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Posts Tagged ‘adjustable rate mortgages’

Zillow Reports 5% Mortgage Threshold Has Been Breached

September 16th, 2009 by Krayton M Davis | 3 Comments | Filed in Home Financing
Mortgage rates continue to drop, opening up a door of opportunity for savvy consumers. If you have excellent credit and a good job, you could qualify for a fixed rate thirty year home loan offered at a five percent interest rate.

Mortgage rates continue to drop, opening up a door of opportunity for savvy consumers. If you have excellent credit and a good job, you could qualify for a fixed rate thirty year home loan offered at a five percent interest rate.

Despite the economic uncertainty one fact remains: mortgage loans can be had for at near historic low rates. This is good news for home buyers or for people who want to refinance their current mortgages, provided that they have excellent credit and a good paying job in order to get approved.

Virginia Leads The Nation

The Zillow Mortgage Marketplace, a service of Zillow.com the real estate trends tracking site, says that the average rate for a thirty-year fixed rate mortgage (the most popular choice for consumers) is now down to 5.04%. Importantly, in several states, the five percent floor has been passed, with rates dropping to as low as 4.96% in Virginia.

The move downward follows a trend seen over the past several months. Indeed, the national average dropped from 5.09 to 5.04 just in the past week, showing that even lower rates may be ahead. While six percent is still considered to be an excellent rate for mortgages, when the market drops below 5% the psychological boost can be quite good.

15-Year, ARM Rates Drop Too

15-year fixed rates mortgages are now down to 4.48% while 5/1 ARM have dropped to 4.02%. ARM or adjustable rate mortgages have caused plenty of grief for consumers over the past few years as ultra low rate loans taken out in in 2001 and 2002 have since reset at a much higher rate. Those higher rates have contributed to mortgage delinquencies and a record number of home foreclosures, thus consumers considering an ARM today must take into consideration the possibility of much higher rates in the years to come.

Feel free to search our archives for mortgage tips and refinancing information, details which can help you save money.

Source: Zillow.com

Adv. – Despite rising interest rates, now is still a good time to refinance your home. If your current mortgage offers unfavorable terms, why not explore refinancing while rates remain below 6%? Visit PickMyMortgage.com or SayLending.com to find the best mortgage opportunities out there.


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Home Loan Rates? Going Down!

September 2nd, 2009 by Matthew C. Keegan | 2 Comments | Filed in Consumer Financing, Home Financing

If you’re looking for good news these days in the housing market, then you may have heard that home sales are up and prices have stabilized in some markets. But, you may  have also heard that come 2011, there could be a rash of new foreclosures as a fresh batch of variable rate loans come up for an adjustment.

Signs of relief are beginning to appear in the housing market. HARP and HAMP programs from the federal government could help to keep you in your home.

Signs of relief are beginning to appear in the housing market. HARP and HAMP programs from the federal government could help to keep you in your home.

Several markets remain depressed including Detroit, Las Vegas and much of Florida. However, sections of Southern California, Texas and various cities dotting the south and midwest are holding their own. Likely, the performance differences between these markets will continue as unemployment and other issues weigh in.

Additional Help For Home Buyers?

When Congress returns from their break next week, they’ll have a number of issues to take up besides national health care. One issue that should be on the mind of potential homeowners, particularly first time buyers, is the $8000 federal tax credit which must be taken by December 1, 2009. There has been talk about extending and expanding the credit to allow all home buyers to participate while also increasing the rebate to as high as $15,000 per purchase. We’ll let you know more about this information should a bill be presented over the coming weeks.

Meanwhile, the rate for a fixed-rate thirty-year mortgage continues to slide, dropping to 5.17% nationally according to the Zillow Mortgage Rate Monitor. Even better, the rate on a fifteen-year fixed-rate mortgage is 4.57% while 5/1 adjustable rate mortgages can be had for just 4.17%. Keep in mind that these rates apply only to the most creditworthy customers. Shop around for a deal that is most favorable for you.

HARP or HAMP

For homeowners struggling to keep up with payments, the federal government’s “Making Home Affordable” program could help you modify your current loan or seek out an all new loan. The government’s HARP – Home Affordable Refinancing Program – and HAMP – Home Affordable Modification Program has helped thousands of homeowners keep their homes thus far. Visit the related website to learn more including confirming your own eligibility to participate.

Finally, if you’ve been getting the run around when it comes to refinancing your home, then going the traditional rate of refinancing may help you out especially if your personal economic situation has improved over the past several months. Private lenders are still looking for customers, so first verify that your credit is good by obtaining copies of your credit reports to see where you stand. Who knows, the help you’re wanting could be within your reach!

Adv. – Are you considering a loan modification? If so, this mortgage medication website could offer just the prescription you need to improve your financial health.

See Also — Will Nearly Half of Mortgages be Under Water in 2011?


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Fixed Rate Mortgages Trump Adjustables

February 7th, 2008 by Matthew C. Keegan | 1 Comment | Filed in Consumer Financing, Home Financing

On the surface, adjustable (variable) rate mortgages (ARMs) look like a better deal, particularly as these loans allow adjustable rate mortgagesbuyers to afford a larger home and/or receive a lower interest rate on the amount borrowed. Compared to a fixed rate mortgage, ARMs can look pretty decent, but that is only on the surface.

ARMs At Fault — Sort Of

Dig a little deeper and you quickly realize that ARMs are behind the current mortgage crisis. Certainly, some homeowners should never had been qualified for a mortgage in the first place given their iffy financial situation, but for many other people selecting an ARM was a problem for them too. Especially when the first wave of resets (adjustments) kicked in.

Falling Fixed-Rate 30 Year Mortgages

Some homeowners are alarmed that their new, higher mortgage payments is making it difficult for them to keep up. That $2200 monthly payment is suddenly approaching $2700, putting further strain on households already pushed to the limit. Refinancing is an option, something I will cover below.

The recent two-step drop in the benchmark Fed interest rate from 4.25 to 3 percent is a sign that the government is worried about resetting mortgages too and the impact that a rash of foreclosures would have on the economy.

Although mortgage rates don’t necessarily correspond exactly to a drop in the Fed rate (instead, those rates are pegged to long-term bonds) every indication seems to show that a further drop in mortgage interest rates will still happen. How much though is not known.

Your Refinancing Window

Now is the time for all homeowners faced with the prospect of a nasty mortgage interest rate reset to consider refinancing their homes. No one knows how long this refinancing window will stay open or whether mortgage rates will drop much lower, therefore it is imperative if you are seeking relief from your current ARM to consider what it takes to qualify for a new mortgage today.

The longer you delay, the increased likelihood is that you will miss out on a special opportunity. Some homeowners may be waiting for government relief, which may or may not come, but to delay too long could mean that the refinancing window has been shut.

So, how do fixed rate mortgages trump adjustable rate mortgages? That’s easy: they give consumers a predictable, stable monthly payment amount each month for the life of the loan.

Sounds reasonable, doesn’t it?


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