Articles Tagged With: FHA Cash-out Refinance

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

June 1, 2020

Refinance Loan Options: Choose Wisely!

Mortgage loan interest rates have been on a wild ride in 2020. Coronavirus, incredible lows for rates, market volatility, and much more have all created an environment that feels as unpredictable as mortgage rates have seemed. And the rollercoaster isn’t over yet. Finance blogs are still reporting as late as June 1, 2020, that refinance loan demand has actually grown larger than the demand for new purchase mortgages. That isn’t shocking in an era where rates have, at least on paper, dipped below the three percent range at times (your experience will definitely vary). Those with the ability to refinance into a lower interest rate save money over the course of the mortgage, assuming these borrowers pay on the mortgage over a long period of time. Understanding The Refinance Loan | more...

March 13, 2020

Repair Your Credit Before Your Home Loan

By Joe Wallace

Interested in applying for an FHA mortgage or a refinance loan? It’s not as easy as finding a lender and applying; you will need plenty of time to save for the expenses of the loan including the down payment and closing costs. But you also need more time in another way; taking a preliminary step as early as possible in your loan process can make the difference between loan approval and rejection. What is that preliminary step? Reviewing your credit report for errors and identity theft evidence. It’s also about working on raising your FICO scores based on the results of your credit report review. All Americans are entitled to a free copy of their credit report once per year, so there is no cost to obtain one. You can | more...

March 11, 2020

Refinance Loan Applications Spike In March 2020

By Bruce Reichstein

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...

March 6, 2020

FHA Refinance Loans: Are You Ready?

By Bruce Reichstein

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...

March 4, 2020

Low Mortgage Rates and Refinance Options

By Bruce Reichstein

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...

Why FHA interest rates are lower than conventional mortgage rates

February 25, 2020

Corona Virus Headlines And FHA Mortgage Rates

By Joe Wallace

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...

Do you know how to protect your credit score during the COVID-19 outbreak? Millions of Americans have suffered economic setbacks as a result of containment measures designed to stop the spread of the virus, and many of them were already struggling with credit issues prior to the outbreak. How can you protect your credit going forward? The first step is to know what your credit report says and to actively monitor your credit. In some cases, credit problems wind up being the result of factors beyond the consumer including: Inaccurate credit report data Outdated credit information that needs to be removed Evidence of identity theft Credit report information that is accurate, but for someone else with the same name Any of these issues can hurt your credit, and they take time to correct. But they ARE correctable. Here is what you need to know about protecting your credit during and after COVID-19: You should NEVER pay a third party who offers to remove accurate negative credit reporting data from your credit report. No one can do this, it is not legal to claim you can remove ACCURATE negative credit data. You can pay a reputable third party to help you MONITOR your credit with updates and alerts that can actually help you manage your file. Pay on time, every time. Every missed payment can hurt your credit. If you cannot pay on time, contact your creditors to let them know and make arrangements. If you do not contact your creditors to make arrangements, you risk negative credit consequences that can hurt your ability to be approved for credit at multiple levels, not just major purchases. Contacting your creditors to make payment arrangements and avoid negative credit reporting is very important. Remember that late and missed housing payments (mortgage, rent, etc) reflect badly on your credit score in the best of times; if you don’t contact your landlord or mortgage servicer to make arrangements, you do not have protection against credit score damage as a result. Communication with your creditors is time consuming and, let’s face it, a bit laborious. But the protection you give yourself is definitely worth the effort. Don’t let the challenge of these tasks prevent you from getting the most protection possible for your FICO scores and credit report.

February 21, 2020

Refinancing In 2020? Questions To Ask

By Joe Wallace

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

February 10, 2020

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

By Bruce Reichstein

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...

February 7, 2020

FHA Refinance Loans And Current Interest Rates

By Joe Wallace

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...

January 6, 2020

FHA Rate And Term Refinance Loans

By Joe Wallace

There are different refinance loans for different needs, and the FHA rate and term refinance option is available to help borrowers who aren’t looking for cash out at closing time. The financial website Investopedia defines a rate-and-term refi loan as follows: “The potential benefits of rate-and-term refinancing include securing a lower interest rate and a more favorable term on the mortgage, but the same principal balance will remain. Such refinancing could lower the homeowner’s monthly payments, or potentially set a new schedule to pay off the mortgage more quickly.” The FHA Rate and Term refinance loan has different features and requirements than FHA cash-out refinancing or reverse mortgages. The rules that cover FHA rate and term refinancing are found in the FHA loan handbook, HUD 4000.1, and explains how this | more...