Obama Administration Weighs Mortgage Refinance Plan Fox News
The Obama administration is weighing whether to allow homeowners to refinance their mortgages so they can take advantage of the current rock-bottom rates, as the foreclosure epidemic spreads.
Sources in the housing and mortgage industry confirm that the refinancing proposal, which would cover government-backed mortgages, is one of several on the table as the administration tries to tackle the housing slump as well as the overall slack in the economy.
"As one would expect, we continue to look for ways to ease the burden on struggling homeowners and to help stabilize the market, whether that's through assessing new proposals or older ones worth re-considering as market conditions change," an administration official told Fox Business Network, while cautioning they have "no plans to announce any major new initiatives at this time."
The refinancing idea would help homeowners by saving them money on interest payments while potentially having a stimulus effect on the economy -- since the money they would have spent on mortgage interest would be available for other things.
Shorter loan terms popular for refinance
Low mortgage rates offer several options for homeowners with enough equity to refinance. While the most popular option for homeowners is to reduce their monthly mortgage payment with a home refinance, some borrowers choose instead to shorten their loan term to pay off their entire loan more quickly.
According to Freddie Mac, 95 percent of homeowners who refinanced in the third quarter of 2011 chose to refinance into a fixed-rate mortgage and 40 percent of those who refinanced from a 30-year fixed-rate loan chose a 15 or 20-year fixed-rate loan. This is the highest percentage of borrowers choosing to shorten their loan term since the second quarter of 2003.
“Compared to a 30-year fixed-rate mortgage, the interest rate on 15-year fixed was about 0.8 percentage points lower during the third quarter,” said Frank Nothaft, Freddie Mac vice president and chief economist. “For borrowers motivated to refinance by low fixed-rates, they could obtain even lower rates by shortening their term. The initial interest rate on a 5/1 hybrid ARM was about 1.2 percentage points lower than on a 30-year fixed-rate loan. For borrowers who plan to remain in their current home for only a few years, the hybrid ARM allows for even a greater interest-rate savings.”
Mortgage refinance applications slow
In spite of the recognizable benefits of a mortgage refinance, the Mortgage Bankers Association (MBA) Refinance Index for the week ending November 11, 2011 showed that applications for refinancing decreased 12.2 percent over the previous week.
According to HSH.com, mortgage rates dropped slightly last week to an average of 4.34 percent for a 30-year fixed-rate home loan and average of 3.65 percent for a 15-year fixed-rate home loan. The initial rate for a 5/1 hybrid ARM averaged 3.09 percent.
The decline in refinance applications last week may be tied to the expansion of the Home Affordable Refinance Program (HARP), which is expected to allow more homeowners with little or no equity to refinance. Applications for that program are anticipated to be available beginning December 1.
...Refinance Help. Fill this form and get help!
Mortgage Loans in WASHINGTON, DISTRICT OF COLUMBIA
www.lendinguniverse.com Find and compare hundreds mortgage loans in WASHINGTON, DISTRICT OF COLUMBIA. LendingUniverse - Real Estate Brokers ...
columbia mortgage refinance - News
|
White House closes in on housing plan A $300000 mortgage on a house now worth $200000, for example, might be bought at a 30 percent discount. The homeowner then would be able to refinance the |
|
Lower interest rates spur mortgage refinancing - Columbia Missourian Lower interest rates spur mortgage refinancing BY Dalena Hardy COLUMBIA — Donna Keller and her husband Keith have lived in their Hallsville home for 14 years. Donna had been monitoring mortgage interest |
|
The Senate's Flawed 4 Percent Mortgage Refinance Plan - Heritage.org The Senate's Flawed 4 Percent Mortgage Refinance Plan As Mayer describes it, this new 4 percent mortgage interest rate will also be available to those wishing to refinance their mortgages, which he claims will |
|
Residential Finance Corp. Names Finance and Banking Industry ... - Business Wire (press release) Residential Finance Corp. Names Finance and Banking Industry “Residential Finance Corp. is a mortgage refinance lender with clear goals and an energetic work force,” says Fleishman. “This is a growing business in a |
|
Not Too Soon To Speculate On 2010 US Senate Race - TheDay Not Too Soon To Speculate On 2010 US Senate Race That may still work if you're watching over the Rules, Small Business or the District of Columbia committees, but the financial institutions Dodd's banking |