Articles in Category: Fixed Rate Mortgage

June 23, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

Mortgage loan interest rates are moving higher. On Wednesday afternoon it was the fourth straight day of higher movement for rates, and depending on investor reaction to the Brexit referendum in Britain on Thursday we could be in for a continued upward trend. The Brexit referendum naturally does not have any direct effect on mortgage loan rates, but how investors react to this overseas economic news can and likely will push rates in one direction or another. There is also the possibility (however remote) that other breaking news or economic data could take attention away from Brexit drama. It’s something that has happened before, but could it happen with such a major event as the Brexit decision? In any case, there are some industry pros who are convinced that rates | more...

Can I buy a manufactured home with an FHA loan?

June 22, 2016

Are You Ready For An FHA Mortgage?

By Joe Wallace

A recent CNN Money article reveals that more than 10 million Americans spend half their income on rent. It’s a figure (based on a 2014 study at Harvard) that is surprising to some, and motivating for others. Are you considering an FHA mortgage as an alternative to high rents? FHA home loans have features that can be very helpful to those in the market for a new home. Consider the down payment requirement for an FHA mortgage compared to many conventional loans and it’s easy to see that the FHA’s 3.5% down payment requirement compared to between 10% and 20% down for conventional mortgages depending on the lender and the borrower’s financial qualifications. The lower down payment is one factor; another is the borrower’s ability to refinance an FHA mortgage | more...

June 21, 2016

Mortgage Rate Trends: Higher, Faster To Begin The Week

By Joe Wallace

Mortgage rates kicked off the week moving higher and faster than last Friday. The “Brexit” drama in Europe is partly to blame, as investor reaction to the economic uncertainty there influences mortgage rates here. For a while, bond market activity in that regard was favorable to mortgage loan interest rates, but now the wind seems to be shifting directions. The fact that investors don’t know what will happen with the Brexit (will Britain stay in the EU or depart?) and more importantly, don’t know what will happen economically as a result of whatever choice ends up being made is contributing to volatility and potential volatility between now and Brexit referendum time on Thursday. There are some market watchers who are now saying that recent lows are likely as low as | more...

June 20, 2016

Mortgage Rate Trends: Slightly Higher On Friday

By Joe Wallace

At the end of the day on Friday, mortgage loan rates had moved higher, but not by much and certainly not enough to pull rates out of territory many are describing as “lowest in years”. In the past week or more we’ve seen rates move, at certain points, into lows that for conventional 30-year fixed rate mortgages actually rivals the FHA loan offerings which are typically lower. Last week we saw 30-year fixed rate conventional mortgages move as low as 3.375% for some of the most competitive lenders, and around 3.625% for others, with a best execution average somewhere in the middle. This territory is in direct best execution competition (technically speaking) with FHA loans which are still in a best execution comfort zone between 3.25% and 3.5%. FHA loan | more...

June 15, 2016

Mortgage Rate Trends: Pots-Fed Rates Are Still Holding At Or Near Recent Gains

By Joe Wallace

All eyes were on the Fed on Wednesday for a much anticipated announcement about the future of interest rate hikes. As a June 15 2016 USA Today article mentions, “The Federal Reserve held interest rates steady on Wednesday and predicted more gradual hikes the next few years amid somewhat slower economic growth and persistent headwinds to a more vibrant economy.” The Fed issued a statement following a two-day meeting, and while there is no indication the Fed definitely will NOT raise rates in July, recent economic data release leads some to believe that July is too early for the Fed to make that move. As the USA Today article states, Fed Chair Janet Yellin was quoted on Wednesday saying, “We need to assure ourselves that the underlying momentum in the | more...

June 14, 2016

Mortgage Loan Interest Rate Trends: More Gains

By Joe Wallace

At the time of this writing, the end of the market day (Tuesday June 14) hasn’t happened yet. But the news about mortgage loan interest rates–even without the most current end-of-day interest rate data–is definitely encouraging for anyone considering a home loan at the present. Rates have fallen to lows not seen in quite some time. 30-year fixed rate mortgage loan interest rates (best execution) were reported at the end of the business day on Monday at a range between 3.625% at the upper end of the range and an FHA loan-challenging 3.5% at the lower end of the range. Some are saying these are the lowest we’ve seen rates in several years, while others are using the phrase “close to all-time lows” to describe what is being seen, best | more...

June 13, 2016

For Consumers In Need Of Help Preparing For An FHA Mortgage

By Joe Wallace

Many borrowers feel intimidated by the home buying process. Are you unsure about credit score issues, pre-purchase budget issues, down payment requirements, or appraisal rules? It’s easy to understand why; buying a home is a major investment and it’s definitely a step worth taking the time to research and save up for properly. Why does it take a year or better to get prepared for the home loan application? What are the basic credit score requirements for an FHA mortgage? Can I refinance my home at some point with a cash-out loan? These are all important questions. There are other commonly asked questions, too. Many involve dollar amounts for down payments, appraisal fees, or other loan expenses. We get asked these questions frequently in the comments section, but unfortunately there’s | more...

June 10, 2016

Mortgage Rate Trends: Moving Even Lower

By Joe Wallace

Mortgage rates dropped lower on Thursday, putting them at levels we haven’t seen in quite some time. Some market watchers are hailing this move as a “three year low”, but whatever you call it, conditions are right to but conventional mortgage loan best execution rates (depending on the lender) in line with the upper end of the FHA mortgage loan best execution range. That’s on paper, mind you, and your results will vary depending on a variety of factors. But that on paper comparison between what’s offered by FHA lenders (best execution) and what’s offered by a small number of competitive conventional lenders is not a common thing, especially when those numbers start to look similar. 30-year fixed rate conventional mortgage rates are, by many reports, more commonly found at | more...

June 8, 2016

FHA Home Loan Interest Rate Questions And Answers

By Joe Wallace

There are many questions about FHA home loans, especially where interest rates are concerned. Do you know how the FHA loan process works when it comes to negotiating rates or choosing a fixed rate or an adjustable rate mortgage loan? Here are some of the most common questions and answers in this area: How does the FHA set interest rates on FHA mortgage loans and refinance loans? In general, the FHA actually does not set or regulate interest rates on FHA home loans. For certain loan products there are restrictions on how interest rates can be changed or modified, and there are rules governing the purchase of discount points in order to lower mortgage loan interest rates. But the rates for an FHA mortgage are negotiated between the lender and | more...

June 8, 2016

Mortgage Rate Trends: Holding Lower

By Joe Wallace

After the recent upward pressure on mortgage loan rates in the wake of the Fed’s discussion of a possible rate hike, economic data releases have tempered that discussion and we’re seeing a short-term recovery of that lost ground. How long rates continue to improve remains to be seen, but at the moment numbers are creeping back towards where they were before all the talk of another possible rate hike. 30-year fixed rate conventional mortgages are, for the most part, at a best execution 3.625%, though it has been reported that a few more competitive lenders are offering best execution rates closer to 3.5%. That doesn’t appear to be a widespread movement, but if rates continue to improve, how long might it take before conventional rates begin to rival the current | more...