Adjustable-rate mortgages, known as ARMs, are back, despite having earned a bad reputation at the height of the housing crisis. Post-crisis borrowers saw them as risky because of their changing interest rates and blamed the glut of foreclosures on the inability of homeowners to handle higher payments when the loans reset. "ARMs became a four-letter word after the housing crisis," says Ann Thompson, a retail sales executive for Bank of America in San Francisco. "They got a bad rap and were lumped in with 'pick-a-payment' loans, which allowed people to pay as little or as much as they wanted on their mortgage."Lately there's been a resurgence in ARMs. In January 2019, 8.6 percent of new mortgage loans had an adjustable rate, compared with 5.5 percent in January 2018, according to Ellie Mae, a software company that processes 35 percent of mortgages in the United States.One reason for the resurgence could be the safeguards in place that make today's ARMs less risky than those approved … [Read more...] about Adjustable-rate mortgages: Are they worth it?
20 year fixed refinance rates
By Brittany De Lea Published January 09, 2019 U.S. Economy FOXBusiness Facebook Twitter Comments Print video More first-time home buyers are turning to their parents for mortgage assistance “Bulls & Bears” panel on how more first-time home buyers are turning to their parents for mortgage assistance. Mortgage applications surged during the first week of 2019 thanks to lower interest rates, following an unusually slow holiday period. Continue Reading Below Application volume climbed 23.5 percent for the week ending Friday, according to the Mortgage Bankers Association weekly Mortgage Applications Survey, as the 30-year fixed mortgage rate declined to the lowest level since April. That reading was still lower, however, when compared with the same period last year. MORE FROM FOXBUSINESS.COM... More first-time buyers asking family for down-payment help TSA union warns shutdown could lead to 'massive' airport security … [Read more...] about Mortgage applications surge more than 20% as rates fall
provided by Published 9:00 am CST, Monday, December 24, 2018 MoneyTips Times aren't great in the mortgage refinancing market. According to the October 2018 Origination Insights Report from mortgage application software provider Ellie Mae, refinancing homes make up 32% of October's closed mortgages – continuing a drop in refis that began five to six months prior. It's likely that mortgage rate increases are to blame for the decline in refis. The drop roughly corresponds to 30-year fixed mortgage rates breaking the 4.5% mark in May for the first time since January 2014. Refinancing generally only makes sense when you can acquire a better interest rate than your current rate. After years of historically low interest rates, it's less likely that you can find rates suitable for refinancing – unless you have improved your creditworthiness since taking out your original mortgage. Lenders might be tempted to ease refinancing standards to increase share, but so far … [Read more...] about You Still Need A High Credit Score To Refinance
By Ilyce Glink and Samuel J. Tamkin, Tribune Content Agency Published 5:00 am CDT, Friday, October 12, 2018 Q: I was offered a mortgage "recast" and I need help evaluating if it is a sound financial move. My home is worth $250,000. I owe about $68,000, as I have been paying additional principal on the loan. My understanding is that when you do a recast of your mortgage, the lender simply takes the existing balance and adjusts it to the current amortization schedule. The appeal of having my current monthly payment lowered is attractive in case of a job change or if something happens and I suddenly earn less. I would still pay additional principal and pay off the loan sooner but would have the peace of mind knowing I only owed a lower payment each month. How do I measure the difference between my payment now and what it would be after a recast in terms of interest paid? All of the online calculators require a lump sum payment to the principal upfront, so I'm not sure I'm … [Read more...] about How to achieve a ‘home run refinance’
Fixed mortgage rates stumbled slightly this week, falling for the first time in more than a month.According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average slipped to 4.71 percent with an average 0.4 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.72 percent a week ago and 3.85 percent a year ago.The 15-year fixed-rate average slid to 4.15 percent with an average 0.4 point. It was 4.16 percent a week ago and 3.15 percent a year ago. The five-year adjustable-rate average increased to 4.01 percent with an average 0.3 point. It was 3.97 percent a week ago and 3.18 percent a year ago. The five-year ARM hasn't been this high in more than eight years.The last time the averages of the three major mortgage products were all above 4 percent was April 2010."Mortgage rates inched back a little in this week's survey . . . after hitting a seven-year high last week," Sam Khater, Freddie Mac's chief economist, said in a … [Read more...] about Mortgage rates retreat a bit but are expected to resume rising