November 14, 2019

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Articles Tagged With: Interest

FHA Home Loan Down Payment Assistance

What You Should Know About FHA Mortgage Loan Rate Lock Agreements

What should FHA home loan applicants know about the practice of mortgage interest rate lock commitments? This is an important detail of your home loan and it’s best to know how the interest rate lock agreement works ahead of time so you know how and why this part of the mortgage loan process works. What Is An FHA Mortgage Loan Interest Rate Lock Agreement? An interest rate lock protects a borrower from the daily mortgage rate fluctuations that happen naturally due to investor behavior, or other market forces that can change rates. An interest rate lock commitment is not automatic; it must be formally agreed to in writing between the borrower and the lender. An interest rate lock commitment does exactly what it sounds like it does-the lender and borrower | more...

 
FHA Mortgage Loans: Do Interest Rates Matter?

FHA Mortgage Loans: Do Interest Rates Matter?

If you are a first time home buyer you might wonder whether FHA home loan interest rates quoted to you at the appropriate time actually matter-after all, aren’t these rates subject to change depending on market forces and isn’t the borrower basically being offered the “going rate” no matter what? The short answer is, interest rates DO matter and the rates you are offered are not necessarily the “going rate”, whatever that may be. Why? There are a few variables that affect the mortgage loan interest rate you are offered by the lender. Market forces are one of those variables. Depending on breaking news, market activity, and even overseas financial developments, the rates offered at any given time may be different than the last time you checked the rates. Another | more...

 
FHA Refinance Loans For Non-FHA Mortgages

What Are The Interest Rates On FHA Mortgage Loans?

What are the interest rates on FHA mortgage loans? This is a question that can be tough to answer because there are variables involved. Some of those variables are with the lender, but some are associated with the borrower. FHA Interest Rates Are Not Set By The FHA One very important aspect of FHA loans to be mindful of; the FHA and HUD do not set or regulate the interest rates on FHA mortgage loans, refinance loans, or loan assumptions. Interest rates will be negotiated between the lender and the borrower. FHA Mortgage Loan Interest Rates Are Not The Same For All Borrowers FHA loan interest rates, like other mortgage loan rates, are determined in part by market forces, but also by the borrower’s financial qualifications. The greater credit risk | more...

 
What is my FHA home loan down payment?

What Is An FHA Loan Rate?

What Is An FHA Loan Rate? Simply put, the FHA loan rate is the interest rate charged on your 15 or 30-year FHA mortgage. There are some facts you should know about FHA loan rates that will make understanding them much easier. FHA Loan Rates Are Set By The Lender Technically speaking, the mortgage loan interest rate on your loan is something you negotiate with your loan officer. Your access to the most competitive FHA loan rates will be determined by your FICO scores and other financial qualifications, but beyond that you may have the option to buy down interest rates using discount points, which is something you and the lender should discuss as early as possible in the loan process. We’ll come back to discount points in a moment, | more...

 
Mortgage Loan Rate Trends

Interest Rate Trends: Higher

We’ve watched an overall upward trend in interest rate behavior for mortgages in recent weeks, and while there have been some days of recovery, it seems that at present there are a variety of factors putting upward pressure on rates. Market watchers have been using the phrase “the trend is not your friend” for a while now, and Monday’s rate movement showed no signs of proving that phrase wrong in the short term. Rates moved higher on Monday, not enough to push actual numbers up, but enough so that affected borrowers may notice a difference in closing costs. 30-year fixed rate conventional mortgages are still being reported at or near 3.625% (best execution), and the FHA mortgage loan interest rate range between 3.25% and 3.5% is still there (again, best | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Higher

Since our last report on mortgage loan interest rate trends, we’ve seen upward pressure on home loan rates. This week is full of scheduled economic data releases that have potential to add to this depending on investor reaction to the contents of those releases. So far we’re seeing a short-term upward trend consistently through the week. What happens from here remains to be seen, but market watchers are using the word “volatility” quite a bit in recent days. 30-year fixed rate conventional mortgage loan interest rates have moved out of their previous range between 3.375% and 3.5% and are now, best execution, solidly at or near 3.5%. FHA mortgage loan interest rates are still, best execution, in a range between 3.0% and 3.25%. This has been the “comfort zone” for | more...

 

Mortgage Rate Trends: A Mostly Flat Week

Mortgage loan rates were mostly unchanged last week, budging a bit on Friday after Fed chairperson Janet Yellin’s speech at an important event in Jackson Hole, Wyoming. Rates seemed to be in defensive mode in advance of this speech, which many looked to as a possible spoiler for mortgage loan rates. Why? Because at the present moment, investors are looking hard for any hint from the Fed that another interest rate hike might occur, the timing of such a hike, and the severity. The Fed’s rate hike issues have affected mortgage rates in months and years past as investors react to the news or lack of it. Investor behavior is responsible for the Fed-related volatility in mortgage loan rates rather than the Fed itself, so it’s important to make the | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: More Gains

At the time of this writing, the end of the market day (Tuesday June 14) hasn’t happened yet. But the news about mortgage loan interest rates–even without the most current end-of-day interest rate data–is definitely encouraging for anyone considering a home loan at the present. Rates have fallen to lows not seen in quite some time. 30-year fixed rate mortgage loan interest rates (best execution) were reported at the end of the business day on Monday at a range between 3.625% at the upper end of the range and an FHA loan-challenging 3.5% at the lower end of the range. Some are saying these are the lowest we’ve seen rates in several years, while others are using the phrase “close to all-time lows” to describe what is being seen, best | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Lower After Jobs Report

Ever since the Fed began discussing the possibility of another interest rate hike, we’ve seen upward pressure on mortgage loan interest rates. 30-year fixed rate conventional mortgage loan interest rates had fallen as low as 3.5% for some of the most competitive lenders (best execution) prior to that Fed talk, but once the upward movement began it wasn’t long before conventional rates began hitting 3.75% territory. During all this time, FHA mortgage loan rates held steady in a best execution range between 3.25% and 3.5%. As we frequently mention, FHA mortgage loan interest rates can and do vary more among participating lenders, so it pays to shop around. The FHA best execution range of rates mentioned here persisted even when conventional rates were going back and forth between a range | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Holding For Now

The two days before the holiday weekend, mortgage loan rates held steady or changed very little, depending on the lender. On Tuesday, the first business day of the week, we saw rates basically doing the same thing at the end of the day after some ups and downs; at the time of this writing best execution rates are where they have been, more or less, for about a week now. That means 30-year fixed rate conventional mortgages are at or near 3.75% best execution. The actual best execution number may vary depending on the lender, the time of day, etc. FHA mortgages are still in a best execution range between 3.25% and 3.5%. FHA rates tend to take longer to change than their conventional counterparts, but a dramatic move higher | more...