Good Luck and happy refinancing.
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Author: Keith A Campbell on October 30, 2009
So you are refinancing your home are you? Here is a look at adjustable rate mortgages as opposed to fixed rate loans.
Good Luck and happy refinancing.
Author: Keith A Campbell on October 30, 2009
Whatever came of all those people jumping on the pick-a-pay mortgage loans? Here is a brief look at them and what may have gone wrong for millions of americans with these loans.
Author: Sol Nasisi on October 29, 2009
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 23, 2009. The Market Composite Index, a measure of mortgage loan application volume, decreased 12.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2.8 percent compared with the previous week, which included the Columbus Day holiday.
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 23, 2009. The Market Composite Index, a measure of mortgage loan application volume, decreased 12.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2.8 percent compared with the previous week, which included the Columbus Day holiday.
The Refinance Index decreased 16.2 percent from the previous week and the seasonally adjusted Purchase Index decreased 5.2 percent from one week earlier. The unadjusted Purchase Index increased 4.8 percent compared with the previous week, which was a holiday shortened week, and was 15.4 percent lower than the same week one year ago.
The four week moving average for the seasonally adjusted Market Index is down 3.1 percent. The four week moving average is down 1.4 percent for the seasonally adjusted Purchase Index, while this average is down 4.1 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 62.3 percent of total applications from 65.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.9 percent from 6.4 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.04 percent from 5.07 percent, with points increasing to 1.25 from 1.13 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
It's no surprise that refinancing activity is off. Mortgage rates have risen with the rate on a 30-year mortgage refinance now at 5.104%. It was below 5% two months ago. Everyone who would have refinanced already has.
I spoke to a mortgage broker last night and he told me that the people he speaks to now don't have enough equity in their homes. Most are stuck and can't refinance even if they wanted to.
Author: Keith A Campbell on October 28, 2009
Here is part three of careers in the financial industry. This should shed enough light on the job of a mortgage person so you can make an informed choice if you are looking for a career in this arena. Good luck and happy choosing.
Author: Keith A Campbell on October 26, 2009
Good Luck and Happy Refinancing.
Get the best mortgage refinancing rates.
Author: Sam Cass on October 23, 2009
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point for the week ending October 22, 2009, up from last week when it averaged 4.92 percent. Last year at this time, the 30-year FRM averaged 6.04 percent. So mortgage interest rates are almost 100 basis points below what they were last year.
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point for the week ending October 22, 2009, up from last week when it averaged 4.92 percent. Last year at this time, the 30-year FRM averaged 6.04 percent. So mortgage interest rates are almost 100 basis points below what they were last year.
Shopping around though, you can still find a 30-year mortgage under 5% if you hasve good credit. The best 30 year mortgage rate in Massachusetts (where I live) according to the BestCashCow mortage rate tables has an APY of 4.980% with fees of $1,135.
The 15-year FRM this week averaged 4.43 percent with an average 0.6 point, up from last week when it averaged 4.37 percent. A year ago at this time, the 15-year FRM averaged 5.72 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.40 percent this week, with an average 0.6 point, up from last week when it averaged 4.38 percent. A year ago, the 5-year ARM averaged 6.06 percent.
The one-year Treasury-indexed ARM averaged 4.54 percent this week with an average 0.6 point, down from last week when it averaged 4.60 percent. At this time last year, the 1-year ARM averaged 5.23 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Following bond yields, long-term mortgages rates edged up slightly this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Although rates for 5/1 ARMs and traditional 1-year ARMs are around half a percentage point below 30-year fixed mortgages, consumers appear to be seeking the stability of fixed-rate mortgages. According to the Mortgage Bankers Association, ARMs averaged only about 6 percent of the number of mortgage applications in September and October thus far.
"The housing market is still trying to recover in the second half of the year. The Federal Reserve reported in its October 21st regional economic review that housing market conditions improved in recent weeks, primarily from a pickup in sales of low-to medium-priced houses. However, residential construction activity was reported to remain weak in most areas. New construction of single family homes rebounded in September, rising at a 3.9 percent annual rate, but did not erase all of the declines set in August, based on figures released by the Department of Commerce. Moreover, homebuilder confidence, as measured by the National Association of Homebuilder's Housing Market Index, fell slightly in October and marked the first decline since January of this year."
Author: Karla Bullock on September 17, 2009
Provides an overview of the mortgage market and some analysis regarding key rates. http://www.reuters.com/article/businessNews/idUSN1612481020090916
NEW YORK (Reuters) - Demand for U.S. home loans fell by more than 8 percent as fixed mortgage rates rose last week in a banking period shortened by the Labor Day holiday, the Mortgage Bankers Association said on Wednesday.
Total applications were nonetheless at one of the highest levels seen since early June, with borrowers still eager to take advantage of the federal first-time home buyer tax credit before the program closes at the end of November.
Borrowing costs stayed relatively low, which continues to foster demand for potential buyers. But there is growing concern about whether housing can sustain its recent momentum once some key government rescue programs end.
As a result, the real estate industry is pressing Congress to extend the tax credit to all buyers and increase the size to $15,000 from $8,000 in a program now set to end on November 30.
Another concern is the end-2009 deadline for Federal Reserve mortgage-related debt purchases of up to $1.45 trillion -- aimed at keeping loan rates down.
"If the first-time home buyer tax credit expires at the end of November and if the Federal Reserve were to significantly scale back their mortgage (bond) purchases early in 2010, the housing market could hit a wall very quickly," said senior Bankrate financial analyst Greg McBride in North Palm Beach, Florida.
"I don't think that the Fed is going to do anything rash," he said. "I think they will slowly back away from the table so as to keep a lid on mortgage rates."
RATES EDGE UP
Average 30-year loan rates rose 0.06 percentage point to 5.08 percent last week. The rate was up from the record low of 4.61 percent set in March, but down from 5.82 percent a year ago, the industry group said.
The seasonally adjusted mortgage applications index fell 8.6 percent in the week ended September 11 to 592.8, driven by a 10.3 percent drop in its purchase applications index and a 7.4 percent slide in refinancing demand.
These figures were adjusted to account for Labor Day.
Housing market upside is limited by a supply of unsold homes inflated by foreclosures, industry executives and economists say,
"We still have a lot of inventory in the marketplace and that is continuing to put pressure on pricing, but pricing has come down to a level that has really opened the marketplace to a lot more buyers," said Tom Kunz, chief executive of Century 21 Real Estate in Parsippany, New Jersey.
"We need to stimulate the move-up marketplace because there's too much inventory out there," for first-time buyers to absorb, he said.
A 26-year high in unemployment and wage cuts have added to the hardships in housing, forcing many new foreclosures that further swell housing inventories.
Job loss and underemployment spread the pain in housing from the subprime sector, where borrowers often only could afford initial payments with exotic and risky adjustable-rate loans, to "prime" borrowers that favor fixed-rate mortgages.
For the first eight months of the year, 69 percent of homeowners who turned to national nonprofit Consumer Credit Counseling Service of Greater Atlanta for foreclosure prevention help had fixed-rate loans. That was up from 53 percent in the same period last year.
"The housing recovery will be constrained by lingering excess supply," Joshua Feinman, chief economist at Deutsche Bank's DB Advisors, said in a report. "The scars from this crisis will likely keep households and financial intermediaries cautious for some time."