Mortgage refinancing rises The State
“We’re pretty busy right now,” said Hyatt. “Many of our clients are coming in and saying they never thought they’d be refinancing again. But the rates are so low.”
Despite the ultra-low rates, the rush to refinance likely will be tempered because rates have been low for several years, said Bob Graybill, owner of Gulfstream Mortgage Corp. in Forest Acres. Rates dipped to about 4.25 percent for a 30-year mortgage two years ago, spurring many homeowners to lock in low rates then.
“At that point, you had more people out there in the market who had higher rates and were more primed to refinance,” Graybill said. “Now, it’s probably not quite as crazy because people have lower rates in general.”
Still, Graybill said he has seen his business double in recent weeks as rates have fallen.
Homeowners should have plenty of opportunities – through the end of next year – to refinance or lock in a low rate on a new home. The Federal Reserve recently announced plans to hold its interest rates at practically zero through 2013 in a bid to help jump-start the stalled U.S. economy.
Can you believe it now Costs 21% less to Own a Home?
Homeowners Paying 21% Less To Own Their Homes
Mortgage rates have plunged this year, driving down the long-term costs of homeownership. Regardless of loan type -- either FHA, USDA, conforming or jumbo --mortgage payments are downright cheap as compared to just six months ago.
REALTORS® will tell you it's a great time to buy a home. That may be true.
It's an even better time to refinance one.
Exceptionally low mortgage rates make for exceptionally low mortgage payments and, no matter for how long you've owned your home or made payments on it, you have a chance to dramatically slash your payments, leaving money for other things such as retirement, home improvement, and college tuition.
Here's why : When you make your mortgage payment each month, a portion of your payment is interest. The lower your interest rate, the less interest you pay each month. This math applies to all amortizing loans -- 30-year schedule, 15-year schedule or otherwise.
Over the life of a loan, the interest cost savings can be substantial.
As a real-life example of two 30-year fixed rate mortgages for $300,000 -- one from April 2011 and one from today :
April 2011 : The $300,000 mortgage requires $275,000 in interest paid over time
November 2011 : The $300,000 mortgage requires $217,000 in interest paid over time
In other words, at today's rates, with a $300,000 mortgage, you can chop $57,000 off your long-term mortgage interest costs as compared to a mortgage from just 6 months ago.
That's a 21% savings and the math applies to all loan sizes.
Click here to get a mortgage quote.
The Reverse Of "Starting Over" With Your Mortgage
There's a common refrain among homeowners...
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Getting the Best Refinance Mortgage Rates
For real information click HERE: best-refinance-home-mortgage-l oan-rates.com Getting the best refinance home mortgage loan rate, then, can be ...
Did I get a good mortgage interest rate on my new home purchase? Re-finance?
During 3rd week of Oct 2007 I locked in my rates with the lender for buying newly built home in the Denver, CO metro area.
My credit score was 720 and first-time buyer. For 30-yr fixed-rate on 175,000 loan, lender said existing rate was 6.5%. After negotiating, my final rate was 6.25% that too after buying down 1.5 points for $2400.
After having looked at other Q&A on yahoo answers, I feel that I am paying a higher rate than I was eligible with the same lender. Lender's third party costs were also high, like $400 for HOA transfer, while he got 6000 towards closing costs from home builder.
So, I have two questions:
1. Did the lender hand me a high rate ( taking advantage of my ignorance) with some kind of deal with home builder?
Or, did I get a decent rate?
2. On yahoo finance, today I see the same lender's rates are about 5.75. It can save me $100+ per month on my mortgage. So, should I re-finance right now ? Refinancing fee is $1750.
Appreciate your expert answer.
I can answer this from experience. I refinanced my sister in October at 6.5% (No buydown, credit score 809). Rates fell dramatically over the next 2 months and I felt horrible. We just closed on her 2nd refi in 3 month and she is now at 5.625.
Whether to refi or not depends on how long you are going to stay. If you are going to be there more than 3 years then I'd say go for it. Find someone that is willing to do a refi for you with little cost. I say "little" cost because a no-cost refi is not really no cost and you would not end up with a better rate.
Use this tool to see how long it would take to recoup the cost of a refi. http://wefixrates.com/tools/CalcRefi.htm
Mine is much lower, around 5.1...but we refied 1.5 years ago.
I'd suggest you wait on the refi. Rates are likely to continue to drop in the next 6-12 months, especially if the market continues to be soft, which most experts predict. I'd also advise you to keep talking with the loan person you worked with before about rates and deals, or ask a friend for a local referral, and not to get sucked in to online loan brokers. If you are going to be in the market for another loan, you will benefit from giving them your business and telling them you expect straight talk and good advice from them.
after looking over all my ofers one almost exactly i went with the company below. it looks like you fell into the same trap many do and one i almost did your broker made an additional 1-1.5% in rebate from the bank and why you recieved a higher rate. admittedly my closing costs where slighly higher about 1500 with the comapny i went with but i saved 45k in additional interest getting the lower rate.
unfortunately you will most likely need to wait out a year until the rates come down more to be financialy viable also i would look into the prepayment penalty. although your lender is only charging 1700 you stil have all the taxes and doc stamps that must be paid for all ove a gain you are more likely going to have closing costs of about 2500
Why is the average home buyer bieng punished?
Ok, this is the deal.
The lenders now tell you mr. and mrs. home buyer. " your credit rating of 660 is not good enough any more for you to qualify for the wonderful rates we are offering". The reason is that we have to tighten up the credit guidelines because too many of your have been screwing up.
LIARs LIARs LIARs!
the truth ....
The criminals we let get away making fraudulent loans , false docs, no docs 125% of value, sucker interest rates and so on ie... sub prime mortgages.
YOU WILL HAVE To Pay.
Not only will you have to pay but this is going to continue to the ressession that we are making believe doesn't exist go on even longer because the average home buyer can't buy or refinance their mortgage.
makes sense doesn't it? We business as usual. So don't forget to vote for the same criminals in Washington that have been abusing us for decades. Their criminal fund raiser depend on you....
You Need 720 to quality for an FHA loan
BTW - If you've got a 660. try an FHA loan.
The lenders tried to make more profit by giving mortgages to people who couldn't qualify to pay for dinner an hour after they finished eating, and now they want to make more profit by charging more interest to people with excellent credit ratings. 27% interest on credit card debt? It wasn't that long ago that 20% was considered illegal usury.
The situation won't change. We'll be lucky to remain in the current recession (who's kidding whom about our MAYBE getting CLOSE to a recession SOON?) and not drop into a full depression, what with the government cheapening money so as to be able to repay its debts. The value of the dollar keeps dropping, and more people lose their jobs. What a country!
Interesting how one can qualify for a rental at $1200 per month but cannot qualify using the exact same score and income for a mortgage of only $700 a month. If you don't have a large family. I suggest you find some land and purchase a storage shed for under $5000 pay an electrician to install some solar panels and save your money until can can afford to buy something that the greedy banks have foreclosed and are tired of holding onto (so they'll practically give it away). I know that sounds extreme. The other recommendation is to live with someone you can trust (trust noone) enough to buy a duplex resonalbly priced then double or even triple up on the mortgage.
You have some very valid points, but i think you have simply not looked in the right places.
Im not sure you have spoken with about your situation, but i think they have given you some incorrect advice!
First of all, you are right all the large banks and lending institutions out there are and have been in trouble for a while. This happened because exactly as you put it, the No doc, and Interest Only type loans. Not that these loans arent right for the SMART borrower, but unfortunately the people getting these loans didnt think their finances through.
Anyways, back to the point....
These banks are in alot of trouble, but believe it or not there are still banks out there that are thriving!
I work with a nationwide wholesale lender. Our investors lend their own funds, meaning they are not at risk when Wallstreet is in trouble. They determine their own guidelines and rates seperate from what other banking institutions follow.
Point being, I am qualifying borrowers with the lowest interest rates on the market with scores as low as 640. So, with a 660 you will be okay given the other qualifying factors are in line. (Debt ratio, LTV, assets, etc.).
Now, as for the FHA, im not sure where you heard you need a 720 for FHA but that is completely incorrect. I have been doing FHA loans for years, and have helped people with 660 scores get into FHA loans often. (even recently). But, i wouldnt even look at FHA unless for some strange you didnt qualify on our wholesale line, which is very unlikely.
I have helped numerous homeonwers here on Yahoo answers both refinance and purchase homes. I would be happy to assist you further and if nothing else answer any questions you may have. By the way, what state do you reside in?
I work with Barclay Butler Financial, and we serve almost all states. Our corporate office is in Chicago IL. Feel free to take a look at my profile and call or email at any time!
Best of luck to you!
Jason Fry
Licensed Mortgage Consultant
Also, even more importantly
Which type of lending institution is better for a home mortgage; a mortgage company or traditional bank?
I'm not a first time home buyer. What are the pros and cons of using bank financing versus mortgage company financing to find the most competitive interest rates? This is for a home purchase, not refinance and my credit is excellant.
in terms of competitive rates, your bank is limited to the loans that are in the bank, as opposed to a mortgage company who will have thousands of options to fund your loan.
The pro's of a local bank are the personal contact and you can build a relationship with them, which will encourage repeat business and you will then be able to get better rates from them
As an investor I want to keep my funding as local as possible, find the banks that have very few branches and the want to give me business, as opposed to national banks or brokers that I am only a number too.
I believe there are more laws covering the way banks do business as opposed to mortgage companies. If you do your home work and pay attention this shouldn't be an issue.
I would shop them both. I have homes financed with BofA and USAA(available to Military and Dependents). BofA was higher on fees at first, but with a little effort on your part they will reduce them. I am sure other places will too.
Are mortgage points deductible in the yr of pmt or do I spread them over life of loan?
I am a 1st time home buyer and am in a high tax bracket (33%). I am considering whether I should accept points and buy down the rate and claim all the points (approx $11,000) in the current year when I file my returns next year? This is not a refinance mortgage.
Yes, you are allowed to deduct the points in full in the year you purchase your home. You can also amortize the points over the life of the loan, the choice is yours.
It may be smart to buy down the rate, but if you remain in the same tax bracket over the life of your loan, the additional interest payments you can deduct if you do not buy down the rate should also be considered. If you buy down the interest rate, you will have less interest to deduct in the future.
Question about searching in search engines?
My question is related to searching in search engines
I need to copy paste website addresses by searching in google
suppose I search mortgages in google
The results are
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Mortgage - Wikipedia, the free encyclopedia
For loans secured by mortgages, such as residential housing loans, and lending practices or requirements, see Mortgage loan. ...
en.wikipedia.org/wiki/Mortgage - 65k - Cached - Similar pages
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Mortgage loan - Wikipedia, the free encyclopedia
A mortgage loan is a loan secured by real property through the use of a mortgage (a legal instrument). However, the word mortgage alone, in everyday usage, ...
en.wikipedia.org/wiki/Mortgage_loan - 108k - Cached - Similar pages
More results from en.wikipedia.org »
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Nationwide Building Society - Mortgages
Additional mortgage borrowing paid to you as one lump sum. Flexible advance. Additional mortgage borrowing that allows you to draw on the money as and when ...
www.nationwide.co.uk/mortgage/default.htm - 17k - Cached - Similar pages
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Mortgages | compare thousands of mortgage and remortgage rates and ...
Compare thousands of UK mortgage and remortgage rates and deals, including mortgages from high street and specialist lenders. Help and advice available...
www.moneysupermarket.com/mortgages/ - 231k - Cached - Similar pages
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Mortgage advice & news - compare mortgages & mortgage rates in the ...
Mortgages & mortgage news - compare mortgages & get expert advice from brokers tailored to your needs. Use our free mortgage calculators or find out how ...
www.yourmortgage.co.uk/ - 65k - Cached - Similar pages
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Mortgages, Home Equity Loans, Refinance, Rates, Mortgage ...
Provides information about mortgages, mortgage rates, home refinancing, home equity loans and many other mortgage related topics. Try our free mortgage ...
www.mortgage.com/ - 33k - Cached - Similar pages
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Loans | Car Loans, Secured Loans, Homeowner Loans & Personal Loans
Mortgages with a range of over 4000 products. This includes products for First time buyers & re-mortgages. Enter Mortgages · Life Insurance ...
www.rainbowgrp.co.uk/ - 16k - Cached - Similar pages
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Mortgage | LII / Legal Information Institute
A mortgage involves the transfer of an interest in land as security for a loan or other obligation. It is the most common method of financing real estate ...
topics.law.cornell.edu/wex/mortgage - 16k - Cached - Similar pages
Instead of this is there a way to make serach results appear in listed form with only website addresses like this so I can copy paste ?
en.wikipedia.org/wiki/Mortgage
en.wikipedia.org/wiki/Mortgage_loan
www.nationwide.co.uk/mortgage/default.htm
www.moneysupermarket.com/mortgages
www.yourmortgage.co.uk
www.mortgage.com
www.rainbowgrp.co.uk
anybody can help /?
Hello we I am rebuilding my credit and can only get financed for 8% on a mortgage?
how long do I have to pay a high interest rate until I can refinance for a decent rate? We didn't qualify for the first home buyer cause our bankruptcy was less than 2 yrs ago.
You're at 8% and rebuilding your credit. That implies your credit isn't that great. I would take the 8% and run.
When I was financed in the mid-1990's at 8.5%, with good credit, I thought that was good.
You could go back the the 1980's when people were getting financed at 13 to 15%, with good credit records.
What should homeowners with 'junk mortgages' do right now?
My wife and I purchased a new home in late June just as the market was softening. We're not first-time home buyers and our credit was good. Like many, we stretched a bit to get into the house we wanted and chose a 10-yr I/O ARM, 30-yr fixed with no money down, something I now see being referred to now as 'junk mortgages'.
I'm freaking out a little because I realize our gamble that interest rates would allow refinancing to a favorable fixed rate within the next 5 years looks shaky and I'm concerned about what we should be doing right now.
My rational side says sit tight and let the market settle since I have a window wherein rates may still go down. But another voice is saying that housing prices will adjust downward leaving us upside down in our home and unable to refinance.
So, what does this turbulence mean in real terms to people sitting on these mortgages? With refinancing not an option, are there actions we can/should take right now?
There is no immediate problem as long as you can afford the payment you are currently in. A problem will happen if you haev an emergency and need to tap into extra cash. Good news: your loan is fixed. This means nothing about your loan will change for 10 years. The 10 year IO period is lengthy enough to allow you to just "hang tight." If you're REALLY concerned about building equity by paying down the loan balance, then you can always apply a little extra.
On a side note, during the first 10 years of paying your mortgage, very little will go towards principal even if you were NOT in an interest only loan. There is an amortization table here: http://ray.met.fsu.edu/~bret/amortize.html
Just plug in your loan amt(principal) and rate then hit calculate. Example: for a $100,000 loan at 7%, your IO payment would be $583.33 monthly. Compared to a principal + interest payment of $665.30, you save $81.97. Balances after 5 years would be: IO $100,000 and Principal + Interest: $94,000.
If you truly are interested in paying some principal down, the easiest way would be to just tack on whatever extra you can afford. If you can't afford to do that right now, don't worry--your mortgage will not change for another 10 years--at which point you'll probably build some equity through property appreciation.
If you're not planning on being in the house forever (longer than 10 years anyway) then you'll be alright
i would say have a good direct source look at where you are!
i still believe in getting the best fixed rate you can and even if the market takes its time rebounding so what!
you are in a 10yr I/O i would not have recomended this loan at all the reason being your payment might have been only a few dollars more without it and you are not paying any of the principle (you know that mos tof your payment is interest the first 10 years but many fell for this!
EXAMPLE: my mortgage is on 200k the amount i pay toward my principle is $19 .00 a month aprox for 10 years
IM sure they made it look good but i would really look into options you have now and wiegh them out your not saving much with what you have and there may be a more stable and safe way to go if you dont wait too long
the best direct source
One thing that I would recommend (as some others have) is to not just pay the interest every month; add more to your payment so that your principle balance begins to decrease. If you feel that you can't afford to do that, make lump sum payments on your mortgage when you can - every little bit helps. Even if you only pay $50/month extra, it's better than just paying interest. For the most part, on a 30 year fixed mortgage, you're not paying much more than that towards the principle anyway.
Hang in there - real estate moves in cycles, and will turn around.
My home is not financed, but can I get a mortgage against it as a loan?
I've lived in a co-op for over 20 years. Recently, the HUD loan was paid off for this property. Now, we have converted to market rate condos, and we can sell our unit for whatever the market will bear.
I could really use a loan for paying down debt I've aquired over the years, and for home improvement as well. Would it be possible for me to obtain a mortgage for maybe half of what my unit is worth ($20,000-25,000), and like buy it from MYSELF, so I can keep the place I live in, and also have money to payoff some high interest loans and credit cards? It'd be like a refinance, but I am basically not financed at the moment. Others here have sold to real estate offices, and other buyers. I am just interested in getting some equity out of my unit for now. I am ready to move immediately forward if this, if this is a possibility. What do you all think? Possible, or IMpossible?
First, destroy the credit cards. It's how you got to this point in the first place. They love to keep you in debt, as you have seen. You MUST live within your income and still build savings.
You go to a bank and simply get a home equity loan. Watch out for the fees and don't accept a pre-payment penalty clause.
Can someone please explain why the government doesn't just lower mortgage rates to sub 4% to stimulate?
This 15 grand tax credit for new buyers is nice and all, but the problem surfacing lately is that most who don't already own homes don't have the credit to obtain financing.
Forclosures are killing values, more affordable mortgages would help to stop foreclosures and sustain value. In addition, it would revitalize construction and allow everyone who currently is a homeowner to refinance and have more money to spend in other places...to help grow other businesses and help the economy.
Building new schools and roads is a nice idea, but once those construction projects are finished, those people will be unemployed again. Sure, a $35 million school will employ about 30-40 teachers, but that's it.
Will someone please tell me what I'm missing here?
They've already discussed the idea of instructing Fannie Mae and Freddie Mac to buy mortgages from banks in the 4-4.5% range. It's not forcing banks to do anything, it's allowing them to lend at lower rates, where they make their cut, then sell the mortgage to Gov't owned FM & FM.
Is now a good time to purchase a home?
I am buying my parents home at 100,000.00 The loan is worked out so that my parents gift me the equity in the home ( it is worth 132,000) for my down payment. I am doing a conventional loan with a fixed interest rate at 5.5%. Have not signed papers yet.. It is based on a 30 year mortgage. How ever I hear that for first time buyers they are passing a bill to give a big tax break and also possibly a 4% interest rate. The guys doing the loan tell me to go ahead and do the loan I have now and if interest rate goes down to 4% I can refinance. I do not know what to do. With a bank I wil have to pay closing cost and down payment- I don't this way. Also with the new bill do you have to purchase your home on a 15 year mortgage- That will probably make my payments go way up and not sure if it is worth it in the long run. My payments will be $601.00 but I pay $697 a month which will cover all the taxes and Insurance that they wil pay for me every year. Do I take this deal or hold out till the bill passes? What would be the advantages and disadvantages? I need help!!!
Wait for 4% -- why would you refinance later? You'll have to pay closings costs on it.
buyer home mortgage rate refinance - News
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Are Lower Mortgage Rates Working? For Some, Yes; for Others, No - RisMedia.com (press release) Are Lower Mortgage Rates Working? For Some, Yes; for Others, No However, while the low mortgage rates seem to be helping new home buyers such as Landstrom, many of those who want to refinance and take advantage of the |
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Americas Watchdog Endorses American Interbanc As The Best Mortgage ... - PR Web (press release) Americas Watchdog Endorses American Interbanc As The Best Mortgage Typically if not always, American Interbanc has the best interest rates available to homeowners, or consumers wishing to buy, or refinance a home. |
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How to handle investment-home buy when tenant is your brother If not, then perhaps you'll want to put some kind of time limit on the transaction, say one in which he will have to sell or refinance into a mortgage in |
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Low rates boost housing - Times Daily Low rates boost housing Mortgage lenders say it's generally a good idea to refinance if you can lower your mortgage rate by 1 or 2 percentage points. Of course, there are other |
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Mortgage Fraud: A Scourge of the 21st Century? - Insurance News Net (press release) Mortgage Fraud: A Scourge of the 21st Century? With many home lending companies currently in a state of crisis, it is important that CPAs be aware of how fraud occurs in the mortgage loan industry. |