Articles in Category: Fixed Rate Mortgage

September 19, 2016

Interest Rate Trends: Unchanged To Slightly Higher

Mortgage rates closed out unchanged for some, higher for others, depending on the lender. After some steady upward pressure on rates, we’ve seen both conventional and FHA mortgage loan interest rates affected ahead of an important week for rates with the Fed about to make another policy announcement, plus the release of housing data. The Fed meeting comes Wednesday and has had the power to influence loan rates in the past depending on investor reaction. There is strong potential for higher rates depending on what happens on Wednesday, so it’s best to assume that can and will happen and plan accordingly. On Friday, 30-year fixed rate conventional mortgages were reported at or near 3.5% best execution, with FHA mortgage loan rates reported at or near a best execution 3.25%. That | more...

September 15, 2016

More On The FHA Limited 203(k) Rehab Loan

By Joe Wallace

Recently we wrote about the FHA 203(k) rehab loan and the FHA 203(k) limited rehab loan. With the “standard” rehab loan, borrowers can make major improvements to a property with a minimum of $5,000 required. The limited version of the FHA 203(k) rehab loan differs in several ways, but to start with there is no minimum dollar amount for the loan. HUD 4000.1 has rules that apply to the FHA requirements for 203(k) limited rehab loan. Those include a list of ineligible projects for the limited version of this type of mortgage loan: “The Limited 203(k) mortgage proceeds may not be used to finance major rehabilitation or major remodeling. FHA considers a repair to be major when any of the following are applicable: -the repair or improvements are expected to | more...

September 15, 2016

Mortgage Rate Trends: Higher

By Joe Wallace

Since our last report on mortgage loan interest rate trends, we’ve seen upward pressure on home loan rates. This week is full of scheduled economic data releases that have potential to add to this depending on investor reaction to the contents of those releases. So far we’re seeing a short-term upward trend consistently through the week. What happens from here remains to be seen, but market watchers are using the word “volatility” quite a bit in recent days. 30-year fixed rate conventional mortgage loan interest rates have moved out of their previous range between 3.375% and 3.5% and are now, best execution, solidly at or near 3.5%. FHA mortgage loan interest rates are still, best execution, in a range between 3.0% and 3.25%. This has been the “comfort zone” for | more...

September 14, 2016

FHA 203(k) Rehab Loan Options

By Joe Wallace

The FHA has a program that allows borrowers to apply for a mortgage loan in order to improve a property. The FHA 203(k) rehab loan is intended for borrowers who want to buy or refinance property and repair them, but not all borrowers have big rehab projects or work that requires a huge sum of money. What are the FHA 203(k) options for borrowers? There are two different types of 203(k) loans-the typical version is available, but there is also a “limited” 203(k) for projects that require a smaller amount of funds. The FHA official site describes the limited 203(k) as follows: “FHA’s Limited 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly | more...

September 12, 2016

Mortgage Loan Interest Rate Trends: 60-Day Highs

By Joe Wallace

Mortgage rates turned up sharply on Friday after a press conference by the European Central Bank (ECB). There is speculation among market watchers that Friday could be the beginnings of an upward trend in rates, but the talk at the time of this writing is just that-speculation. However, even though past performance does not guarantee future results (especially where markets are concerned) it may be wise to consider the advice of the market watcher for now-we simply can’t predict which way markets might swing next in a post-Brexit climate that includes both the Fed and ECB talking about the future of monetary policy with regards to interest rates, etc. While it’s true that best execution rates for 30-year fixed rate conventional mortgages look the same on paper at the time | more...

September 8, 2016

Mortgage Rate Trends: Moving Lower Ahead Of European Central Bank Press Conference

By Joe Wallace

Press conferences are not directly tied to mortgage loan rates, but depending on the contents of a particular press opportunity investor reaction to such things can and often does affect mortgage loan rates. Over the summer, the European Central Bank (ECB) has had an influence on rates due to a variety of factors (and Brexit cannot be ignored in that respect), so with a press conference Thursday morning for ECB officials, it’s entirely possible that we could see investors react to the contents of that. Or not. At the time of this writing the press conference hasn’t happened yet-it is scheduled for 7:30 AM Central Daylight Time. While that doesn’t sound terribly helpful, it is basically a fact of life with respect to mortgage loan rates. Sometimes these scheduled events | more...

September 6, 2016

Mortgage Loan Interest Rate Trends: Slightly Higher After Friday Jobs Report

By Joe Wallace

Ahead of the holiday weekend, all eyes were on Friday’s employment stats, which can and have acted as a spoiler for mortgage loan interest rates in the past depending on investor reaction to the contents of such reports. Market watchers reported weaker-than-expected numbers in that report, and ahead of a holiday weekend we saw some lenders keeping rates the same, while others had slightly higher numbers to close out the week. 30-year fixed rate conventional mortgages were reported at or near a best execution range between 3.375% and 3.5%. Friday’s increases with some lenders were likely reflected in closing costs rather than actual higher rates. FHA mortgage loan rates continue holding fast in their best execution range between 3.0% and 3.5%. The numbers we’ve been seeing are reported by industry | more...

August 31, 2016

Mortgage Loan Interest Rate Trends: Slightly Higher For Some

By Joe Wallace

Monday saw mortgage loan interest rates taking back a bit of ground from Friday’s move higher; Tuesday saw some lenders keeping things unchanged while others moved a bit higher. There are some question marks around scheduled economic data releases on Wednesday and Friday, which could resolve as upward pressure on rates depending on investor reaction to Wednesday’s Pending Home Sales report and a national employment report also due on Weds. These reports in and of themselves don’t “do” anything to mortgage loan rates, it’s the behavior of the investors in the wake of those reports that creates the changes in rates we see depending on how those reports go. Friday is another day of employment data with the Employment Situation report-something that has moved rates in the past due to | more...

August 29, 2016

Mortgage Rate Trends: A Mostly Flat Week

By Joe Wallace

Mortgage loan rates were mostly unchanged last week, budging a bit on Friday after Fed chairperson Janet Yellin’s speech at an important event in Jackson Hole, Wyoming. Rates seemed to be in defensive mode in advance of this speech, which many looked to as a possible spoiler for mortgage loan rates. Why? Because at the present moment, investors are looking hard for any hint from the Fed that another interest rate hike might occur, the timing of such a hike, and the severity. The Fed’s rate hike issues have affected mortgage rates in months and years past as investors react to the news or lack of it. Investor behavior is responsible for the Fed-related volatility in mortgage loan rates rather than the Fed itself, so it’s important to make the | more...

August 22, 2016

Mortgage Rate Trends: Slightly Higher

By Joe Wallace

Mortgage loan interest rates were up and down last week, closing on Friday slightly higher ahead of a week that could have major impact on interest rates depending on what Fed Chair Janet Yellin says during a conference in Wyoming. Anytime the Fed or its chairperson has something to say about the possibility or timing of another interest rate hike, we see great potential for volatility in mortgage loan interest rates. That’s due to investor reaction to the statements, as mortgage loan interest isn’t directly tied to events like these. The Wall Street Journal has something to say about this week’s event which may shed a bit of light on why so much attention is paid recently to the Fed and interest rate policy: “The proverbial ‘all eyes’ are turning | more...