Articles Tagged With: Interest Rates

January 17, 2015

FHA Mortgage Rate Trends: 20-Month Lows This Week

Mortgage loan rates this week were described by some sources at “near 20-month lows”. This week mortgage loan rates, best execution, benefitted from some volatility that can and often does bring a correction to push the rates back into more realistic territory. 30-year fixed rate conventional mortgage loan best execution rates approached 3.5% for some extremely well qualified borrowers applying with lenders offering that possibility. However, on Friday a slight correction did come, bringing the best execution rate back up into 3.625% territory. That rate is a best execution rate and is not available to all borrowers or from all lenders. Your FICO scores and loan repayment history will affect your ability to access that rate. Even so, borrowers who were offered higher rates than the best execution numbers still | more...

January 14, 2015

FHA Mortgage Rate Trends: Rates Moving To 2013 Lows

By Joe Wallace

Mortgage loan rates have in general hit some amazing lows in the earliest days of 2015. At the time of this writing mortgage loan rates dipped to lows some sources report not available since May 2013. For some extremely well-qualified borrowers, mortgage loan best-execution rates have actually dipped to at or near 3.5% for 30-year fixed rate conventional mortgage loans. That’s a rate not available to all borrowers or from all lenders–access to best execution rates depends on the applicant’s FICO scores and other financial qualification. But suffice it to say that home loan rates are looking very competitive in 2015 thus far. Many borrowers who can’t access the 3.5% best execution rate may be able to get quoted 3.625% (again, based on extremely well-qualified borrowers with excellent FICO scores | more...

What you should know about FHA 203(h) Loans For Disaster Victims

December 19, 2014

FHA Loan Limits: A Reader Question

By Joe Wallace

A reader asks, “I only want about 40,000. What kind of credit score would I need? Thanks so much.” In many cases borrowers will typically find that lenders require average credit scores of around 620 or so (or better), but no two lenders operate exactly the same–you may find higher or lower FICO score requirements depending on the lender, the type of home loan, etc. This reader question seems to imply that the borrower wants to get a loan for a specific amount, but it’s important to understand how FHA loan amounts are determined. The FHA loan amount is set based on the sale price or the property, or the appraised value–whichever is lower. The loan amount can also be affected by adding things to the loan such as an | more...

November 6, 2014

FHA Loan Interest Rate Trends

By Joe Wallace

FHA mortgage loan rates are on the rise this week following upward pressure that started late last week after the Fed made an important announcement. The Fed decided to end Quantitative Easing, which is essentially a government stimulus program that invested in markets and helped keep mortgage rates lower thanks to those investments. Last week, when the end of the program was announced, investor reaction to the news put upward pressure on mortgage loan rates in general, kicking off a trend that continued late into the week resulting in four week highs for rates by 3 November. The numbers you’ll see reported below are listed as best execution rates, but suffice it to say that mortgage loan rates across the board have been affected by current conditions. For much of | more...

October 23, 2014

This Week’s FHA Mortgage Rate Trends

By Joe Wallace

This time last week, we reported mortgage rates headed for lower territory thanks to a variety of factors including market volatility. This week, the difference was definitely noticeable, with rates holding steady or edging slightly higher, but still maintaining at-or-below 4% rates for 30-year fixed rate conventional loans (best execution). FHA rates held steady at 3.5% best execution. While FHA mortgage rates have managed to stay at 3.5% this week, how long that could number may persist? Next week is poised to be an important one for rates in the short term. Why? There are a number of reasons why conditions might lead interest rates upward, but one of the most anticipated things scheduled for next week is the Fed announcement–a regular occurrence that can and often does push rates depending on | more...

October 3, 2014

FHA Mortgage Rate Loan Trends For The Week Ending Friday October 3 2014

By Joe Wallace

For entire year to date, September was one of only a handful of months that had consistently upward movement in mortgage loan interest rates. Many house hunters and investors welcomed the end of September after some steady upward pressure on rates that finally started slacking off toward month’s end. FHA mortgage rates at the end of the month have seen small improvements but this week marked a push back to the summer’s lows. FHA mortgage rate trends were up and down the week ending October 3, 2014; rates pushed slightly higher on the last day of the month, but the first day in October brought with it more improvement in rates that had started off small in the second half of September. The first day of October helped erase most, if | more...

April 4, 2014

FHA Loan Reader Questions: FHA Mortgage Loan Interest Rates

By Joe Wallace

A reader asks, “Is there a current guideline for the expected interest rate under the short refi for a home 450k to 500k. My note holder indicated approx 5% interest, 6.5 APR which seems a little high given the current rates for Jumbos.” “Also, for those interested should note my Tax Rep indicated the “forgiven debt” is no longer tax exempt (meaning the next year they amount forgiven would be taxed at you income+forgiven debt level). Have you heard if the Fed is talking about re-instating? This could be a substantial one time out of pocket tax owed the next year.” The first part of this reader question would seem to imply to some that the FHA might regulate or set interest rates. But that’s a misconception almost as common | more...

December 13, 2012

FHA Loan Rules For Interest Rate Lock-Ins

By Joe Wallace

Many people are considering the purchase of a new home lately since, at the time of this writing, mortgage loan interest rates are at or near historically low amounts. Borrowers who might have wondered whether it was a good idea to commit to a home loan a year or two ago are taking another look due to these low rates. When a borrower decides to commit to an FHA home loan, they fill out an application and work with a lender to get approved for the mortgage. Assuming the loan application is approved and the loan will move forward, the borrower and lender may agree on an interest rate and commit to that rate–something known as an interest rate lock-in. Coming to a mutual agreement on that interest rate is | more...

November 10, 2011

Situations That Can Affect Your FHA Refinancing Loan Application

By Joe Wallace

FHA refinancing loans have maximum loan amounts in the same way new purchase FHA mortgage loans do. Maximum refinancing loan amounts can be complicated depending on the type of loan and the situation the borrower is in when they want to refinance the property. A borrower’s individual circumstances can also affect basic eligibility for some types of refinancing loans, which is why it’s a very good idea to begin planning early for a refinance loan application. For example, it’s one thing for a home owner to apply for FHA Streamline Refinancing for the home they own and occupy–the rules are fairly straightforward. But what happens when someone who purchased an investment property needs to occupy that property as their primary residence and refinance the loan? According to FHA loan rules, | more...