» mortgage refinance rates

Mortgage Rates Forecast: Mortgage Refinance Rates to 6% by 2011, Volume Down 80% (VIDEO)

Ed Ferrara — Tue, 02 Feb 2010 23:09:58 +0000

Lending Tree chief economist Cameron Findlay recently sat down with Fox Business News to give them his mortgage rates forecast, predictions for the mortgage refinance market and more. Cameron says economic conditions lead him to expect mortgage rates will rise 180 basis points to 6% by the first quarter of 2011. Higher interest rates surely factor into his calculations for mortgage refinance volume in the first quarter of 2011, which he expects will be down a staggering 80%. Affecting the mortgage market and housing market right now are higher fees being imposed by FHA to counter rising default rates. Also hampering refinance and purchase origination are new RESPA disclosure laws adding some bumpiness to the road to a new loan. FHA who in the past few months and really the last year make up a large percentage of origination’s for the purchasing of homes, is expected to ask the governement for 400 billion dollars. Despite FHA’s percieved cash flow problem expect them to continue to gain market share in newly originated loans especially as refinance fades.

This video talks about all this and more. Click to play.

Mortgage Refinance: Is the Mortgage Refinance Business on Life Support?

Sheldon Levene — Thu, 28 Jan 2010 00:33:45 +0000

I remember 2007 like it was yesterday. Refinance, refinance, refinance. Everybody and their mom knew to refinance and they could. Lending guidelines were more lax than ever before. I remember talking to guys with credit scores in the mid 500’s, no assets, and not much equity in the property to begin who wanted to take out 50 grand at 100% financing and demanded a rate under 6% at the same time. If I couldn’t do it, that was my problem, they’d take their business elsewhere, and they could. Boy how times have changed. You’ve got to be a United States Senator nowadays to qualify for a refinance. Sure, mortgage rates are below 5% and it makes sense, but do you qualify? The people who do qualify have secured their long term 30 year fixed mortgage at or below 5% by now. If most can’t refinance and those who could did, where does that leave the refinance business in the next year or two or three.

Search local mortgage refinance rates here.

Mortgage refinance may be all but dead. The mortgage refi boom has been put on life support by the Fed who drove interest rates down to all time lows by purchasing mortgage backed securities. When mortgage rates go up where does that leave us? It’s a question worth asking as we approach the end of the Treasuries MBS purchase program. As mortgage rates rise the last of the pool of people who can benefit and qualify for a refinance will drop to near zero. Refinancing will be dead. Equity in homes is gaining, if at all at a snails pace. When homes aren’t gaining value, the equity just isn’t there to refinance out of a second mortgage, a mortgage with PMI, and adjustable rate you took to get into a home, whatever the case may be. There’s really not going to be that cash to take out to put in that swimming pool or redo the kitchen cabinets. Unfortunately, until homes start gaining in value the refinance business, especially when mortgage rates rise, will die off.

Mortgage Refinance: Low Mortgage Refinance Rates Lead to 75% of Mortgage Apps Being Refinance

Sheldon Levene — Fri, 18 Dec 2009 13:45:33 +0000

The numbers are out and according to the Mortgage Bankers Association 75% of mortgage applications in the first 2 weeks of December were for mortgage refinance. Low mortgage refinance rates have driven applications. What’s surprising is that there are people out there who haven’t done it yet. For the past year mortgage rates have been unusually low and home values continue to decline. Most anybody who can refinance today could of done it 8 months ago. That being said, though mortgage refinance application make up 3 out of 4 mortgage apps, refinance activity isn’t that great. Not compared to the refinance boom of 2006 and 2007. The majority of mortgage refinance loans are Fannie and Freddie backed conforming mortgages. Jumbo mortgages have been tough to come by with all the equity homes have lost since the meltdown. FHA mortgages are being originated mortgage for purchases attractive because of the low down payment.

Current Mortgage Refinance Rates

Current mortgage refinance rates are up from all time record lows documented just 3 weeks ago. Still mortgage refinance rates are near the all time lows and are historically low. Yesterday we saw a slight improvement in mortgage refinance rates as the 30 year fixed refi rate moved from 4.875% down to 4.75%. 15 year fixed mortgage refinance rates are as low as 4.25%. 5/1 ARM refi rates are as low as 3.75%.

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Why Mortgage Refinance is Slow Despite Record Low Mortgage Refinance Rates

Ed Ferrara — Mon, 14 Dec 2009 03:06:56 +0000

Almost everybody and their mom knows you should of refinanced by now. Most everybody who can has already. Despite a 6 week decline in mortgage refinance rates to all time record lows (4.5% 30 Year Fixed @ par), mortgage refinance activity is down from last year. Why? If you think about the market conditions a few things are obvious. Home values have decreased leaving most homeowners that would benefit from a mortgage refinance stuck in their current loans due to a lack of equity.

One of the first things banks look at after determining you’ve got the equity to refinance is your income. Many have lost their jobs disqualifying them for a mortgage refinance. Many people used to get stated income loans with no income documentation required. Stated income loans which were used mostly the self employed who did not pay their full taxes which is more people than you may think, are no longer available. Matter of fact they’ve been made illegal in many states including Minnesota. Some can’t refinance because new guidelines for condo’s have made it nearly impossible to refinance a condo. Others can’t refinance at a 30 year fixed rate of 4.75% because they’ve got a jumbo mortgage above Fannie and Freddie limits. Where’s a World Savings no income no asset jumbo mortgage when you need it? World Savings is out of business (folded and disappeared into Wachovia). Ditech is doing jumbo loans, but forget 4.5% 30 years fixed. Try out a 5.875%, that’s not what I saw on a freeway billboard. A final reason I’ll mention, people used to bu ya home with little to money down, watch it increase in value by 20% in 1 or 2 years and refinance. That’s just not happening anymore, anywhere.

For all these reasons and more mortgage refinancing isn’t what you’d think despite today’s mortgage rates being at all time lows. When mortgage rates eventually do rise, to the 5’s, and then into the 6’s refinancing will be dead.

Mortgage Refinancing Surge Since September – Low Mortgage Refinance Rates Spur Apps

Sheldon Levene — Sat, 31 Oct 2009 20:17:23 +0000

Zillow.com reports in a press release this week refinance applications are up significantly since September spurred by historically low rates. 30 year fixed mortgage refinance rates below 5 percent are credited with boosting refinance application volume. Despite a up to $8,000 tax credit for new home buyer’s securing financing with an FHA loan mortgage refinance applications make up over 50 percent of all loan applications.

The Mortgage Banker’s Association said this week mortgage applications declined over 16 percent as 30 year fixed mortgage rates crept up closer to 5 percent at par. Mortgage refinancing is down significantly in quarter 3 of this year as the extended period of low interest rates has allowed most who qualify to refinance by now. Mortgage purchase applications have steadily increased throughout the year.

Mortgage Refinance Rates

FreeRateUpdate.com research of wholesale mortgage lender’s refinance rates shows after a 1/4 percent increase mortgage refinance rates have held steady for over 2 weeks. 30 year fixed refinance rates are at 4.875 percent at par. 15 year fixed refinance rates are at 4.375 percent at par. 5/1 ARM refinance rates are as low as 3.75 percent at par. Par rates are the lowest available interest rates without the requirement of additional points and fees to be paid by the borrower, also known as a buy down. The 7 year treasury auction, which followed 2 and 5 year treasury auctions earlier in the week which were met by strong investor demand, fielded relatively weak results not helping to lower mortgage rates Thursday. Friday was a great day for mortgage rates as rising RMBS prices drove lender’s to reprice favorably stabalizing 30 year fixed mortgage rates under 5 percent. The 10 year treasury yield, a leading indicator for 30-year fixed-rates finished the week at 3.39.

Mortgage Refinance Rates Down Again – Mortgage Refinance Apps Up

Sheldon Levene — Mon, 14 Sep 2009 06:55:34 +0000

The 10 year treasury yield, regarded as the best indicator for 30 year fixed mortgage refinance rates, has declined 5 straight weeks . The yield matched it’s lowest level in 2 months Friday when for a moment it dipped to 3.295 before rising to 3.343 where it closed.

Mortgage Refinance Rates Last Week

Freddie Mac reported conforming 30 year fixed mortgage rates averaged 5.07 percent Monday through Wednesday of last week. A mortgage refinance at a loan amount of $200,000 fixed for 30 years at 5.07 percent is $1,082.22 principal and interest. Our research of wholesale lender’s mortgage refinance rates throughout last week showed as low as 4.875 percent available, with normal points and fees, for the entire week. Borrowing costs were least expensive Friday mid day when mortgage refinance rates neared 4.75 percent fixed for 30 years.

Mortgage Refinance Applications Up

Mortgage refinance applications sky rocketed up 23 percent last week according to the Mortgage Banker’s Association. The increase in mortgage refinance applications is credited to lower mortgage refinance rates.

Despite the higher volume of mortgage refinance applicants mortgage refinance has been hampered by declining home values, an inefficient but newly required appraisal procedure, lower average American credit scores, unemployment, and of course strict underwriting guidelines.

Mortgage Refinance: Demand Up on Low Mortgage Rates, Plus The Future of Mortgage Refinancing and Current Turn Times.

Sheldon Levene — Sun, 30 Aug 2009 07:33:22 +0000

Mortgage refinance applications have risen for 2 weeks in a row fueled by a slow but steady decline in mortgage rates. Mortgage refinance activity is currently at a 3 month high. Applications for home purchase loans have risen 4 weeks in a row.

Mortgage Refinance Rates:

Mortgage refinance rates are near all time lows. Our research of wholesale lender’s shows 30 year fixed mortgage refinance rates as low as 5 percent with zero buy down points available. Refinancing into a new 15 year fixed mortgage can be done at an interest rate as low as 4.375 percent with zero buy down. If your priority is saving money for a period of 5 years or less refinance rates as low as 3.75 percent are available on a 5/1 ARM with no buy down. On a 200,000 30 year fixed mortgage at an interest rate of 5 percent the principal and interest payment is $1,073.64.

Mortgage Refinance Turn Around Times:

The turnaround time for a current home refinance is between 21 and 45 days. Purchase loans customarily take priority over refinance loans. That being said it may be a good idea to lock for a period of 45 days rather than the standard 30 day rate lock. New appraisal procedures make it tougher for brokers and banks to get the minimum appraised value needed to fund loans already in progress. As a result a higher percentage of refinance loans are dying after the initial DU or DO Fannie Mae approval. Brokers have the ability to place a borrower with a new lender in order to get an appraisal, declined at one bank, approved and ultimately the mortgage refinance loan funded. In situations that involve multiple lenders refinancing can take months.

The Future of Mortgage Refinance:

The future of mortgage refinance is bleak. It’s likely if and when mortgage rates rise home refinancing activity will halt. Many homeowners in the past 2 years have taken advantage of long lasting low rates refinancing to 30 year fixed mortgages with the intent to stay in their loan for many years. Most of whom have not refinanced already do not qualify because they don’t have enough equity in their home to be approved.

Mortgage Refinance: Mortgage Interest Rates Down, Refinance Apps Up.

John Kaloper — Sat, 22 Aug 2009 08:14:20 +0000

Expectantly mortgage refinance volume is up over 5% week to week. Mortgage interest rates for 30 year fixed loans dropped to their lowest levels since May on Wednesday. Refinance application volume had been down since interest rates shot upward from all time record lows reached in April.

The average mortgage interest rate for a 30 year fixed home loan was 5.12 last week according to Freddie Mac. Our research of wholesale lender’s current mortgage interest rates shows 30 year fixed interest rates as low as 5% with zero buy down points available today.

The outlook for interest rates next week is unclear though many analysts predict mortgage interest rates will rise when the Fed discontinues its buying of home loan bonds in December. Higher interest rates combined with lower home values will shut the door on many homeowners who hope to save money by way of refinance. .

Other Mortgage Refinance Interest Rates:

15 year fixed mortgage interest rates are as low as 4.5% today. 5/1 ARM current interest rates are as low as 3.75%. Current interest rates do not include buy down points. Buy down points lower the interest rate and are in addition to normal points and fees.

Mortgage Refinance News: Home Mortgage Refinance in Today’s Market and Colonial’s Aftermath.

Ed Ferrara — Sun, 16 Aug 2009 08:44:45 +0000

Lately it’s been tough to refinance your home. Underwriting is evolving changing by the week as new laws aimed to protect wall street from bad loans make it increasingly difficult for homeowners to refinance. Appraisals once inflated often now regularly come in under valued killing pre-approved refinance loans mid process.

The latest roadblock to home refinance savings is the collapse of Taylor Bean and Whitaker leading to the demise of Florida’s sixth largest bank and a major player in warehouse credit lines used by mortgage lenders to fund loans, Colonial Bank. Colonial’s failure is the fifth largest in U.S. history.

Analysts say Taylor Bean and Whitaker funded more loans than any other mortgage banker using a Colonial Bank warehouse line of credit. TB&W was one of the most popular lenders for mortgage brokers. They were also one of the last popular wholesale lenders left from the boom era. With the losses posted by Colonial’s mortgage sector last quarter you could say TB&W was a significant contributor to the demise of Colonial’s bottom line