Home Refinance Blog

From late April through the end of May, 30-year mortgage rates fell for five consecutive weeks. These lower rates created new opportunities to refinance -- and a natural tendency to wait to see just how low rates could go. By mid-June, however, it was clear that waiting to refinance can be a risky strategy. Mortgage rates still down in 2014 Mortgage rates followed that string of falling for five consecutive weeks by rising in each of the first two weeks of June. However, this bump up in rates is [...]

Mortgage regulations seem to be going back to the future. That may or may not be good news; but either way, it could impact your refinancing plans. Loan-to-value requirements In a recent speech, Melvin Watt, director of the Federal Housing Finance Agency announced that plans were in the works to allow Fannie Mae and Freddie Mac to finance loans with down payments as low as 3 to 5 percent. This would substantially loosen current loan-to-value (LTV) requirements, opening up refinancing options for [...]

The tricky part of this housing recovery was always going to be getting to where the economy was strong enough to boost home prices without putting an end to low mortgage rates. Recent indicators suggest the trick is being executed beautifully. New refinancing opportunities are being created every day as housing prices rise while mortgage rates remain low. Homeowners seeing their mortgage loans emerge from under water are getting a long-awaited opportunity to refinance those loans. Here is a loo [...]

A year ago, it looked like refinancing was dead and gone. Lately though, it is making a stunning comeback. The Mortgage Bankers Association reported that, by mid-October, the level of refinancing loan applications had risen to its highest level since last February. Homeowners who have yet to refinance should take note. The death of refinancing… Record low mortgage rates in recent years brought on an epic wave of refinancing. Last year, though, two things seemed to spell the death of that [...]

If you have been following mortgage rates with hopes of refinancing, you have to ask yourself an important question: Are you a jumbo No, your waistline is not at issue here; it's the size of your mortgage. Jumbo mortgages are typically those in excess of $417,000 and, increasingly, these loans seem to have an edge when it comes to refinancing. A widening rate advantage The National Mortgage News recently reported that, while ordinary mortgage rates were stagnating in mid-July, rates on jumbo mo [...]

The first half of 2014 certainly brought some economic and financial surprises. Assessing which of these surprises are likely to continue throughout the second half of the year could go a long way toward guiding your refinancing plans: The US economy contracted. According to the Bureau of Economic Analysis, U.S. real gross domestic product shrunk at an annual rate of 2.9 percent in the fourth quarter, a stunning reversal from the 2.6 percent growth rate of the previous quarter. Some ill effects [...]

The good news is that 30-year mortgage rates hit a six-month low in early May. The bad news is that the recent inflation trend could make this dip in rates short-lived. Mortgage rates and inflation By nature, mortgage rates are very sensitive to inflation. Mortgage lenders need to charge a rate that will more than offset the impact of rising prices over time. Since most mortgages feature fixed rates over long time periods, lenders have to be especially cautious about leaving themselves a cushion [...]

To paraphrase Mark Twain, reports of the death of refinancing have been greatly exaggerated. While a rise in refinance rates has slowed refinancing activity, refinancing still accounts for about half of all mortgage applications. While there are still good reasons to consider refinancing, higher rates make the window of opportunity smaller. Here are five things you should do to make sure you are ready to act when that window opens: Identify your goals. There are a few different things you can a [...]