Mortgage Rates & Trends: Mortgage Blog

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  1. Current Mortgage Rates Create Great Refinancing Opportunities

    By Staff on July 27, 2010

    It’s no secret that current mortgage rates are near the lowest levels ever recorded. With that in mind you may want to consider refinancing your current mortgage. By refinancing to a mortgage with a lower mortgage rate you could potentially save yourself a significant sum of money.

    Total Mortgage offers a wide variety of mortgage products that could fit your refinancing needs. A 30 year fixed conventional mortgage is currently being offered with a 4.125 percent mortgage rate and a 4.323 percent APR. A 20 year fixed conventional mortgage has a slightly lower mortgage rate of 4.000 percent and a 4.273 percent APR. Both of these fixed rate mortgages provide great opportunities for refinancing.

    You may also want to consider mortgages backed by the Federal Housing Administration for refinancing. A 30 year fixed FHA mortgage at Total Mortgage has a 4.000 percent mortgage rate and a 5.178 percent APR. Continue Reading…

    Category: Mortgage Rates, Refinance

  2. Low Mortgage Rates Make It A Great Time To Refinance

    By Staff on July 16, 2010

    Freddie Mac announced yesterday that the national average mortgage rate for a 30 year fixed mortgage is still at the lowest point in history. These low mortgage rates have created an incredible opportunity for homeowner’s to refinance into mortgages with lower monthly payments. This is apparent in the type of mortgage applications being filed. Freddie Mac’s chief economist noted that about 80 percent of mortgage applications have been for refinancing.

    Currently at Total Mortgage a 30-year fixed conventional mortgage has a rate of 4.125% and a 4.323% APR. Borrower’s who have mortgages with higher mortgage rates stand to save a lot of money by refinancing right now.

    For example if you have a mortgage with a 5.500% rate and planned to refinance for $300,000, you could save yourself almost $360.00 a month with Total Mortgages low 4.125% mortgage rates. Taking into account taxes and closing costs you could save $15,402.98 throughout the life of the loan.

    Mortgage Product Mortgage Rate Monthly Payment
    Borrower’s Rate 30-Year Fixed Conventional Mortgage 5.500% $1,703.37
    Total Mortgage’s Rate 30-Year Fixed Conventional Mortgage 4.125% $1,344.33
    Monthly Savings $359.04

    To figure out exactly how much you stand to save by refinancing check out our Should I Refinance Calculator. For additional information on refinancing contact on of your licensed mortgage experts at 877-868-2503.

    Category: Refinance

  3. Refinance Mortgage Rates in Connecticut

    By Staff on July 9, 2010

    On Wednesday the Mortgage Bankers Association (MBA) released the results of its mortgage applications survey. The survey said that mortgage activity as a whole increased by 6.7 percent, but refinance activity went up by 9.2 percent. The spike in refinance activity can almost solely be attributed to the all-time low mortgage refinance rates available.

    Total Mortgage Services is offering almost all time low current mortgage refinance rates not only in Connecticut but also across the nation. With a variety of programs including fixed rate mortgages and adjustable rate mortgages (ARM) Total Mortgage has been receiving an overwhelming amount of refinance applications in the past couple of weeks. Don’t miss out on this refinancing opportunity.

    A 30-Year Fixed Conventional Mortgage is available in Connecticut with a 4.125% rate and 4.323% APR. Total Mortgage also offers FHA mortgages in Connecticut; a 30-Year Fixed FHA Mortgage has a 4.000% rate and a 5.178% APR.

    While many people refinance into fixed rate mortgages some choose to refinance into an ARM. Total Mortgage’s has some of the best refinance mortgage rates available on ARM’s in Connecticut. A 5/1 ARM Conforming Mortgage is available with a 3.000% rate and a 3.481% APR. Jumbo ARM’s are also available; a 5/1 ARM Jumbo Mortgage has a 3.625% rate and a 3.657% APR.

    All of the low rates currently available in Connecticut and across the United States make it a great time to consider refinancing.

    Total Mortgage’s rates are constantly fluctuating. All rates were quoted at 9:30 a.m. on July 9, 2010.

    Mortgage Product Mortgage Rates APR
    30-Year Fixed FHA Mortgage 4.000% 5.178%
    30-Year Fixed Conventional Mortgage 4.125% 4.323%
    5/1 ARM Conforming Mortgage 3.000% 3.481%
    5/1 ARM Jumbo Mortgage 3.625% 3.657%

    For a complete list of the mortgage rates in Connecticut and mortgage products available in Connecticut check us out online or call 877-868-2509 to speak to one of our licensed mortgage professionals immediately.

    * All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice.

    *All rates are posted with borrowers paying 2 points unless otherwise noted.

    Category: Mortgage Rates, Refinance

  4. FHA Mortgage Loan Delinquencies Drop in February

    By Mike Battema on March 25, 2010
    February 2010 saw a drop in FHA mortgage delinquencies.

    February 2010 saw a drop in FHA mortgage delinquencies.

    For the first time since the Federal Housing Administration (FHA) began publishing monthly delinquency reports in September 2009, the number of loans backed by FHA that are seriously delinquent fell in February 2010. According to the agency, approximately 4.8% of FHA insured loans made in the two years ending February 28, 2010 were at least three-months late, down 20 basis points from the two-year period of 5% ending January 31, 2010.

    Default claims on FHA mortgages climbed throughout 2009 as the agency significantly increased its loan volume at the expense of depleting its reserves for the purposes of providing a much needed boost to the housing market. FHA agency officials maintain that FHA’s current problems are primarily rooted in the mortgages that it insured in 2007 and 2008, which are maturing into their worst years. Mortgage failures and defaults typically occur two to three years after they are obtained.

    With the housing market expected to improve and loans from 2007 and 2008 moving past the two to three year failure point, agency officials are expecting losses to taper off as the FHA is expected to have to pay fewer claims to the lenders it insures moving forward. The FHA also began applying stricter guidelines and banned 268 lenders from making FHA loans in 2009. These bans sent a message to other lenders to scrutinize their borrowers more diligently, which led to fewer high risk loans being backed by the FHA and an improvement in overall FHA performance. Furthermore, more creditworthy borrowers are taking advantage of low current mortgage rates and FHA insured loans, as evidenced by the fact that applications for FHA purchases jumped 37% in February 2010 from January.

    Total Mortgage Services is a fully approved FHA lender and offers some of the best current FHA mortgage rates available. Call us today with your FHA purchase or FHA refinance questions at 877-868-2503 to speak with one of our mortgage professionals.

    Category: FHA, Purchase, Refinance

  5. Existing Home Sales Fall in February

    1 By Mike Battema on March 24, 2010

    In addition to new home sales dropping in February, the National Association of Realtors reported that existing home sales fell in February 2010 to a seasonally adjusted annual rate of 5.02 million units, down 0.6% from the 5.05 million units that were sold in January 2010. Despite this drop in sales volume, sales in February were nevertheless up 7% from the 4.69 million units sold in February 2009.

    While the snow, sleet and ice are major reasons to blame for keeping potential home buyers indoors, the lack of any soon expiring homebuyer tax credit did not produce the surge in home sales that was seen in the fall and is expected before the April 30 deadline, as homebuyers take advantage of low current mortgage rates to purchase or refinance.

    Existing Home Sales Fell in February thanks to snowy conditions and an extended homebuyer tax credit

    Existing Home Sales Fell in February thanks to snowy conditions and an extended homebuyer tax credit

    The national median existing home price was $165,100 in February 2010, down 1.8% from the February 2009 price as a result of distressed homes accounting for 35% of last month’s total sales. The Federal Housing Finance Agency (FHFA) index, which tracks the prices of houses that are sold or guaranteed by Fannie Mae, Freddie Mac or the Federal Home Loan Banks over time, is 13.2% below its April 2007 peak, indicating that low current mortgage rates and depressed home prices make it a strong buyer’s market.

    Despite total home sales dropping for the month, existing home sales in the Northeast were up 2.4% and 2.8% in the Midwest, as buyers took advantage of current mortgage rates in states such as Connecticut and Illinois. Despite low mortgage rates in Georgia and Virginia, however, home sales in the South fell 1.1% and 4.7% in the West in February 2010.

    The housing recovery is still fragile at the moment, however, now is a great time to capitalize on near record low mortgage rates before they start to rise later in the year. Total Mortgage Services offers some of the best current mortgage rates in the Country. Whether you are looking to refinance your home with a Jumbo loan in New York state or require an FHA loan to purchase your new home in Pennsylvania, call 877-868-2503 today to speak with one of our mortgage professionals.

    Category: Current Mortgage Rates, FHA, Jumbo Mortgage, Mortgage Rates, Purchase, Refinance

  6. California Housing Market Shows Signs of Recovery

    By Mike Battema on March 19, 2010

    Finally, some good news for the California housing market – median home prices are on the rise. According to a report released by MDA DataQuick, a La Jolla, California housing-data provider, California’s median home price rose from $224,000 in February 2009 to $249,000 in February 2010, an increase of 11.2%. Thanks to record low current mortgage rates and a shift in home-buyer interests, the California housing market is showing signs of stabilization.

    Median Home Prices Rose 11.2% from February 2009 to February 2010

    Median Home Prices Rose 11.2% from February 2009 to February 2010

    The 11.2% boost in median sales prices represents the largest year-over-year jump in California home prices since March 2006. The driving force behind the current surge in prices is the fact that consumers have at last begun showing interest in costlier properties towards the California coast in lieu of foreclosed bank-owned homes and bargain-basement homes in more inland areas. According to DataQuick analyst Andrew LePage, “There has been a shift in what’s selling and what’s not selling. The high end has woken up, whereas it was comatose a year ago.” To put it in perspective, from February 2009 to February 2010 home prices in:
    ·    San Francisco Bay rose 20% to $354,000
    ·    Southern California rose 10% to $275,000 (thanks largely to home values in San Diego increasing by upwards of 13% from their February 2009 levels)
    ·    Santa Clara County rose 12.5% to $460,000

    Despite the increase in home values and indications of recovery, the California housing market and economy still have a long way to go to reach former peak conditions. In February 2010, while default notices were down 37.7% from February 2009, they still increased by 19.7% from January 2010. Unemployment in California still lingers around a high 12.5%. For the California economy to truly recover, these numbers need to decrease dramatically.

    Nevertheless, California home prices are still significantly below their peak levels and it is still very much a buyer’s market. Total Mortgage Services offers some of the best current mortgage rates in California for your refinance and purchasing needs. Whether you require an FHA loan in Los Angeles or are looking for a Jumbo loan in Orange County, call 877-868-2503 to speak with one of our mortgage experts today.

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    Category: Current Mortgage Rates, FHA, Jumbo Mortgage, Mortgage Rates, Purchase, Refinance

  7. Cash In Refinance Trend

    3 By Robert Hyder on March 15, 2010

    Cash In Refinance Trend

    Everyone has heard of a cash out refinance. In the off chance you have not, a cash out refinance is one in which a homeowner refinances their existing mortgage in order to acquire additional cash to be used for whatever purpose the borrower desires. The additional cash a homeowner receives once the existing mortgage is paid off at closing in a cash out refinance is based on equity established in the home. Now, a new trend that is being seen in the mortgage industry has been coined a cash in refinance. What exactly is a cash in refinance?

    A cash in refinance is a recent development in the mortgage industry due to the decline in property values. Instead of a borrower taking additional cash against the equity in their home like in a cash out refinance, borrowers are now bringing additional funds to the closing table to pay down loan amounts, thus reducing the loan-to-value (LTV). By no means is a cash in refinance a new concept. However, cash in refinances are quickly becoming the norm when they were previously extremely uncommon.

    By bringing funds to the closing table in a cash in refinance, homeowners are able to reduce their LTV to avoid paying PMI (private mortgage insurance). Let’s face it, when property values were at their peak, homeowners refinanced in droves, borrowing against apparent boundless equity. In today’s housing market, that is clearly no longer the case. Nevertheless, while current mortgage rates have remained historically low, homeowners are making cash in refinances exceedingly more popular.

    Click here to use a unique Cash-In Refinance Calculator

    When property values began to plummet in 2007, the cash out at closing mentality concerning real estate holdings came crashing down shortly thereafter. No one was spared. In fact, real estate web site Zillow.com reported in January 2009 that the value of the White House was more than $23 million less than it was one year prior. The Federal Reserve estimated that homeowners lost approximately $7 trillion in equity in their homes between the beginning of 2005 and end of the third quarter of 2009.

    To put the recent cash in trend into perspective, a 2006 analysis of all refinance transactions indicated that approximately 95 percent were cash out while a mere 5 percent were cash in. By 2007, cash in refinance totals increased to 9%. By the end of 2009, cash in refinance totals skyrocketed to approximately 34 percent of all refinance transactions.

    The decline in home values that have prompted the cash in refinance trend should not be all that surprising, though. Despite the decline in home values due to the recession, the Home Valuation Code of Conduct (HVCC) has also had a significant impact. The implementation of the HVCC now provides increased regularity in the appraisal process. As a result, the mortgage industry is witnessing increased integrity in actual home values. Gone are the days of mortgage brokers persuading appraisers to exaggerate a home’s value in order to make a mortgage loan work.

    Although home values continue to appraise much less than a homeowner would like, a cash in refinance ultimately improves the equity position in a property when a homeowner brings additional cash to the closing table. By bringing additional cash to the closing table, the equity in the home is increased, resulting in a better mortgage rate. In addition, bringing cash to closing will make it easier for borrowers to qualify for a refinance mortgage. As mortgage lenders continually tighten their guidelines, the more equity a homeowner has in their property the better. I suspect before its all said and done, cash in refinances will overtake cash out refinances in terms of popularity.

    Robert Hyder

    Follow Total Mortgage on Twitter

    Category: Mortgage Rates, Refinance

  8. Too Late To Refinance?

    By Robert Hyder on March 9, 2010

    Too Late To Refinance?

    While many mortgage analysts believe that the refinance wave generated by historically low current mortgage rates had crested months ago, the Federal Housing Finance Agency (FHFA) nonetheless announced the Home Affordable Refinance Program (HARP) will be extended for an additional year to June 30, 2011. Fortunately, borrowers who may be eligible for Fannie Mae’s DU Refi Plus or Freddie Mac’s Relief Refinance Mortgage have been given a reprieve and can still benefit from today’s incredibly low current mortgage rates.

    That said, it must also be noted that the Federal Reserve will complete its commitment to purchase $1.25 trillion in mortgage-backed securities by the end of March. It is no secret that this program has kept mortgage rates artificially low for more than a year. Mortgage analysts believe mortgage rates will begin to rise when the Federal Reserve completes its purchase by the end of the month. If refinances seem to be drying up now, it is unlikely the mortgage industry will witness a refinance revival if mortgage rates climb back to the 6% range.

    With approximately 1 million homeowners eligible for the HARP program, it is estimated that roughly less than 120,000 homeowners have taken advantage of the program and the extraordinarily low current mortgage rates. The remaining 900,000 or so homeowners who were originally believed to be eligible for the HARP program are either underwater (owe more on their mortgage loan than their home is worth) or do not qualify for the HARP program based on stricter lender guidelines. Others simply have not completed the necessary paperwork. Additionally, some homeowners are so far underwater, even the support offered from HARP program eliminates their possibility of refinancing. Another major factor for borrowers failing to qualify for the HARP program is unemployment. Although recent unemployment figures have shown signs of improvement, there are still too many homeowners out of work.

    Unfortunately, for a large number of homeowners, the prospect of refinancing remains out of the question. Although, for a significant amount of homeowners that do qualify, time is of the essence if mortgage rates do begin to rise.

    Robert Hyder

    Follow Total Mortgage on Twitter

    Category: Refinance

  9. Freddie Mac Extends Mortgage Refinance Programs For Troubled Borrowers

    1 By Dave Jefferlone on March 4, 2010

    Freddie Mac has extended their offer for both their Freddie Relief Refinance Mortgage-same servicer and Relief Refinance-Open Access programs. Both of these program are supported by and part of the Federal governments Making Home Affordable Program.

    Freddie Mac's Refinance Relief Programs Extended

    This very popular program offered by Freddie Mac was set to expire on June 10, 2010 and now has been extended untill June 30, 2011. The extension is especially helpful so that borrowers can take advantage of the low current mortgage rates presently available.

    If you are not aware of this excellent program, it is offered by Freddie Mac to current customers who presently have a Freddie Mac serviced loan, and they are current on their mortgage payments, the  ability to refinance to improve their financial situation when home values have declined or where there has been limited credit or mortgage insurance availability in the market.

    The current mortgage must have had closed on or before May 31, 2009 to be eligible for this program

    Both Same Servicer and Open Access programs offer loans to borrowers up to 125% LTV and no limit to CLTV  (Loan To Value is balance of the 1st mortgage divided by the appraised and Combined Loan To Value is the total of all mortgages associated to the property divided by the appraised value)
    NOTE:  please check with a mortgage professional to determine the specific options available to you since the maximum allowed LTV/CLTV limits and guidelines will vary per lenders. Most lenders, if they are not currently the servicer of your current mortgage, will limit the LTV to between 95-105%

    While there are many advantages to this program over a conventional conforming regular refinance mortgage, the main advantage is if your property has declined in value since you purchased your home. This would be especially true if you initially put a down payment of 20% (80% LTV) or greater when you purchased your home and now unfortunately, the value has declined to a point where your equity position in your home ( the difference between the amount you owe on your home and it’s appraised value) is less than 20%, less than 10%, or no equity or negative equity position. Normally for any conforming mortgage if your equity positions in less than 80% you will be required to also have mortgage insurance on your loan. With this program, if you initially had 20% equity and you were not required to have mortgage insurance then you would also not be required to have mortgage insurance with this new Freddie Mac Relief Refinance Mortgage.

    This incredible feature will allow a borrower to refinance their existing mortgage into the historically low mortgage rates which are presently available and not be concerned with either having to obtain mortgage insurance or be declined all together because of their particular situation, mortgage insurance would not be available to them therefore a new mortgage would also not be an available option..

    In order to be eligible for a Freddie relief Refinance Mortgage:
    The Relief Refinance Mortgage must result in at least one of the following:

    • Reduction in the interest rate of the first-lien mortgage.
    • Replacement of an ARM, Initial Interest® Mortgage (or any mortgage with an interest-only period) or a balloon/reset mortgage with a fixed-rate, fully amortizing mortgage.
    • Reduction in the amortization term of the first-lien mortgage

    NOTE: If the current mortgage is a fixed rate then the new mortgage CANNOT be an Adjustable Rate mortgage even if it fits any of the above criteria

    The following Occupancies are allowed:

    • 1- to 4-unit primary residences
    • 1-unit second homes
    • 1- to 4-unit investment properties

    Freddie Mac’s Relief Programs will also allow you to include up to the lesser of $5,000 or 4% of the loan amount for closing costs and prepaids as long as any residual cash back to you does not exceed $250.00

    If you would like to know if your current mortgage is a Freddie Mac owned loan you may either check Freddie Mac’s Website or call Freddie Mac at 888-576-6932.

    Please be aware even if your current mortgage is a Freddie Mac owned loan it may not automatically be eligible for this program.  There are certain mortgages which are not eligible and from my experience it does not necessarily have anything to do with the structure/type of your current mortgage as it has to do with how your original mortgage company you obtained your mortgage from, sold your mortgage to Freddie Mac.

    Good luck with all of your mortgage purchase or refinance needs.  If you are seriously considering refinancing or purchasing a new property please check with an experienced mortgage professional by calling 877-868-2503 today.  The eligibility guidelines in this current mortgage/housing environment is like a moving target and are changing constantly.

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    Category: Refinance

  10. Homeowners Struggle To Qualify for Refinancing

    By Robert Hyder on February 16, 2010

    Homeowners Struggle To Qualify for Refinancing

    According to statistical data recently released by First American CoreLogic, nearly half all existing mortgage borrowers nationwide currently have a mortgage rate of 6% or higher, despite current mortgage rates remaining at or near historic lows for more than a year. If current mortgage rates have been so low for so long, why wouldn’t everyone refinance to get a lower mortgage rate? The answer is rather straightforward: millions of American homeowners simply do not qualify.

    The refinance boom generated by the Obama administration’s Making Home Affordable initiative has helped millions of Americans refinance into a significantly lower mortgage rate. In fact, Freddie Mac reports that as many as 5.8 million mortgage borrowers benefited from the historically low current mortgage rates since the program began in the beginning of 2009, with borrowers saving an estimated $140 per month. During the first week of December, the average rate on a 30-year fixed-rate mortgage reached an all-time low of 4.71%.

    We are quickly approaching a point in which current mortgage rates will rise rather sharply as the Federal Reserve winds down its commitment to purchase $1.25 trillion in mortgage-backed securities by March 31, 2010. Most homeowners who were eligible to refinance into a lower current mortgage rate have already done so. Nevertheless, any remaining eligible homeowners should not squander the opportunity to refinance and lock in an extraordinarily low mortgage rate before it’s too late. At a time when current mortgage rates are still extremely low, prospective homebuyers are also wise to at least explore the possibilities of homeownership while the $8,000 first-time homebuyer tax credit and the $6,500 move-up homebuyer tax credit are still available. Both of these unprecedented federal tax credits will expire on June 30, 2010 (with a signed purchase agreement by April 30, 2010).

    –Robert Hyder

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    Category: Current Mortgage Rates, Mortgage Rate Trends and Analysis, Refinance
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