July 14, 2020

Vimeo Channel YouTube Channel

Articles Tagged With: FHA Interest Rates

Mortgage Rate Trends

Home Loan Interest Rates Hit Historic Lows Again.

The end of the month of June, 2020 saw mortgage loan interest rates hit another historic low–rates hit another all-time low for the fourth time in a single month. As coronavirus issues continue to affect the global economy, economic factors at home and abroad have contributed to an environment favorable for lower rates. FHA Mortgage Loan Interest Rates In June 2020 FHA mortgage rates were listed at 2.50% on the last day of June. Not all borrowers are offered rates this low–your experience will vary depending on FICO scores and credit history. Finance and banking experts have been discussing the idea that as long as coronavirus has a role in what happens to the U.S. economy, we have the potential for continued low mortgage rates. Unfortunately, there is also volatility | more...

 
Mortgage Rate Trends

Mortgage Rates Hovering Near Historic Lows

Mortgage loan interest rates have been holding steady near all-time lows. FHA mortgage loans (on fixed-rate 30 year mortgages) were reported at a best-execution 2.50% on Monday June 23, 2020 and talk persists that these low numbers could be with us longer than expected unless there are market forces that run counter to the current downward trend. Some marketwatchers point out that current low rates can be blamed at least in part on coronavirus concerns, but the reverse is not necessarily true if the crisis begins to abate without a feared second wave of infections. Investors and markets may not react in equal measure to the good economic news as they did to bad economic developments. What’s bad for the economy is often good for mortgage loan rates, and that’s | more...

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

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

Low mortgage rates have stolen the headlines on some finance blogs; as a result, 2020 has seen high volumes of refinance loan applications. The low rates also has many renters potentially finding themselves in a more affordable position to become homeowners. But another development has taken things in an even more historic direction; in June 2020 conventional loan rates made big headlines by plunging below the three percent threshold. The sub-three percent range has been familiar territory for FHA mortgage loans and VA mortgages. The same day conventional rates fell below three percent, the best-execution FHA mortgage loan interest rate for a 30-year fixed rate mortgage was reported at 2.50%. The rates offered to any borrower will depend on the type of loan, the loan term, and other variables. Borrowers | more...

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

Fed Announces Bond Policy Influencing Mortgage Loan Interest Rates

In the second week of June, the Fed announced important policies that influence mortgage rates. FederalReserve.gov published a statement announcing monetary policy from the Federal Open Market Committee including: The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on required and excess reserve balances at 0.10 percent, effective June 11, 2020. As part of its policy decision, the Federal Open Market Committee voted to authorize and direct the Open Market Desk at the Federal Reserve Bank of New York to run “open market operations as necessary to maintain the federal funds rate in a target range of 0 to 1/4 percent”; The vote also authorized an “Increase the System Open Market Account holdings of Treasury securities, agency mortgage-backed securities (MBS), and agency | 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...

 
Why Your Lender Offered You A Different Interest Rate Than What You Saw Online

Why Your Lender Offered You A Different Interest Rate Than What You Saw Online

House hunters searching for lenders online and comparing home loan interest rates may be seeing rates reported for FHA home loans below the three percent range, and compared to years past those rates are at incredible lows. In the first week of June 2020, FHA mortgage loan interest rates were reported at 2.68%. According to some data aggregators, that percentage represents a 52-week low at press time. The same sources report the high 52-week average for FHA mortgage loan rates at or near 4%. By the time you read this, those numbers will have changed up or down, but as a snapshot of the rates in a given moment in time these numbers are significant. But the low rates you see online are not offered to all loan applicants; do | more...

 
FHA home loans, interest rate cuts, and your mortgage

FHA Loans, Interest Rate Cuts, And Your Mortgage

Home loan interest rates have been on a wild ride. The Fed cut interest rates in March of 2020–two times in response to coronavirus economic issues. But the Fed rate cut did not mean mortgage loan interest rates were directly cut.  Home loan rates move up and down based on market forces, investor behavior, etc. The Fed’s rate cut actions are not a specific trim to home loan rates, but the effects of that rate cut did include influencing how investors did business in the wake of those cuts. It’s easy to assume the Fed has some kind of direct control over home loan rates, but what is the reality? How do home loan rates work and what do you need to know moving forward with your loan application? On | more...

 
Did The FHA Raise FICO Score Requirements For Single-Family Home Loans?

Did The FHA Raise FICO Score Requirements For Single-Family Home Loans?

Did the FHA and HUD increase the minimum FICO score standards for Single-Family home loans, refinance loans, and reverse mortgages? At the time of this writing, the coronavirus pandemic is still affecting most industries across America including the real estate and mortgage loan sectors. You may read news stories about higher credit requirements making it tougher to qualify for a mortgage in the era of coronavirus; these stories may be accurate in their reporting of higher FICO score requirements at the time of this writing, but who is responsible for those requirements? The lowest FICO score technically possible according to the FHA to qualify for a loan (one with more expensive terms) is 500. That is the lowest FICO score possible to still qualify for a mortgage, on paper. Your | more...

 
Mortgage Rate Trends

Mortgage Rate Trends: Moving Higher

Mortgage loan interest rates dipped to incredible lows, with FHA mortgage rates falling below three percent last week. However, this week mortgage loan interest rates are moving upwards due to multiple factors having to do with bond markets, mortgage-backed securities, etc. What does the average borrower need to know? Last week we discussed the possibility that rates could move higher at any time. That discussion is now playing itself out with FHA mortgage loan interest rates now back above the three percent zone at a reported 3.25% best-scenario rate assuming an ideal borrower with outstanding FICO scores and other financial qualifications. Those who were ready to make an interest rate lock commitment with their lender but instead decided to “float” rather than lock in a mortgage loan interest rate definitely | more...

 
Mortgage Rate Trends

Mortgage Rate Trends: Historic Lows In Early March

There are times when mortgage rates are low due to any number of factors. And then there are situations where rates fall so low that even people in the mortgage industry start reviewing their refinance options. Now is one of those times with mortgage rates for FHA and VA loans falling below the three percent threshold into the high two percent range. FHA loan and refinance loan rates, at these numbers, promise a more affordable home loan and they provide the most benefit for those who plan to keep their home for a long time and pay a significant portion of the mortgage (if not the whole thing). Those who want to buy and sell quickly won’t reap the same long-term financial benefits as those who buy and keep the | more...