Articles in Category: Fixed Rate Mortgage

February 19, 2016

Mortgage Rate Trends: Ending The Week With A Move Lower

After three consecutive business days of rates edging higher (hitting 14-day highs at one point), Thursday and Friday saw them moving back down, recovering some of the losses earlier in the week. Some industry pros were anticipating a possible slight move higher today due to bond market activity, but at the end of the trading day that did not pan out. That puts 30-year fixed rate conventional mortgage rates at a best execution 3.625% (depending on the lender), with FHA mortgage rates remaining in a range between 3.25% and 3.5% best execution. FHA rates will vary among participating lenders so your experience may vary. Also, best execution rates as seen here aren’t available to all borrowers or from all lenders. Your FICO score and other financial qualifications play a large | more...

February 18, 2016

Prequalifying For An FHA Home Loan Online

By Joe Wallace

Are you ready to prequalify for an FHA home loan? If you’ve never tried to do so online you’re probably wondering what information you’ll need to provide to get started. There are a number of steps to take, but before you begin it is very important to point out that prequalifying for a mortgage loan is not the same as loan approval. You will need to take additional steps with your loan officer before that can happen, but prequalifying helps borrowers determine what is possible with an FHA mortgage, what the loan amount and payments could be, etc. We’ll use the pre-qualification interface at FHA.com as our reference–it’s located in the center of the page under the heading “Qualify For An FHA Loan”. The first thing you’ll need to do | more...

February 18, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

This week mortgage loan interest rates have been pushing higher but we still see rates at incredible lows. 30-year fixed rate conventional mortgages had fallen to 3.5%, and this week at the time of this writing they had nudged back up to 3.625% best execution. Depending on the lender you may find that best execution rate in a range between 3.625% and 3.75%. FHA best execution rates are currently in a range between 3.25% and 3.5%, depending on the lender. Naturally your experience may vary and best execution rates seen here are not available to all borrowers or from all lenders. Your FICO scores, loan repayment history and other financial qualifications always play a big role in your access to the rates seen here. Industry professionals say the current lows | more...

February 17, 2016

FHA Loan Questions: Can Social Security Income Be Used To Qualify For A Mortgage?

By Joe Wallace

We’ve gotten several questions recently in the comments section about FHA home loans and using Social Security income to qualify. Many of the questions basically ask the same thing–does the FHA permit Social Security income to be used? Can a borrower qualify for an FHA mortgage when Social Security is a major portion of the income? The answer to the question “Do I qualify?” depends on the borrower’s other financial qualifications and an additional factor we’ll explore in a moment. The general answer is that the FHA does NOT view Social Security income as a liability for loan approval, but that income must meet certain standards and requirements. HUD 4000.1 instructs the lender on how to consider Social Security income, which falls under a heading the FHA terms “Disability Benefits”. | more...

February 15, 2016

Mortgage Rate Trends: Higher After A Week Of Lows

By Joe Wallace

Mortgage loan interest rates took a major dip last week, hitting best-execution lows of 3.5% at the height of the week’s improvements. But on Friday a “bounce” happened, pulling things back a bit. Some industry professionals feel it’s possible this move higher could be a correction or trend to come after the unusual week of lows we’ve seen, but it’s too early to tell. 30-year fixed rate conventional mortgage loans wound up at a best-execution 3.625%, which ends the week in territory that is still quite good. Some may regret if they missed out on the 3.5% best execution rate that appeared briefly last week, but these rates are still in a place we haven’t seen in a long time–some sources say these rates are reminiscent of the record lows | more...

February 10, 2016

Mortgage Rate Trends: Moving Even Lower

By Joe Wallace

Normally we don’t post on a near-daily basis about mortgage rate trends, but this week is different as we’re seeing rates moving lower than they have been in quite some time, and it’s unclear how long this trend could last. So we’re paying more attention to this situation until things settle down…. Mortgage rates moved even lower on Tuesday, putting many conventional mortgage best execution rates into the mid-three percent range. At the time of this writing, our sources believe that this is a short-term shift due to economic forces, pending statements from the Fed, and market activity. How long the downward movement continues remains to be seen, but some market watchers point out that when the headlines about the Fed start coming out over the next two days, it | more...

February 9, 2016

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Monday saw mortgage loan rates moving lower–some sources are labeling it the “lowest in a year”, and industry pros are urging borrowers who are undecided to lock in a mortgage rate commitment with the lender due to this move. At the time of this writing, 30-year fixed rate conventional mortgages are in a best execution range with 3.625% at the low end–more lenders are reported as offering this best execution rate than those offering the same or similar on Friday. FHA mortgage loan rates are reported at a best execution rate of 3.5% depending on the lender, but if the downward trend continues we’ll likely see this comfort zone change. It’s entirely possible that the new, lower rate won’t last long unless the downward trend persists. As always, the rates | more...

February 8, 2016

Mortgage Rate Trends: Holding Steady After Jobs Report

By Joe Wallace

Friday was a day that could have influenced rates in an important way in the short-term, but investors didn’t react much (in terms of activity that could influence mortgage rates) to the employment report issued–mortgage rates stayed where they’ve been more or less. Our sources report a few lenders may have repriced, but overall the mid-to-upper three percent best execution rates we’ve been seeing have remained through the weekend. 30-year fixed rate conventional mortgages are still being reported, best execution, between 3.625% and 3.75%. The upper number in that range is the formed “comfort zone” for FHA mortgage rates, which have dropped to a best-execution 3.5%. FHA rates tend to vary more among participating lenders, so your experience may vary based on the lender. As always, the best execution rates | more...

February 3, 2016

Mortgage Rate Trends: Hitting New Lows

By Joe Wallace

In the last four business days, we’ve seen the phrase “new lows” applied to the general downward momentum of mortgage loan interest rates. Overseas economic woes are partly responsible for this downward movement–tumbling oil prices and stock market trends are helping push rates lower. Some market watchers are beginning to label this downward momentum a trend. Regardless of whether what we’re seeing now is a short-term gain before a return to later 2015 behavior or not, it has been quite some time since 30-year fixed rate conventional mortgages have strayed into the sub-3.75% zone. And that is the best execution rate some competitive lenders are quoting–3.625%. Our sources report other lenders still offering best execution rates in the 3.75% range, but if the downward movement carries on, it may not | more...

February 2, 2016

FHA Mortgage Loan Down Payment Rules

By Joe Wallace

FHA loans require a minimum down payment of 3.5%–that’s typical for many FHA mortgages. In some cases, depending on the nature of the loan and the borrower’s financial qualifications and FICO scores, the required down payment may be higher. But no matter what the down payment amount might be (and it will vary from loan to loan) the FHA has specific rules governing the sources of and verification for down payment funds. The FHA loan rulebook for single family mortgage loans is HUD 4000.1, which refers to the down payment as a “minimum required investment”: “Minimum Required Investment (MRI) refers to the Borrowers contribution in cash or its equivalent required by Section 203(b)(9) of the National Housing Act, which represents at least 3.5 percent of the Adjusted Value of the | more...