2011 Mortgage Interest Rates Ending Year Near Historic Lows

The average fixed interest rates for Conventional loans are ending the year near their all-time historic lows.

The average rate for a Conventional, 30-year fixed interest rate is 4.00%. In 2010, the year ended with an average rate of 4.875%.

Our interest rates as of today:

Conventional, 30-yr Fixed: 4.00%/APR 4.264%
FHA or Federal VA, 30-yr Fixed: 4.125%/APR 4.698%
USDA (Rural Housing), 30-yr Fixed: 3.875%/APR 4.321%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Extension of the Mortgage Insurance Tax Deduction Uncertain

Numerous tax provisions, including the mortgage insurance tax deduction, will expire January 1st because Congress did not pass its annual tax extension bill before the lawmakers left town December 23rd.

The mortgage insurance tax deduction went into effect with new mortgage loans closed January 1 through December 31, 2006. Every year since then, Congress has passed the law extending the tax deduction for another year.

The law to make mortgage insurance tax deductible was to help homeowners make buying a home, with mortgage insurance in their monthly payment, more affordable. Just as mortgage interest can reduce a homeowner's tax bill to the government, the mortgage insurance tax deductibility does the same.

Stay tuned. . .

FHA Waives Flipping Rule Until End of 2012

The Federal Housing Administration (FHA) has suspended its anti-flipping rule for another year to facilitate the financing and sale of newly renovated foreclosed properties.

This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight.

The Department of Housing and Urban Development issued the anti-flipping rule in 2003 to protect FHA borrowers from investors who were quickly flipping properties at inflated prices.

The anti-flipping rule prohibits lenders from using FHA financing in transactions where a single-family property is being resold within 90 days of the investor purchasing the property.

For more information please contact us at 503-385-1791 or www.equityloansoregon.com.

Interest Rates as of 12/21/2011

Conventional, 30-yr Fixed: 4.25%/APR 4.573%
FHA/Federal VA, 30-yr Fixed: 4.00%/APR 5.452%
USDA, 30-yr Fixed: 4.00%/APR 4.768%

Interest Rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please cotact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Homebuyers Should Act Now, Mortgage Costs Will Rise

In 2008 Fannie Mae and Freddie Mac were placed under government control. The US Department of the Treasury in its report "Reforming America's Housing Finance Market" advocates increasing the market share of private mortgage lending companies and reducing the role of Fannie and Freddie - with the ultimate aim of winding both institutions down.

This will make it tougher for people to buy and finance homes. According to the report, "The government must also help ensure that all Americans have access to quality housing that they can afford. This does not mean our goal is for all Americans to be homeowners."

The exact changes will be hashed out in the upcoming months. However, it seems safe to assume that mortgage borrowing post-Fannie and Freddie will look something like this:

• FHA and other government-backed mortgages will be limited to the neediest segments of our society- those of low to moderate income.


• Private mortgage lenders will be taking care of the rest of us, working within the constraints of additional regulation and retaining more of the risk from the loans they originate.


• Fannie and Freddie will lower their loan limits and their market shares will decrease. Down payment and mortgage insurance requirements will increase.

Although outcomes are uncertain, it looks like financing a home in America without Fannie and Freddie will be tougher and more expensive. What it means today is that it may be smart for those who are interested in buying a home to start the process now.

Interest Rates as of 12-13-2011

Conventional, 30-yr, Fixed Rate: 4.125%/APR 4.409%
FHA/Federal VA, 30-yr, Fixed Rate: 4.00%/APR 5.512%
USDA, 30-yr, Fixed Rate: 4.125%/APR 4.681%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Zero-Down Mortgages Are Not Extinct!

One of the most misunderstood conceptions about home loans is that homebuyers will need at least a 20% down payment to qualify for a mortgage.

The truth is home loans are still available with no money down. The USDA loan is a 100% mortgage designed to make it easier for people to buy homes in rural areas. The first step is to see if the property you want to buy and you, as a buyer, are eligible for a USDA loan. The property must be your primary residence and considered rural by USDA standards. The homebuyer's income can not exceed 115% of the median income for your area.

VA (Veterans Affairs) loans require no down payment and no mortgage insurance. Those eligible include: Veterans, Active Duty Personnel, Reservists/National Guard Members and Some Surviving Spouses.

For detailed information regarding either of these loan programs, please contact us at Equity Loans, www.equityloansoregon.com.

Interest Rates as of 12/05/11

Conventional, 30-year, Fixed: 4.375%/APR 4.538%
FHA or Federal VA, 30-year, Fixed: 4.25%/APR 5.769%
USDA, 30-year, Fixed: 4.25%/APR 4.809%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Mortgage Interest Rates Remain Stable

Mortgage rates inched up last week as investors seemed to regain some confidence in the global economy and flocked to the stock market. Normally, mortgage rates tend to rise when the stock market rebounds.

Typically, December is a good month for stocks, so rates may bump up very slightly for the month. Despite the slight increase, rates remain near record lows. And those who have not locked a low interest rate yet don't need to panic. Many mortgage experts say rates are expected to remain low well into 2012, even though they may fluctuate this month.

Interest Rates as of 11/28/2011

Conventional, 30-yr Fixed: 4.375%/APR 5.903%
FHA or Federal VA, 30-yr Fixed: 4.25%/APR 4.509%
USDA, 30-yr Fixed: 4.25%/APR 4.809%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at http://www.equityloansoregon.com/ for further information.

HomePath Loans to Buy Foreclosures

Is buying a foreclosed home a good deal? It can be, but you should be aware that the seller will not make any buyer-requested or lender-required repairs. That is most definitely a problem if you want to get a loan.

Fannie Mae has the HomePath Renovation mortgage for just this purpose. The house must be owned by Fannie Mae. Fannie Mae does not lend directly to buyers. They set the guidelines that lenders need to follow.

HomePath can be used whether the property needs minor or substantial repairs. The down payment is 3% of what the home is expected to be worth after the repairs.

One of the biggest advantages of a HomePath mortgage is that it doesn't require mortgage insurance, regardless of the down payment amount. The interest rate is typically 0.25% higher than the rate on a Conventional loan, but since no mortgage insurance is required, the payment is still lower.

By and large, HomePath is the best loan for a homebuyer to buy and fix up a foreclosure.

Interest Rates as of 11/18/2011

FHA or Federal VA, 30-yr. Fixed: 4.25%/APR 5.34%
USDA, 30-yr. Fixed: 4.25%/APR 4.712%
Conventional, 30-yr Fixed: 4.375%/APR 5.96%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Housing and Mortgage Prediction for 2012

The median expectation among more than 100 economists and real estate pros, surveyed by MacroMarkets, is that home values will inch ahead by 0.25%, compared to their 2011 median forecast decline of 2.8%. They also foresee annualized gains through 2015 of just 1.1%.

Low interest rates for mortgage are expected to remain cheap. Jay Brinkman, chief economist at the Mortgage Bankers Association, says that the 30-year fixed mortgage rate will stay below 5% throughout 2012.

THE ACTION PLAN: For those want to make a home purchase, 2012 could be a GREAT time to do so. With home prices cheap and borrowing rates low, this window of opportunity may be your best time to buy.

Mortgage Interest Rate Trend for The Week of 10/27/11 - 11/02/11

Uncertainty remains in the markets, which should keep mortgage interest rates relatively unchanged from last week. Consumer confidence remains low, and with high unemployment, the economy remains sluggish.

Will the newly revamped Home Affordable Refinance Program (HARP) help homeowners and the housing market? Borrowers looking to refinance should make sure to get their applications in before the flood of loans start pouring into the banks and mortgage companies.

Obama Tries to Ease Housing Woes

Washington/The Associated Press (excerpts from article) - ...President Obama will promote a series of executive branch steps aimed at jumpstarting the economy this week, beginning with new rules to make it easier for homeowners to refinance their mortgages. The White House said changes to the two-year-old Home Affordable Refinance Program will help homeowners with little or no equity in their houses refinance by cutting the cost of doing so and removing caps to give deeply underwater borrowers access to the program.

The federal refinancing program only covers mortgages created before June 2009 and owned or backed by government-controlled mortgage buyers Fannie Mae and Freddie Mac. Borrowers also must be current on their payments.

Interest Rates as of 08/12/2011

Conventional, 30-yr Fixed Rate: 4.375%/APR 4.58%
FHA or Federal VA, 30-yr Fixed Rate: 4.375%/APR 5.406%
USDA, 30-yr Fixed Rate: 4.375%/APR 5.563%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact your Loan Officer at Equity Loans or visit us at www.equityloansoregon.com for further information.

FHA Lower Mortgage Loans Effective October 1, 2011

FHA sets the maximum loan amount allowed to be able to obtain FHA financing. These loan limits vary by counties. For example, the current maximum loan limit in Polk and Marion Counties is $295,000.

Effective 10-01-11, the maximum loan limits will change and the expectation is that they will decrease. How does this effect you as a home buyer?

FHA loans require a small down payment of 3.5% of the sales price. Many home buyers prefer this loan program since there is less money out of their pocket than if they financed with a Conventional loan, which has a minimum down payment of 5% of the sales price.

Currently, if you are buying a home of $305,700 or less, you will be able to obtain the maximum loan amount of $295,000 (in Polk and Marion Counties) with your 3.5% down payment.

FOR EXAMPLE PURPOSES ONLY, if FHA lowers their maximum loan limit to $275,000 in Polk and Marion Counties, your maximum sales price (in order to keep your down payment at 3.5% of the sales price) is now $285,000.

This will eliminate the FHA loan program for buyers who want to put a minimum of 3.5% down and are buying a home for more than $285,000.

If you are thinking about buying in the sales price range of $300,000 +/- and you want a maximum FHA loan, you will want to get a home purchase under contract and start your loan process as soon as possible.

Interest Rates as of 07-25-11

Conventional, 30-yr Fixed: 4.625%/APR 4.788%
FHA and Federal VA, 30-yr Fixed: 4.75%/APR 5.981%
USDA, 30-yr Fixed: 4.75%/APR 5.299%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, you interest rate may differ. Please contact a Loan Officer at www.equityloansoregon.com for further information.

Interest Rates Going Up or Down?

Economists are predicting that interest rates will remain relatively unchanged over the next 30 days.

Mortgage rates seem to be moving based on the debt ceiling situation in Washington, D.C. Regardless of the decision to increase the debt ceiling or to cut the deficit, interest rates will remain volatile.

The expectation is that the volatility will continue until a resolution is reached. Overall, interest rates should stay in their current range, despite the day-to-day ups and downs.

Lower Interest Rates Reason Enough to Refinance Your Home Loan

When interest rates are low, plenty of homeowners rush to refinance before evaluating the true consequences of their actions. Sometimes a mortgage refinance can be the wrong move.

People often make poor decisions because of what is called "interest rate envy" around the water cooler. Do not jump at refinancing just so you can say you got a lower rate.

The first step when deciding to refinance is to establish a clear objective: 1) lower your overall payment regardless of the length of the loan, 2) shorten the term of the loan in order to pay it off sooner, 3) compare the length of time you plan to stay in your home to see if refinancing with the costs will actual result in a net benefit to you.

Borrowers must have good credit, an acceptable debt load for their income and enough equity in their home, among other requirements, to be approved for a loan.

Interest Rates as of 03/01/2011

Conventional, 30-yr Fixed: 4.875%/APR 5.043%
FHA or Federal VA, 30-yr Fixed: 4.75%/APR 5.586%
USDA, 30-yr Fixed: 5.00%/APR 5.318%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact your Loan Officer or visit us at www.equityloansoregon.com for further information.

What Obstacle is Keeping You From Homeownership?

According to the latest survey by Fannie Mae, poor credit is the number one stumbling block keeping potential borrowers from owning a home. Recent economic hardships have caused millions of Americans to fall behind on their bills. Since lenders are now insisting on higher credit scores than in years before, what can you do to be aware of and/or improve your credit?

First, know if your credit history is ACCURATE by checking out your credit report from the three credit bureaus (Equifax, Experian and TransUnion). You can get a FREE copy (once every 12 months) of your credit reports at www.annualcreditreport.com. There is no reduction to your credit scores since you are pulling your own credit report. Paying to get your credit score is not necessary. Your credit scores will usually be different at the time the lender obtains a credit report for you. Your credit history is scored differently depending on the type of credit you are applying for.

Next, before you do anything to update your credit report or pay off any debts, contact us for an appointment to prequalify you for a home loan. This is a free service to you with no obligation to obtain a home loan at that time. We can go over your specifics and provide you with information on how to best position yourself for a home loan approval.

You may be surprised to find out that you are ready to buy a home now!

FHA Mortage Premium Changing 04-18-11

If you haven't heard, FHA announced on 02-14-11 that is is raising its annual mortgage insurance premium. This "Monthly Mortgage Insurance" change is for primary (owner-occupied), 1 - 4 unit residential properties. "Monthly Mortgage Insurance" or, MMI, is included in your TOTAL house payment.

The Mortgage Insurance Rate for a 30-year fixed rate loan is currently (until 04-17-11) 0.90%for loans greater than 95% of the sales price and will be (as of 04-18-11) 1.15%. Loans at 95% of sales price or less will change from .85% to 1.10%.

This means for every $100,000 that is borrowed, an additional $22.50 per month will be paid. That's an additonal $270 per year.

Do you want to know more? Please contact your loan officer at Equity Loans, LLC or visit us at www.equityloansoregon.com to contact us.

Interest Rates as of 02/17/2011

Conventional, 30-yr Fixed: 5.125%/APR 5.219%
FHA or Federal VA, 30-yr Fixed: 4.875%/APR 5.522%
USDA, 30-yr Fixed: 5.00%/APR 5.318%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit qualifying, and therefore, your interest rate may differ.

Please contact your Loan Officer or visit us at www.equityloansoregon.com for further information.

Experian Including Rent Data in Credit File

For the first time, mortgage lenders and other creditors will have access to a consumer's rental payment history, thanks to Experian. Experian acquired RentBureau last year and is now able to take the data from that bureau and put it into consumers' credit files.

RentBureau has created technolgy that interfaces with property management software and allows this data to be extracted.

Currently, one-third of the American population are renters, a number that is growing. Many of these people are not being scored fully because of their thin credit files.