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

Rising Rents Make Buying More Appealing

Real estate agents and economists agree, climbing rent prices and declining home prices are making home ownership look pretty good right about now. Even once-reluctant home buyers are being lured into the market this spring season, and with good reason.

Average apartment rent prices rose by 2.7 percent last year while the national vacancy rate dropped below 5 percent for the first time since 2001, according to a quarterly survey by Reis, Inc., a real estate research firm. According to the survey, the largest rent increases occurred in San Francisco and San Jose, Calif., which saw jumps of 5.9 percent and 4.9 percent, respectively.

While the survey provides strong evidence for buying appeal throughout the U.S., it isn't the cheapest option everywhere. In some markets, like New York City and Orange County, Calif., it's still cheaper to rent. Nevertheless, many residents of such areas are getting fed up with paying high rent for small spaces, opting instead to pay more for the benefit of ownership.

If you're thinking of making the transition from renter to homeowner, contact a mortgage professional in your area to learn about first time buyer home loans, low money down financing and more.

Markets with the most expensive rents according to Out of Reach Report from the National Low Income Housing Coalition:

10: Washington - Arlington - Alexandria Metro
9. Danbury. CT
8. Bergen-Passaic, NJ
7. West Chester County, NY
6. San Jose - Sunnyvale - Santa Clara
5. Orange County, CA
4. Nassau - Suffolk, NY
3. Honolulu
2. Stamford - Norwalk, CT
1. San Francisco

Does is make sense to consider buying an investment property?

In our local rental market in Wilmington, North Carolina, there appears to be some great deals for investors as inventory has fallen dramatically and prices remain deflated. Jay Seville, a real estate professional with Wilmington Real Estate 4U pointed out in a recent video that despite prices being lower than there recent peak, 2012 has produced a mini boom for single family homes with the median prices climbing into the $250K's. "The Wilmington market is flush with opportunities for people looking to capitalize on lower prices and a rising demand for rentals" he told us. "When you run the numbers it's fairly easy to find units, especially in certain pockets of the market, where investors can see immediate positive cashflow".  You can find additional information on the local market including a number of very informative videos on Jay's site at http://www.kure-beach-homes.com.

We spoke with Brian Mitchell at Gateway Bank Mortgage (also in Wilmington) about some of the requirements for buying rental properties in the current lending environment. "The days of buying an investment property with little to no money down have come to an end. There may be some private investors out there who may be willing to lend with less than 20 to 25% down but most lenders are going to require a fairly substantial downpayment."

Other Recent Housing Articles of Interest:
Influence of Seniors and Young Adults in the Housing Market
Improving Real Estate Markets - Where Home Values are on the Rise

Finding a Mortgage Job

If you're looking for a job in the mortgage industry, you may be wondering where to begin. If you're unfamiliar with the mortgage field, the information out there can seem overwhelming. Start slowly by checking with the following resources.

Check licensing requirements in your area if you hope to originate. Sometimes a broker will sponsor you during your licensing training, but be prepared to foot the bill yourself, just in case. Check the NMLS website to find licensing requirements in your state: http://mortgage.nationwidelicensingsystem.org/slr/Pages/default.aspx

Learn about the different career paths. You might find this article helpful which explains what the mortgage professionals in several different positions do: Who is Who in the Mortgage Process

Build a nest egg. Before jumping into a brand new career, you might want to save up some dough. It's always a good idea to have a financial safety net, particularly when joining an industry where a portion of compensation is often performance based.

Don't quit your day job. Switching careers is risky, especially in an unstable economy. If you plan on pursuing a career in the mortgage field, don't just dive in head first. Start by educating yourself and then look into entry-level jobs to help get your foot in the door. Even part time positions can be a great entry into the industry. If you're already employed it's generally smart to wait until you've been offered a new job before leaving your current company.

Conducting Your Own Mortgage Company Background Check

Knowledge is power, as the saying goes. When it comes to finding the right mortgage company to handle your home financing needs, make sure you're as knowledgeable as possible. Doing your homework on the company you're considering can yield a lot of useful information, saving you plenty of headaches down the road.

Here are a two places to start your own mortgage company background check:

National Mortgage Licensing System & Registry (NMLS) look up
http://www.nmlsconsumeraccess.org/
If you haven't yet contacted a lending company, you could start here to get several names and contact info for mortgage companies in your area. The company profiles on this site will have information on previous company trade names, state license numbers and more.

Better Business Bureau (BBB) 
www.bbb.org
Put in your city or state to find the closest BBB to you. Here, you can check out businesses, file a complaint and read reviews.

In addition to these online resources, don't forget to ask around for recommendations and references for mortgage banks. Your friends, family, coworkers or other members of your community can offer helpful advice.

Current State of Mortgage Rates - California Update

Mortgage interest rates remain near record lows according to the latest Freddie Mac mortgage market survey as fixed rate pricing dipped slightly pending the Federal Reserve's monetary policy announcement. According to Freddie, the 30 year national average was 3.88% (.7 pts) and the 15 year average was 3.12% (.6 pts).

Below is a snapshot of current mortgage rates pulled from ForTheBestRate.com today. We used California mortgage rates for the survey. Please visit www.forthebestrate.com for the quoting criteria used in the survey and to contact the various lenders and brokers. Rates and fees are subject to change without notice.

30 Year Fixed Mortgage Interest Rates (0 Pts)
National Mortgage Alliance: 3.750% Rate, $1800 Fees in APR, 3.824% APR
Amerisave: 4.000% Rate, $1995 Fees in APR, 4.083% APR
Quicken Loans 4.250% Rate, $2057 Fees in APR, 4.337% APR
AimLoan.com: 3.625% Rate, $1995 Fees in APR, 3.707% APR

15 Year Fixed Mortgage Interest Rates (0 Pts)
National Mortgage Alliance: 3.000% Rate, $1000 Fees in APR, 3.072% APR
Amerisave: 3.000% Rate, $1995 Fees in APR, 3.144% APR
Quicken Loans 3.375% Rate, $2557 Fees in APR, 3.562% APR
AimLoan.com: 2.875% Rate, $1995 Fees in APR, 3.019% APR

Other Posts and Resources:
Tips on Comparing Jumbo Mortgage Rates
What is Operation Twist?

What is HARP and what is it designed to do?

HARP is an abbreviation for the Home Affordable Refinance Program, a special refinancing option designed to help people make their mortgage more affordable - welcome news for anyone having trouble making their mortgage payments. Particularly, homeowners who owe more on their home than it's currently worth.

Known as being underwater or upside down in a mortgage, owing more than your home is currently worth is an unfortunate situation that many American homeowners have found themselves in. Since the housing crisis, many homes have dropped in value across the United States. People who paid $300,000 for a home in 2006 are finding their homes may be worth much less in today's economy. This can make it difficult to secure traditional refinancing, or even to sell the property should they want to downsize or relocate.

To qualify for HARP, a few criteria must be met:

• The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. 
• The sale of the mortgage must have been finalized to Fannie Mae or Freddie Mac on or before May 31, 2009. 
• The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009. 
• The current loan-to-value (LTV) ratio must be greater than 80%. 
• The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.