Mortgage Rates Archives - FREE CONSULTATION

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Why are mortgages getting cheaper?

Posted on April 19, 2017by Admin

The average rate of a 30-year fixed mortgage fell to 4.08% this week, the fourth consecutive week of declines and the lowest level this year, according to Freddie Mac.

A higher Federal Funds rate makes it more expensive for banks to borrow money, which can translate into higher borrowing rates for consumers. But recent global uncertainty and signs that the White House might not be as productive with its agenda as many thought has caused yields to recently fall. The 10-year Treasury yield is around 2.23%, down from around 2.62% nearly a month ago. Mortgage rates have moved lower as well.

Freddie Mac predicts that we will see rates increase to around 4.5% by the end of the year. Potential home buyers should welcome the drop in rates with open arms as the busy buying season heats up.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

New Home Sales Surge to Seven-Month High in February

Posted on March 30, 2017by Admin

Last month, new single-family home sales jumped to a seven-month high. The hike suggests the housing market recovery is stable despite the challenges of high prices, increased mortgage rates and tight inventories. According to the Commerce Department, new home sales increased 6.1 percent to a seasonally adjusted annual rate of 592,000 units last month, the highest level since July of last year.

New home sales were up 12.8 percent when compared to February of last year. Economists believe the hike in sales is partially due to the unseasonably warm weather across most of the country. In the Northeast region, new single-family homes dropped 21.4 percent. However, in the Midwest, sales were up 30.8 percent and in the South sales were up 3.6 percent.

Fortunately, high mortgage rates have not had a negative impact on home sales this year, largely due to a tightening labor market that is improving employment opportunities for young adults. The market is also benefitting from a shortage of properties for sale in most areas.

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Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Mortgage Rates Surge after Donald Trump’s Election Win

Posted on November 25, 2016by Admin

Mortgage giant Freddie Mac said that the average rate on a 30-year fixed rate loan rose to 4.03 percent, which is the highest rate since July 2015. It is up from 3.94 percent the previous week. Rates on 15-year home loans also rose to 3.25 percent, up from 3.14 percent last week, which is the highest rate since January.

Long-term mortgage rates have been increasing each week since Donald Trump was elected as President on November 8^th. Experts believe that investors are fearful of the president-elect’s plan to cut taxes and spend massively on roads, bridges, airports and other infrastructure could provoke inflation. As a result, investors demand higher long-term rates and pay lower prices for bonds.

The anticipation of economic stimulus has also caused a surge in stock prices. On Wednesday, the Dow Jones industrial average closed above 19,000 for the first time.

However, rising mortgage rates pose a threat to the housing market and the economy. In the past, lower mortgage rates have fueled the real estate market by causing an increase in home sales. According to the National Association of Realtors, existing home sales rose two percent in October to a seasonally adjusted annual rate of 5.6 million, which was the highest rate since February 2007.

Real estate experts believe that mortgage rates will continue to rise until there is more understanding of where the economy and housing policies are headed during Trump’s presidency.

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Credit, Foreclosures, Timothy Kingcade Posts

Mortgage Rates Fall to Record Low

Posted on August 9, 2016by Admin

The national average 30-year fixed home mortgage rate fell to 3.36 percent last week. The number matches the record low reached in December 2012, according to Bankrate.com. It is down seven points from the last week in July. With a 30-year fixed-rate mortgage of 3.36%, a homeowner would pay approximately $441 per month in principal and interest for every $100,000 borrowed.

Financial experts believe low mortgage rates mean that now is the best time to re-finance. Many homeowners and homebuyers have both benefited from the drop in mortgage rates, according to Bloomberg.com.

The average 15-year fixed-rate mortgage is down four points from the previous week at 2.65%. With shorter-term loans such as 15-years, homebuyers pay more per month but save thousands of dollars in the long run.

If you are considering refinancing your home or purchasing a new home, make sure you get your paperwork in order beforehand. Mortgage lenders have strict requirements on paperwork including copies of proof of income, debts, assets, etc.

Related Resources:

http://www.bankrate.com/financing/mortgages/mortgage-rates-monday-august-1/

http://www.bloomberg.com/news/articles/2016-08-01/u-s-mortgage-rates-fall-to-lowest-on-record-chart

Credit, Foreclosures, Timothy Kingcade Posts

Refinance with HARP before Mortgage Rates Increase

Posted on March 19, 2015by Admin

The Home Affordable Refinance Program (HARP) is a program that was set up in 2009 to assist struggling homeowners in refinancing their homes- reducing mortgage payments by an average of $3,000 a year. It has also allowed homeowners to pay their mortgages off faster. Taking advantage of the benefits HARP has to offer can reduce your monthly mortgage payments and pay your mortgage off in less time.

How do you know if you qualify for HARP? If your mortgage is $625,000 or less, you most likely qualify for the program. HARP was created by the Government as a way to help the economy recover from the recession. Homeowners who have refinanced through HARP have saved an average of $250 a month. But you must act NOW! These valuable benefits are set to expire at the end of this year.

Click here to read more about how to reduce your mortgage payments through HARP.

Credit, Foreclosures, Timothy Kingcade Posts

Mortgage Rates Continue to Increase

Posted on February 26, 2015by Admin

Although the 30-year fixed-rate average is down year to date from 4.28 percent to 3.73 percent, mortgage rates moved higher again this week. One week ago the fixed rate average was 3.69 percent, up .04 percent. Earlier in February, the rate hit a 21-month low of 3.59 percent. The 15-year fixed-rate average also increased from 2.99 percent to 3.05 percent in the past week. The one-year ARM average moved higher to 2.45 percent, up .03 percent from last week.

With mortgage rates rising for the second consecutive week, housing starts declined 2 percent according to Len Kiefer, Freddie Mac deputy chief economist. However, Kiefer said home builders are remaining confident in new home sales. In addition to housing starts, home loan applications were also down approximately 13 percent last week. The refinance index decreased 16 percent while the purchase index dropped 7 percent. Economists say it is no coincidence that mortgage rates hit the highest number of 2015 and home loan applications dropped sharply, particularly for refinances.

Click here to read more on the rise in mortgage rates this week.

Credit, Foreclosures, Timothy Kingcade Posts

Now is the Time to Buy – Mortgage Rates Fall to Historic Lows

Posted on March 27, 2013by Admin

Last week, mortgage rates fell to historic lows after a slight uptick the previous week. The average mortgage rate on a 30-year loan fell to 3.54% for the week ending March 21st, after reaching a year-high 3.63% the week before. According to mortgage giant Freddie Mac, 3.63% was the highest rate since August 2012. Rates have also dropped considerably from one year ago, when a 30-year fixed-rate was 4.08%. The average mortgage rate on fifteen-year loans fell to 2.72% last week, after reaching 2.79% the week before.

As a result of these record low mortgage rates, home sales have modestly boosted. The National Association of Realtors reported that in February, existing home sales reached a 3-year high, running at a 4.98 million annual rate. These historic low rates and increasing home sales are good indicators of economic growth. However, a forecast issued last month by mortgage giant Fannie Mae, estimated that 30-year fixed-rates would exceed 4 percent during the fourth quarter of 2013 and would average 4.4% by 2014. If you are planning on purchasing a home, it is better to buy now when you can take full advantage of these historic low interest rates.

Click here to read more about why NOW is the best time to purchase your new home!

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Floridians Take Advantage of Low Interest Rates This Year

Posted on March 18, 2013by Admin

Florida has experienced a mortgage boom this year, due to eager home buyers taking advantage of lower interest rates. According to statistics released by JPMorgan Chase last Friday, Floridians have been getting new mortgages nearly double the national average. A Chase spokeswoman said that the mortgage giant has helped more than 56,000 Florida residents get new mortgages in the last year. The numbers of Floridians getting mortgages are up 52 percent this year, compared to last year. This is a 21 percent hike compared to the national average, meaning Florida doubled the national trend in originations. Many Floridians are rushing to apply for a mortgage so they do not miss the record low interest rates. Interest rates on a 30-year home recently jumped to 3.63 due to the strengthening economy. The 30-year fixed interest rate reached an all-time low in November 2012 of 3.31 percent.

Much of the dramatic increase in residents applying for mortgages is coming from South Florida. Analysts believe the hike can be attributed to many who lost their homes to foreclosures during the recession a few years ago. They are getting back on their feet and able to qualify for new mortgages after spending a few years restoring their credit scores. These buyers are known as “boomerang buyers.” In some cases, they may have lost their jobs but now have new ones and are able to buy again. Analysts also believe some of those helping the state’s mortgage market are snowbirds looking to move to South Florida now that the economy is improving.

Click here to read more about Florida’s mortgage boom.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the website, Kingcade & Garcia, P.A.

Credit, Foreclosures, Timothy Kingcade Posts

The Housing Market Expected to Spark Economic Growth in 2013

Posted on February 26, 2013by Admin

Although the housing market crash of 2008 was essentially what started the recession, economists believe housing will spark economic growth this year. Most economists are in agreement that this will be a good year for economic growth and approximately half of those surveyed agreed that housing will be the reason. The other half of economists believe growth will be triggered by a combination of factors such as: consumer spending, an increase in domestic energy production and stimulus from the Federal Reserve. Economic growth is estimated to be about 2.4 percent in 2013, up from a 2 percent growth in 2012.

Economist Keith Hembre believes that new home building will be the strongest growing component of recovery. Hembre said that “supply” and “demand” are more balanced now than in previous years. According to Moody’s Analytics, approximately one million new homes will be built this year. This is a 28% increase from 2012. Home construction will also add more than one million new jobs to the job market. Another good sign for the economy is that home sales were up during 2012. Buyers are returning to the market due to record-low mortgage rates, increasing home prices and a dip in foreclosures.

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10 Factors that Make You ‘Unmortgageable’

Posted on February 21, 2013by Admin

Nearly one-fourth of those who apply for a home loan are denied, according to the Federal Reserve. As a result of the Housing Crisis, it has become extremely difficult for borrowers to obtain mortgages. Below are ten factors that can put your mortgage hunt in jeopardy:

1. You are self-employed. If you are self-employed, two major issues arise when you are trying to obtain a mortgage. The first is that the income you earn from your business can be very unsteady. These fluctuations make you appear to be a risk to lenders. The second issue is that documenting small business income is more difficult and most lenders require two years of proof of income to qualify for a mortgage.

2. You have a subpar credit score. The average U.S. credit score is now 750. This is up from the 720-average a few years ago. You can get a mortgage with a score under 620, however the rates and fees will be very high.

3. You do not have enough money for a down payment. Lenders are now requiring that borrowers put a substantial amount more down, than before the housing crisis. If you do not have enough to put down, you may look too risky to lenders. Some down payments are as high as 15% to 20%; however, if you qualify for an FHA loan you may only need to put between 3.5% and 5% down.

4. You are new to the housing market. Many lenders now require borrowers to have at least a two-year housing history. However, this can include verifiable rent payments. If you are a recent college graduate, a rental history may not be an issue to your lender.

5. You are a new employee. Many lenders require borrowers to provide a two-year employment history in the same field of work before they will issue a loan. This is the result of the high unemployment rates over the past few years.

6. Your annual income is too low. If your monthly debt payments make up 45% of your gross monthly income, most lenders will see you as a risk. Any extra debt will decrease the likelihood that you will qualify for a loan.

7. You have applied too often. Contacting too many lenders can dictate the outcome of your qualification for a mortgage loan. Numerous loan applications can pull down a credit score. However, if you have applied within a week or two of each other, these inquiries should not affect your score.

8. You have too much debt. Lenders add up all of your debt including: auto payments, credit cards, student loans, etc. If your debt is substantial, many lenders will deny your mortgage application. Even if your student loans are in deferment, those balances are not always removed from your debt-to-income ratio.

9. You just made another major purchase. Beware of large purchases if you are planning to purchase a home within the next few months. If you have recently purchased a car, this can impact the likelihood that you will be approved for the mortgage.

10. You picked the wrong bank. The bank you choose as your lender can affect whether or not you get the mortgage. Larger banks will likely scrutinize you more than smaller, local banks.

To read more on this story visit: http://realestate.msn.com/-what-makes-you-unmortgageable#1