Which States Have the Most Underwater Homes?

2012's second quarter saw another drop in the number of homes experiencing negative equity. CoreLogic published a press release on September 12th, which reported that, "600,000 more borrowers are now above water, for a total of 1.3 million. While that it is truly good news, the U.S. is hardly out of the woods with respect to the housing crisis. While the current total is down 23.7 percent, there are still 2.3 million borrowers in near negative equity. What that means is that they have less than five percent equity in their home.

The most troubled borrowers are in NV. Of all mortgaged properties in the Silver State, 59 percent of them are in a negative equity situation. Following in second place is FL, with 43 percent of its mortgages underwater (find which areas in Florida are appreciating the fastest). Rounding out the top five states with the highest numbers of negative equity borrowers are AZ with 40 percent, GA with 36 percent, and MI with 33 percent. CoreLogic's report noted that these five states are responsible for 34.1 percent of the nation's total number of underwater mortgages.

[Related Post: What's the Difference Between a Short Sale a Foreclosure on PriceAMortgage.com]

It was revealed that most of the underwater mortgages exist in the low end of the market, or homes valued at less than $200,00.00. It was acknowledged that most of these borrowers are continuing to pay their mortgages. In fact, the report showed that among those borrowers, 84.9 percent were current at the close of 2012's second quarter.

Analysts at CoreLogic maintain that if home prices continue to rise, borrowers could soon escape their negative equity situations.

Source: http://www.corelogic.com/about-us/researchtrends/asset_upload_file448_16434.pdf


About the Author
Nat Criss is one of the publishers for ForTheBestRate.com. Circle Nat on Google+!

Mortgage Rates Fall to Record Lows Following Federal Reserve Board's Announcement

Fixed mortgage rates fell once again to new record lows according to Freddie Mac's most recent mortgage market survey. According to Freddie's statistics, the 30 year fixed rate average dipped to 3.49% with .6 pts which was down from 3.55% last week. The 15 year fixed rate average also moved lower going from 2.85% down to 2.77% with .6 pts. The 5 year treasury indexed ARM moved in the opposite direction going up from 2.72% to 2.76% with .6 pts.

"Following the Federal Reserve's announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery", commented Frank Nothaft of Freddie Mac. He continued, "New construction on one-family homes rebounded in August, rising by 5.5 percent to the fastest pace since April 2010. In addition, existing home sales increased by 7.8 percent in August to its strongest pace since May 2010."

Here's a snapshot of how things were looking on ForTheBestRate.com this morning (9:30 am EST - I used Los Angeles, California for the sample, 740+ credit, non cash-out refi - rates are subject to change, contact the various lenders and brokers for the most up-to-the-minute pricing):

30 Year Home Loan Pricing with No Points:

AmericanInterbanc.com: 3.289% APR, 3.250% Note Rate, $799 Fees in APR
IHL Direct: 3.352% APR, 3.250% Note Rate, $2,100 Fees in APR

AimLoan.com:  3.347% APR, 3.250% Note Rate, $1,995 Fees in APR 

20 Year Home Loan Pricing with No Points:

AimLoan.com: 3.261 APR, 3.125% Note Rate, $1,995 Fees in APR
AmericanInterbanc.com: 3.249% APR, 3.125% Note Rate, $999 Fees in APR

IHL Direct:  3.394% APR, 3.250% Note Rate, $936 Fees in APR 

15 Year Home Loan Pricing with No Points:

LenderFi: 2.794% APR, 2.625% Note Rate, $1,110 Fees in APR
AmericanInterbanc.com: 2.694% APR, 2.625% Note Rate, $799 Fees in APR

AimLoan.com:  2.798% APR, 2.625% Note Rate, $1,995 Fees in APR

10 Year Home Loan Pricing with No Points:Mortgage Capital Associates: 2.745% APR, 2.625% Note Rate, $950 Fees in APR

AmericanInterbanc.com: 2.751% APR, 2.625% Note Rate, $999 Fees in APR

For more information on today's mortgage rates, APRs, and closing costs, visit the rate table comparison shopping platform on ForTheBestRate.com.

About the Author
Nat Criss is one of the publishers for ForTheBestRate.com. Circle Nat on Google+!

30 Year Mortgage Rates Drop Below 3.5% Before Rising Above Record Lows

Average mortgage rates hit yet another record low the week of July 26th, but have since inched above the record setting levels. According to reports from mortgage financing company, Freddie Mac, mortgage rates for the week ending Thursday, July 26 dipped to 3.49 percent (0.7 points) for a conforming 30 year fixed rate loan on average. Rates for the previous week were 3.53 percent (0.7 percent), and for the week ending August 2nd they were a slightly higher 3.55 percent (0.7 points.)

Compared with a year ago, mortgage rates are a full point lower. Last year's average rate for a conforming 30 year fixed rate loan was 4.55 percent.

Rates on the increasingly popular 15 year fixed rate mortgage averaged 2.8% (0.7 points), down from 2.83% (0.6 points) the previous week and significantly lower than the 3.66% rate a year ago. 15 year rates also edged up on average the week of August 2nd, returning to the 2.83% (0.6 points) level reached 2 weeks earlier. These short term mortgage types are a popular choice for homeowners who wish to pay off their mortgage debt in half the time it takes for a traditional 30 year loan.

So if you're shopping around for a mortgage on your new home or looking at refinancing, don't be surprised to see some super competitive rates out there. Don't be afraid to shop around either, as the first low rate you come across may not necessarily be the best.

Sources:

Wall Street Journal http://blogs.wsj.com/developments/2012/07/26/here-we-go-again-mortgage-rate-drops-hits-3-49/

Freddie Mac
http://www.freddiemac.com/

Are older Americans at greater risk of foreclosure?

According to a recent report by AARP, millions of older Americans are facing the risk of losing their homes.

More than 3 million borrowers over the age of 50 are at risk, according to the report, with more than 1.5 million homeowners (age 50 or older) having already lost their homes since the beginning of the housing crisis. The report also showed that another 3.5 million owners are underwater in their mortgages, owing more than their homes are worth.

So why is this happening? There appears to be an underlying problem with greater debt. According to the report, older Americans are "carrying more mortgage debt than ever before." When it comes to the actual amount of debt these older homeowners have accumulated, the numbers don't look good.

According to the Federal Reserve, families with mortgages held by someone 75 or older jumped to 24.2% in 2010, versus only 6.3% in 1989. Over the same time period, the amount of debt mortgage holders carried shot up to a median of $52,000, versus only $11,800 in '89. Part of this, of course, has to do with the inevitable rising of prices over time. However, such a dramatic jump seems to be a cause for concern among housing experts.

A recent article on CNN Money explained that many older homeowners were burdened by subprime loans or lured by cash out refinances that they didn't work out in their favor. (Cash out refinances refer to taking out a loan for more than the mortgage is worth and using the difference to make repairs, pay bills or consolidate debt).

While cash out refis don't necessarily lead to foreclosure, and in some cases can be quite beneficial, experts warn that very careful consideration should be taken before signing on the dotted line. Financial mistakes or poor refinancing choices certainly happen within all age groups, but it is usually more difficult for elderly homeowners to bounce back from a financial crisis.

--

Nat Criss is one of the publishers of ForTheBestRate.com, a consumer directed websites focusing on mortgage rates, insurance, and finance.

Mortgage Rate Resources

Looking for some online resources that can help you find today's lowest mortgage rates? Take a look at some sites we found that offer helpful services for home buyers.

Mortgage News Daily
www.mortgagenewsdaily.com
If you like to keep up with national and international interest rate trends, check out this informative site. Here you'll find lots of recent articles that report on changing interest rates. Because interest rates change daily, this site publishes a report once a day, as well.

ForTheBestRate.com
www.forthebestrate.com
Compare interest rates from multiple lenders in your desired area. Easy and convenient links to each lender's site and informative articles make this site perfect for the typical home buyer.


Federal Reserve Board Mortgage Comparison Calculator
www.federalreserve.gov/apps/mortcalc/
Check out this online mortgage calculator, designed to help homeowners compare the monthly payments and the amount of equity they will build in their home for both fixed rate and adjustable rate mortgages.

PriceAMortgage.com - Updated (3/25/2013)
Ok. So, we wanted to add one more to the list.... We are in the process of launching PriceAMortgage.com which is mortgage research web site where consumer can learn about various popular residential mortgage programs and compare rates and closing costs from competing lenders, brokers, and banks. We're going to try to pack it full in-depth information on the most popular home loan products and industry related news.

Please note, these sites may publish time-sensitive information that could change without notice. For the most accurate mortgage rate information, speak with a professional lender serving your area.

Washington D.C. Real Estate Market Report

Listing prices for homes in D.C. dropped in June, but median sales prices remain higher than a year ago.

For the week ending June 27, 2012, the average listing price in the District of Columbia fell to $805,389 (0.7% lower than the prior week), according to Trulia.com, an online source for real estate data.

While the average listing price inched downward recently, the median sales price reached $410,000 - which represents a 5.7% increase since last year. Trulia.com also reported increases in average price/sqft ($397, +10.3%) and number of sales (1,054, +10.4%).

Freddie Mac reported that home mortgage rates in the District of Columbia and the Southeastern U.S. fell over the past week with the 30 year fixed rate average dipping to 3.56% (.7 points) and the 15 year fixed rate average slipping to 2.86% (.7 points).


The most popular neighborhoods in the D.C. area for real esrare sales were Dupont Circle, Georgetown, Columbia Heights, Adams Morgan and Brightwood Park. Of these five, Georgetown was the only neighborhood to experience an increase in the average listing price ($2,407,719, +5.1%).

At the time of this writing, there were currently 1,873 homes for sale, 18 open houses and 128 foreclosures.

Please note these figures are pulled from public data and are subject to change without notice. For the most accurate and up-to-date information on Washington D.C. real estate, contact an agent in the area. For information on D.C. mortgage rates and popular D.C. home financing, speak with an experienced lender using the mortgage rate tables at www.ForTheBestRate.com.

About the Author
Nat Criss is a publisher with CMG Equities, LLC which runs the mortgage and real estate research web sites ForTheBestRate.com and BurlingtonMortgage.biz. Circle Nat on Google+!

Converting Your ARM to a Fixed Rate Mortgage

When it comes to home loans, there are several types available. Two popular categories of mortgages are the adjustable rate mortgage (ARM) and the fixed rate mortgage. Both types have their own set of sub-types (hybrid ARMs, 15 year fixed rate mortgages, etc.) and all have their own set of benefits and drawbacks.

When comparing ARM rates to fixed mortgage rates, you will typically see a lower initial rate on the ARM. This makes them an attractive choice for many borrowers. However, ARM rates don't always stay low. Sometimes homeowners who were lured in by a drastically low rate upfront find it hard to make their monthly payments after the rate has jumped.

Before signing up for an ARM, ask your lender about details regarding possible conversion to a fixed rate loan in the future. According to Fannie Mae's website, many ARMs offer borrowers the option to convert to a fixed rate loan at specified times during the early years of the mortgage. The conversion availability times can either occur periodically (which allows the borrowers the option of converting on specified interest rate change dates) or monthly (which allows the borrowers to convert at the beginning of every month for a specified period of time).

There are a few eligibility requirements for conversion and not every ARM loan will carry the same conversion times, so it's best to speak directly with your lender for more information.

Do Mortgage Rates Change Daily?

Mortgage rates are a hot topic these days. With rates hitting record lows, its no wonder current and prospective homeowners are keeping a close watch on them. Whether buying their first home or refinancing an existing loan, many people are becoming more interested in mortgage rates and how they fluctuate.

It's important to realize that even if rates are historically low, they won't necessarily stay that way. The housing crisis and government intervention that followed have affected the mortgage rate system, making interest rates quite volitile. The rate on a 30 year fixed rate mortgage may be around 4.00% today, but in a few months (or weeks) it could be closer to 5%. In fact, mortgage rates can and do change on a daily basis. Although it is unlikely a mortgage rate will see a drastic change from one day to the next, it isn't impossible. That's why you should lock in a low rate with your lender as soon as you feel comfortable with the pricing. Understand that your mortgage company is typically committing that loan and amount of money to their lending partners (who is buying the loan). If rates fall and you skip out on your lender, they may put in a position for having "fall-out" which can affect their pricing with their investors. In other words, find a good deal and stick with it and expect the same courtesy from your lender or broker.

If you're curious about the most up-to-date mortgage rates in your area, call your mortgage professional. Don't hesitate to call often and ask questions about that day's rates. Remember, the rate your lender quotes you over the phone won't necessarily be available the next day or even later that same day. Sometimes rates can change more than once in a 24-hour period.

 Locking in a mortgage rate means you have spoken with your broker or loan officer, agreed to certain terms and have confirmed this information in writing. Until you get this information in writing, the rate you've been quoted is subject to change without warning.

What You Need To Know About Finding The Best Mortgage Rate

There's a lot of talk nowadays about low, better-than-ever mortgage rates. But exactly how do you get these phenomenal rates that everyone's talking about?

If you've applied for a mortgage before, you may remember the process and what criteria is needed; however, if you're a first-time home buyer or if it's been a while since your last home purchase, you might need some help.

The first thing you need to know about finding a low rate is how lenders determine your qualifications. Firstly, your credit score will be analyzed by one or more credit bureaus. If you have a favorable score, do your best to keep it that way by not closing out any lines of credit or applying for new credit. If your credit could be better, you might want to wait a little while before applying for a mortgage and use that time to improve your score.

The next thing a lender will look at is your debt-to-income ratio. If it's low, you stand a better chance of qualifying for a low interest rate. If you have a high amount of debt, it could be in your best interest to pay some of it down before applying for a mortgage.

Lastly, your lender will want to know how much money you have to put down. Generally speaking, 20% is a good amount to have in order to get your interest rate lower. Be that as it may, some loans (such as FHA financing, USDA and VA loans) do not require much, if anything, for a down payment. These special loans will, however, have other prerequisites. Talk to your lender for more information.

Here's something else to keep in mind...interest rates and other terms of a mortgage offer can vary greatly from one lender to another. Shop around and compare several quotes before selecting a lender.

Texas Mortgage Rate Update

Mortgage rates have had another great week with the 30 year fixed rate average sinking to 3.79% (with .7 pts) according to Freddie Mac's most recent mortgage rate survey. Below is a snapshot of current Texas pricing pulled this morning from ForTheBestRate.com. Please note that mortgage rates are subject to change without notice. Please visit the site for information on current rates and fees and the criteria used in the survey.

30 Year Fixed Mortgage Interest Rates (0 Pts)
Roundpoint Mortgage: 3.88% Rate, $0 Fees in APR, 3.88% APR
LoanDepot: 3.88% Rate, $1950 Fees in APR, 3.97% APR
Quicken Loans: 4.13% Rate, $1,587 Fees in APR, 4.21% APR
Great Western Financial Services: 3.63% Rate, $925 Fees in APR, 3.67% APR

15 Year Fixed Mortgage Interest Rates (0 Pts)
Roundpoint Mortgage: 3.00% Rate, $0 Fees in APR, 3.00% APR
LoanDepot: 3.00% Rate, $1950 Fees in APR, 3.17% APR
Quicken Loans: 3.63% Rate, $1587 Fees in APR, 3.77% APR
Great Western Financial Services: 2.88% Rate, $925 Fees in APR, 2.96% APR