Mortgage Rates Again Hit All-time Lows

Mathew Graham of MortgageNewsDaily.com reported that mortgage rates appeared to fall to new lows yesterday according to data gathered from twenty prominent lenders and feedback gathered from MBS Live community. According to the story, the average best-execution rate hit its lowest level on record at 3.81%. This is good news for homeowners and home buyers who watched interest rates inch higher last week. Freddie Mac's weekly mortgage market survey, released last Thursday, showed the 30 year mortgage rate trending higher at 3.98% (.7 pts) and the 15 year average increasing from 3.17% to 3.24% (.8 pts). Frank Nothaft, Vice President and Chief Economist, attributed the rise in rates to positive news in the housing market from the end of 2011 as existing homes sales were up 5% and new construction also was showing positive signs of life.

Kelly Decker, a McKinney TX mortgage banker, told ForTheBestRate.com that refinance activity continues to be strong and actually has picked up since slowing around December's holiday season. "Rates have been low for so long that it's hard to believe that there is still such great demand for refinancing. We are being contacted by people who just refinanced 18 to 24 months ago," he noted.

Mortgage applications last week fell about 5% from the previous week according to data from the Mortgage Bankers Association. Web site traffic on ForTheBestRate.com spiked yesterday as word spread about the interest rate environment. Hopefully, these rates will stick around for a few days until the public becomes better aware of what's happening.

Other Related Posts:
Home Value Projections
Recent Mortgage Rate Update - Jan. 2012
When is it Time to Refinance?

How Do Mortgages Amortize?

Situation.....You're getting ready to take out your first mortgage and you can't wait to start building equity in your home every month by knocking down your principal balance. You've heard your friends and family tell you for years about how renting is "for the birds". "You're just making your landlord rich" they crow. You've got your plan...You'll just makeyour $1000 a month mortgage payment and a big chunk will go towards paying down your principal and what's left will go towards interest. After all, mortgage rates are near all-time lows. Wrong, wrong, wrong. We recently wrote an article on understanding mortgage amortization on ForTheBestRate.com. It's part of out series on mortgage and home buyer education. Check it out!

Other helpful posts and resources:
Using Seller Paid Closing Costs to Buy a Home
Interest Rate Comparison Shopping
What to do if You're Having Trouble Paying Your Mortgage
Mortgage Costs - What Fees to Expect

President Obama Proposes Mortgage Refinancing Plan for Current Homeowners

Current on your existing mortgage payments but unable to refinance? There may be some good news coming your way. According to a recent article on the Wall Street Journal's web site, President Obama is asking Congress to review legislation that would help homeowners, who are up-to-date on payments, refinance their existing mortgages to capitalize on historically low interest rates. This is not the first time that the government was tried to assist homeowners in recent years. The Home Affordable Refinance Programs (aka HARP) was rolled out which sought to help property owners refinance their existing mortgages even if their properties had declined in value. Under HARP, a mortgage must have been guaranteed by Fannie Mae or Freddie Mac and the loan must have been sold to Fannie or Freddie on or before May 31st, 2009. The new proposal would not limit potential refinances to mortgages guaranteed by the two agencies. The single biggest reason why mortgage refinances are denied at this time is the decline in home values over the past few years which have left millions of Americans upside-down in the mortgages.

I will certainly be interesting to see if bipartisan support can be had on this piece of legislation.

Source:
http://online.wsj.com/article/SB10001424052970203806504577181652800384514.html?mod=googlenews_wsj

Other Related Posts and Resources:
Is Freddie Mac Turning a Corner?
Projections for Home Values
What to Do if You're Denied for a Mortgage

Mortgage Rate Update - Ohio Mortgage Rates

Hello Everyone,
Below is a snapshot of current Ohio mortgage refinance rates (rate and term) taken from some of the top mortgage rate research web sites online. The criteria used in the various surveys will vary from site to site so be sure to visit the various publishers to make sure that you're making an apples-to-apple comparison. Mortgage rates are subject to change and they often adjust throughout the course of any given day. The exmaples below were pulled on 1/26/2012 at approximately 9:00 am EST.

Lowest 30 Year Mortgage APRs with 0 Points
Site: ForTheBestRate.com
Company: AimLoan.com - 3.832% APR, 3.750% Note Rate, $1995 Fees in APR
Company: Amerisave - 3.958% APR, 3.875% Note Rate, $1995 Fees in APR

Site: Bankrate.com
Company: AimLoan.com - 3.799% APR, 3.750% Note Rate, $995 Fees in APR
Company: Residential Finance Corporation - 3.875% APR, 3.875% Note Rate, $0 Fees in APR

Site: eRate.com
Company: AimLoan.com - 3.832% APR, 3.750% Note Rate, $1995 Fees in APR
Company: Amerisave - 3.958% APR, 3.875% Note Rate, $1995 Fees in APR

Lowest 15 Year Mortgage APRs with 0 Points

Site: ForTheBestRate.com
Company: AimLoan.com - 3.144% APR, 3.000% Note Rate, $1995 Fees in APR
Company: Amerisave - 3.270% APR, 3.125% Note Rate, $1995 Fees in APR

Site: Bankrate.com
Company: AimLoan.com - 3.087% APR, 3.000% Note Rate, $995 Fees in APR
Company: Residential Finance Corporation - 3.250% APR, 3.250% Note Rate, $0 Fees in APR

Site: eRate.com
Company: AimLoan.com - 3.144% APR, 3.000% Note Rate, $1995 Fees in APR
Company: Amerisave - 3.270% APR, 3.125% Note Rate, $1995 Fees in APR

Please note that there are plenty of mortgage brokers and mortgage lenders who do not participate in the rate tables until after 11:00 am EST when pricing is released by their banking partners. You may want to check these sites in the mid afternoon to get the best picture of interest rates and closing costs from a larger pool of mortgage companies.

Other related posts:
Recent Rate Round-Up for Georgia
What was Operation Twist and How Did It Impact Interest Rates
Previous Post on Alabama Mortgage Refinance Rates