Conventional, 30-yr Fixed Rate: 4.875%/5.131%
FHA or Federal VA, 30-yr Fixed Rate: 5.00%/5.891%
Interest rates quoted are with a 1% Loan Origination Fee. All interest rates and loan programs are subject to change without any notice. Please contact us at www.premiermortgagepros.net for additional information.
Monday, May 10, 2010
Should I Make Any Credit Purchases While Getting a Home Loan?
When you apply for a home loan, a credit report is pulled to determine if your credit history meets the guidelines for the program chosen. Your credit history at that time only reflects what was done on your credit about two months ago. It does not give you your "today's" credit information.
Why is that important to know? If you have purchased an item, such as a car, just prior to your loan application or charged more money to a credit card, this could affect your ability to qualify for your loan. The credit report at application would not reflect the additional debt.
Beginning 06-01-10, all Conventional loans will require two credit reports: one at the time of application and one just before the loan closes. If you are not aware of this, your loan could be denied at the very end due to lower credit scores from the additional credit you have incurred or too much debt to qualify for the loan.
Maintaining the status quo and not taking on new debt is important when you are planning to buy a home and need a mortgage loan.
Why is that important to know? If you have purchased an item, such as a car, just prior to your loan application or charged more money to a credit card, this could affect your ability to qualify for your loan. The credit report at application would not reflect the additional debt.
Beginning 06-01-10, all Conventional loans will require two credit reports: one at the time of application and one just before the loan closes. If you are not aware of this, your loan could be denied at the very end due to lower credit scores from the additional credit you have incurred or too much debt to qualify for the loan.
Maintaining the status quo and not taking on new debt is important when you are planning to buy a home and need a mortgage loan.
Friday, May 7, 2010
Interest Rates as of 05/07/10
Conventional, 30-yr Fixed Rate: 4.875%/APR 5.012%
FHA or Federal VA, 30-yr Fixed Rate: 5.00%/APR 5.989%
Interest rates shown are with a 1% Loan Origination Fee. Interest rates and loan programs are subject to change without notice. Please contact us at www.premiermortgagepros.net for additional information.
FHA or Federal VA, 30-yr Fixed Rate: 5.00%/APR 5.989%
Interest rates shown are with a 1% Loan Origination Fee. Interest rates and loan programs are subject to change without notice. Please contact us at www.premiermortgagepros.net for additional information.
Thursday, May 6, 2010
Bank Concentration Spells Bad News for Consumers
Three banks underwrite 3 out of every 5 mortgages. Such bank concentration won't benefit consumers in the long run.
According to Mortgagestats.com, three banks accounted for 58.5% of the mortgage volume in the final quarter of 2009. The three are Wells Fargo, Bank of America and JPMorgan Chase.
This concentration of mortgage volume in only three banks has the markings of a cartel. A cartel is a group of companies which collectively attempt to affect market production and competition with the end result being greater control of the supply and price of certain goods or services.
This is an example of a market failure that eventually harms the consumer. Interest rate pricing and product availability are in the hands of a very few. This limits the competition which usually drives prices up and product availability and quality of services down.
It pays to support mortgage bankers and brokers; they have given us the ability to be more selective in our choice of mortgage products and services, thereby, retaining competition in a free market place.
According to Mortgagestats.com, three banks accounted for 58.5% of the mortgage volume in the final quarter of 2009. The three are Wells Fargo, Bank of America and JPMorgan Chase.
This concentration of mortgage volume in only three banks has the markings of a cartel. A cartel is a group of companies which collectively attempt to affect market production and competition with the end result being greater control of the supply and price of certain goods or services.
This is an example of a market failure that eventually harms the consumer. Interest rate pricing and product availability are in the hands of a very few. This limits the competition which usually drives prices up and product availability and quality of services down.
It pays to support mortgage bankers and brokers; they have given us the ability to be more selective in our choice of mortgage products and services, thereby, retaining competition in a free market place.
Wednesday, May 5, 2010
Interest Rates as of 05/05/10
Conventional, 30-yr Fixed Rate: 5.00%/APR 5.291%
FHA or Federal VA, 30-yr Fixed Rate: 5.125%/APR 6.012%
Interest rates shown are with a 1% Loan Origination Fee. Interest rates and loan programs are subject to change without notice. Please contact us at www.premiermortgagepros.net for additional information.
FHA or Federal VA, 30-yr Fixed Rate: 5.125%/APR 6.012%
Interest rates shown are with a 1% Loan Origination Fee. Interest rates and loan programs are subject to change without notice. Please contact us at www.premiermortgagepros.net for additional information.
Tuesday, May 4, 2010
How New Short Sale Rules Can Help You Buy
New rules governing short sales are designed to make the process faster and easier. The rules are part of the Treasury's Home Affordable Foreclosure Alternatives - HAFA - program and are aimed at speeding up lenders' decisions on short sales and making life easier for sellers and buyers.
Prior to HAFA, the time period for short sales varied greatly among lenders and it was a very uncertain process. A short sale can be done only with the seller's lender's permission. The lender would often take months to decide whether to accept the buyer's offer. Even when the delayed answer was a "yes", the buyer had often given up and had bought another house.
Under HAFA, if a buyer offers to purchase a "short sale" home, the lender sends the seller and the buyer a document called a "request for approval of short sale" or RASS and a thick pile of accompanying paperwork. Once the documents are completed and returned to the lender, the lender is required to give a yes or no response within 10 days of receiving the RASS. Time will tell if this makes "short sales" more easily sold.
Prior to HAFA, the time period for short sales varied greatly among lenders and it was a very uncertain process. A short sale can be done only with the seller's lender's permission. The lender would often take months to decide whether to accept the buyer's offer. Even when the delayed answer was a "yes", the buyer had often given up and had bought another house.
Under HAFA, if a buyer offers to purchase a "short sale" home, the lender sends the seller and the buyer a document called a "request for approval of short sale" or RASS and a thick pile of accompanying paperwork. Once the documents are completed and returned to the lender, the lender is required to give a yes or no response within 10 days of receiving the RASS. Time will tell if this makes "short sales" more easily sold.
Monday, May 3, 2010
Interest Rates as of 05/03/10
Conventional, 30-yr Fixed Rate: 5.125%/APR 5.334%
FHA or VA, 30-yr Fixed Rate: 5.25%/APR 6.104%
Interest rates shown are with a 1% Loan Origination Fee. Interest rates and loan programs are subject to change without notice. Please contact us at www.premiermortgagepros.net for additional information.
FHA or VA, 30-yr Fixed Rate: 5.25%/APR 6.104%
Interest rates shown are with a 1% Loan Origination Fee. Interest rates and loan programs are subject to change without notice. Please contact us at www.premiermortgagepros.net for additional information.
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