Jim Bisnett asked:




The mortgage industry has experienced slow application activity over the past several months, but that jogging pace may turn into a sprint as mortgage rates fell to historical lows recently. On November 25, the government announced some major credit stimulation initiatives in a bold move to bolster the depressed housing and mortgage markets. On the news, home loan rates tumbled by one-half percent, a move seldom encountered in the mortgage business. Three major components came together to create the sharp drop. First, the Treasury announced that they would now guarantee Fannie Mae and Freddie Mac debt and purchase up to $100 billion of that debt, thereby bolstering investor attraction to the safety of their issued bonds. Secondly, the Treasury announced that it would purchase up to $500 Billion of Fannie, Freddie, and Ginnie securities, creating much needed liquidity in the mortgage markets. Finally, Treasury yields dropped in a major one-day move, almost one-quarter percent on the 10-Year Treasury bond.

The result of this perfect storm of financial news was a one-half percentage point drop in mortgage rates and a potential beginning for stabilization in housing. Historically low mortgage rates may be just the stimulus needed to drive potential homebuyers off the fence to begin the offering process. After the government announcement, many lenders were offering par rates in the 5.5 percent range for 30-year fixed rate mortgages. Home loans at this price may be a hard deal to pass up for those refinancing loans and purchasing homes, especially in light of the roller coaster ride that mortgage rates have taken so far this year.

On the refinancing front, although interest rates are low, home prices continue to deteriorate across the country. The National Association of Realtors recently announced that sales of existing homes fell by 3.1 percent in October, and the median home sales price plunged 11.3 percent from a year ago to $183,000. On this news, it’s important to keep in mind that a homeowner’s qualified refinance home loan interest rate may not be as low as advertised offer rates, if their loan-to-value (LTV) ratio exceeds 80 percent. So, it’s a good idea for those considering a mortgage refinance to get a handle on the value of their home, before they start shopping rates. The spread appears to be tightening for higher LTV home loan scenarios, but those refinancing over 90 percent of their home’s value will most likely get the best deal with an FHA refinance.

As for the rate outlook ahead, many feel that the current low mortgage rates will continue for a while. Whether they decline even further is anyone’s guess, but a leveling in home prices could be just the medicine needed for further rate dips.

Lucy

Georgia Loan Pro asked:


How Georgia Homeowners Can benefit from the New Home Loan Programs



The Federal Making Home Affordable Program has created a number of home loan programs that will help keep Georgia families in their homes, stabilize Georgia’s communities and assist Georgia homebuyers during these troubled times. Under these new home loan plans, Georgia homeowners can:

Refinance their mortgage to a new, lower, fixed interest rate. Refinance even with declining property values. Refinance with lower income and asset verification requirements. Refinance Multiple Investment Properties. Each of the above possibilities require that Georgia Homeowners be current on their existing home loans. However, for those Georgia families that have already fallen into hard times and are behind on, going to be behind on, or have an impending ARM adjustment/balloon payment with, their existing home loans can;

Obtain a modification on your mortgage that can potentially reduce your monthly payment, or offer other alternatives that can help you keep your home. Finally, for those Georgia families that are looking to purchase their first new home, or even upgrade their current home, programs are available for them to; Purchase beautiful Georgia homes with credit scores as low as 580 Purchase their new dream home with no out-of-pocket money down The U.S. Treasury, Fannie Mae and Freddie Mac have developed these programs in an effort to help both troubled and current Georgia borrowers, to get back on track and improve their current financial situations.

So How Do They Work? Refinance

For Georgia Homeowners that are current on their mortgage payments but unable to refinance because their home value has decreased, you may be able to refinance to a lower rate, or a lower-risk, loan through the refinance solution that is part of this program. Examples of how the refinance program can help Georgia Homeowners:

Fixed-rate mortgage to fixed-rate mortgage Adjustable-rate mortgage (ARM) to fixed-rate mortgage Super conforming fixed-rate mortgage to super conforming fixed-rate mortgage

Loan Modification

For Georgia homeowners who are behind in their mortgage payments, in the foreclosure process, or are current on their payments but have recently experienced a significant hardship, you may be able to modify your loan to a lower rate through the Loan Modification Program. Significant hardships are set as circumstances that may make it difficult for you to pay your mortgage going forward.

Purchase

For Georgia area families and individuals that are in search of a loan for their new dream home, financing and programs are available to help them purchase;

Bank owned foreclosures at below market value With 580 credit scores With no, or little, money down With down payment assistance

How Do I Know If I Qualify?

Georgia Loan Pro can help you move through the qualification process, and help you find the homeowner lending program that fits you best. Georgia Loan Pro will work with Georgia Homeowners to assist them in putting together the best purchasing package, and discover whether loan modification or a refinance, is the best option for them.

For more information, please contact Georgia Loan Pros via email.



ARNULFO

Ray Heinson asked:


Jumbo mortgages are not all that different from your everyday conventional mortgages but there are a some important items that one should understand. A jumbo mortgage loan is a home loan secured by a high-valued property. In California, Florida, New York, New Jersey, and other affluent high costs states in the U.S., a jumbo mortgage loan is any mortgage that is greater than $417,000 – which is the maximum loan limit established by Fannie Mae and Freddie Mac for conforming loans.

Fannie Mae and Freddie Mac, are the two government entities that buy most of the real estate mortgages in the housing industry. They will not finance loans which exceed $417,000 in the majority of states; although Alaska, Hawaii, and some others do not follow the rules. As a result, the big jumbo mortgage loans are sold to institutional investors, commonly to financial institutions and insurance companies, and then a jumbo mortgage loan fits into a altogether different realm. The mortgage rates for a jumbo mortgage are also not as low as a conforming loan due to the fact there is included risk.

So What Ultimately Determines A Jumbo Mortgage Interest Rate?

Ultimately, the loan amount of a jumbo mortgage loan equates to there being more to lose. The loan amount along with other variables gives a result to the borrower of a higher jumbo mortgage rate when compared to those given on conforming loans. Since percentage points determine your payment, buyers should look around for a good source or broker when applying for a large mortgage loan in order to secure the best rate available on the market.

In all honesty, the interest rates is only one aspect to think of when searching for a jumbo loan. ne needs to be cognizant of the extra fees and loan costs to be factored in which could clariythe any differences in loan products. Sometimes, the company with the higher rate can actually be the lowest afer everything is factored into the equation.

Choosing the kind of loan (adjustable or fixed jumbo mortgage rate) is better for you is linked to how long you plan to live in the home for. If it is less than a 3 to 5 year term, a short term fixed rate may work best for you. Or you liek the lower rate and thinkyou can refinance inside of 3 to 5 years.

Homebuyers need not fearful or stay on the fence from higher jumbo mortgage rates; jumbo mortgage rates are usually higher just by .25% or one-fourth of a point for eligible prospects buyers. In addition, jumbo mortgages are the sole alternative for home buyers in most sections of the country simply because $417,000 isn’t a high enough limit in today’s housing market. Moreover, jumbo loans are the only kind of home loan that people can get in many areas. So, the suggested way to nail down a good home loan is to find a solid, reputable and experienced lender. A trusted mortgage lender will offer you the time, educate you to to the right loan, focus on your needs so you will be satisfied and hopefully refer them another client.



TOMAS