Surprisingly, we’ve been hearing from more and more readers who have said their lenders have reached out to them, soliciting a refinance (see our Tuesday post).
Another one of our readers just wrote to us this afternoon, explaining that his lender offered him a refinance at “little or no cost.” Confusion quickly turned to anger when our reader found out that this refinance offer was far from free: Read the rest of this entry »
So you’re ready to refinance, huh?
Having already made the decision to refinance, your next step is to determine how to best manage the costs associated with the transaction. Mortgage borrowers have asked HSH.com a thousand times, “What’s the best strategy for handling my refinance closing costs?”
Record-low mortgage rates have been about the only stable slice of the economy we’ve seen for some time now. While stringent credit conditions have prevented many homebuyers from cashing in on cheap financing, the sheer persistence of these low rates has given refinance borrowers ample time to take advantage of them.
Every drop in rates opens up at least some refinance opportunity to a new group of borrowers to either get a lower rate, a different term or loan product, and ultimately, a lower monthly payment or a quicker payoff: Read the rest of this entry »
One of the major roadblocks nowadays for underwater borrowers is the inability to refinance. In most instances, their negative equity positive puts them out of reach for a much-needed refinance.
Before the housing downturn, when home prices were rising, you could not only refinance to a lower interest, you had the ability to pull some cash out thanks to your home’s equity.
However, with the decline in home prices wiping out equity stakes, millions of homeowners owe their lender more than their homes are worth. As such, “underwater” borrowers may have to pay cash upfront to take advantage of today’s historically-low mortgage rates.
According to the latest issue of HSH’s Market Trends Newsletter, “Home Loan Rates Slip Back; Lower To Come?,” mortgage rates fell last week to levels unseen since late spring, and have the potential to fall even lower.
“The overall average rate for 30-year fixed-rate mortgages revealed in HSH’s Fixed-Rate Mortgage Indicator (FRMI) nudged downward, slipping seven basis points (.07%) to close the first week of September at 5.56%. The overall average for 5/1 Hybrid ARMs lost five basis points to landing at 4.87%. Conforming 30-year FRMs finished the period at 5.25%, a level last seen in late May.”
The Federal Open Market Committee (FOMC) released the minutes from their June 23-24 meeting yesterday. While the FOMC does release an initial statement immediately following their meeting, the minutes, released several weeks later, provide analysts and market observers with more detailed information to the discussions as well as the decisions made during their last meeting.
Since November the Fed has run a program to buy up to $1.25 trillion in Fannie Mae and Freddie Mac mortgage-backed securities (MBS) in order to keep conforming mortgage rates low. The FOMC’s minutes definitively indicate that the Fed will remain on track to purchase their total by year’s end.
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
