October 17, 2021

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Articles Published in: March 2016

Mortgage Loan Rate Trends

Mortgage Rate Trends: Edging Higher

What is bad for the economy is often good for mortgage loan rates, and Tuesday’s world headlines should have, by all accounts, helped rates move lower. But all the bad news yesterday did not keep rates from moving slightly higher (for a variety of reasons) and it seems that we could be on the verge of a new upward trend depending on how rates behave over the next several business days. Tuesday’s move higher will likely be noticed mostly in closing costs rather than actual mortgage rate increases but your experience may vary depending on the lender. 30-year fixed rate mortgage loan interest rates moved into a different range of rates, now reported at a best-execution range between 3.75% and 3.875%. FHA mortgage rates are holding steady in their best | more...

 

How Much Can I Borrow With An FHA Mortgage Loan?

One of the most common questions about FHA loans is, “How much can I borrow?” The answer to that question is a lot easier to get by using an online mortgage calculator to factor in the length or term of the loan, interest rate (estimated), estimated property taxes and other details. Some of the information you need to calculate how much you can borrow depends on circumstances. The interest rate, for example, is determined in part by what rates are on offer currently based on market conditions and other factors but also by your credit history and FICO scores. The better your FICO scores are, the better the interest rates. The borrower and the lender negotiate interest rates on FHA mortgages, they are not set or regulated by the FHA | more...

 
What Is An FHA Loan Limit?

FHA Loan Pre-Approval

What is the difference between FHA loan approval and getting pre-approved for an FHA mortgage? Some borrowers get confused during the initial process because it’s easy to assume that getting through pre-approval means you’ve been fully approved for the mortgage. The reality is that pre-approval is a tool for the borrower and the lender to determine if you’re ready to buy based on your income, debt to income ratio levels, the amount of down payment you have saved, etc. It’s the start of the loan process, but it is not a guarantee that you have an FHA mortgage loan-yet. Getting pre-approved for an FHA mortgage means that you’ve used an online mortgage loan calculator or other tool to add up your income, debts, interest rate, etc. The price of the | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Slightly Lower Friday

Friday closed out the week slightly lower, which means that a majority of last week brought some form of mortgage loan rate improvement or at the very least no moves higher. All days but one last week were marked by some kind of small gain, taking back some of the losses from the week prior. At the time of this writing, 30-year fixed rate conventional mortgages are in a best execution range between 3.625% (likely the most competitive lenders are offering something at or near this) and 3.875%. Our sources note that the average best execution rate offering likely falls somewhere in the middle of this range. FHA mortgage loan interest rates remain in their best execution comfort zone in a range we’ve reported for some time now–between 3.25% and | more...

 

FHA Loans and Home Inspections

The difference between an FHA appraisal and a home inspection is an issue that crops up frequently in the comments area of this blog. Borrowers applying for an FHA mortgage to buy a home are required to have an FHA appraisal to insure that property meets minimum standards, but when a home passes the appraisal process or allows the loan to go through as long as required corrections are made, does that mean the property has been inspected and approved by the FHA? Not according to the FHA official site, which says an appraisal is never a guarantee or endorsement of any kind. Borrowers should know the purpose of the appraisal is to establish the home’s fair market value and to make sure that home meets the minimum standards. But | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: Improving

Thursday saw a decisive move lower for interest rates. After many days of upward movement, and some recovery earlier in the week following a Fed announcement (one that had no talk of another rate hike for now) it seems that rates are headed back down. This trend is being described by some market watchers as a delayed reaction to the Fed–are some lenders slower to update their mortgage loan interest rates due to recent volatility in the market? That’s what some are thinking. 30-year fixed rate conventional mortgages are now operating in a best execution range between 3.625% and 3.875%. That is a wider range than previously reported, though you will find variation among conventional lenders and your access to these rates depends greatly on your financial qualifications. (“Best execution | more...

 

FHA Loan Advice: Know Your Costs, Interest Rates

We give a lot of advice both here and in our comments section about FHA home loans. And there’s a lot to give; FHA loan rules cover everything from the acceptable minimum condition of the home to a borrower’s credit requirements for maximum financing. But what does the FHA itself, as a government agency, say about the home buying process? Our publication is not associated with the FHA in any way, and what follows is the result of our research and examination of FHA-published material. What we have found is definitely information a potential borrower should consider during the planning stages of a new home loan or refinance loan. An FHA publication titled, Looking For The Best Mortgage has some excellent overall advice for the borrower starting with the old | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Some Improvement After Fed Announcement

Mortgage rates improved a bit on Wednesday after the Fed made its much anticipated statement-one that included no discussion of a further raise in interest rates for now. How much changed today depends greatly on the lender, and some may see the difference in terms of closing costs as opposed to an outright shift in the mortgage loan interest rate. The improvement wasn’t dramatic, but in light of the recent upward trend, any recovery is welcome, however small. 30-year fixed rate conventional mortgages are still basically reported in a best execution range between 3.75% and 3.875%. FHA mortgage loan interest rates are still holding in the comfort zone range between 3.25% and 3.5% that we have been reporting for many days now. FHA mortgage loan rates are often slower to | more...

 

FHA Loan Rules for “Expected Income”

It’s easy for borrowers to get nervous about their debt to income ratio when trying to qualify for an FHA mortgage. Some, who may be concerned that their ratio isn’t good enough may look to expected raises, performance bonuses, or other types of future earnings that haven’t begun yet in hopes that those extra earnings might give them a better chance at loan approval. But what do FHA loan rules say about this type of expected income? The issue is addressed on page 2o7 of HUD 4000.1, starting with the FHA definition of expected income, provided to clear up any confusion over what may or may not be counted as such: “Expected Income refers to income from cost-of-living adjustments, performance raises, a new job, or retirement that has not been, | more...

 

FHA Refinance Loan Basic Requirements

FHA refinance loans offer a variety of options for the borrower. In many cases you don’t have to have an existing FHA loan in order to refinance into one; with certain types of FHA refinancing you do have to have an FHA loan. There are cash-out refinance loans available, no-cash-out, and streamline refinances available. Do you know which one is right for you? FHA loan rules found in HUD 4000.1 list the available types of refinancing available, as well as the borrower eligibility requirements, on page 126. It begins by stating: “FHA insures several different types of refinance transactions: 1. No cash-out refinances of FHA-insured and non FHA-insured Mortgages are designed to pay existing liens. These include: Rate and Term refinance, Simple Refinance, and Streamline Refinance. 2. Cash-out refinances are | more...