Articles in Category: Fixed Rate Mortgage

April 1, 2020

HUD Advice For Saving Your Home During The Coronavirus

Are you worried about protecting your home from foreclosure during the coronavirus outbreak? The FHA and HUD official site now features a section dedicated to consumers who need advice about foreclosure avoidance, what to do if they fall behind on mortgage payments, and other advice for dealing with FHA mortgages, reverse mortgages, and FHA refinance loans during the coronavirus pandemic. FHA lenders have been asked by the Department of Housing and Urban Development, ”to use reasonable judgment” when trying to decide who is legitimately affected by coronavirus-related job loss and income interruption for the purpose of evaluating the loan. There is a real danger in this difficult time that FHA borrowers could lose their homes if there are missed payments, loan default, etc. The potential risks to a home in | more...

March 31, 2020

FHA and HUD Change Loan Approval Requirements For Coronavirus

By Joe Wallace

The FHA and HUD have announced short-term alterations to appraisal and approval policies for single-family forward mortgages during the coronavirus outbreak. The changes, originally set to expire on May 17, 2020, address issues involving how appraisers review their properties, and how lenders must reverify borrower financial data before closing time. The changes to appraisal requirements (exterior-only inspections allowing the appraiser to work without being at risk of infection) were a big part of that, but not the whole substance of the policy changes. Reducing the risk to appraisers is one thing, but some of the measures are intended to streamline loan approval in a time of crisis. The FHA/HUD official site press release explains that certain measures were needed to, “maintain the stability” of the FHA Single-Family Home Loan program, | more...

March 27, 2020

Mortgage Loan Approval During The Coronavirus

By Joe Wallace

Buying a home is more complicated in the era of the coronavirus. Borrowers face social lockdowns, restricted movement, and fears of infection. And the economy is feeling the effects of this, making markets more volatile, interest rates fluctuating daily (far more than usual), and other issues. There is a lot of speculation about the future of the mortgage industry, not so much a question of how it will survive (it will), but more about how the industry will look going forward. How hard will it be to qualify for a home loan or any major line of credit. Will FHA borrowers of the future need to bring higher credit scores and more dependable-looking credit history to the loan application process? To quote the old Magic 8-Ball toy, “Signs point to | more...

March 25, 2020

Refinance Loan Options You Should Know

By Bruce Reichstein

At one point during the coronavirus crisis, refinance applications spiked. Some sources report that spike hitting over 100% at the height of the application surge; people rushed to take advantage of sub-three-percent mortgage loan interest rates. Part of the surge may also have been due (this is speculation) to a misconception that when the Fed performed emergency interest rate cuts, it directly cut mortgage rates. The Fed doesn’t function that way, but the misunderstanding of how the Fed works may have contributed to the overall impression that refinance loan rates were going still lower. In the news, talk of an economic recession puts fear in the minds of some homeowners; what can you do to protect your bottom line in a time when many businesses are temporarily closed and paychecks | more...

March 24, 2020

Mortgage Rate Trends: The Three Percent Range

By Joe Wallace

Mortgage loan rates have been on a wild ride since the advent of the COVID-19 coronavirus outbreak; for a time FHA mortgage loan rates dipped below the three percent threshold. How wild has the ride been? FHA mortgage rates hit a 52-week range of rates between the lowest at 2.75% at the low point during the outbreak and just over 4% at its highest moment in the 52-week range. What does that mean going forward? For the average consumer, not much. It is pure speculation to say we may or may not see rates dip below the three percent range but borrowers should likely assume that those rock-bottom rates are gone and proceed without the temptation to float rather than lock in a mortgage rate commitment with the lender in | more...

March 12, 2020

Mortgage Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates dipped to incredible lows, with FHA mortgage rates falling below three percent last week. However, this week mortgage loan interest rates are moving upwards due to multiple factors having to do with bond markets, mortgage-backed securities, etc. What does the average borrower need to know? Last week we discussed the possibility that rates could move higher at any time. That discussion is now playing itself out with FHA mortgage loan interest rates now back above the three percent zone at a reported 3.25% best-scenario rate assuming an ideal borrower with outstanding FICO scores and other financial qualifications. Those who were ready to make an interest rate lock commitment with their lender but instead decided to “float” rather than lock in a mortgage loan interest rate definitely | more...

March 10, 2020

Is It Safe To Go House Hunting During The Coronavirus Outbreak?

By Joe Wallace

Is the housing market is in “disarray” in the wake of the coronavirus? Some think so, sharing stories of lenders refusing new loans, mortgage rates moving contrary to their traditional patterns in the presence of influences that normally tend to put upward or downward pressure on those rates, etc. And then there’s the coronavirus itself, bringing cancellations, disrupted travel plans, and slow sales due to reduced demand. But even with all this, house hunting and real estate sales continue. But what can a home loan applicant do when they are afraid of catching coronavirus (however justified those fears may or may not be) or even just the garden-variety flu? Technology provides the answer for some in the form of the virtual real estate tour. Virtual tours can take the form | more...

March 3, 2020

Mortgage Rate Trends: Historic Lows In Early March

By Joe Wallace

There are times when mortgage rates are low due to any number of factors. And then there are situations where rates fall so low that even people in the mortgage industry start reviewing their refinance options. Now is one of those times with mortgage rates for FHA and VA loans falling below the three percent threshold into the high two percent range. FHA loan and refinance loan rates, at these numbers, promise a more affordable home loan and they provide the most benefit for those who plan to keep their home for a long time and pay a significant portion of the mortgage (if not the whole thing). Those who want to buy and sell quickly won’t reap the same long-term financial benefits as those who buy and keep the | more...

February 28, 2020

Mortgage Rate Trends: Eight Year Lows

By Joe Wallace

With mortgage loan interest rates at eight-year lows, coronavirus fears, and a lot of market watching in the second month of 2020, it seemed like a good idea to resume a feature we had posted here for a good long while; a regular look at mortgage loan interest rate trends. And those trends are well worth watching at the moment; FHA and VA mortgage loan rates are advertised (at the time of this writing) at a best-execution 3.0%. You read that correctly, some FHA lenders are reporting mortgage loan rates at a flat three percent. That requires some caveats; not all lenders offer that rate, not all borrowers qualify for that rate, and not all lenders adjust their mortgage loan interest rates in the same way, the same amount, or | more...

February 26, 2020

FHA Loan Interest Rates: How Low Can They Go?

By Bruce Reichstein

In the first eight weeks of 2020 we have seen home loan interest rates plunge to eight-year lows. Mortgage rates for FHA home loans have sunk to 3.25%, due in part to the latest developments in the coronavirus which saw investors putting more money into safe-haven investments. That’s behavior that affects mortgage loan interest rates. The headlines themselves have no effect but investor reaction to those headlines makes quite a bit of difference. And many are inspired to look at their purchase loan or refinance loan options when the rates are advertised as low as 3.25%. When you read financial websites, you’ll find plenty of disclaimers associated with how the latest interest rates are displayed. Some consumers want to know what the phrases “top tier scenarios” and/or “best execution” have | more...