Ever since the housing debacle, from which we’re still recovering, government officials as well as consumer groups have tried to pinpoint the blame. There’s plenty of finger pointing to go around. But is a mandatory 20 percent down payment the answer to saving the mortgage market?
Many factors came into play in the last decade, causing a severe financial meltdown, fueled by toxic mortgage loans. Subprime loans, no-documentation loans and no-money-down loans flooded the mortgage market. These home loans were offered at a rapid clip and gained market share by the minute. Even mortgage giants Fannie Mae and Freddie Mac got into the action, allowing zero-down loans to questionable borrowers. And, FHA offered loans to sub-prime borrowers as it lost market share to risky lenders. Read the rest of this entry »
On May 3rd, the Employment Situation Report sent rates higher, and they’ve been on the rise ever since.
To recap, here are the results from the report:
138,000 jobs were added to the economy in March. Initial numbers indicated only 88,000
165,000 jobs were added in April, more than the expected 153,000
The unemployment rate is 7.5%, and 7.6% was expected.
Before May 3rd, interest rates were at about their lowest levels of 2013. According to Bankrate, the 30 year fixed conventional rate is now at 3.65% (3.95% APR), up from 3.4% (3.6% APR) at the beginning of May. This rate is what a borrower with good credit and equity might get in today’s marketplace. Read the rest of this entry »
Mortgage rates rise and fall day after day, week after week. Sometimes mortgage rates can change even during the course of one single business day and in times of extreme volatility, rates can move up and down several times in just one day. A common misperception is that the Fed sets interest rates. While they do set certain types of rates, they can only indirectly affect mortgage interest rates. Instead, mortgage rates are directly related to market fluctions in mortgage backed securities.
What are Mortgage Backed Securities?
Mortgage backed securities (MBS) are bonds that are backed, or secured, by pools (bundled groups) of mortgage loans. As a mortgage company issues a mortgage loan, the lender has a choice to keep that loan in their portfolio and collect the principal and interest payments, or sell the loan. Read the rest of this entry »
Recently members of the Mortgage Bankers Association visited the White House to discuss HARP. The message they received: small changes to HARP might be coming.
The specific change mentioned by the Obama administration was surrounding the securitization date of June 1, 2009. Under current rules, any loan purchased by Fannie Mae or Freddie Mac loan after this date is ineligible for HARP.
Pushing the date to mid-2010, as the administration is suggesting, would allow many more homeowners to take advantage of HARP. Read the rest of this entry »
Harp Loan Eligibility: Freddie Mac and Fannie Mae have accepted modifications to the HARP (Home Affordable Refinance Program) and you may be eligible to benefit from the HARP Loan Program if your home mortgage is guaranteed or owned by Freddie Mac or Fannie Mae. To check to see if your mortgage qualifies for the Harp loan program please visit: www.fanniemae.com and/or www.freddiemac.com. Verify your eligibility now by getting a free HARP loan program quote with MortgageRefinanceRates.org.