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Articles Tagged With: ARM (Adjustable Rate Mortgage)

Getting Ready For Your Home Loan

Should You Buy A Home Now?

U.S. News and World Report published an article in Spring 2024 with data from a U.S. News survey of American mortgage trends this year. The information from that report indicates that many potential real estate buyers may be delaying their commitments to see what happens with mortgage loan interest rates. In that survey, 67% of house hunters who responded say they are on a wait-and-see basis with respect to home loan interest rates. These house hunters hope to wait out the rates before buying a house this year. Also according to the survey, approximately one quarter of the respondents “want to see them below 5% before buying, which isn’t expected to happen in 2024 or even 2025. About half (49%) are willing to wait for more than six months for | more...

 
Mortgage Trends

FHA Loan Interest Rate Trends Late 2023

In the final months of 2022, housing market watchers thought a housing market recovery would begin sometime after the 2nd quarter of the new year. Sadly, those predictions did not come true. And now, a similar analysis is happening now in ahead of the house hunting season in the spring of 2024. What’s ahead in the new year for mortgages, interest rates, and the housing market? State Of The Mortgage Industry Late 2023 U.S. News and World Report notes that mortgage rates have stayed higher, for longer. And they aren’t the only ones discussing those higher rates affecting the 2024 housing market, too. According to Investopedia, the national average interest rate exceeds 8%. And while that number is subject to change in smaller increments day to day or even month | more...

 

FHA Loan Policies: Interest Rates

When you apply for an FHA loan, one of the most important questions to ask is about interest rates. You want to know how much, over how long, and what options are open to you in terms of fixed or adjustable-rate mortgages. FHA loan rules printed in the FHA Single-Family Lender’s Handbook include a section about interest rates. While the FHA does not set or regulate the interest rates on FHA mortgages. That’s between the lender and the borrower. FHA rules do require the rates to be customary and reasonable but the rulebook does NOT list numbers.  FHA loan interest rate policy is basically a hands-off policy. FHA loan rules say that typically under “all currently active FHA single-family mortgage insurance programs,” the borrower and the lender negotiate the interest | more...

 
Fair Housing Month

FHA Loan Options To Consider

There are many options for those who want to buy or refinance a home using an FHA mortgage. Did you know that FHA loans feature a choice between fixed and adjustable rate loans, and that you can add energy efficient features to the home you buy or refinance? These options and many more are option to qualified borrowers who get approved for FHA mortgages. The choices you have with a new purchase FHA loan are varied. In addition to the type of loan–fixed rate mortgage, adjustable rate mortgage, growing equity mortgage loans and others–you also have a choice of housing available to you under the FHA loan program. You can select a typical suburban home, but are not limited to doing so. FHA Loan Types: Condos, Manufactured Homes There are | more...

 
Refinance loans: is it time to commit?

Is Now A Good Time To Refinance A Mortgage?

Waiting to apply for a refinance loan makes sense if your current mortgage rate is lower than the rates offered now when shopping around for a lender. But some people don’t get to choose the timing of their refinance loan application. Some fall behind on their home loans and use refinancing to get caught up. Others may own a home that needs renovations or major improvements. Some other homeowners applied for an Adjustable Rate Mortgage and their introductory rate period is ending, leading to a series of rate adjustments many choose to avoid through refinancing. Refinancing A Delinquent Mortgage If you’re behind on your home loan payments and you reach out to your lender as soon as possible once you know you are struggling to pay, refinancing the loan could | more...

 
FHA Home Loan Interest Rates Lower

How To Apply For An Adjustable Rate Mortgage

Do you know how to apply for an FHA adjustable rate mortgage loan or ARM? The loan limits are the same on FHA ARMs as for fixed-rate mortgages, but your strategy for the loan should be different, as your payments are subject to change over the lifetime of the ARM loan. It’s essential to apply for an adjustable rate loan with a purpose; if you aren’t sure why a fixed rate loan is better for some than an ARM, you aren’t ready for an ARM loan application yet. The Consumer Financial Protection Bureau has sound advice for house hunters interested in an adjustable-rate mortgage, including knowing when you would want an ARM loan and when you would not want one. Have A Game Plan CFPB’s advice includes planning ahead for | more...

 
FHA

FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

What’s the difference between a fixed-rate mortgage and an adjustable-rate home loan? In 2023, you may find advantages in both types thanks to inflation and a recovering housing market. FHA single-family home loans come in a variety of types; both fixed-rate loans and those with adjustable rates. The rules for these loans, commonly referred to as FHA ARM loans, are spelled out in HUD 4000.1, the FHA Lender’s Handbook. Fixed rate home loans backed by the FHA are essentially what their name implies; a mortgage with a rate negotiated between the borrower and lender that does not change for the entire loan term. Borrowers who later want to apply for a lower rate can apply for FHA refinancing, including options such as the FHA Streamline Refinance loan program for FHA-to-FHA | more...

 
FHA loans

FHA ARM Loans: Good Or Bad Idea?

Why do people choose FHA adjustable-rate mortgages or choose to refinance with one? There are several reasons including the need to get into a lower rate upfront, as part of an overall strategy for buying and selling the home, or to take advantage of changing interest rates. ARM Loan Basics FHA Adjustable Rate Mortgages feature an introductory rate, and that rate expires after a set amount of time, typically one year. The introductory rate can also be set between three and 10 years. After that time period, the rate adjustments begin. Borrowers do better with ARM loans when they have a strategy for dealing with the rate adjustment periods. Do you plan to sell or refinance before the introductory or initial ARM loan rate expires?  That plan works better for | more...

 
FHA Home Loans

Can An FHA Loan Be An ARM?

There are many choices to make when you want to buy a home. One of those choices is deciding whether a fixed-rate or adjustable-rate mortgage is right for you. FHA home loans come with an adjustable-rate mortgage option that features an introductory rate followed by an adjustment period that may vary depending on what you and the lender agree upon. When you choose an adjustable-rate mortgage, also known as an ARM loan, the introductory rate is typically more competitive than the fixed-rate FHA option. When using an ARM loan, some borrowers have a plan to sell or refinance before the first adjustment or soon thereafter. ARM loans are best for those who have a plan to deal with those adjustments. What follows are the FHA loan rules for FHA ARM loans, | more...

 
FHA refinance

FHA Refinance Loans: What You Should Know

If you are considering your FHA refinance loan options, there are several things you should know about refinancing with FHA before you apply. There are a variety of refinance loan options available-under FHA loan rules you can apply to refinance a home loan with cash out, you can also apply for an FHA Streamline Refinance that has no cash back to the borrower but also has no FHA-required credit check. Your participating lender is permitted to require an appraisal and/or credit check depending on lender standards and other variables. Borrowers in conventional loans or other non-FHA mortgage loans can refinance using the FHA Cash-Out Refinance option or choose an FHA refinance (with required credit check and appraisal) in the no-cash-out version of this type of FHA refinancing. FHA Streamline refi | more...