Mortgage Interest Rates Remain Steady
Although Mortgage applications were off during the week that ended March 23rd in The Weekly Mortgage Application Survey. by Mortgage Banker's Association This doesn't seem unusual while consumer prepare for the boatload of changes happening with FHA loans and conforming mortgage refinance loans. Some of the changes are intended to assist borrowers who've been wanting to refinance, although unable, to refinance into reduced mortgage interest rates.
A survey of direct and wholesale lenders by
Freerateupdate.com' shows that mortgage interest rates remained steady throughout this past week. Up to date conforming fixed 30 year mortgage interest rates remain at 3.750%, while fixed 15 year mortgage interest rates remain at 3.000% while adjustable 5/1 mortgage interest rates are hanging in there at 2.375%. These low loan rates are offered with 0.7 through 1% origination fees for borrowers having a consistently good credit history. For purchases and normal refinances, complete and detailed documentation for income , employment and assets are necessary. The latest adjustment for conforming loans is a
Harp 2.0 loan program that became available to the general public on March 18 using automated loan systems.
Harp 2.0 loan program is the revised refinancing program for upside down borrowers having mortgages held by Freddie Mac and Fannie Mae. In most situations,
no appraisal is required while full documentation is being waived. This seems to be the best method for homeowners, who owe more money on their loans than their homes are presently worth, to refinance into the all time low mortgage interest rates that are offered today. Mortgage interest rates for these Harp 2.0 loan refinance rates can be different from one lender to another, so borrowers should do the homework to assure that they get the best deal available.
Although FHA mortgage interest rates have stayed the same, the newest changes for FHA is their increased upfront and their annual
mortgage insurance premiums increases (MIP). FHA fixed 30 year mortgage rates remain at 3.375%, the FHA fixed 15 year mortgage rates have stayed at 2.875% while the FHA 5/1 ARM rates are 2.875%. No one knows just how much impact these new fees are going to have on borrowers obtaining of FHA loans at this time. FHA mortgages still provide smaller down payments than those of conforming conventional mortgages, although for larger loan amounts, the increased upfront MIP of 1.75% just might become a barrier. FHA mortgage closing costs (APR) cost more money die to the upfront
MIP and additional FHA fees, although as long as their loan to value remain in place, these fees may be included in the loan. Another change for FHA this month involves collection and disputed accounts when qualifying. If the combined total amount of these credit accounts add up to more than $1,000, now there must be repayment agreements in place , be paid off, or have documentation, like police reports, in theft events.
April 4, 2012
Real Estate Finance