Home Loan Focus

Archive for the ‘refinancing’ Category

Interest Rate Roundup

Here are the latest interest rates and commentary on five common consumer banking products from Bankrate.com’s weekly national survey of large banks and thrifts.

Source: Interest Rate Roundup

Europeans buying U.S. vacation homes

Foreigners take advantage of favorable euro-to-dollar exchange rate but face higher down payment.

Source: Europeans buying U.S. vacation homes

Higher Interest Rates a Sign of Economic Recovery?

Mortgage interest rates rose in the latest week, and according to Freddie Mac the root cause was economic data indicating housing market recovery.

“Mortgage rates rose slightly this week amid positive economic news that the economy may be approaching the bottom of the recession,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Specifically Nothaft named the following indices:

• April consumer sentiment was revised above market consensus
• The ISM Manufacturing Index ‘exceeded market expectations’ in April
• Fed Chairman Ben Bernanke predicted the economy will bottom out soon before heading up at the end of the year
• Pending home sale rose for the second consecutive time in March
• Demand for prime mortgages rose in April for the first time in two years

Based on those factors, rates on interest rates on 30-year fixed rate mortgages increased to 4.84 percent in the latest week, excluding fees, up from 4.78 percent.

Not everyone is convinced that the week’s news are true signs of renewed market strength. A post on the http://www.thetruthaboutmortgage.com/mortgage-rates-rise-on-good-news saw it this way:

“But these two items [pending home sales and increased prime demand] can easily be attributed to the sale of distressed properties and the record low interest rates pushing demand higher, which to me isn’t the sign of a recovery.”

Personally, I tend to agree more with Freddie Mac, though. It has been a long time since we have seen so many positive indicators in one week, and the market and our entire economy seems to be very sensitive to general positive or negative feelings about the state of things.  So, maybe things might actually be looking up, and with rates much lower than the 6.05 percent from this time last year, home loans are still very affordable…for those who qualify.

Source: Higher Interest Rates a Sign of Economic Recovery?

Brew beer and save a frothy mug-full

By brewing beer at home, you can save on a grocery-store six-pack or a pricey microbrew at the pub.

Source: Brew beer and save a frothy mug-full

Good News For U.S. Mortgage Market

There may be reason to hope that the housing market is starting to show signs of life again. Two recent housing reports have indicated that things are looking up.

First, an article on the USAToday website reported that although demand for almost all consumer and business loans declined in the latest quarter, the Federal Reserve says that demand grew for prime mortgages, or good credit mortgages, marking the first increase since the first part of 2007. We can certainly attribute a great deal of that heightened demand to rock bottom interest rates.

Interestingly, the increase in demand for prime loans came during the same time that roughly 50 percent of banks were tightening their lending standards on those types of mortgages, and 65 percent were toughening up the requirements for non-traditional loans.

Not all parts of that report were entirely hope-inspiring though. The Fed survey found that more than 70 percent of all banks expect to see a decline in the quality of their portfolios. Still, we can take the points of light where we can get them these days.

The second report comes from the National Association of Realtors. Its Pending Home Sales Index showed that pending sales of existing homes climbed upward in March, making two consecutive months of increases.  The NAR said that signed contracts rose 3.2 percent in the latest period largely due to a flood of first-time homebuyers taking advantage of excellent mortgage interest rates.

While the association warns that it may still take several months before sales get real momentum, NAR President Charles McMillan tried to put things in perspective.

“Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” he said. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

So if you fit into that segment of society that has good credit, lots of money in the bank for a down payment, and a stable, steady job – now is the time to act! For the rest of us, the waiting game continues…

Source: Good News For U.S. Mortgage Market

Tips for getting your rent reduced

In today’s market, tenants are saving cash by successfully asking their landlords for a rent reduction.

Source: Tips for getting your rent reduced

Interest Rate Roundup

Here are the latest interest rates and commentary on five common consumer banking products from Bankrate.com’s weekly national survey of large banks and thrifts.

Source: Interest Rate Roundup

Do you qualify for the refinance plan?

The federal government, Fannie Mae and Freddie Mac spell out the rules for the refinance program.

Source: Do you qualify for the refinance plan?

Video: Being a landlord

Being a landlord takes real work.

Source: Video: Being a landlord

Green insurance, the eco-alternative

Insurance firms are offering eco-friendly options to lure consumers interested in energy efficiency.

Source: Green insurance, the eco-alternative