Learning Center » Mortgage Rates

Weekly Mortgage Applications Survey Shows Decrease

Kevin Simpson — Fri, 22 Oct 2010 15:57:56 +0000

Each week the Mortgage Bankers Association (MBA) releases a report called the Weekly Mortgage Applications Survey. The survey is based on the movement of the market and the actions of the people in the area. The MBA is a research and economics group that provides current and comprehensive data for short-term and long-term planning. The MBA focuses on economic forecasting in real estate.

The Market Composite Index is a measurement of the volume of mortgage loan applications. Due to rising interest rates it decreased 10.5 on a basis adjusted for the season this week compared to last week’s increase of 14.6 percent. The unadjusted basis also decreased by 10.5 percent compared to last week’s gain of 14.8 percent. The Columbus Day Holiday was not figured into the adjustments. There was no new stats about foreclosure situation based on this survey.

The Refinance Index dropped to 11.2 % from last week’s 21.0% while the Purchase Index adjusted for the season fell 6.7% to the prior week’s 8.5%. The adjusted Purchase Index decreased 6.6% to that of last week’s 8.3%. At the end of last week the Federal Housing Authority began enforcing stricter lending rules. Most people scrambled to file their loan applications before the new rules took effect. This affected the unadjusted Purchase Index, making it fall to 29.4% lower than this week a year ago compared to 37.1% last week.

China announced that they were raising their interest rates sending stocks on the rise. This played a part in this weeks 4.0% increase in the 4 weeks moving average of the Market Index adjusted for the season from last week’s 3.0%. The adjusted rate fell 1.1% compared to the previous weeks 0.3%. The average Refinance Index went up 0.7% from last week’s 3.9%.

This week saw a decrease in the mortgage activity’s refinance share to 82.4% of overall applications from 83.1% last week. Though it may be temporary, this week’s total percentage of applications rose to 5.8% from last week’s 5.4%.

As builder confidence rises so does the typical contract interest fixed-rate mortgage of 30 years with an increase to 4.34% this week compared to 4.21% last week. Points fell to 0.81% from 1.02% for 80% LTV loans. This has been the first increase in six weeks. The effective rate increased this week as well.

More people are opting for mortgages of 15 years because of their lower interest rates, which helps keep monthly mortgage payments more affordable. The average for the 15-year fixed-rate mortgages climbed to 3.74% compared to last week’s 3.62% with decreases to 1.00 from 1.06 for 80% loan-to-value (LTV) loans. The 15-year contract rate saw its first gain in six weeks, the effective rate also increasing.

This week saw a decrease in the refinance share of mortgage activity to 82.4% of total applications from 83.1% last week. Due to the state of the market, now is a good time for people with high interest rates on their mortgages to refinance. This week’s total percentage of applications rose to 5.8% from last week’s 5.4%.

	10/20/2010	10/13/2010
Refinance Index	? 11.2%	? 21.0%
30 Year Mortgage	? 4.34%	? 4.21%
15 Year Mortgage	? 3.74 %	? 3.62%

	10/20/2010	10/13/2010
Refinance Index	ê 11.2%	é 21.0%
30 Year Mortgage	é 4.34%	ê 4.21%
15 Year Mortgage	é 3.74 %	ê 3.62%

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ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Weekly Mortgage Applications Survey Shows Decrease

Refinance Mortgage Applications Persist to Increase

Kevin Simpson — Wed, 01 Sep 2010 13:02:00 +0000

The Mortgage Bankers Association (MBA) provided its Weekly Mortgage Applications Survey for the week. The MBA mentioned that applications for mortgage refinancing for the week ending August 20, 2010, increased. The Market Composite Index, a measure of mortgage loan application volume provided proof of the increase in the number of the mortgage refinance applications.

Refinance applications increase

Industry experts stated today that the applications for refinance mortgage increased in the last week up 26% over the level 4 weeks ago. They also affirmed that mortgage rates dropped to their lowest level in the survey. This reduction in the low rate will help many borrowers who refinanced in the past two years. Such borrowers may get an incentive for refinancing again and this may also lead to an increase in the applications for the refinancing. The Market Composite Index showed an increase of 4.9 percent on an adjustable basis from one week earlier. The Index increased 4.5 percent compared to the previous week.

The adjustable-rate mortgage (ARM) share of activity increased to 5.8 percent from 5.7 percent of total applications from the previous week. The refinance share of mortgage activity increased to 82.4 percent of total applications from 81.4 percent the previous week. This is the highest share observed since January 2009.

There is an increase in the refinance index too. It augmented 5.7 percent from the previous week. This is the highest recorded level since May1, 2009. There was also a rise in the seasonally adjusted Purchase Index to almost 0.6% from the previous week. However, the unadjusted Purchase Index decreased 1.1% compared to the earlier week.

Apply for online mortgage refinance

You will be at an advantage if you refinance mortgage now due to the drop in rate. Refinancing your mortgage online will provide you with several benefits other than the benefit of convenience. It is the easiest way you can choose in order to refinance your mortgage and prevent foreclosure. Here are some of the benefits you may receive when you apply for a mortgage refinance online.

1. Quick process – With the help of online refinancing you may get an approval for refinancing your home within a few minutes of filling up an application online. You simply need to search for the best refinance lender online and choose the one that suits your needs most.

2. Save cash – You can acquire several online proposals online from various lenders. Thus, providing you with a wide range of options to choose from without spending your phone bill or without taking the headache to go from one lender to another. Online mortgage refinance also offers you lower mortgage rates. Reputable lenders online do not charge any origination or underwriting fees. Thus, saving you more money.

Online refinancing also helps you get any kind of critical information easily for refinancing your mortgage. You can get any information you need for refinancing your mortgage with just a click of a mouse. However, it is essential that when you apply for refinancing your mortgage, it is better to obtain expert’s guidance considering the intricacies involved in the process.

Get a Real Estate Appraisal for a Loan Appliance

Kevin Simpson — Wed, 21 Apr 2010 12:17:24 +0000

An accurate real estate appraisal is very important both for property buyers and sellers. Determining the correct value of a property guarantees a fair market price. Two of the most important factors considered in real estate appraisal are highest value and best use of the property. Highest value in real estate appraisal literally means determining the property’s highest possible value. Best use, however, determines if the real property is profitable or will be profitable. These two factors have a direct relationship with each other. Real estate appraisal is usually the job of licensed appraisers. They make a real estate appraisal report that includes the property’s condemnation value, market values and quick sale value.

In the United States, where there is a thriving mortgage loan industry, real estate appraisals are required before any loan on a property is approved. This will guarantee that the bank will get its money back in the event that the mortgage payment was not completed. Banks can choose between an in-house appraiser and a hired appraiser. This appraiser should make a real estate property appraisal that is not biased. Oftentimes bank requires the appraiser to make a detailed real estate appraisal report which will include the following:

• Comparison with three similar properties.
• Physical condition of the property which include structural damages
• Local real estate market situation
• Classification of the real estate
• Other important details like accessibility and proximity to main highways, commercial centers, schools, etc.

For new homes, most appraisers conduct a real estate appraisal by employing a method called “cost approach”. This method will determine real estate value based on the cost of building that property. Once a positive appraisal is reported by the appraiser to the bank, the loan is granted. Some times a loan is denied when there is one factor in the appraiser’s real estate appraisal report that didn’t meet the banks standards like poor accessibility or long sales time estimate. Banks need to be sure that their money will be recovered easily in the event of foreclosure.

Real estate appraisals can also be done on foreclosed properties to determine present market value. Many foreclosure listings are available in the internet. At Foreclosure Listings, you can browse their foreclosure listings to search for properties that have positive real estate appraisal report. You can purchase these properties an investment or acquire it for your own. Foreclosure Listings guarantee fair market prices and top quality customer service.

Home Equity Line Of Credit – A Good Help for Buyers

Kevin Simpson — Thu, 15 Apr 2010 11:42:02 +0000

A home equity line of credit can be a great way to get a loan to pay for college tuition, medical expenses, home improvements and other expenses by borrowing against the equity in your home. With a home equity line of credit the lender loans you money based on a credit limit, and lets you pay it back with relatively low interest rates. A home equity line of credit is a good way for those who may have an imperfect credit history to get cash as well as actually improve their credit rating and history by paying off their rate in a timely fashion. However, a home equity line of credit may be risky if you’re not well equipped to handle it financially, since a default means your home may be on the line. There is a lot to consider before deciding if a home equity line of credit is right for you, and that’s where ForeclosureListings.com can help.

We show you how to pre-apply for a home equity line of credit right on our website. Simply enter some basic information to get a list of home equity line of credit offers from different lending institutions. Then you can compare each plan and see what’s available. We also assign each member a Personal Loan Officer who will help you examine each offer thoroughly. Then you can decide on the best plan for if you decide a home equity line of credit is right for you. We can also help you estimate and take into account the true costs of your home equity line of credit with our closing costs calculator. ForeclosureListings.com can give you all the information and assistance you need to choose the best home equity line of credit possible.

So come visit ForeclosureListings.com today and pre-apply for a home equity line of credit to see whether it’s for you. Come visit us today and learn more about a home equity line of credit!

A home equity line of credit can be a great way to get a loan to pay for college tuition, medical expenses, home improvements and other expenses by borrowing against the equity in your home. With a home equity line of credit the lender loans you money based on a credit limit, and lets you pay it back with relatively low interest rates. A home equity line of credit is a good way for those who may have an imperfect credit history to get cash as well as actually improve their credit rating and history by paying off their rate in a timely fashion. However, a home equity line of credit may be risky if you’re not well equipped to handle it financially, since a default means your home may be on the line. There is a lot to consider before deciding if a home equity line of credit is right for you, and that’s where ForeclosureListings.com can help.

So come visit ForeclosureListings.com today and pre-apply for a home equity line of credit to see whether it’s for you. Come visit us today and learn more about a home equity line of credit!

5/1 ARM Mortgage Rates – One of the Best Loan Option

Kevin Simpson — Sat, 10 Apr 2010 13:33:11 +0000

A 5/1 Year ARM mortgage rate is a type of mortgage where the interest rate payable is fixed for a period of 5 years after which it becomes an adjustable mortgage rate. The new rate is determined by the economic index which can either be the treasury average or the treasury index. It can also one year InterBank Offered rate called LIBOR and this is added to the predetermined margin which can be anywhere between 2.25% and 3% so that you can arrive at the monthly rate. The loan is fully paid off in 30 years as per the normal payment schedule.

The 5/1 Year ARM mortgage rate is best for the real estate market condition where the value of the houses appreciate quickly. It can also be beneficial for those people who are not wishing to stay in their home for long. It can also be taken by those people who are expecting to refinance before the rate adjusts. There are several different indexes on which the interest rate depends. The index is usually variable, but the margin is fixed for the duration of the loan.

The 5/1 Year ARM mortgage rate has its own sets of advantages and disadvantages. To start with advantages, the initial rates are lower than the fixed mortgage rates and you can also qualify for a high loan amount if the interest rates drop. Your monthly payments will also drop if your interest rates drop. The disadvantage of the A 5/1 Year ARM mortgage rate is that the rates will increase after the adjustment period of 5 years is over and these rates could be quite high. Also the rates could be extremely high down the road and planning that a refinance will bail you put will no longer hold good.

Make Plans to Pay your Mortgage in 30 Year Fixed Rates

Kevin Simpson — Fri, 09 Apr 2010 13:15:28 +0000

In case of the 30 year fixed mortgage rates plan the interest rate remains the same right from day one. Hence you don’t have to worry about the fluctuations in interest rate during the period of your loan. The borrower has to pay down the principal amount or the actual loan amount for the 30 year term. The homeowners gradually increase the equity in the home over a period of time. The 30 year fixed mortgage rates plan is best for those homeowners who want to stay in the same house for a long period of time and have no plans to change their residence. They also don’t have the drawback of paying higher interest rates as compared with shorter loans over the length of the loan.

The 30 year fixed mortgage rates plan has several advantages as well as disadvantages. The best advantage is that you can predict the monthly payment as the interest rate does not go up or down during the duration of the loan. The procedure to apply for the loan is also relatively simple. You can also avail of tax deduction from the interest that you pay on the loan and even if the rates drop significantly you have the option of refinancing.

There are some cons as well for the 30 year fixed mortgage rates plan. The mortgage rates and the payments are usually higher than the 15 year fixed mortgage rates plan and the adjustable rate mortgages plan. If the owner decides to sell his home in 5 years, then he could end up paying a higher interest than the adjustable mortgage rate plan.

The cons of a 30-year fixed mortgage: rates and payments are usually higher than 15-year fixed mortgages and adjustable rate mortgages (ARMs), and if the owner decides to sell the home in less than five years, they could end up paying more interest vs. an ARM.
Hence it is advisable to have a look at your situation and then decide on the type of mortgage plan that you want to go for.

20 Year Fixed Rate Loan: Time to Pay and Low Interest Rates

Kevin Simpson — Fri, 09 Apr 2010 12:26:31 +0000

If you’re looking to buy a home and need a mortgage loan, ForeclosureListings.com can help you find the right plan for your needs. When shopping for a loan, it’s important to remember than not all loans are right for all people. However, if you plan on staying in your new home for a relatively long time, then a fixed rate loan might be the best choice for you. A fixed rate loan allows you to pay the same interest rate over the life of your loan, which lets you plan you finances accordingly to make certain monthly mortgage payments. Once you decide on a fixed loan, you must determine what loan length will be best for you. If you’re looking to have a relatively low interest rate but with high enough payments to still build up equity at a reasonable rate, then a 20 year fixed rate loan might be just what you’re looking for.

A 20 year fixed rate loan means that you will receive a fixed rate loan that will be scheduled to be paid off over the course of the next 20 years. Unlike a 30 year loan plan, a 20 year fixed rate loan will still have a relatively low interest rate. You’ll also be able to build up equity in your home faster than with a 30 year plan. However, the rate will still be higher than a 15 year loan, which means your monthly payments might end up being more than with a 15 year loan even though you are paying it off in a longer amount of time. This is why it is important to view a number of different loan options to make sure you will end up getting the best value possible for what you can afford.

This is where ForeclosureListings.com can help. We’ll let you pre-apply for different fixed rate loan terms right on our home page, so you can view which plan will be most beneficial to you. You’ll be able to view a number of different offers from various lenders, so you can find the best interest rate and payment plan available. If you do decide on a 20 year fixed rate loan, we’ll assign you a Personal loan Assistant to help you through the process of securing the plan that you want, and even assist you in getting fast pay-outs. With interest rates currently very low, it’s a great time to lock in on a rate with the plan you need! Come to ForeclosureListings.com today and find great deals lots of information on 20 year fixed rate home loans!

15 Year Fixed Mortgage Rates Provide Fixed Deductions

Kevin Simpson — Fri, 09 Apr 2010 12:24:22 +0000

A 15 year fixed mortgage rate is a type of a loan whose interest rate value remains the same throughout the duration of the loan. One example is that you take a loan of $300,000 at an interest rate of 5.75%, then the monthly payment would come to $3,097.90. This monthly payment will not change as the interest rate remains the same throughout the duration of the loan.

The 15 year fixed mortgage rate is preferred by people who plan a fixed deduction from their monthly budget. These people would also prefer a shorter loan term and are able to pay a higher monthly payment. The advantages of 15 year fixed mortgage rate are many. First of all you can predict how much you will be paying each month. Hence you can plan out your expenses accordingly. Even the pay down of the 15 year mortgage rate is less than the pay down of the 30 year fixed mortgage rate. The procedure for applying for the loan and paying the interest is relatively simple. There is no need to worry about the rate fluctuation also.

However the 15 year fixed mortgage rate has its own set of cons as well. The payments are quite higher than the 30 year fixed mortgage rate. Hence everyone will not be able to qualify for these loans. Even the mortgage tax deduction on the 15 year old loan is less than the 30 year fixed loan.

The latest news display that the 15 year fixed mortgage fell down by 1 beginning point’s form 4.49% to 4.48 %. The 15 year fixed mortgage rate on 1st September, 2009 was down by 6 main points from the last week’s average rate of 4.54% and it was also down by 36 basis points from the average rate of 4.84% three months ago.

Government Loans – Apply for Them and Save Money

Kevin Simpson — Fri, 09 Apr 2010 12:08:05 +0000

If you’re searching for a home loan, it’s important to find out if you qualify for any government loans, because they can often save you a good amount of money. Both the Federal Housing Authority (FHA) and Department of Veteran Affairs (VA) offer government sponsored loans which may make it easier for those with imperfect credit or other financial situations to obtain a home mortgage loan.

The FHA is a federal program that works to provide housing loans to people who otherwise might not be able to obtain a loan because of financial limitations. FHA accomplishes this largely through insuring the loans provided by banks and lenders so they are more willing to hand them out to clients that may be more of a risk. If you do qualify, there are some amazing benefits to an FHA loan. First of all, you may only have to provide a down payment as low as 3% of the purchase price of the home, and in some cases even lower. This can be an enormous boon to those who think they can’t afford a home simply because they don’t have enough for a down payment. Also, there are no limitations on maximum or minimum income, which means you don’t have to be extremely wealthy to afford a loan. FHA loans come in all forms, fixed rate and adjustable rate, so you can choose the best for your needs and situation. And since the loan is federally insures, you’ll even be able to avoid a Private Mortgage Insurance payment (PMI).

The Department of Veteran Affairs has even better benefits for those who qualify. A VA loan will enable you to provide absolutely no down payment for up to a $240,000 loan with no PMI payments. Also, the qualifications for approval are even more loose than FHA loans, so if you’re a veteran, regardless of your financial situation or credit history, you can still be approved for a loan. One drawback to a VA loan is that you can only receive a fixed rate loan, but the ease of getting the loan and the little money required to receive it make it worthwhile.

Use Home Loans to Purchase Foreclosures

Kevin Simpson — Tue, 06 Apr 2010 12:30:57 +0000

Buying a home of one’s choice requires huge amount of investment. It is next to impossible for an ordinary person to independently finance for such deals. In such case, he resorts to borrowing money. This borrowed money is known as loan. Technically speaking loan is a kind of a debt instrument that involves redistribution of financial assets between a lender and a borrower.

Loans can be taken for various purposes. However, home loans i.e. taking loans to purchase a home is in huge demand. Loans used to purchase real estate properties such as homes etc is also known as a mortgage. While borrowing a home loans there are various aspects which one must be aware of such as the type of loans, where and how can one borrow home loans, what does one need to pre-qualify for a loan, the kind of options available etc.

Home loans are generally of two types. A person borrowing home loans can either opt for a fixed rate loan or can go for adjustable rate loan. In case of fixed rate loan the payment amount and the rate of interest remains unchanged over the entire period of loan. Thus the borrower gets a fixed rate, irrespective of the changes in the market. On the other hand in case of adjustable rate loan/mortgage, the interest and the payment amount changes after a specific time period.

Private lenders, banks and various other financial institutions offer loans. Apart from these government-insured loans are also available. The Federal Housing Administration in association with the U. S. Department of Veteran Affairs provides these loans. The biggest advantage of such home loans is that they have low down payment and flexible lending guidelines and is thus a good option for first time homebuyers.

However, before going in for any loan programme it is best to know, whether one pre-qualifies for such home loan In fact pre-qualifying for a loan is considered to be first step in acquiring home loan. The pre-qualification of home loan is determined on the basis on one’s income, mortgage payment, rate of interest, debt and several other factors. In fact there are special mortgage calculators which help in determining whether one pre-qualifies for such loans. The maximum amount, which one can borrow, differs from lender to lender. The lender on the basis of various criteria such as one’s current income expenditure etc determines the maximum amount which one is eligible to borrow. However USA’s two largest secondary market lenders namely Fannie Mae and Freddie Mac have laid down a limit for conforming loans. Loans exceeding beyond that are known as non-conforming or Jumbo loans. Generally these loans are provided to high risk lender at a higher interest rate. Loans in the range of $1 to $2 million dollars come under this category.

In todays time anyone going in for a home loan has a wide range of loan programmes to choose from. Some institutions provide loans, which are designed with the purpose of avoiding private mortgage insurance. Such type of loans provides a good opportunity for tax deduction. As mentioned earlier an individual needs to fulfill certain criteria so as to pre-qualify for home loan. However for those individual who have financial constraints or those with less than perfect credit, special loan programmes are available for such people as well. http://www.foreclosurewarehouse.com is a site that provides the best deal on home loan offered in the real estate market.