Mortgage Rates: Low Mortgage Rates Could Drop Further As Stock Market Slides FreeRateUpdate.com
By: Rosemary RugnettaToday’s low mortgage rates could drop even further to historical record lows as the stock market slides after Tuesday’s optimism has disappeared.
Current 30 year fixed mortgage interest rates are at 4.125%, 15 year fixed mortgage interest rates are at 3.500% and 5/1 ARM loan rates are at 2.750%. These are the lowest mortgage rates available with 0.7 to 1% origination fee to borrowers who have maintained good credit. In order to receive lender approval, borrowers must also be able to provide any required documentation. Conforming mortgage rates are at 2011 lows, but as MBS prices rise, borrowers may see these long term mortgage rates fall even lower.
Today’s FHA 30 year fixed mortgage rates are at 4.000%, FHA 15 year fixed mortgage rates are at 3.500% and FHA 5/1 ARM loan rates are at 3.250%. With FHA accepting a down payment as low as 3.5% from borrowers with credit scores down to 580, it is no wonder that FHA has become the most popular mortgage product. FHA mortgages are not just for home buyers, but is also available to borrowers who wish to refinance, especially those with not so perfect credit. FHA closing costs (APR) do tend to be higher due to the upfront mortgage insurance premium and other applicable FHA fees.
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Interest rates are down at least one full percentage point just in the last week. If you are on an adjustable and you are lucky enough to still ...
Where can I find a wholesale lender to refinance a mobile home?
This is in Southern California. I need to broker out a mobile home refinance for someone. Please help and maybe we can make a few extra bucks. Thank you.
I would try JCF Acceptance, I know they have a wholesale division. I just got a loan from their retail division and got a great rate 6.74%. Much less than other lenders that I got quotes from. You can reach them at (800) 745-0607. Their website is www.jcfinc.com.
The only lend on mobile homes in parks, leased land, or when the mobile home and the land are not tied together by way of deed.
Good Luck,
Peter
Eagle Funding Company
Vanderbuilt 888-285-0042
World Net Capital 1 LLC
They all obviously have different guidelines according to FICO and whether its a double wide or not. I suggest contacting them directly. But I hope this helps.
Mary Morris
Pacific Sands Mortgage
(949) 202-6306
marymorris@pacsands.com
Thanks,
Mary
How far in advance should you start to refinance? How long does the whole process take?
I live in Southern California.
Normal time frame is about 30 days.
I am a loan officer in TN & KY
More homeowner woes in Southern California...
I own a home that was refinanced a few years ago. I also have a second mortgage. Both are 30 year fixed mortgages. The second was taken out to buy out my ex as part of a divorce settlement.
My company just layed off several people. I make a very good living, but I am very concerned that another round of layoffs is coming, and that I might be a casualty. In fact, my industry in general is hurting right now, and getting a job with similar compensation would be difficult.
As for the note on the property, I owe $530K (includes a second mortgage of $135K), on a house that is probably worth $425K (at best) right now.
If I do lose my job and can't get another, (which pays enough to allow me to afford the mortgages), in a reasonable period of time, does it make sense to drain my savings for a house that is losing value? Then what? I will be broke and jobless (or under-employed). It seems that I would lose the house anyway...but walk away with nothing in the bank if I try to hold on to the bitter end.
I don't have the same issues as sub-prime borrowers, but I am being impacted by the bad economy AND all the foreclosures driving home values into the toilet.
Do I want to invest $48K per year (one year's worth of payments) for a house that is losing value? If it took 5 years for housing to recover, that's nearly a quarter of a million dollars spent...for what? To just "break even"? Is that a smart plan? Tax advantages will be moot if I am not working.
Is it worse to dump every last penny into a house that is depreciating? Is that smarter (and more economical) than getting killed on my credit?
In summary, if I do lose my job, my thought is to immediately bail out of the house (unless my creditors are willing to go the extra mile to help me). I see no value in taking the moral ‘high road’ as I lose everything.
I do believe in living up to my obligations. But I also believe that common sense has its place too.
I would love some advice.
This scenario only applies IF I lose my job.
Hey 'vb', you missed my point completely...but thanks anyway.
If you lose your job, this counts as a hardship for a short sale, which may be an attractive option for you.
A short sale is where you come to an agreement with the bank for them to take whatever you can get for the house to pay off the debts. This is a better option than a foreclosure for a couple of reasons: First, it's less of a negative hit on your credit report. It shows that you took some responsibility to work out a solution rather than just walking away (foreclosure). Second, a bank can go after other assets with a foreclosure to get their money back. This may include hiring a collections agency, who will hound and pester you forever. With a short sale, the debt is just forgiven.
One requirement for a short sale is to submit a hardship package to the bank (the loss of a job is one such hardship - and "I owe more on the house than it's worth" is not a hardship). The bank then instructs you to sell the house for whatever you can get for it. The listing will include a disclaimer saying something like "Offers accepted pending lender approval." When an offer comes in, the bank will then negotiate with all other lienholders (other mortgage holders on the property) to deetermine who gets how much if the property sells for that offered price.
If all lienholders can come to agreement, the bank instructs you to accept the offer. The transaction then proceeds like any other real estate sale. The only difference is that the bank may instruct you to pay all of your closing costs (like property taxes owed, real estate commissions, etc.). If the lienholders can't come to an agreement, then the bank will instruct you to reject the offer and list the property for a higher price.
Some banks require you to go into default before agreeing to a short sale. In this case, you stop making payments and they issue a notice of default that stipulates that the property will go up for foreclosure auction about 3-1/2 months after the notice of default is issued. This basically forces you to go through with the short sale in an expeditious manner, with the threat of foreclosure looming over your head. And, I read in the paper this weekend that only 20% of short sales go through. The rest become foreclosures.
Now you want the bank to absorb the loss the because you guessed wrong on the value of the house. YOUR asset went down in the value. The house belonged to you, not the bank.
And you want me to pat you on the shoulder and say it's okay, it's not your fault, you are a good person.
Fortunately for you, if you do walk away, the 2nd mortgage will only affect you on your state taxes. Any money you fail to pay back to the bank *is* income at the state level. It would be too on the federal level, but congress gave you a huge bone.
(I paid cash for my house. When it goes down in value, I'm the one that loses. I can't take a loss on my 1040. You on the other hand, can walk away and exclude the cancellation of debt income on the 1040 under the Debt Forgiveness Act. How is that fair to me?)
Save every penny you can.. and show your willingness to work for the good of the company. Also be sure to network with others in your profession. Never know when it might come in handy to know someone at another company that might need your expertise.
I'd say to look for some roommates now, before the squeeze sets in. Just choose carefully.
And tighten-up your resume and keep your ears open for a more stable job.
Can I sell my truck directly after refinancing it? Is there typically penalties for that?
I have a loan in southern california and I'm trying to sell it in Northern california. I just want to know if there is any penalties for refinancing it in northern california in order that I may sell it at the new bank's local branch.
There is no penalty for this but why would you go through all the time and trouble as you do not need to refinance it to sell it there?
Chris
Should I refinance now or wait until the New Year?
Hi! Recently got a notice that Chase sold our home loan to another company so now we get to refinance! Problem is, we purchased just before the housing slump and paid roughly $460,000 for a home that is now worth something like $380,000 max. Is there a good time to refinance, or should we just do it now? It seems silly to rush this since it's December and the appraisal wont be as much as we want, plus there's so much extra crap around for the Christmas decorations.
I know there is no way of determining how rates will go or if home values will rise again, but any input on the best time to do this is much appreciated.
I beleive we are paying 6.125% right now in Southern California
Well it probably doesn't hurt to check on rates but 6.125% is a good rate already. With fees and costs thrown in, you might not get any savings with a refi. The other issue is that if your home is worth less today, the bank might not approve on an upside down house. You also want to read about recourse vs. non-recourse loans, and why a refi might hurt you dearly if the market continues to tank.
Using my equity to refinance from an ARM to a fixed rate?
I bought my small southern california home for $760K. I had my agent pull comps that has my home value at $810K. Zillow.com (which I know is just a best guess) has my home listed at $805.
I am 1.5 years into my 5/1 interest only ARM 100% financing and want to refi to a fixed rate loan asap. I owe $760K on the home. My credit score is 910 (Excellent). I want to put 5% ($38K) down on the home when I refinance.
Can I roll my existing equity into the new fixed loan?
(current market value $810K - $760K purchase price = $50K equity in home)
Yes, most lenders like to see 10% equity to approve a refinance. Right now, you're at about 94% loan to value, so you would probably have to put more into the house first. Also remember the closing costs you will incur. You might be able to get around this with a "favorable appraisal", but lenders are less flexible right now.
Also, what would your debt to income be? Remember that with a fixed rate mortgage, you'll also be paying principal, so your monthly payment will probably increase (since you're only paying interest now).
The lender will consider the difference between the loan amount and the appraised value (which the lender will obtain before issuing the loan) as your equity and, hence, your down payment. Though the limits have been raised on what constitutes a "jumbo mortgage," you are still above the threshold of $417,000, so expect to pay a higher rate than mortgages for a lesser amount. In addition, because of the low percentage of equity, you may have to pay a higher rate, though your excellent credit score should mitigate that.
Matt
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://d6b0.easyurl.net
Adjustable rate coming up on my mortgage.80/20 loan?
I live in southern California, I currently have an 80/20 loan and the 80% is going to adjust. I'am in the process of refinancing but it isn't looking too good for me, I have about 20,000 in equity according to a recent home appraisal but I'am still having problems getting a loan. The payments will go up around $700.00 when it adjusts and it will be almost impossible to pay. Should I contact my Mortgage company now and see if they can work with me and if so what is the likely hood that they will work with me? I would like to avoid a short sell or obviously foreclosure. What are some of my other options? I have fair credit and good income. Beneficial is the company the loan is through.
Contact your mortgage company NOW and explained the stitition today and see if they can help you or refi your home.
You also think about refi into FHA loan if your loan amount is low.
Your best bet is to call the company that holds your note NOW and explain your situation. Banks do not want to own property, and it is in their best interest to work with you to find a rate you both can live with.
Also, interest rates are still very very low. Unless your initial rate for the ARM was one of those ridiculous 1% deals (which are now illegal) you should not have much trouble finding a good rate to refi at.
Good Luck!
If you have had mortgage lates then it will make it a lot harder!
Most lenders will not help you with the refinance as they are hoping that you will pay that higher rate when it adjusts.
If your current lender can't do them, call around.
Are there government programs to help homeowners??
I live in southern california and my mortagage is very high. not including tax and insurance. I am dead broke and in the process of looking to refinance the house to have the payment go down a bit. I am now on a sub prime mortgage. Where can i get help?? Are there government programs that can help me lower my monthly??? and can they help me refinance the house? or where do i get help? my mother told me i should just forclose onmy home and rent. but i dont think right now would be the best route for me
Yes, there are government programs for first time homeowners, for low to mid income people who want to own, and also there are city programs look into it. you can do a search online in the city you plan to purchase the home. There are also below market rate programs which are not that below market if you ask me in California. Check it out.
My Property Tax bill has doubled from last year why?
This is crazy!!! I just received my property tax bill in the mail this morning and its doubled from last year, and I didn't refinance or did any improvements at all to the property, the value of my home has decrease (I live in southern California), so how could it double its now $4,000 which is insane, I brought the home a few years ago for $180,000. How could my taxes be $4000, when all the homes around my neighborhood has dropped in value....now I see how people are losing their homes.
Can someone give me some sound advice, please what can i do?
Sorry for ranting, just frustrated by all this.
Cheers
My Interest Only ARM - What's the smartest thing for me to do?
I have 8 years to go on my 10 year interest only period which ends in 2016. However, in 2011, the rates becomes adjustable (2% cap, Annual adjustment). We're planning to be here no longer than about 7 more years anyway, then we plan to sell and leave the state (We're in Southern California)
If rates went up 2% or 3%, I could still make the payments comfortably come 2011 because I still won't have principle kicking in.
I owe almost exactly the same on my home as what I paid for it. (Prices went up a bit after I bought in the area and have come back down in the last 12 months.) We're saving money now to add an additional room/bedroom in 2011 if the rates are still reasonable and we don't need to use the saved cash to off-set higher payments.
I'm not in a position right now to throw 5%, 10% or 20% into a +$700K jumbo loan to refinance, which is what I'd have to do. So that's out. And not sure I want to do that anyway given that I don't plan to be in this home 20 years.
Any advice? Suggestions about what the best thing to do would be?
Smart to sit, save what I can and not stress about changing my mortgage?
Or is there something smarter to do?
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