Time to Give ARMs Another Shot? NASDAQ
Should you consider an adjustable rate mortgage? The flexible-rate loans got a bad reputation when they were associated with the collapse of the subprime mortgage market, but lately they've been making a comeback of sorts.
That comeback has been driven by one thing - low interest rates. Currently, the average initial rate on a 5-year ARM is only 3.25 percent, according to Freddie Mac, compared to 4.55 percent on a 30-year fixed-rate loan - a difference of 1.30 percentage points.
That's as large as the gap has ever been - and far greater than the 0.25-0.50 percentage point difference that was typical in the years before the crash. The difference is even more stunning when you think of it in absolute terms - your initial monthly interest payments on the 30-year fixed-rate loan would be fully 40 percent higher than you'd be paying on the 5-year ARM, at current rates.
ARM advantages - and drawbacks
A lot of people think of ARMs as risky, complicated loans that can burn the unwary borrower. And in truth, they do present a potential hazard you won't encounter with fixed-rate loans - that you could get stuck with a higher interest rate once the initial rate expires. But ARMs are hardly exotic - they're as well-established and traditional as anything out there, and in many countries are the most common type of mortgage.
Refinance Mortgage | Mortgage Refinance Activity Jumps
Overall mortgage activity spiked – led by notable jump in mortgage refinancing – amid a fall in average mortgage rates this week, the Mortgage Bankers Association (MBA) reported.In its Weekly Mortgage Applications Survey, the MBA saw a sharp increase in mortgage refinancing activity for the week ending November 4, 2011.According to the MBA, mortgage application activity overall .. more …
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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 ...
I'm looking to refinance my mortgage. How do I know who is a good lender with the cheapest rates? find them?
Here's the thing about rates - you can pretty much get any rate you want - it just depends on what you want to pay for it.
Think of it as a see-saw on a playground: As the rate goes down, cost goes up. Rates goes up, cost goes down. That's how you get no cost mortgages - they just have a higher than average rate. Rates are also based on risk, so it will depend a lot on your income, assets, credit, property, debt, etc. to find out what rates you qualify for.
The market has been very volatile the last few months and it's very important you work with someone who is experienced and well known. Talk to friends and family - ask them for referrals. Read reviews of lenders and find someone you can trust.
Refinancing is about a lot more than someone who can quote you the best rate - it's about finding someone you can trust and someone who can follow through on what they promise you.
Feel free to contact me directly if you have any questions!!
You might also want to try bankrate.com, but that includes all financial stuff so hsh is probably better...
try citizens advice bureau, they have advisers for some financial dealings.
http://www.pricelinemortgage.com
They were awesome and beat the competition in 30 year conventional rate, and all lender fees including closing costs.
I tried muiltiple brokers and lenders. I would never recommend a broker, they are a middle man and will up your costs one way or another. Don't fall for that broker line "We represent 150 lenders", yeah they do but they don't talk to each and every one of them everday and they generally can't lower rates for your business.
I Love PRICELINE MORTGAGE! They were professional in all aspects of my mortgage. Zero complaints.
They are owned by a brick and mortar bank "Evergreen Bank" based out of Washington State.
You can also look to the right of this page and probably find at least 3 that will give you free quotes right now.
Any broker with these qualifications will do well for you. Good luck.
Need cheapest method / place to do refinance of mortgage. Purchased house ONLY 3 MONTHS AGO.?
Bought house & got caught right in middle of finance collapse due to broker being idiot so he was forced to finance mortgage himself for 1 year. Now with 4 month old appraisal & 3 month old mortgage I am looking for cheapest way to get into standard 30 year fixed rate. Seems like most places like ditech require 1 year ownership.
NOOOO!!!!! were you not on earth when financial crisis calling for 700 BILLION $ bailout just recently?!?!?!? only idiots think financial ccollapse happened 3 years ago. They cause may have but it was not until recently when lending froze up and most major companies failed or were on brink.
ANDDDDDDDD no prepay penalty, why cant people stick to the question and just try to answer it?!?!?!
i meant 2 years ago not 3 years ago.. oops
You have more than one problem here. Your appraisal will no longer be valid for any lender. The market changes so fast that many are now refusing to accept any appraisal more than 60 days in age.
As well, if you are at close to 100% financing, your property's value may well have dropped, which would require you to come up with considerable cash to make up the difference.
Most of the major nationwide lenders DO require a year of ownership before a refinance will be considered. Your best bet (it won't be the cheapest, but will work) is to head for a LOCAL bank where you can explain the situation to a live mortgage lender person to person. Your rate will be somewhat higher but you will get a refinance. Don't waste your time with the 'biggies'. They are sticking to rules fast and tight because of the severe burning they have taken.
No, no one will give you a conventional loan and your present loan likely has a prepayment penalty for 2 years.
Either way I have a couple of wholesale lenders that will refi with little or no seasoning at the new appraised value instead of the traditional refi using the purchase price if under 1 year. Email me for more info or help.
Mortgage rates will now drop alot...?
I am excited about the Govt's recent activity to save my home fron recession....It would be easy to be the Fed chairman job..all you have to do is move rates lower when the economy looks flat lined and raise them while everything is going great. Anyway, now that the Govt has dropped the interest rate by a half percent, how long will it take until it gets easy again to refinance and lower the mortgage payment? I think the good days are back and homes should start building equity again. it should also be easy to get credit cards now that homes will shoot back up. Can I get some equity money at cheap rates going forward? After all, if the banks get loans for less cost, then we can expect this rate cut automatically...I can't wait, I want to shop til I drop and will put the goods on my CCard so I can pay later., I love free/cheap money!...lots of deals still out there.
You will see a very little down adjustment only if you have a debt that is tie to prime rate like ARM, HELOC and CC rates. Anything that is not tie to prime rate will have no impact from this rate reduction.
What I wanted to comment on was the actual notion that the Fed rate cut will affect mortgage rates, in most cases it will not! long term rates like 30 year fixed rates are linked to bond rates not the prime rate. ARM's will possibly drop slightly but don't hold your breath waiting for that. If you want to refinance, do it because rates are low, just know that them being low has nothing what-so-ever to do with the Fed rate cut.
But don't worry - you're plan will work in any market, whether depression, recession, growth, whatever - you'll end up in foreclosure any way you look at it.
Sorry to hear that nobody told you about how to handle money.... "Aarrgh! A real shame, that!" (don't forget, it's still 'Talk like a pirate day')
What are some cheap marketing ideas that can produce qualified mortgage applicants looking to buy or refinance
I am a Mortgage Consultant from the Macomb County Michigan Area that is looking to help those in need of purchasing or refinancing a home. I have already purchased the websites, www.MACOMBLOANS.com, www.LOTLOANGUY.com, www.MSHDALOANS.com, www.UBUILDITLOANS.com as a low cost way of targeting specific markets. I need your thoughts on how to generate some additional business. The Macomb County Michigan housing market has certainly become challenging due to the local economy and our counties high forclosure rate. Any thoughts and ideals that could help generate some much needed business would be appreciated.
network! network! network! tell all your family and friends, tell all the Real Estate Agents you know- and giving them gifts doesn't hurt either. Oh and make friends with with Real Estate Agents, they're a good source for leads.
If you need help help creating "stronger" buyers, I have a product that can increase credit scores by 50 points in 60 days guaranteed. Typically my clients get 100point in 45 days...
you cant go wrong with gargoyles
Where can I get a loan modification? Is a loan modification cheaper and better than a refinance ?
I do not want to take money out. I just want to lower the interest rate. Mortgage is 62999, payment 450.59 interest rate 6.875. I am searching for 4.875 or less with 1 point or less closing
Yes, loan modification is cheapest, as it can ONLY be done with your present bank. Call them up and ask for a Loan Modification Package, they will mail it out.
Mr Keane Darwin
Darwin Private Financiers.
Owned house 1.5 years. I want to add a garage and do improvements. Can I refinance for more than value? How?
I got a fairly nice house for my credit score in May 2006. It is one of those ones that is good for now, but isn't where I want to be in 10 years when I am finished with the army. I am at my current location for at least 3 more years. I'd like to protect my vehicles in a 2 car garage with shop and do a few thousand dollars in repairs/upgrades to the house. At the time I got the house my credit was Fair at best. Since I have been deployed to Iraq and I've paid off all but one account that stands at $10,800. I have no late payments in the last two years. I'd like to refinance, if possible, to include the 1st mortgage, the home improvements, and the car loan so everything is in one bill hopefully at a cheaper rate. The only problem is the total loan would be worth more than the house until the home improvements are made. Is there a way? It is of importance to e because my car has been broken in twice while deployed and the sewer backs up in the winter time...I'd like to fix that
i would do it in baby steps == i would try for a construction loan to build the garage and once completed than go for a complete refinance == bear in mind if you throw in the car loan you will be paying part of the car off over the next 20 or so years!!!
Best place to get a mortgage refinanaced?
Want to refinance home for cheaper interest rate. any ideas?
Let me try to give you legitimate advice...Not an ad for my services...
The best way to find a new loan is to shop around. I urge all of my clients to do so and I would honestly say that 95% of them come back to me and respect the fact that they know they are getting a fair deal.
The best lender is many things other than just his products. A great lender controls and understands the whole process. Ask your lender if they have in house underwriting. All of the biggest places will. I tend to lean toward the big boys because we have the most leverage in the market. Who will get better rates and leverage...The little company who does 100 loans a year if he is lucky out of his broker house with 5 LOs or the Big Boy who closes over 1.5 billion in loans company wide? In house underwriting is the way to separate the big boys from the pretenders.
Also, ask your lender to go through your credit report with you line by line. Have them explain each issue, and how to resolve it with a clear credit plan.
Remember your mortgage isn't always solely about rate and term, go with whom you trust. Ask yourself..."would I be willing to refer him to my mom?" If the answer isn't a clear yes you are talking to the wrong person.
If you have any questions beyond this response please feel free to email me, I am always willing to talk shop.
Find Low Competitive Rates & Fees Guaranteed at Ditech.com. Get rate info and apply online now.
Quick Links: New Purchase - Home Equity - Imperfect Credit Loan
http://www.ditech.com - More from this site
Here is some additional info. Hope this helps.
Im a Loan Specialist. You can contact me anytime & I can give you various quotes. I can work with clients anywhere in the U.S.
www.lindamunoz.net
What fees am I liable for if I back out of a mortgage refinance?
We are attempting to refinance our home. We started with one bank with one rate and a week later found a better rate at another bank and started the process with them. Now, we have two refinance applications running in parallel, and neither bank knows it is still competing for our business. We recognized when we went down this path that the application fees are non-refundable, but a few hundred dollars seems like cheap insurance to make sure that we have a loan that we like. We are now at the point where both banks are about to have an appraisal done. Is there any chance that whichever bank we ultimately back out on will tell us that we owe them for an appraisal or other fees; and would we be liable for these?
From my searching I read that this is called "double apping" and is very common. The basic problem consumers like me face is that once you lock-in with one bank, if the bank does not close you on time or the appraiser they use does not give you a good appraisal, you are out of luck and have to start over with a new bank at prevailing interest rates.
The other thing that I've recognized is that a good faith estimate is insufficient documentation to really be able to adequately compare loans. Just one example - prepayment policies are not disclosed on a good faith estimate - you could get weeks into the process or even all the way to the closing table before you learn that a loan has a prepayment penalty. The existence of such could cost you thousands of dollars later on if you elect to refinance or pay off the loan early.
I am a Realtor. You are doing the right thing by shopping around. But what you should have done in the beginning is take both good faith estimates from each bank and compare them. Then you should have chosen the one with the best rate and the best deal.
I wouldn't have stopped there. I would have called the other bank to see if they could beat the first banks deal. I am almost 100% sure that the second bank would have beat the first banks deal.
Now that you are in it kinda over your head this is what you should do. Choose the best deal for you. Do not continue with both as you will probably be liable for both appraisals. In CT appraisals are paid for up front. So I am not sure if that is what they are going to have you do. The obvious and smart thing to do right now is to chose the best deal and go with it. Inform the other bank that you are withdrawing your application.
Realtor Tina in CT
How do you find the best mortgage company to refinance your home when you are self employed and have to use...
and have to use your personal checking account as your proof of income? I need to refi to get it out of my ex husbands name and also because my two year fixed is about to become unfixed : ( I would love to be able to get a lower interest rate but am afraid with being divorced and self employed that it will be high? How do I find the cheapest company that will accept all my issues?
I do work! I am a housekeeper and have kept up my mortgage payment, car payment ect for a year now without my ex even paying court ordered child support. I work and pay my bills without being on welfare. I am not looking at repo! I just need to refi. Arrrg! Sorry to get bent over one comment but that just burned.
The question is not "which is the best mortgage company" but "as I am self employed, what is my ability to repay my mortgage and not have my home repossessed." Look at the situation in America, where people refinanced their homes to get money to invest in the stock market. The economy collapsed, they lost all their money and had to have their homes repossessed. Try to not get into too much debt, your the sole earner and self employed. If you don't work, who's going to service your payments? I would hate to hear your on the streets.
I was wondering: why not take a home equity to pay off mortgage?
We have a $200,000 mortgage on a house that is worth $300,000.
I was thinking about refinancing, but noticed that a home equity line has a lower interest rates APR.
If I take the equity line and pull out the full amount they will give me (the bank told me it is up to 80% of the value of the house) and turn around and pay off the mortgage, wouldn't that be cheaper for me ?
Where is the caviot in this theory?
Most home equity loans have a shorter time frame
Just refinance - and its a great time too !!!!!!!
cheapest mortgage rate refinance - News
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Amid turmoil, think long-term - Boston Globe Amid turmoil, think long-term Clearly, you want to redo your mortgage. If you can refinance now, rates are down to about 5 percent. Sure, absolutely. Anybody with a rate 6 or higher |
Refinancing gives homeowners some breathing room - Granite Bay View
Granite Bay ViewRefinancing gives homeowners some breathing room Mortgage rates have dropped as far as 4.79 percent during this refinance period, which started to gain momentum in late October of last year, according to
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Will Any Other Republicans Support the Stimulus Deal? - Washington Post Will Any Other Republicans Support the Stimulus Deal? I took out 2 home equity loans one in 2003 and one in 2006 on top of the cash out refi in 2002 because a mortgage broker told me I could refinance out of |
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Eight Tips for Landing a Mortgage At around 5%, 30-year mortgage rates are at levels that haven't been seen in, well, 30 years. If you want to buy a home or refinance your existing loan, |
If Money Is Cheap, Why Can't I Get A Loan? - CBS News
CBS NewsIf Money Is Cheap, Why Can't I Get A Loan? And mortgage rates are near record lows. But even after the banks have been given more than half-a-trillion dollars in bailout funds, the Fed said Wednesday
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