Archive for the 'Adjustable Rate Mortgages' Category
Conforming Loan Costs Are Rising, Says Freddie Mac
June 9th, 2010 categories: Adjustable Rate Mortgages, Buyers, FHA Mortgages, Market Trends, Mortgage Guidelines, Mortgage Rates, Sellers
Mortgage rates may be dropping, but mortgage costs are not.
According to Freddie Mac, the average required discount points on a conforming mortgage rate are higher by 0.1 percent since early-May.
A “discount point” is prepaid mortgage interest; an up-front fee paid by a borrower in exchange for a lower mortgage rate. In most cases, discount points are tax-deductible.
Tax-deductible or not, though, rising costs are rising costs and Freddie Mac glosses over it. In its weekly press release, the government group offers mortgage rate comparisons to weeks prior, but doesn’t do the same for required points.
The press fails to mention discount points entirely.
An increase of 1/10 percent in discount points costs homebuyers and refinancing households in Maryville an extra $100 per $100,000 borrowed.
The hike reminds us that there’s more to a mortgage than just its rate — costs matter, too. And if you’ve only been watching the headlines, you would have missed how costs are rising.
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Fannie Mae’s Loan Quality Initiative : Repulling Your Credit Just Before Closing
June 8th, 2010 categories: Adjustable Rate Mortgages, Buyers, Existing Home Sales, FHA Mortgages, Market Trends, Mortgage Guidelines, Mortgage Rates
A new loan quality initiative from Fannie Mae is making it harder for Farragut home buyers and refinancing homeowners everywhere to close on a mortgage.
Beginning June 1, 2010, with all new applications, Fannie Mae wants lenders to verify that borrowers have not taken on new debt during the underwriting phase of the mortgage.
If new debts are found, the mortgage is subject to a re-underwrite and a possible turndown.
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Knoxville Homeowners Is Now The Time To Refinance??
May 27th, 2010 categories: Adjustable Rate Mortgages, FHA Mortgages, Household Finances, Mortgage Rates, Sellers
Because of strife in Greece, Spain and North Korea, conforming mortgage rates are back to all-time lows. They’re at levels not seen in 50 years. For homeowners that missed the Refi Boom of November 2009, it’s a second chance.
In this well-presented, 3-minute video from NBC’s The Today Show, you’ll get tips getting low rates and choosing the best time to lock in.
Some of the topics covered include:
- Why were the experts wrong about rates moving higher this summer?
- How much money can you save with a 1 point drop in your interest rate?
- Should you buy a bigger home now that rates have fallen?
The advice in the piece is matter-of-fact and centered. There is no cheerleading and the message is honest. Mortgage rates are low and they likely won’t stay that way. If you’ve been thinking about a refinance, talk to your loan officer as soon as possible.
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Your Mortgage Approval Isn’t Final Until It’s Funded…
May 14th, 2010 categories: Adjustable Rate Mortgages, Existing Home Sales, FHA Mortgages, Market Trends, Mortgage Guidelines, Mortgage Rates, Pending Home Sales
Every Been To A Dry Closing??
That is where the loan doesn’t get funded at the time of the closing. We are seeing it more and more here in Knoxville at closing.
A mortgage approval is never final until it’s funded.
A host of things can “go wrong” while your home loan is underway. Some are in your control, many more are not. And just being aware of some potential pitfalls could help save your loan down the road, and your peace of mind today.
MSN Money ran a summary piece on the topic titled “10 Things That Can Kill A Home Loan“.
It’s an excellent article because, unlike most “get approved” articles that advise against things like buying a car before closing, or opening a bunch of new credit cards, the MSN Money piece addresses more uncommon factors that can lead to a similar loan turndown.
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Knoxville Homebuyers Should You Consider A 5 Year ARM??
April 22nd, 2010 categories: Adjustable Rate Mortgages, Buyers, Existing Home Sales, Mortgage Rates
Each week, government-led Freddie Mac publishes a weekly mortgage rate survey based on data from 125 banks across the country. According to this week’s results, the relative rate of a 5-year ARM in Tennessee is extremely low versus its 30-year fixed-rate cousin.
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Don’t Rush To Refinance That ARM — It May Be Adjusting To 3 Percent Or Lower
March 11th, 2010 categories: Adjustable Rate Mortgages, Buyers, Mortgage Rates
If your mortgage is set to adjust this year, the smart move may be to let it. Today’s conforming mortgages are adjusting lower than ever before — as low as 3 percent. It may not be what you expected when you signed for your ARM several years ago.
The reason why ARMs are adjusting lower is because of how they’re made.
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