Articles Published in: March 2016

March 2, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

Mortgage loan interest rates were sideways to slightly higher to end last week, and on Monday things kicked off with rates pushing slightly lower. But on Tuesday rates took a turn upward, pushing some closing costs higher but also breaking conventional loans out of their previous single-number best execution rate and into a new range. 30-year fixed rate conventional mortgages were reported in a best-execution range between 3.625% and 3.75%. If the upward trend persists that range could disappear in favor of a more solid 3.75%, but for now your experience may vary more among conventional lenders depending on your financial qualifications. FHA mortgage loan interest rates are still holding in a best-execution range between 3.25% and 3.5%, though that range also could be affected by more upward movement this | more...

March 1, 2016

FHA Loan Rules: , Student Loans, Co-Signing and “Contingent Liabilities”

By Joe Wallace

We’ve gotten a variety of questions in the comments section in early 2016 about FHA loan rules for student loans, co-signing, and how the FHA loan program rules view things like deferred obligations and contingent liabilities. Those two terms can be a bit confusing, so it’s good to know what they are and how they can affect your FHA loan application. A deferred obligation is basically any arrangement that resembles a student loan deferment where an amount is owed, but the payment for that obligation may be reduced or delayed as part of an arrangement made between the lender and borrower. In cases where this type of debt is concerned, HUD 4000.1 states that the loan officer must: “…use the actual monthly payment to be paid on a deferred liability, | more...