selling season. Ms. Capito “believes they will be able to work out any differences,” according to a spokeswoman.

via Bills Introduced To Extend ‘Zero Down’ Home Loans – Developments – WSJ.

Government Backed Loans

Rural Housing, USDA
Twenty-Seven Million People with Mortgages Believe They Owe More than Their Homes Are Worth

Apr 8th 2010

By: admin

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These are some of the results of The Harris Poll of 2,320 adults surveyed online between March 1 and 8, 2010 by Harris Interactive.

Other interesting findings include:

* Over two-thirds (69%) of adults who are homeowners have a mortgage that they need to pay off.

* People whose homes are believed to be worth less than the money owed on their mortgages are common across all income groups. Fully 26% of adults with mortgages who have household incomes of $75,000 or more believe their homes are worth less than the balance of their mortgages.

* Almost a third (29%) of adults with mortgages are having some difficulty (18%) or a great deal of difficulty (11%) paying off their mortgages.

Among those who believe their homes are worth less than their outstanding mortgages, fully 26% are having a great deal of difficulty and another 23% are having some difficulty paying them off. These homeowners are likely candidates for future foreclosures.

* The two-thirds (65%) of all adults who are concerned about having enough income to cover all their costs and expenses include 26% who are very concerned and 39% who are somewhat concerned.

* Among those who believe that their homes are worth less than their mortgages, fully 42% are very concerned and another 38% are somewhat concerned about not having enough income to cover their costs.

* Unsurprisingly, income levels make a big difference. Concerns about not having enough income to cover costs and expenses is much higher among people with household incomes below $35,000 (40% are very concerned) than among those with incomes over $75,000 (16% are very concerned).

via Twenty-Seven Million People with Mortgages Believe They Owe More than Their Homes Are Worth.

It’s almost scary to think about the implications of this. Government spending is out of control, and the burden to pay back the debt will be placed on future taxpayers, yet, the taxpayers are struggling just to pay their own bills. As a nation we have just become to reliant on debt.

Foreclosures, Mortgage News

mortgage stats
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Utah Real Estate Mortgage Information

Mortgage Rates at a 46 Year Low Today

Tips for Making use of a Mortgage Calculator

Reverse Mortgages: Fact and Fiction

15 Year Fixed Mortgage Rates at Record Lows

Changes That Have Happened in the Mortgage Market

4 Mortgage Questions a Borrower Should Ask a Lender

Mortgage Rates Drift Lower

Despite End of Fed Purchases, Mortgage Rates Still Low

Will Rural Housing Get More Funds Sooner than Later?

Twenty-Seven Million People with Mortgages Believe They Owe More than Their Homes Are Worth

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