Articles in Category: Fixed Rate Mortgage

March 8, 2017

Qualifying For An FHA Mortgage

Why don’t some borrowers qualify for an FHA mortgage loan? A reader got in touch with us recently to ask a question along these lines: “I work at a high school, married w/baby. My credit is 640 have the 3.5% but my real estate lady says I dont qualify, FHA whats up?” Just a note for clarity: this blog is in no way affiliated with the FHA, HUD or any government agency. We report on FHA loan rules, news, and policy, but we have no connection with the agency itself. This reader question is a good example of a type of misunderstanding of the FHA loan approval process-that FICO scores alone determine your ability to get an FHA mortgage loan application approved. FICO scores are very important, and people can | more...

March 8, 2017

Mortgage Rate Trends: Edging Higher

By Joe Wallace

Since our last report, mortgage rates had one day of mild recovery, but yesterday rates took an upward turn. Many industry professionals are keen on next week’s Fed meeting as a potential make-or-break in terms of short-term rate trends. Will the Fed hike interest rates? What will the investor reaction to that news be if it comes to pass? These are the questions on the minds of those watching mortgage loan interest rate trends at the moment. And until next Wednesday, all anyone can do is wait and watch. At the time of this writing, 30-year fixed rate conventional mortgages are reported at a best-execution 4.25%, borrowers have likely noticed recent rate changes reflected in closing costs rather than an actual rate change. FHA mortgages are holding in their range | more...

March 6, 2017

Mortgage Rate Trends: Higher

By Joe Wallace

Mortgage loan rates have been rising in small increments for the last five business days-Friday’s move upward was small but is still part of that overall upward trends. The Fed is likely to announce an interest rate hike at their meeting on the 15th, which won’t help the mortgage rate environment, but by the time that hike is announced rates are likely to already reflect any negative consequences (on mortgage rates). What is good news for the economy is often bad news for mortgage loan interest rates. The Fed raising rates is an indicator that the economy is stronger, and investor reaction to that climate can and often does have a negative effect on mortgage rates. At the time of this writing, 30-year fixed rate conventional mortgages are reported at | more...

March 1, 2017

Mortgage Rate Trends: Slightly Higher

By Joe Wallace

We’ve seen three days of improvement, followed by two days of mortgage rates creeping upward. The rate environment at the time of this writing is a bit contrary-we have seen stronger economic news and data this week that traditionally has put upward pressure on interest rates. But the most recent stronger data hasn’t put as much pressure on mortgage rates and for that we can report that number-wise, the best execution rates haven’t budged that much. Affected borrowers will likely see the difference reflected in closing costs. 30-year fixed rate conventional mortgages are holding at a best execution 4.125% at the time of this writing, which is an adjustment from the earlier range between 4.125% and 4.25% best execution. FHA mortgage rates are holding in a range between 3.75% and | more...

February 27, 2017

Mortgage Rate Trends: Third Day Lower

By Joe Wallace

Mortgage rates fell for the third day in a row on Friday, though affected borrowers may have noticed the changes reflected in closing costs rather than an actual interest rate change. We’ve seen rates drop low enough that some market watchers are using phrases like “back to 2017 lows” and “lowest levels of the year”. The mortgage rate trends we’ve seen as of late are within a narrow range, and it’s not clear whether that range will adjust in the short term. In 2017 we’ve seen rates break into the four percent range, even FHA mortgage rates are now moving within that range at the upper end of their current “comfort zone”. At the time of this writing, 30-year fixed rate conventional mortgages are in a best execution range between | more...

February 24, 2017

Child Support Income and FHA Loans

By Joe Wallace

A reader got in touch with us to ask a question about how a participating FHA lender will view child support payments. “My significant other and I want to apply for a house loan together. He technically still pays me child support, but it will end once we own a house together. Can we still count that as part of my income for a home loan? And/or does that effect his income for the loan at all?” There are a variety of factors that could influence the answer to this question. One is state law. Does the borrower live in a community property state? Is the couple legally married and thus subject to such laws where applicable? Does other state law govern how child support and/or alimony can be handled | more...

February 23, 2017

Mortgage Rates: Moving Lower

By Joe Wallace

Mortgage loan interest rates have been moving downwards since our last report, but the moves have been small, and we still see a familiar range of rates. 30-year fixed rate conventional mortgages are still within a best execution range between 4.125% and 4.25%, even after the Fed made statements about future rate hikes. Our sources state that while hikes were mentioned, the information wasn’t quite what was expected and more favorable to mortgage rates (based on investor reaction to the less aggressive news from the Fed). FHA mortgage rates are also hovering in a best execution range between 3.75 and 4.25% at the time of this writing, and it’s unclear whether conditions will bring a return to a sub-four percent FHA rate or not in the short term. In fact, | more...

February 16, 2017

Mortgage Rates: Five Days Of Moving Higher

By Joe Wallace

Mortgage rates have been moving steadily higher for the last five business days; the most recent move higher on Wednesday was motivated in part by investor reaction to stronger economic data including a stronger Retail Sales report and better news associated with inflation stats. This data was part of scheduled economic data releases due out this week, and mortgage rates moved higher as they are often wont to do when there is good economic news. The move higher puts fixed rate conventional mortgage loan rates in a range with 4.375% best execution at the upper end-our sources indicate that more lenders are offering rates at or near the higher end. But the real news involves a change in FHA mortgage loan best execution rates-these numbers have been slower to change | more...

February 15, 2017

Mortgage Rates: Four Days Of Moving Higher

By Joe Wallace

In the short-term, mortgage rates have been on an upward swing. Tuesday’s rate activity had early higher moves, but with recovering later in the day, resulting in a continuation of the recent range of conventional rates but with more lenders reporting the higher part of that range. 30-year fixed rate conventional mortgages are, at the time of this writing, being reported at a best-execution range between 4.125% and 4.25%, but as mentioned above the more common rates are found at or near the upper end. FHA mortgage rates are holding at 3.75% but with the current short term upward trend, it’s not clear how long that best execution rate may persist. FHA mortgage rates tend to vary more among participating lenders than their conventional counterparts. It’s best to shop around | more...

February 13, 2017

Mortgage Rate Trends: Higher

By Joe Wallace

Mortgage loan interest rates went higher on Friday, undoing some of the gains made earlier in the week but keeping things within the range we’ve been looking at since the start of 2017. The move higher wasn’t enough to push many lenders away from their earlier offerings; affected borrowers likely saw the results of Friday’s move reflected in closing costs in some markets, where actual changes to the rate may have occurred with some lenders. 30-year fixed rate conventional mortgages were reported in a range between 4.125% and 4.25% on Friday (best execution). FHA mortgage rates remain in their 3.75% comfort zone. The ups and downs, give-and-take activity of recent weeks isn’t really enough to push FHA mortgage rates out of that zone without either a day’s worth of dramatic | more...