Mortgage Interest Rates Rise To Ten-Month High

Mortgage interest rates rise to 10 month highs as employment data is better than expected.  As well as jobs here in the US, the European economy is stabilizing.  This combination will continue to push rates higher.  This could not bode well for the emerging US housing market.  Read more below...

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Current Mortgage Rates for Friday, March 8, 2013 - Mortgage Rates & Trends (blog)
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Mortgage Rates & Trends (blog)Current Mortgage Rates for Friday, March 8, 2013Mortgage Rates & Trends (blog)home prices Mortgage rates are getting destroyed following this morning's stronger than anticipated jobs report. Mortgage backed securitie ...

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Wells Fargo Current Refinance and Mortgage Rates Today - Press Blue
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Press BlueWells Fargo Current Refinance and Mortgage Rates TodayPress BlueWells Fargo Current Refinance and Mortgage Rates Today Standard 30 year fixed rate loan interest rates at Wells Fargo (NYSE:WFC) start at 3.625% and APR of 3.963% today. The FH ...

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Today's Mortgage Rates: Bank of America Home Loan Interest Rates - Southern Daily Press
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Southern Daily PressToday's Mortgage Rates: Bank of America Home Loan Interest RatesSouthern Daily PressToday's Mortgage Rates: Bank of America Home Loan Interest Rates We have noticed some increases today regarding Bank of America's (NYSE:BAC) home ...

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Chase Bank Current Mortgage Rates Today - Eagle's Rant
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Eagle's RantChase Bank Current Mortgage Rates TodayEagle's RantChase Bank Current Mortgage Rates Today The best 30 year fixed rate mortgage interest rates start at 3.625% at Chase Bank (NYSE:JPM) today with an APR of 3.706%. Shorter term, popular 15 ...

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Latest Mortgage Rates: BB&T Home Purchase and Refinance Mortgage Rates ... - Southern Daily Press
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Southern Daily PressLatest Mortgage Rates: BB&T Home Purchase and Refinance Mortgage Rates ...Southern Daily PressLatest Mortgage Rates: BB&T Home Purchase and Refinance Mortgage Rates Today Similarly to Bank of America (NYSE:BAC), another major mort ...

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You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Mortgage Rates Are Rising Fast - Act Now

Mortgage rates are rising quickly this year -  that's right, up nearly 15%.  Mortgage refinancing would be a good idea right now before it is too late.

The average for a 30-year, fixed-rate mortgage pushed above 3.7% in more than three months.  Perhaps the all-time low is behind us.  That was set in November when 3.31% was the average for a 30-year, fixed rate loan.  For the rest of the year, expect rates to gradually move higher, ending the year at about 3.75% and then moving above 4% sometime next year.  There's no point to wait for lower rates if someone is considering refinancing their home.

Rising rates will affect homeowners looking to refinance more than they will affect home purchasers.  That's because refinancing is mainly an interest-rate-driven decision, while home purchases have more to do with jobs and lifestyle changes. Even though they're up, rates are still near historic lows.  Along with an improving economy, rates have edged up, given less demand for safe haven investments such as bonds since Congress partly averted the so-called fiscal cliff of tax increases and spending cuts.

Mortgage interest rates may dip below current levels on occasion, expect them to hover between 3.5% and 4% for most of this year.  That assumes no big economic shocks to the U.S. economy.  Except for a few weeks, mortgage rates have been below 4% for the past 14 months.  The low rates have helped the housing market, which is showing signs of strengthening. Home prices were up 5.5% in November year-over-year.  New and existing home sales are also up.  That also is helping the overall economy.

If the economy is getting better, slightly higher interest rates are a natural occurrence.  But there's no reason to believe that rates are headed upward in a straight line.  But a slow-growing economy will work to keep a lid on them. The U.S. economy is forecast to grow just 2% this year, and it actually shrank at an annual rate of 0.1% in the fourth quarter of last year.  The Federal Reserve has also said that it plans to continue buying $40 billion a month in mortgage-backed securities. Its high-volume purchases bring down yields on those securities, which influence mortgage rates.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low.

How To Refinance Your Home

With interest rates sitting just below 4 percent, now is a great time to crunch the numbers and see whether refinancing your mortgage can save you money.  As a general rule, homeowners will probably come out ahead when they can shave about 2 percentage points off of their interest rate.

If you have an adjustable-rate mortgage (ARM) or an interest-only loan, you might also benefit from refinancing, even if you don't save money on the monthly payments.  That's because you can lock in a 30-year fixed-rate mortgage at today's historically low rates and never have to worry again about your payments increasing.

Think you're a good candidate for refinancing?  Despite reports of banks hoarding money, lenders are still making loans.  But it has become harder to qualify for one.  Here's a road map to help you navigate the new and ever changing mortgage terrain.

"If you want access to the lowest interest rates, you need a credit score of 720 or higher."  If you have a score of 620 or below, you might not qualify for a loan at all.  Credit scores range from a low of 300 to a high of 850.

You'll need at least a 10 percent equity stake in your property to refinance.  And in some cases, you won't be able to get a loan without a 20 percent stake if private mortgage insurance is hard to get in your region. That might be a problem if you live in an in area where property values are quickly falling.  You might discover that your house is valued at less than you owe on your current mortgage, making refinancing difficult.  The one exception is for people with mortgages that are owned and held by Fannie Mae or Freddie Mac.  A new program will allow homeowners to refinance up to 105 percent of the home's value.

All homeowners will need to document their assets and income.  "Right now you have to prove you are the borrower you say you are, sometimes repeatedly."  Lenders want to make sure that homeowners can realistically afford any debt obligations, and they're reluctant to underwrite a mortgage if the homeowner's overall debt load is more than 43 percent of the family's income.  At the height of the housing boom, acceptable debt ratios reached as high as 55 percent.

Refinancing isn't an option for the millions of Americans who need to lower their monthly payments the most those who have lost their jobs.  Banks won't make new loans to such people until they can show pay stubs from a new job for at least 30 days.  A jobless homeowner's only option might be one of the new government programs for distressed folks, but they are usually available only to those who are at least 90 days delinquent on their payments.  And while it might be tempting to stop mailing in your check, know that your credit score will take a serious hit if you stop paying your mortgage.

In the past, you might have been able to refinance without paying any points and fees, but today that's often not the case.  Now that Wall Street is no longer securitizing smaller mortgages, the vast majority of conforming loans (those valued at $417,000 or less in most areas and $729,750 in high-cost areas) are sold to government-sponsored entities Fannie Mae and Freddie Mac.  About a year and a half ago, they started charging borrowers additional fees.  The first one you'll encounter is called an Adverse Market Delivery Charge, and it could add as much as a quarter of a percentage point to the loan.

Fannie Mae and Freddie Mac also charge a fee called the Loan Level Pricing Adjustment, which takes into consideration your credit score and loan-to-value ratio, or how much home equity you have.  Someone with poor credit and very little equity could end up paying an additional 300 basis points in fees.  So if you were borrowing $100,000 and had to pay 3.25 percentage points in fees, you'd owe the bank an additional $3,250 in closing costs.  If you wrapped the fees into the mortgage itself, you'd end up paying a 4.25 percent rate over the life of the loan.

Interest rates used to be fairly similar from one lender to another, but now they can vary by as much as a percentage point.  And some of the most competitive interest rates are found at the smaller community banks and credit unions, which might be better funded than some of the larger players that got caught in the sub-prime debacle.

Make sure you don't limit your shopping to a single bank or mortgage broker.  Some of the larger lenders, including Chase, no longer allow brokers to sell their products.  So if you want to see all of the rates in your area, you'll need to pick up the phone and do some calling around yourself.

You should visit Peak Home Loans.  They offer 2.625% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100K loan is only $402/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Low Home Mortgage Refinance Rates

Home mortgage and refinance rates are very low right now because the FED continues to buy more and more MBS (Mortgage-Backed-Securities that directly move interest rates one way or another).  The past couple weeks have been relatively stable as far as market conditions go.  That means lenders can confidently continue to offer lower and lower interest rates.  This happens when Mortgage-Backed-Securities level-out.  In fact, this stability has led to rates remaining in the territory of new all-time lows.  There is a clear momentum behind these prices as well.  This puts the best-scenario, thirty-year fixed rate conventional loan at 3.25% for the majority of lenders and even 3.125% for some for the first time ever which is good for those intending to purchase a house or refinance a current loan.

But, not all is bright and shiny for the future.  The FED is artificially holding the prime rate, the rate at which lenders borrow money, at 0.0% (zero percent.)  And unfortunately, the FED is printing new money on a daily basis to pay mounting US debts.  This can lead to hyper-inflation.  This is the phenomenon where an individual will need a wheel barrow full of dollar bills to buy a loaf of bread.  So, as far a buying a new house at a cheap interest rate, things look good.  But, you might not be able to buy anything to put in the house.

You should visit Peak Home Loans.  They offer 2.625% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more.  A $100k loan is only $402/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today

Explain A Mortgage Refinance

Mortgage refinancing refers to the replacement of an existing debt obligation with a debt obligation under different terms.  The terms and conditions of home mortgage refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.  If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.

 
A loan (debt) might be refinanced for various reasons:

1. To take advantage of a better interest rate (a reduced monthly payment or a reduced term)
2. To consolidate other debt(s) into one home loan (a potentially longer/shorter term contingent on interest rate differential and fees)
3. To reduce the monthly repayment amount (often for a longer term, contingent on refinance interest rate differential and fees)
4. To reduce or alter risk (e.g. switching from a variable-rate to a fixed-rate loan)
5. To free up cash (often for a longer term, contingent on interest rate differential and fees)

Refinancing for reasons 2, 3, and 5 are usually undertaken by borrowers who are in financial difficulty in order to reduce their monthly repayment obligations, with the penalty that they will take longer to pay off their debt.

In the context of personal (as opposed to corporate) finance, refinancing multiple debts makes management of the debt easier. If high-interest debt, such as credit card debt, is consolidated into the home mortgage, the borrower is able to pay off the remaining debt at mortgage rates over a longer period.

For home mortgages in the United States, there may be tax advantages available with refinancing, particularly if one does not pay Alternative Minimum Tax.

Most fixed-term loans have penalty clauses ("call provisions") that are triggered by an early repayment of the loan, in part or in full, as well as "closing" fees. There will also be transaction fees on the refinancing. These fees must be calculated before embarking on a loan refinancing, as they can wipe out any savings generated through refinancing. Penalty clauses are only applicable to loans paid off prior to maturity. If a loan is paid off upon maturity it is a new financing, not a refinancing, and all terms of the prior obligation terminate when the new financing funds to pay off the prior debt.

If the refinanced loan has lower monthly repayments or consolidates other debts for the same repayment, it will result in a larger total interest cost over the life of the loan, and will result in the borrower remaining in debt for many more years. Calculating the up-front, ongoing, and potentially variable costs of refinancing is an important part of the decision on whether or not to refinance.

In some jurisdictions, varying by American state, refinanced mortgage loans are considered recourse debt, meaning that the borrower is liable in case of default, while non-refinanced mortgages are non-recourse debt.

Points:
Refinancing lenders often require a percentage of the total loan amount as an upfront payment. Typically, this amount is expressed in "points" (or "premiums"). 1 point = 1% of the total loan amount. More points (i.e. a larger upfront payment) will usually result in a lower interest rate. Some lenders will offer to finance parts of the loan themselves, thus generating so-called "negative points" (i.e. discounts).

Closing Costs:
Borrowers with this type of refinancing typically pay few if any upfront fees to get the new mortgage loan. This type of refinance can be beneficial provided the prevailing market rate is lower than the borrower's existing rate by a formula determined by the lender offering the loan. Before you read any further do not provide any lender with a credit card number until they have provided you with a Good Faith Estimate verifying it is truly a 0 cost loan. The appraisal fee cannot be paid for by the lender or broker so this will always show up in the total settlement charges at the bottom of your GFE.

This can be an excellent choice in a declining market or if you are not sure you will hold the loan long enough to recoup the closing cost before you refinance or pay it off. For example, you plan on selling your home in three years, but it will take five years to recoup the closing cost. This could prevent you from considering a refinance, however if you take the zero closing cost option, you can lower your interest rate without taking any risk of losing money.

In this case the broker receives a credit or what's called yield spread premium (YSP). Yield spread premiums are the cash that a mortgage company receives for originating your loan. The broker provides the client and the documentation needed to process the loan and the lender pays them for providing this service in lieu of paying one of their own loan officers. Since a brokerage can have more than one loan officer originating loans, they can sometimes receive additional YSP for bringing in a volume amount of loans. This is normally based on funding more than 1 million in total loans per month. This can greatly benefit the borrower, especially since April 1, 2011. New laws have been implemented by the federal government mandating that all brokers have set pricing with the lenders they do business with. Brokers can receive so much YSP that they can provide you with a lower rate than if you went directly to the lender and they can pay for all your closing cost as opposed to the lender who would make you pay for all the third party fees on your own. You end up with a lower rate and lower fees. Since the new RESPA law as of April came into effect in 2011, brokers can no longer decide how much they want to make off of the loan. Instead they sign a contract in April stating that they will keep only a certain percentage of the YSP and the rest will go toward the borrowers closing cost.

True No Closing Cost mortgages are usually not the best options for people who know that they will keep that loan for the entire length of the term or at least enough time to recoup the closing cost. When the borrower pays out of pocket for their closing costs, they are at a higher risk of losing the money they invested. In most cases, the borrower is not able to negotiate the fees for the appraisal or escrow. Sometimes, when wrapping closing costs into a loan you can easily determine whether it makes sense to go with the lower rate with closing cost or the slightly higher rate for free. Some cases your payment will be the same, in that case you would want to choose the higher rate with no fees. If the payment for 4.5% with $2,500 in settlement charges is the same for 4.625% for free then you will pay the same amount of money over the length of the loan, however if you choose the loan with closing cost and you refinance before the end of your term you wasted money on the closing cost. Your loan amount will be 2,500 less at 4.625% and your payment is the same.

Cash-Out Refinancing:
This type of refinance may not help lower the monthly payment or shorten mortgage periods. It can be used for home improvement, credit cards, and other debt consolidation if the borrower qualifies with their current home equity; they can refinance with a loan amount larger than their current mortgage and keep the cash out.

Please visit Peak Home Loans.  They offer 2.625% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100K loan is only $402/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Why Are Mortgage Interest Rates So Low?

In response to Market Watch's recent in-depth analysis of the U.S. mortgage refinance housing market, RoadFish.com's men's lifestyle and finance magazine encouraged readers considering a home refinance or a home purchase to take advantage of the nearly record-low mortgage interest rates, as they are predicted to eventually climb...

"So for folks who are considering mortgage refinancing a home or a new home purchase, my advice would be to take advantage of the current interest rates now because, who knows, it could be another 40 or 50 years until we see them this low again."

RoadFish.com men's lifestyle and mortgage refinance magazine today urged those of its readers who are toying with the idea of mortgage refinancing their home or home buying to consider acting fast, as a recent evaluation of the housing market revealed why mortgage interest rates are at a near all-time low and why they may be turning around soon. In fact they are so low that mortgage interest rates have even exceeded the expectations of professionals, begging the question of how mortgage interest rates are continuing to decline every week.

Amy Hoak of the Wall Street Journal's Market Watch reported that before the week of June 14th, rates on the average 30-year fixed rate mortgage broke record low levels for six straight weeks. During the week of June 14th the same interest rates averaged 3.71% as quoted by Freddie Mac. In her article, Hoak deftly addresses the curious situation of U.S. home mortgage interest rates continuing to decline even as statistics show that the housing market is making a comeback. Hoak points out that factors from abroad play a large role in influencing mortgage interest rates, and that there are additional issues within the U.S. federal government that citizens may not be aware of that are influencing the home loan market.

RoadFish.com urged its readers to heed the information in Hoak's article and act on it, if that is their intention. RoadFish.com's senior staff writer is quoted as saying, "This is a big deal. Home mortgage interest rates haven't been this low in over 40 years. I checked Freddie Mac's table of the monthly average rate for a 30-year fixed rate mortgage, which goes back to 1971, and it doesn't even begin to touch the rates we're seeing in 2012. So for folks who are considering mortgage refinancing a house or home purchasing, or for first time home buyers, my advice would be to take advantage of the current interest rates now because, who knows, it could be another 40 or 50 years until we see them this low again."  The above-mentioned Market Watch article reported that one of the biggest domestic factors in influencing interest rates is the U.S.

The Federal Reserve's Operation Twist Program, According to Freddie Mac's chief economist Frank Nothaft, says this program is based on the U.S. Federal Reserve purchasing long-term securities and selling so called "short-term" debt, which in turn keeps the interest rates low for the moment. The article also reports that the Eurozone crisis is currently playing a big role in the state of mortgage rates within the U.S. Concerns revolving around the continued integration of the euro zone is causing investors to transfer more money into places where they believe it will be protected. In so doing, this move affects yields on investments (such as 10-year Treasury notes) by decreasing them. Hoak reports that the mortgage market uses yields on the 10-year Treasury as their baseline when determining interest rates for 30-year fixed interest loans, so the yields on investments has a direct impact on affecting the mortgage rates.

RoadFish.com also encouraged readers to do their research and prepare for a large financial move such as refinancing or purchasing a home, and not simply to take advantage of the current rates if it is not within their means. RoadFish.com's senior staff writer is quoted saying, "The most important thing to remember with any major financial decision is to do your homework. Adopt a ‘home buyer beware' mentality, because then you will research high and low and get a solid amount of information before proceeding. Also, you need to do what's best for your own financial situation. Yes, the rates are incredibly low, but if purchasing a house this year is not within your budget then don't jump on it simply because it's a good deal. As I said, do your homework. Study your budget. Work on your credit report. Make sure your decisions make sense, and are not impulsive."

Hoak's article concludes by stating that these all-time-low mortgage interest rates are expected to eventually being climbing. The last time that mortgage interest rates bottomed out to as low as they are today, it was April 1956—fifty-six years ago.

Please visit Peak Home Loans.  They offer 2.625% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100K loan is only $402/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Home Improvement Loans 203(k)

A home improvement loan is money lent to a property owner for home repairs, updates or remodeling.  Home improvement loans are not necessarily secured by the property they are intended for and may simply be classified as home improvement loans by the lender.  These loans can be secured or unsecured and are usually short term.

Home improvement loans are intended to increase the value of your home so it is important to think carefully about where best to put the money.  After all, the money spent on home improvements is added to your overall cost of the home and you want to be able to recoup this cost if and when you decide to sell.

Things to consider about home improvement loans:

1. Are you over-building for the neighborhood?  Adding a huge addition could make your house the nicest on the block but also the largest and most expensive, making it potentially harder to sell.
2. How much equity is available for home improvements and what is your maximum budget?  If you paid only $50,000 for your home ten years ago and now similar homes on your block are selling for $120,000, then you will have no problem investing in updates and repairs
3. Are you getting the most for your money?  Research has proven that upgrades to kitchens, baths and curb appeal offer an excellent return on your investment. Make sure you spend the money where it counts.

Ideas for home improvement loan project: The improvement possibilities for your home improvement loan are almost impossible to calculate.  While there are many decorating and design improvements possible, here are a few that are good to consider.

1. Additions - If you have a 2 bedroom, 2 bath house, consider adding a third bedroom. Similarly, if you have a 3 bedroom, 1 bath house, consider adding a second bathroom. And last but not lease, if you have a 2 bedroom, 1 bath house, consider adding a master suite complete with his and her closets and a full bathroom.
2. Updates - Concentrate on bathrooms and kitchens when spending the money from your home improvement loan. Kitchens and bathrooms seem to get outdated so quickly so it is important to use classic design concepts and soft, neutral colors. The lime green bathtub was a hit in 1975 but now desperately needs to be replaced.
3. Curb Appeal - Basic improvements such as landscaping or exterior painting can make a huge difference in the overall perception and value of your home. Keep these projects in mind when setting the budget for your home improvement loan project.

While the goal of your home improvement loan is to make repairs or upgrades to your home, the challenge is to make that money go even further, raising the value of your home above and beyond the level of money spent.

Funds for Handyman-Specials and Fixer-Uppers The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done until the house has been purchased.  The problem is solved by HUD:

203(k) HUD Rehab Mortgage InsuranceSummary:
Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

Purpose: Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

For less extensive repairs/improvements, see Streamlined 203(k). For housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD'sTitle I Home Improvement Loan program. Deceptive Home Improvement Contractors Complaints

HUD insures loans to help people renovate and repair their homes through programs called Title 1 and 203(k).  Some deceptive contractors in the program were performing shoddy work, falsifying documents, and overcharging homeowners. This fraud had victimized thousands of families and cost the taxpayers millions of dollars.

To avoid becoming a victim of fraud, work only with a HUD-approved Title 1 or 203(k) lender. This allows you to select the contractor and helps to prevent inflated estimates that only increase costs.

To report any fraud or abuse in the Title 1 or 203(k) Program, call toll-free (800) CALL-FHA or (800) 225-5342 or TTY (800) 877-8339.

Thank you,
Robert Pinzhoffer
Kindly visit Peak Home Loans, we can help with Home Mortgages