Articles in Category: Fixed Rate Mortgage

July 13, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

Mortgage loan rates moved decisively higher on Tuesday, marking the first real upward trend we’ve seen since the Brexit vote. It’s true that you can’t have a sustained drop in rates without some kind of eventual pushback; that’s what we’re seeing now for a variety of reasons. 30-year fixed rate conventional mortgages have left their previous range behind; last week the bottom end of that range rivaled FHA mortgage rates at 3.25% best execution for some of the most aggressive lenders. Now it’s back up to 3.375% territory, and some lenders are offering best execution rates higher than this. FHA mortgage loan rates are still holding at 3.25% at the time of this writing, but if there is more significant change to rates in the coming days we’re likely to | more...

July 8, 2016

FHA Loans Versus Conventional Loans

By Joe Wallace

Here’s the Scoop on Conventional Loans from FHA.com on Vimeo. What are the differences between FHA home loans and conventional loans? There are several, some features of mortgage loans can vary depending on the lender, and state law may also affect how your home loan is handled depending on circumstances, but there are a few very important general differences to keep in mind when comparing FHA loans to conventional loans. The first difference is the basic nature of the loan itself. Conventional loans are not backed by the government, unlike FHA home loans where the FHA guarantees a portion of the loan to make it more attractive to the lender to issue credit. In the event that a borrower defaults on an FHA loan, the lender and the FHA have | more...

July 7, 2016

FHA Loan Terms

By Joe Wallace

Understanding Your Loan Term from FHA.com on Vimeo. How long is an FHA mortgage? The answer to that question depends on a variety of factors including the initial choice of fixed or adjustable rate mortgage, whether you plan to pay off the loan early or not, whether you plan to refinance, etc. The typical length of a fixed rate, new purchase FHA mortgage can be 15 or 30 years. If you are refinancing, other variables may apply. Choosing a loan term depends on the individual borrower’s specific needs and goals. You may wish to apply for a 15-year mortgage if you are interested in saving money over the lifetime of the loan; borrowers who choose 15-year mortgages will make higher monthly payments than those who choose 30-year loans, but the | more...

July 7, 2016

Mortgage Rate Trends: Still Moving Lower

By Joe Wallace

Mortgage rates moved lower for an eighth straight business day on Wednesday. We’re devoting some extra coverage to rates this week as the historic lows continue, but it’s entirely likely that our next report in the short term could be on rates moving higher; this is a common factor in prolonged short-term rate improvements. There has been, in the past, a string of days where rates move lower due to a variety of factors, then a “bounce back” where the trend is broken due to economic data releases, breaking news, or some other issue that puts upward pressure back onto mortgage loan rates. Eight days of a downward trend is a long time in the short term, and while Brexit drama has been dominating the headlines and influencing rates here | more...

July 6, 2016

Mortgage Loan Interest Rate Trends: Even Lower

By Joe Wallace

Tuesday marked the first day back from the long holiday weekend, and it brought with it lower rates. That makes seven consecutive business days in a row that mortgage loan rates have improved, and conventional rates are now in some cases, best execution, in line with FHA mortgage loan interest rates. We’ve seen a general downward trend in mortgage loan rates ever since Britain voted “leave” in its national referendum on staying in or leaving the European Union. The fallout from the “leave” vote continues, and as a result the negative economic consequences have helped rates stay low. 30-year fixed rate conventional mortgages are being reported (at the time of this writing) between 3.25 and 3.375% best execution. Compare that to FHA best execution rates of 3.25% and it’s clear | more...

July 5, 2016

FHA Loans For Military Members

By Joe Wallace

There are a variety of reasons why a military member would consider buying a home with an FHA mortgage, including the desire to own a home instead of renting in a crowded military rental market. While it’s true that VA home loans are available for military members as part of their benefits, some may choose the FHA option instead. What should a military member know about FHA mortgages and refinance loans? The first thing some borrowers need to know is that, yes, it is possible to refinance a VA mortgage into an FHA mortgage loan. FHA refinance loans permit the refinancing of non-FHA mortgages for cash-out refinancing and “non-streamline” refinance options. You do not have to use your existing lender to refinance into an FHA mortgage, instead a borrower is | more...

July 1, 2016

Mortgage Loan Interest Rate Trends: Slightly Lower

By Joe Wallace

We’ve devoted some extra time to our coverage of mortgage loan interest rate trends this week, due in part to the lows rates have fallen to, and how rates have been affected by Brexit headlines. Ever since the “stay or go” vote in Britain, we’ve seen that issue make a significant impact on many non-Brit markets including our own. Rates plunged to three-year lows or very near to them in the wake of the “leave” win in the Brexit vote. Now, markets have had some time to adjust but there is still plenty of potential for volatility depending on developments overseas and investor reaction to them. That goes for other financial issues too, not just Brexit drama. Indeed, stateside economic data releases could also affect rates in the meantime, though | more...

June 30, 2016

Mortgage Rate Trends: Holding At Multi-Year Lows

By Joe Wallace

Mortgage rates are still holding at or near 36-month lows. Brexit drama continues to be a factor in the low rates, but some market watchers believe that we’re about to see the first increase in rates soon, if for no other reason than what’s termed “bond market weakness” that could be an indication things are about to change soon. But there is a three-day weekend ahead, and things tend to get a bit conservative around the holiday. Rates could, based on previous holiday activity, go into “defensive mode”, not changing dramatically one way or the other. On the other hand, we have seen assumptions like that proven wrong due to breaking news, changes in investor behavior, etc. In other words, yes rates are low now, but it’s not safe to | more...

June 28, 2016

Mortgage Rate Trends: Still Moving Lower After Brexit Vote

By Joe Wallace

Mortgage loan rates dropped sharply after the news of the Brexit vote last week, and the fallout from that outcome is still affecting mortgage rates in the short term. The popular vote in Britain to leave the EU is not legally binding-the government there must still make procedural moves to actually depart, and there’s some uncertainty over when or even IF that might happen. Talk of a second referendum is in the news, as well as talk about the “what if” notion of the government in Britain simply doing nothing, not departing the EU in spite of the vote. That, of course, is very much in the realm of speculation at the time of this writing. What does all this mean at home? That investors are still reacting to the | more...

June 27, 2016

Mortgage Rate Trends: Sharply Lower Following Brexit Vote

By Joe Wallace

For five straight business days prior to the Brexit vote, mortgage loan rates moved higher. Investor reaction to the anticipation of the vote played an important part in this; uncertainty over the outcome of the vote and what the vote might do to markets added potential volatility to the daily ups and downs for mortgage loan rates in general. Then the Brexit vote happened, the majority spoke, and investors reacted accordingly. The result? A major shift lower for mortgage rates on Friday, one not seen since well over a year ago. Rates moved lower in one day than they have in all that time, resulting in 30-year fixed rate mortgage best execution rates to fall down 3.5%. FHA mortgage loan rates finally shifted out of their comfort zone during Brexit | more...