- The benchmark 30-year fixed-rate mortgage fell to 3.9 from 3.96 percent last week, according to the Bankrate.com national survey of large lenders. One year ago, that rate was 4.48 percent. Four weeks ago, it was 3.8 percent. The mortgages in this week's survey had an average total of 0.3 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.2 percent. This week's rate is 0.3 percentage points lower than that 52-week average.
- The benchmark 15-year fixed-rate mortgage fell to 3.15 percent from 3.21 percent.
- The benchmark 5/1 adjustable-rate mortgage fell to 3.22 percent from 3.31 percent.
- The benchmark 30-year fixed-rate jumbo fell to 4.07 percent from 4.11 percent.
Thursday, February 26, 2015
Yellen, Greece push mortgage rates down
Mortgage rates eased this week as the Fed signaled to investors that it is not ready to raise interest rates just yet.
Monday, February 23, 2015
Requirements for mortgages are easing
Nation’s Housing
WASHINGTON — A closely watched index that tracks mortgage credit availability — lender requirements on credit scores, down payments and other key loan terms — has some good news for potential homebuyers: Things are finally loosening up.
After years of progressively tighter rules on borrower eligibility in the wake of the housing bust, banks and mortgage companies have begun modestly easing their requirements and even expanding the types of mortgages they offer.
The Mortgage Bankers Association’s latest credit availability index reported improvements in all four of its loan categories during January.
The improvements mainly reflect positive lender responses to government efforts to ease regulations and improve affordability in the housing market — all of which means an improved environment for mortgage shoppers.
Among the initiatives: giant investor Fannie Mae’s resumption of purchases of conventional mortgages with as little as 3 percent down. Freddie Mac, another major investor, is planning to begin similar 3 percent down loan purchases for mortgages closed on or after March 23.
According to Mike Fratantoni, chief economist for the mortgage banker’s group, “roughly 40 percent of investors” already have begun offering the Fannie 3-percent-down program. The guidelines for the Freddie Mac program are in lenders’ hands and there’s likely to be a strong rollout for it as well.
Also contributing to better affordability: the Federal Housing Administration’s reduction late last month of its costly upfront mortgage insurance premiums, a move that could expand eligibility for home purchases to thousands of buyers, according to industry estimates.
Virtually all lenders who work with the FHA program began offering the lower mortgage insurance premiums when the reduction took effect in late January. FHA insures loans with down payments as low as 3.5 percent.
read more: http://www.seattletimes.com/business/requirements-for-mortgages-are-easing/
WASHINGTON — A closely watched index that tracks mortgage credit availability — lender requirements on credit scores, down payments and other key loan terms — has some good news for potential homebuyers: Things are finally loosening up.
After years of progressively tighter rules on borrower eligibility in the wake of the housing bust, banks and mortgage companies have begun modestly easing their requirements and even expanding the types of mortgages they offer.
The Mortgage Bankers Association’s latest credit availability index reported improvements in all four of its loan categories during January.
The improvements mainly reflect positive lender responses to government efforts to ease regulations and improve affordability in the housing market — all of which means an improved environment for mortgage shoppers.
Among the initiatives: giant investor Fannie Mae’s resumption of purchases of conventional mortgages with as little as 3 percent down. Freddie Mac, another major investor, is planning to begin similar 3 percent down loan purchases for mortgages closed on or after March 23.
According to Mike Fratantoni, chief economist for the mortgage banker’s group, “roughly 40 percent of investors” already have begun offering the Fannie 3-percent-down program. The guidelines for the Freddie Mac program are in lenders’ hands and there’s likely to be a strong rollout for it as well.
Also contributing to better affordability: the Federal Housing Administration’s reduction late last month of its costly upfront mortgage insurance premiums, a move that could expand eligibility for home purchases to thousands of buyers, according to industry estimates.
Virtually all lenders who work with the FHA program began offering the lower mortgage insurance premiums when the reduction took effect in late January. FHA insures loans with down payments as low as 3.5 percent.
read more: http://www.seattletimes.com/business/requirements-for-mortgages-are-easing/
Sunday, February 22, 2015
The Debt Trap: Borrowers should make sure they understand reverse mortgages
HALTOM CITY
Editor’s note: The Debt Trap is a collaborative project by the Star-Telegram, WFAA and the Austin American-Statesman aimed at shining a light on loans that either help the economically disadvantaged or devastate them, depending on whom you ask. This installment explores reverse mortgages. An upcoming installment will look at student loans.
Josalyn Cassatt lost her mother in 2014 after a long illness. Now, she’s about to lose her home.
Cassatt spent the last decade living at her mother’s Haltom City house, taking care of her ailing mother full-time. She thought she would simply inherit the house after her mother died, but she discovered paperwork showing her mother had taken out a reverse mortgage in 2006.
With a reverse mortgage, heirs can keep the property if they pay off the outstanding loan balance in full or if they buy the property for 95 percent of the appraised value. Cassatt couldn’t afford to pay off the loan or the required 95 percent of the current appraised value, $103,500, which she says had increased by about 25 percent in the nine years since the reverse mortgage.
Around December first or fourth, I get a letter saying the house is going on auction Jan. 6 — foreclosed on by the reverse mortgage because she is deceased,” Cassatt said.
Opponents of reverse mortgages dislike the many ways — more than a dozen — to default on one. On the other hand, Michael Jones, a branch manager and loan originator at Georgetown Mortgage in Dallas, and other proponents say the loans should be considered a retirement funding tool.
A client of his, 69-year-old David Alley of Dallas, figures he’s saving $1,000 a month with his reverse mortgage, which he considers “perfect” for his situation.
Cassatt suspects her ailing, elderly mother didn’t understand how the reverse mortgage worked.
“I really don’t think she understood what she was doing,” Cassatt said. “She always wanted to make sure I had a roof over my head.”
Read more http://www.star-telegram.com/news/local/article10777121.html
Editor’s note: The Debt Trap is a collaborative project by the Star-Telegram, WFAA and the Austin American-Statesman aimed at shining a light on loans that either help the economically disadvantaged or devastate them, depending on whom you ask. This installment explores reverse mortgages. An upcoming installment will look at student loans.
Josalyn Cassatt lost her mother in 2014 after a long illness. Now, she’s about to lose her home.
Cassatt spent the last decade living at her mother’s Haltom City house, taking care of her ailing mother full-time. She thought she would simply inherit the house after her mother died, but she discovered paperwork showing her mother had taken out a reverse mortgage in 2006.
With a reverse mortgage, heirs can keep the property if they pay off the outstanding loan balance in full or if they buy the property for 95 percent of the appraised value. Cassatt couldn’t afford to pay off the loan or the required 95 percent of the current appraised value, $103,500, which she says had increased by about 25 percent in the nine years since the reverse mortgage.
Around December first or fourth, I get a letter saying the house is going on auction Jan. 6 — foreclosed on by the reverse mortgage because she is deceased,” Cassatt said.
Opponents of reverse mortgages dislike the many ways — more than a dozen — to default on one. On the other hand, Michael Jones, a branch manager and loan originator at Georgetown Mortgage in Dallas, and other proponents say the loans should be considered a retirement funding tool.
A client of his, 69-year-old David Alley of Dallas, figures he’s saving $1,000 a month with his reverse mortgage, which he considers “perfect” for his situation.
Cassatt suspects her ailing, elderly mother didn’t understand how the reverse mortgage worked.
“I really don’t think she understood what she was doing,” Cassatt said. “She always wanted to make sure I had a roof over my head.”
Read more http://www.star-telegram.com/news/local/article10777121.html
Thursday, February 19, 2015
Bankrate: Mortgage Rates Continue to Rise
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage increased to 3.21 percent while the larger jumbo 30-year fixed mortgage hit a 2-month high of 4.11 percent. Adjustable rate mortgages were mixed, with the 5-year ARM dipping slightly to 3.31 percent and the 7-year ARM inching up to 3.52 percent.
Mortgage rates climbed again as U.S. economic performance has been convincing enough to increase the odds of a June interest rate hike by the Federal Reserve. Mortgage rates had fallen as the year got under way on concerns over international growth. Those concerns haven't gone away, and in fact have increased with Ukraine and Greece now drawing attention. However, these international concerns are being overshadowed by the increased likelihood of a mid-year Fed interest rate hike. Mortgage rates are closely related to yields on long-term government bonds.
One year ago, the average 30-year fixed mortgage rate was 4.48 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,011.00. With the average rate now at 3.96 percent, the monthly payment for the same size loan would be $950.22, a savings of $61 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.96% -- up from 3.90% last week (avg. points: 0.30)
15-year fixed: 3.21% -- up from 3.17% last week (avg. points: 0.19)
5/1 ARM: 3.31% -- down from 3.32% last week (avg. points: 0.21)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates.
The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Just under half of the panelists, 46 percent, expect mortgage rates to continue to climb. Thirty –one percent forecast that mortgage rates will remain more or less unchanged, while the remaining 23 percent predict that mortgage rates will pull back over the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/news/rate-trends/mortgage.aspx.
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, CreditCards.com, InsuranceQuotes.com and Caring.com, our flagship websites, and other owned and operated personal finance websites, including Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, CarInsuranceQuotes.com, Insweb.com, CreditCards.ca, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to over 100 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.
For more information contact:
The average 15-year fixed mortgage increased to 3.21 percent while the larger jumbo 30-year fixed mortgage hit a 2-month high of 4.11 percent. Adjustable rate mortgages were mixed, with the 5-year ARM dipping slightly to 3.31 percent and the 7-year ARM inching up to 3.52 percent.
Mortgage rates climbed again as U.S. economic performance has been convincing enough to increase the odds of a June interest rate hike by the Federal Reserve. Mortgage rates had fallen as the year got under way on concerns over international growth. Those concerns haven't gone away, and in fact have increased with Ukraine and Greece now drawing attention. However, these international concerns are being overshadowed by the increased likelihood of a mid-year Fed interest rate hike. Mortgage rates are closely related to yields on long-term government bonds.
One year ago, the average 30-year fixed mortgage rate was 4.48 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,011.00. With the average rate now at 3.96 percent, the monthly payment for the same size loan would be $950.22, a savings of $61 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.96% -- up from 3.90% last week (avg. points: 0.30)
15-year fixed: 3.21% -- up from 3.17% last week (avg. points: 0.19)
5/1 ARM: 3.31% -- down from 3.32% last week (avg. points: 0.21)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates.
The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Just under half of the panelists, 46 percent, expect mortgage rates to continue to climb. Thirty –one percent forecast that mortgage rates will remain more or less unchanged, while the remaining 23 percent predict that mortgage rates will pull back over the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/news/rate-trends/mortgage.aspx.
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, CreditCards.com, InsuranceQuotes.com and Caring.com, our flagship websites, and other owned and operated personal finance websites, including Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, CarInsuranceQuotes.com, Insweb.com, CreditCards.ca, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to over 100 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.
For more information contact:
Wednesday, February 18, 2015
Increasing student debt loads hinder mortgages
WASHINGTON — Younger Americans are struggling to keep up with steadily rising student debt loads, a burden that is limiting their ability to buy homes.
The Federal Reserve Bank of New York said Tuesday that the percentage of student loans 90 days or more overdue rose to 11.3 percent in the final three months of last year, up from 11.1 percent in the previous quarter. That's the highest in a year. Total student borrowing stands at $1.16 trillion, the most on record and 7.1 percent higher than 12 months earlier.
Previous research by the New York Fed has found that younger Americans with student loans are less likely to take out mortgages than those without student debt. That's a reversal from the pre-recession pattern.
Before the 2008-09 downturn, 30-year-olds with student debt were more likely to have mortgages because of their higher levels of education and higher potential incomes, the New York Fed says. Now they are slightly less likely to have mortgages than 30-year-olds without student debt.
“Student loan delinquencies and repayment problems appear to be reducing borrowers' ability to form their own households,” said Donghoon Lee, a research officer at the bank.
Americans overall are struggling with auto loans, the report showed, but are doing a better job keeping up with all their other debts.
Credit card balances 90 days or more overdue are down to 7.3 percent, from 7.5 percent in the previous quarter. Credit card delinquencies have fallen sharply since the Great Recession after reaching a peak of nearly 14 percent 4 ½ years ago. The current level is near the lowest since the New York Fed began tracking the data in 1999.
Delinquency rates for mortgages and home equity lines of credit fell in last year's fourth quarter from the previous three months. About 3.1 percent of mortgages are delinquent, down from nearly 9 percent in early 2010. That's still higher than the 1 percent to 1.5 percent that was typical before the recession.
Read more: http://triblive.com/business/headlines/7796813-74/percent-debt-student#axzz3S6V8RThO
The Federal Reserve Bank of New York said Tuesday that the percentage of student loans 90 days or more overdue rose to 11.3 percent in the final three months of last year, up from 11.1 percent in the previous quarter. That's the highest in a year. Total student borrowing stands at $1.16 trillion, the most on record and 7.1 percent higher than 12 months earlier.
Previous research by the New York Fed has found that younger Americans with student loans are less likely to take out mortgages than those without student debt. That's a reversal from the pre-recession pattern.
Before the 2008-09 downturn, 30-year-olds with student debt were more likely to have mortgages because of their higher levels of education and higher potential incomes, the New York Fed says. Now they are slightly less likely to have mortgages than 30-year-olds without student debt.
“Student loan delinquencies and repayment problems appear to be reducing borrowers' ability to form their own households,” said Donghoon Lee, a research officer at the bank.
Americans overall are struggling with auto loans, the report showed, but are doing a better job keeping up with all their other debts.
Credit card balances 90 days or more overdue are down to 7.3 percent, from 7.5 percent in the previous quarter. Credit card delinquencies have fallen sharply since the Great Recession after reaching a peak of nearly 14 percent 4 ½ years ago. The current level is near the lowest since the New York Fed began tracking the data in 1999.
Delinquency rates for mortgages and home equity lines of credit fell in last year's fourth quarter from the previous three months. About 3.1 percent of mortgages are delinquent, down from nearly 9 percent in early 2010. That's still higher than the 1 percent to 1.5 percent that was typical before the recession.
Read more: http://triblive.com/business/headlines/7796813-74/percent-debt-student#axzz3S6V8RThO
Monday, February 16, 2015
Average US Rate on 30-Year Mortgage Rises to 3.69 Percent
Average long-term U.S. mortgage rates rose this week yet remained near historically low levels.
Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year mortgage jumped to 3.69 percent from 3.59 percent last week. The average rate is still at its lowest level since May 2013.
The rate for the 15-year loan, a popular choice for people who are refinancing, increased to 2.99 percent from 2.92 percent last week.
A year ago, the average 30-year mortgage stood at 4.28 percent and the 15-year mortgage at 3.33 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.
Government data released last Friday showed a resurgent job market in January, signaling that the economy is finally regaining the kind of strength typical of a robust recovery. U.S. employers added 257,000 jobs last month, after 329,000 in December and a sizzling 423,000 jobs in November, the Labor Department reported. The November and December gains were much higher than the government had first estimated.
The job gains could boost the housing market, which has been recovering in the past few years from the recession but has struggled to maintain momentum.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.6 point, down from 0.7 point last week. The fee for a 15-year mortgage was unchanged at 0.6 point.
The average rate on a five-year adjustable-rate mortgage jumped to 2.97 percent from 2.82 percent. The fee rose to 0.5 point from 0.4 point.
For a one-year ARM, the average rate increased to 2.42 percent from 2.39 percent. The fee remained at 0.4 point.
Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year mortgage jumped to 3.69 percent from 3.59 percent last week. The average rate is still at its lowest level since May 2013.
The rate for the 15-year loan, a popular choice for people who are refinancing, increased to 2.99 percent from 2.92 percent last week.
A year ago, the average 30-year mortgage stood at 4.28 percent and the 15-year mortgage at 3.33 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.
Government data released last Friday showed a resurgent job market in January, signaling that the economy is finally regaining the kind of strength typical of a robust recovery. U.S. employers added 257,000 jobs last month, after 329,000 in December and a sizzling 423,000 jobs in November, the Labor Department reported. The November and December gains were much higher than the government had first estimated.
The job gains could boost the housing market, which has been recovering in the past few years from the recession but has struggled to maintain momentum.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.6 point, down from 0.7 point last week. The fee for a 15-year mortgage was unchanged at 0.6 point.
The average rate on a five-year adjustable-rate mortgage jumped to 2.97 percent from 2.82 percent. The fee rose to 0.5 point from 0.4 point.
For a one-year ARM, the average rate increased to 2.42 percent from 2.39 percent. The fee remained at 0.4 point.
source; http://abcnews.go.com/Business/wireStory/average-us-rate-30-year-mortgage-rises-369-28916862
Friday, February 6, 2015
Reverse Mortgage Rules Become More Like Regular Mortgages in March
NEW YORK (MainStreet) — One of the greatest things about reverse mortgages, as everyone surely knows, is that you need no steady income to qualify. Why would you, since there are no monthly payments? This feature makes a reverse mortgage a great option for late in life, when other assets are dwindling.
Well, it's not quite so simple — not anymore. Starting March 2, borrowers will have to show they have the resources to keep up with property taxes and homeowner's insurance premiums. Applicants who are tapped out could be rejected, and others with resources deemed insufficient could find a big chunk of their loan earmarked for these expenses, reducing their money-managing options.
To be on the safe side, homeowners who had thought a reverse mortgage could someday provide a safety net should review their strategy to figure just how they'd pay taxes and premiums.
Read More: How to Weave a Reverse Mortgage Into Your Retirement Plan
The Federal Housing Authority imposed the new rules several months ago to curb the growing number of reverse mortgage borrowers who default by not paying property tax and homeowner's insurance premiums. Starting March 2, lenders will have to assess applicants' debt burdens, credit ratings, payment histories, income from Social Security and other sources.
read more: http://www.mainstreet.com/article/reverse-mortgage-rules-become-more-like-regular-mortgages-in-march
Well, it's not quite so simple — not anymore. Starting March 2, borrowers will have to show they have the resources to keep up with property taxes and homeowner's insurance premiums. Applicants who are tapped out could be rejected, and others with resources deemed insufficient could find a big chunk of their loan earmarked for these expenses, reducing their money-managing options.
To be on the safe side, homeowners who had thought a reverse mortgage could someday provide a safety net should review their strategy to figure just how they'd pay taxes and premiums.
Read More: How to Weave a Reverse Mortgage Into Your Retirement Plan
The Federal Housing Authority imposed the new rules several months ago to curb the growing number of reverse mortgage borrowers who default by not paying property tax and homeowner's insurance premiums. Starting March 2, lenders will have to assess applicants' debt burdens, credit ratings, payment histories, income from Social Security and other sources.
read more: http://www.mainstreet.com/article/reverse-mortgage-rules-become-more-like-regular-mortgages-in-march
Wednesday, February 4, 2015
Google’s Mortgage Calculator Quick Answer Now Live
Google has quietly launched their dynamic mortgage calculator quick direct answer in the search results for variations of queries around [mortgage calculator]. This calculator comes up for terms like [loan interest calculator], [interest calculator] and many other variations.
This tool will give you the monthly cost and maximum loan cost after you type in your variables into the gray background fields.
There are many financial sites that offer mortgage and interest calculators, so Google here figured they just give you the calculator on their own site as opposed to sending you off to a web site with a similar calculator.
Google began testing this calculator in early December. Pete Meyers noticed it went live today.
It would be really neat if Google took it one step further and plugged in your query into the calculator, for example [cost of 500,000 mortgage loan interest with 3.9% interest over 15 years].
see more at: http://searchengineland.com/googles-mortgage-calculator-quick-answer-now-live-214086
This tool will give you the monthly cost and maximum loan cost after you type in your variables into the gray background fields.
There are many financial sites that offer mortgage and interest calculators, so Google here figured they just give you the calculator on their own site as opposed to sending you off to a web site with a similar calculator.
Google began testing this calculator in early December. Pete Meyers noticed it went live today.
It would be really neat if Google took it one step further and plugged in your query into the calculator, for example [cost of 500,000 mortgage loan interest with 3.9% interest over 15 years].
see more at: http://searchengineland.com/googles-mortgage-calculator-quick-answer-now-live-214086
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