March 30, 2020

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Articles in Category: FHA Refinance

Refinance Loan Options You Should Know

Refinance Loan Options You Should Know

At one point during the coronavirus crisis, refinance applications spiked. Some sources report that spike hitting over 100% at the height of the application surge; people rushed to take advantage of sub-three-percent mortgage loan interest rates. Part of the surge may also have been due (this is speculation) to a misconception that when the Fed performed emergency interest rate cuts, it directly cut mortgage rates. The Fed doesn’t function that way, but the misunderstanding of how the Fed works may have contributed to the overall impression that refinance loan rates were going still lower. In the news, talk of an economic recession puts fear in the minds of some homeowners; what can you do to protect your bottom line in a time when many businesses are temporarily closed and paychecks | more...

 
HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

The Department of Housing and Urban Development is providing FHA borrowers a 60-day foreclosure moratorium described as “immediate relief” for those who may be struggling to make FHA mortgage loan payments during the health crisis. Details From HUD The HUD official site has published details of the HUD-mandated moratorium on all foreclosures on FHA Single-Family home loans and Reverse Mortgages, a move similar to what happens to borrowers in federally-declared disaster areas after a natural disaster such as a hurricane, flood, forest fire, landslide, etc. FHA Mortgage Foreclosure Evictions Also Suspended The HUD foreclosure moratorium announcement includes a suspension of evictions related to those foreclosures, also for sixty days. The eviction process suspension is a critical part of foreclosure relief for some borrowers. The HUD official site’s press release addresses | more...

 
Refinance Loan Applications Spike In March 2020

Refinance Loan Applications Spike In March 2020

The week ending March 6, 2020 saw a surge in refinance loan applications and many home loan blogs and market watch websites are talking about the current rush into refinancing as something not seen in roughly eleven years. Low mortgage rates have dominated real estate headlines thanks to investor reactions to coronavirus news and many people are taking the time to look into refinancing their mortgages to save money over the long term. What do you need to know about refinancing your home loan in an extremely volatile interest rate environment? Are You Ready To Refinance? If you have worked on your credit, know your FICO scores and what your lender may find in your credit report and you are willing to commit to the loan, it’s best to do | more...

 
FHA Refinance Loans: Are You Ready?

FHA Refinance Loans: Are You Ready?

Mortgage rates have fallen incredibly low in the earliest weeks of 2020, and many are calling their lenders asking about options to refinance. There are many choices when it’s time to refinance; getting the right FHA refinance loan for you depends on needs and goals for the home. How Long Do You Plan To Own The Home? The basic decision to refinance can often be informed by your goals for the house securing the mortgage. Are you planning to stay in the home long-term? That will affect the type of refinance loan you might investigate as well as the basic nature of the loan as a fixed-rate mortgage or an adjustable-rate loan. Adjustable rate loans are good for borrowers who have a strategy for how to deal with the loan | more...

 
Low Mortgage Rates and Refinance Options

Low Mortgage Rates and Refinance Options

On Tuesday, March 3, the Fed announced an emergency rate cut, and the reaction to that included mortgage loan interest rates hitting new and historic lows. The Fed does not set mortgage loan interest rates, but investor reaction to the announcement of the rate cut did affect mortgage rates, and the net effect was that FHA home loan interest rates remain (at the time of this writing) below the three percent range. And conventional mortgages are holding at the bottom of the three percent zone. These rates, plastered all over the internet, are provided assuming ideal scenarios, but even the average borrower will find the current lower mortgage rate trend to be to their advantage. New Purchase Loans And Refinance Loans Are Affected For those who are interested in refinancing? | more...

 
Corona Virus Headlines And FHA Mortgage Rates

Corona Virus Headlines And FHA Mortgage Rates

The headlines recently have said it all; “Coronavirus fears cause mortgage rates to plunge to 8-year low”. That’s courtesy of CNBC, not one of the many many amateur finance blogs or fly-by-night junk stock purveyors. What’s the reality behind the headline? FHA and VA home loan rates for Monday, February 25 2020 were reported at 3.25%, which is definitely one of the lowest points the rates have fallen to in the last several years.  There is speculation that rates might broach new territory where historic lows are concerned; whether this actually happens or not remains to be seen. Why do interest rates move higher and lower? There is no single factor, just as there is no single factor that goes into a home loan transaction; it’s a complex operation featuring | more...

 
Refinancing In 2020? Questions To Ask

Refinancing In 2020? Questions To Ask

Are you looking for a refinance loan in 2020? Refinancing your home loan can be a smart move for some homeowners, especially in times where rates are falling. Mortgage loan interest rates in 2020 hit three-year interest rate lows due to a variety of factors including hangovers from trade war woes with China, the coronavirus, and other variables. And that means more potential borrowing options in expensive housing markets like New York, California, and Washington D.C., as well as smaller markets where the falling interest rates have improved things for buyers as well. Why? More affordable loans, rising property values (depending on the market), and the ability to pull more cash out of the home in a refi loan situation make applying more attractive. Is your long-term home loan goal | more...

 
Income Rules For FHA Loan Approval: What You Need To Know Today

FHA Purchase and Refinance Loan Interest Rate Trends And Your New Home

FHA home loans have a low minimum required down payment of 3.5%, which makes them perfect for both experienced homeowners and first-time homebuyers alike. With an FHA mortgage it’s possible to purchase or refinance a fixer-upper (with an FHA 203(k) rehab loan), buy or refinance a condo, mobile home, existing construction houses, and you can even apply to have a home built for you on your own lot with an FHA One-Time Close construction loan. As we head into the second month of 2020, we are reminded that 2019 was the best year for mortgage loan interest rates in almost a decade and the trends that kept rates low last year continue to exert some influence as new issues also conspire to push mortgage rates lower. At least in the | more...

 
FHA Refinance Loans And Current Interest Rates

FHA Refinance Loans And Current Interest Rates

Is your mortgage payment too high? Need to refinance to bring down the monthly cost? Recent headlines about mortgage loan interest rates have contained the word “refinance” a lot lately; world events including the Wuhan virus, impeachment proceedings, and other news have conspired to help push mortgage rates lower. Those things themselves do not directly influence mortgage loan interest rates, but investor behavior DOES. And because of that investor behavior, we have seen FHA loan interest rates move significantly lower. Some writers refer to that move in terms of historical context. “Mortgage Rates At Three Year Lows!” screamed some headlines in early 2020. One consequence of those low rates? A surge in refinance loan applications as consumers rush to take advantage of the lower interest rates to save money on | more...

 
FHA Rehab Loans Versus FHA 203(b) loans

FHA Rehab Loans Versus FHA 203(b) Loans

When shopping for real estate, most borrowers are thinking of the kind of mortgage such as the one known as an FHA 203(b). That’s the loan you want when shopping for a house you want to buy as-is; one that meets FHA appraisal standards and requires little to no work on the property to make it eligible for a 203(b) forward mortgage. Then there is another type of home loan option available to FHA borrowers; the FHA 203(k) Rehabilitation Mortgage, which allows you to buy a fixer-upper and have it brought up to FHA appraisal standards and local code requirements. The FHA 203(k) Rehab Loan is good for both new purchase and refinance applications. Regardless of whether you buy or refinance with an FHA Rehab Loan, you are permitted to | more...