Mortgage Rates: Outlook for Continued Low Mortgage Rates Remains Positive FreeRateUpdate.com
By: Rosemary RugnettaWith the sluggish economy still hovering over the U.S. and other global markets, the outlook for continued low mortgage rates remains positive. Mortgage rates again hit all time lows according to Freddie Mac’s Primary Mortgage Market Survey.
Although conforming mortgage loans aren’t for everyone, there are many consumers out there that can take advantage of today’s low mortgage rates. Current 30 year fixed mortgage rates are at 3.875%, 15 year fixed mortgage rates are at 3.250% and 5/1 ARM loan rates are at 2.625%. It is necessary for borrowers to have good credit and verifiable income in order to receive these low mortgage rates with 0.7 to 1% origination point. Many borrowers have cleaned up their credit in recent years and now have the opportunity to jump on these lowest mortgage rates to save some money.
Low FHA mortgage rates are another option to own a home or refinance at the lowest cost possible. Today’s FHA 30 year fixed mortgage rates are at 3.750%, FHA 15 year fixed mortgage interest rates are at 3.500% and FHA 5/1 ARM loan rates are at 2.750%. With FHA mortgages, the down payment is only 3.5% with a credit score as low as 580. There are also housing grants and bonds available that can be combined with FHA mortgage loans which bring the total costs down. FHA charges an upfront mortgage insurance premium and other FHA fees which tend to make FHA closing costs (APR) higher.
Fewer homeowners underwater
CoreLogic, a provider of mortgage data, released data on November 29 showing that 22.1 percent of all homeowners with a mortgage owed more than the value of their home during the third quarter of 2011. This represents a slight decrease compared to the previous quarter.
Underwater homeowners have been unable to refinance into lower mortgage rates, since most lenders require at least some home equity in order to approve a new loan. Mortgage rates remained extremely low for most of November, according to HSH.com, but homeowners without equity have been unable to take advantage of these low mortgage rates. Applications for a home refinance declined by 15.3 percent during the week ending November 25 compared to the previous week, according to the Mortgage Bankers Association (MBA), even when adjusted for the Thanksgiving holiday.
CoreLogic says that 10.7 million homeowners were in negative equity during the third quarter of 2011 and an additional 2.4 million borrowers had less than five percent equity, which the company refers to as “near-negative equity”.
Refinancing and negative equity
According to CoreLogic, “There are nearly 22 million borrowers, or 45 percent of all borrowers, who have mortgages with an 80 percent or more loan-to-value (LTV) ratio, and 69 percent of those mortgages have above-market interest rates of 5 percent or more. Conversely, only 54 percent of borrowers who have less than 80 percent LTV have above-market interest rates. While above-market interest rates make refinancing at today’s historically low rates a cost-effective step for qualified homeowners, it can be more difficult for borrowers with above-average LTV ratios to qualify for refinancing.”
If you have low or negative equity and have been keeping current with your mortgage payments, there may be an option for you to refinance with the expanded “Home Affordable Refinance Program” or HARP. This program is designed to allow homeowners to refinance into a lower mortgage rate even if they lack enough equity for conventional refinance programs. Check with your lender to see if you qualify for a HARP refinance.
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California interest mortgage rate refinance and hard money
www.lendinguniverse.com California interest mortgage rate refinance and hard money, interest calculator and cheap fixed mortgage against mortgage ...
Which bank offers the lowest interest rate for mortgage refinance in California?
I need to refinance my second/investment home in Milpitas California and I'm looking for a mortgage broker or a bank that offers lowest interest rate based on 700 or more fico score. Preferably a loan program with minimum monthly payment is preferred.
find the best rate you can find and then add 1% (1 point is what is the standard to add when dealing with an investment home)
A mortgage broker is supposed to find you the best rate from all the companies she works with. If you don't have a good one shop around.
Here is a website to find the average and best rates:
http://www.bankrate.com/brm/default.asp