December 4, 2021

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Articles Tagged With: APR (Annual Percentage Rate)

Is your credit ready for an FHA loan?

Get A Lower Interest Rate On Your FHA Home Loan

First-time borrowers might not fully understand how they can get a lower interest rate on their home loans; experienced house hunters who have been through the home buying process before aren’t necessarily at an advantage in this area. No matter whether you have owned a home before or not, it’s smart to focus on what can be done to earn a competitive interest rate on a home loan, home loan refinance, etc. Want A Lower Interest Rate On Your FHA Mortgage? Check Your Credit Scores It’s possible to apply for a home loan without ever looking at your credit report. It’s also a very bad idea to do so. Why? Borrowers who are unaware of the information in their credit reports are not ready to apply for a home loan. | more...

 
Mortgage Rate Trends

FHA Mortgage Loan Interest Rate Watch

FHA 30-year fixed rate mortgages have, at press time a 52-week average of 2.25% (best execution or assuming ideal circumstances) at the lowest end and 4.0% at the highest. However, the numbers currently available–the rates for FHA 30-year fixed-rate mortgages at press time–are listed a 2.88%, a definite rise from the lowest point on the 52-week average. Reading this, some future home loan applicants are likely wondering if they should hurry up and apply for a mortgage even if they are not quite ready to do so. If you read finance blogs and mortgage industry writers, you discover that among some industry professionals, there’s a view that the economic stimulus has at least a partial role in creating conditions ripe for mortgage loan interest rates to start going up again. | more...

 
Mortgage Rate Trends

Mortgage Loan Interest Rates Below Three Percent

Financial magazines reported mortgage rates falling below three percent; these reports in early June point to the numbers we’re seeing both for conventional mortgages (depending on the term of the loan) as well as government-backed loans like FHA home loans. Why have mortgage rates continued to fall to historic lows? Market volatility, daily ups and downs over COVID-19, civil unrest, and trade war concerns have contributed to these low rates. But the volatility associated with today’s mortgage loan market makes it hard to predict whether these rates will be with us tomorrow, next week, or ever again. Fortunately, borrowers and lenders use a toll called a mortgage rate lock commitment to protect the loan applicant from future changes. How does it work? When you make an offer on a home | more...

 
Reasons To Refinance

FHA Home Loan Down Payments: Do You Need Help?

If you want to apply for an FHA condo loan, an FHA mobile home loan, or even an FHA construction loan, you will need to anticipate the down payment requirements for these mortgages. At the very minimum, all FHA borrowers must put 3.5% down, with a higher down payment required for those with lower FICO scores. One of the first questions many readers will be asking at this point is likely, “What FICO scores require the higher down payment?” That question is one reason why you’re reading this article right now; there are issues that can affect your down payment requirements. It’s not safe to assume that you can simply pay what the FHA loan program rules require–lender standards, state law, and other variables can come into play. One variable | more...

 
Mortgage Rate Trends

Mortgage Rate Trends: The Three Percent Range

Mortgage loan rates have been on a wild ride since the advent of the COVID-19 coronavirus outbreak; for a time FHA mortgage loan rates dipped below the three percent threshold. How wild has the ride been? FHA mortgage rates hit a 52-week range of rates between the lowest at 2.75% at the low point during the outbreak and just over 4% at its highest moment in the 52-week range. What does that mean going forward? For the average consumer, not much. It is pure speculation to say we may or may not see rates dip below the three percent range but borrowers should likely assume that those rock-bottom rates are gone and proceed without the temptation to float rather than lock in a mortgage rate commitment with the lender in | more...

 
FHA Rehab Loans In 2021

FHA Rehabilitation Loans In 2020

Are you interested in buying and fixing up a home, or refinancing and remodeling your current home? These are projects are possible in 2020 thanks to the FHA Rehabilitation Loan, also known as the FHA 202(k) Rehabilitation Loan or the refinance loan version of it. The FHA has a program that allows borrowers to apply for a mortgage loan in order to improve a property. The FHA 203(k) rehab loan is intended for borrowers who want to buy or refinance the property and do repairs, but not all borrowers have big rehab projects or work that requires a huge sum of money. Two Rehab Loan Options Open To You There are two different types of 203(k) loans-the “full” version is available for larger projects including work on loan-bearing structures, but | more...

 
FHA Home Loans And Interest Rates: What You Should Know About Low Rates

FHA Home Loans And Interest Rates: What You Should Know About Low Rates

At the time of this writing, what you should know about FHA Home loan interest rates includes the idea that interest rates at the moment are low for FHA mortgages, that the rates are subject to change, and that your credit report will play an important part in the rate you are offered. What do you need to know about FHA home loan interest rates in today’s housing market? FHA Loan Interest Rates Are Currently Very Low Some market watchers are quoting rates as low as 3.25%, and while that mortgage rate assumes a very well-qualified borrower, it is an indication of how low rates have gone in 2019. What’s good for the economy is often bad for mortgage loan interest rates, and the reverse can also be true. With | more...

 
Will My Home Loan Application Be Approved?

Will My Home Loan Application Be Approved?

Will my FHA home loan be approved? That is a common question for some borrowers who worry that their credit isn’t good enough for a home loan, and for borrowers who may have adverse credit information in their credit history. There is no single answer to this question since much depends on the borrower’s credit history, their patterns of credit use, debt ratios, and other factors. But in general there are some areas you can review to determine whether or not an FHA home loan is in your future. Will My Home Loan Be Approved? Occupancy Matters If you seek an FHA mortgage for a house that you (or at least one borrower obligated on the mortgage) do not intend to occupy as your primary residence, you will not be | more...

 
Down payment

Preparing For An FHA Mortgage? What You Need To Know About “Contingent Liabilities”

If you are preparing for a home loan and want to buy a primary residence with an FHA mortgage, you should know what the FHA loan rules are for “contingent liabilities” which involve the borrower. A contingent liability is a financial obligation that the FHA loan applicant has co-signed for in the past or is otherwise potentially responsible for should the main borrower default on the financial obligation. The FHA loan handbook defines contingent liabilities specifically as follows: “A Contingent Liability refers to a liability that may result in the obligation to repay only when a specific event occurs. For example, a contingent liability exists when an individual can be held responsible for the repayment of a debt if another legally obligated party defaults on the payment. Contingent liabilities may | more...

 
Does The Fed Interest Rate Cut Also Cut Mortgage Loan Rates?

What You Need To Know About FHA Home Loan Interest Rates

What does a new borrower need to know about home loan interest rates? There are many home loan blogs that discuss the fluctuations of mortgage rates and talk about those moves higher and lower. Some discuss the rates as though the ones mentioned could be offered to all applicants. Why isn’t this true? The rates you see advertised on the internet are usually posted as “best execution” interest rates which means that “ideal conditions” are assumed. What are those ideal conditions? An incredibly well-qualified borrower with high FICO scores, low debt ratios, and no credit issues. That means that the actual interest rate you are offered will vary from what you see posted online, and that the rate will depend on your FICO scores and other financial qualifications. But what | more...