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Mortgage Rates Drop to Record Lows Again!

Eric Mally — Thu, 17 May 2012 15:03:53 +0000

OK – this is just getting ridiculous already.

If last week’s mortgage rates were crazy low, this week’s mortgage rates would be classified as “unbelievably, astonishingly, insanely, stupid low.”

That’s right people – according to the Weekly Primary Mortgage Market Survey from Freddie Mac, mortgage rates yet again dropped to all-time record lows for the third consecutive week.

I’m this excited about mortgage rates being this low, simply because this is the best possible time for potential homebuyers – or homeowners looking to refinance into a lower rate – to finally make the call and start saving money.

Let’s take a gander at the numbers, shall we?

According to the national averages compiled by Freddic Mac last week, 30-year fixed-rate mortgages fell from 3.83 percent with 0.7 points last week to a new all-time low of 3.79 percent with 0.7 points in this week’s report. In the modern mortgage era, the 30-year fixed-rate mortgage has never seen a rate this low. Last year at this time, 30-year fixed-rate mortgages averaged a whopping 4.61 percent. Keep in mind, this is the national average from last week. Not the rate available today.

15-year fixed-rate mortgages fell to a new record low of 3.04 percent with 0.7 points from last week’s 3.05 percent with 0.7 points, which makes me think – could we possibly see a 15-year fixed-rate mortgage below 3.00 percent? One can only dream, I suppose, but it does seem like a strong possibility seeing that 15-year fixed-rate mortgages have dropped every week for the past five weeks. Last year at this time, 15-year fixed-rate mortgages averaged 3.80 percent.

ARMs, our often-overlooked friends, decided to go against the grain and climb up slightly. 5/1-year ARMs jumped to 2.83 percent with 0.6 points this week from last week’s 2.81 percent with 0.5 points, while 1-year ARMs climbed to 2.78 percent with 0.5 points from last week’s 2.73 percent with 0.5 points.

12 months ago, 5/1-year ARMs and 1-year ARMs averaged 3.48 percent and 3.15 percent, respectively.

If you’re new to the weekly PMMS report over here at the Quicken Loans Zing! Blog, now is my favorite time of the week: we get a special treat from our dear-pseudo friend Frank Nothaft, vice president and chief economist from Freddie Mac.

A couple weeks back, Frank somehow managed to contain his excitement when mortgage rates fell to record lows at the time. How would he do this week?

He explained, “The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week. For instance, Industrial production rose 1.1 percent in April – the largest gain since December 2010 – and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan.”

Mortgage rates eased for another week? C’mon, Frank! Jump up and click your heels together or something here!!

Anyway, as a wise man once told me, “Waiting to refinance or to lock in to a new mortgage will be a bigger mistake than snorting a line of wasabi.”

I don’t know if you’ve ever tried snorting wasabi, but you will regret it, so don’t regret missing out on these great rates!

3 Reasons to Buy a Home in 2012 – Watch-It Wednesday

Eric Mally — Wed, 16 May 2012 21:45:58 +0000

Don’t you just love filling your brain with knowledge about the housing market?

I know I sure do, and this week’s installment of Watch-It Wednesday is sure to be the most informative three minutes of your day.

Quicken Loans Chief Economist Bob Walters sat down with our very own Jordan Fylonenko to talk about three very strong reasons to buy a home in 2012 in another episode of the critically acclaimed Markets and Musings.

Bob explained, “there are some unique things happening right now that people should be aware of and take advantage of. One is mortgage interest rates are at 50-year lows. In the modern era, mortgage interest rates have never been lower than where they are right now. Secondly, home prices, as people well know, have dropped dramatically in many areas, and what that affords people who are buying those homes to get a deal they might not have been able to get in the past.

So, when you take low home prices and record low interest rates, you really find a climate where home affordability is at its highest level that it’s been at in years.”

Pretty much – if you want to buy a home, like the late great Solomon Burke said, “it don’t get no better than this.”

Wrapping it up with some good advice, Bob stated, “10 or 15 years from now, people are going to look at the ability to lock in a mortgage rate in the 4.00 percent range, and the ability to buy a home at 1990 or 2000 type prices, as a historic opportunity. If people think they’re going to make a killing in one or two years, I don’t think that’s necessarily going to be the case. But I do think that right now affords a terrific opportunity.”

Take a look at the video below, and if you can’t view it, click here.

Is an FHA Loan Right for You?

Halina Matt — Mon, 14 May 2012 21:10:49 +0000

Finding the right fit when it comes to mortgage loan options can be a daunting task, especially if your credit history is less than perfect. Now, imagine with me a world in which you can find an easier credit qualifying process and low down payment options with a government-secured loan that allows lenders to give you a better deal. That world, dear readers, is here and now, and we in the business like to call it an FHA Loan.

What is an FHA Loan?

An FHA Loan is a government program, offered by the Federal Housing Administration since 1934, to help people become homeowners.

Who should apply for an FHA Loan?

Are you buying your first home and/or looking for more flexible qualification and credit requirements in your mortgage? Have a down payment or equity that’s less than 20%? Want the comfort and security of a government-backed loan? If you said yes, yes and yes, then this type of loan may be exactly what you need.

If you currently have or want to buy a fixer-upper, there’s an FHA Loan option that allows you to buy or refinance a home, fix it up and include all the costs in one loan.

What are the features of an FHA Loan?

30-, 25-, 20- and 15-year terms are all available with fixed rates
Credit scores as low as 580 may qualify
5-year adjustable rate mortgage available
Refinance up to 97.75% of your primary home’s value
Buy a home with as little as 3.5% down (primary home)

How does it work?

Now, your actual payment will vary based upon your individual situation and the interest rates (currently at record lows!) when you apply. You can also pay your mortgage at any time without pre-payment penalties. How great is that?

FHA Streamline

If you currently have an FHA Loan and want to refinance, you may qualify for an FHA Streamline, which is as easy to use as it sounds! You could get a lower rate on your mortgage without the extensive qualification process. No appraisal and no minimal credit requirements. FHA Streamline is offered as a 5-year ARM (adjustable rate mortgage) or either a 15-year or 30-year fixed-rate loan.

Who should apply for an FHA Streamline?

You should, if you’re in an FHA loan now, your current mortgage rate is higher than today’s mortgage rates, and/or you owe more on your mortgage than your home is worth.

Have more questions or want to apply now? Our Home Loan Experts can help you decide which loan option makes sense for you.

New Jersey Financial Expert Urges Consumers to Communicate

NewsUSA — Thu, 10 May 2012 19:28:09 +0000

(NewsUSA) - Communication is a necessary foundation for any good relationship, even the one you have with your financial professional. Regular meetings and connecting through conversation, not just email, create the basis for trust that will sustain your relationship and, ultimately, enable a promising financial future. Few people are comfortable "getting personal" in the beginning of a relationship. A good financial professional will be able to put you at ease and work to develop a financial plan that will achieve your goals. He or she will want to know about your income, savings, debt and life insurance coverage. Your attitude toward risk, different types of investments, need for security and financial priorities will also be examined. In preparation for your meeting, you should be ready to discuss these subjects. Life events: A new baby, job loss or purchase of a home affect your finances and should prompt conversations with your financial advisor. Market fluctuation: While the recent economy has instructed investors to stay the course, it's important to address any concerns you have about the short- and long-term effect on your portfolio. Tax law: During the first quarter of the year, ask your financial professional about any changes to the tax code that could affect you. College funding: If you have children, don't be reticent about reviewing your strategy for saving for higher education. Life insurance: Ask your financial professional to evaluate the amount of coverage you have and whether your policy aligns with your needs and goals. Regular conversations are key. It's important that you set the expectations for the kind of relationship you desire with your financial professional. Because your financial plan should not be a "once and done" transaction, you'll want to set up regular visits to address any changes in your life that would affect your plan. You might be satisfied with once-or-twice-yearly meetings, but a quarterly check-in wouldn't be excessive. Finally, make sure your financial professional's goals are aligned with yours. To find a qualified financial professional, please visit www.Pennmutual.com or contact Larry Singer of NJL&C, LLC in Livingston, N.J., at (973) 535-0955 x 142.

Mortgage Rates Set Record Lows for Second Consecutive Week

Eric Mally — Thu, 10 May 2012 17:19:12 +0000

In the history of the modern mortgage era, mortgage rates have never been this low.

In the history of the weekly Primary Mortgage Market Survey from Freddie Mac and our breakdown of it, we have never started off with a haiku.

Today, that changes.

Mortgage rates are low

I cannot believe my eyes

Want to save money?

By my own admission, I’m not the best haiku composer, but you get my point. Mortgage rates are crazy low right now, and you’re missing out on the opportunity of a lifetime if you don’t lock in to a record low rate.

Let’s take a look at the numbers.

30-year fixed-rate mortgages fell to 3.83 percent with 0.7 points from last week’s 3.84 percent with 0.8 points. This marks the 18^th week out of a possible 19 weeks in 2012 when 30-year fixed-rate mortgages averaged less than 4.00 percent. Last year at this time, 30-year fixed rate mortgages averaged 4.63 percent.

15-year fixed-rate mortgages have slipped for the fourth consecutive week by setting a new record low of 3.05 percent with 0.7 points, falling from last week’s 3.07 percent with 0.7 points. A year ago, 15-year fixed-rate mortgages averaged 3.82 percent.

5/1-year ARMs fell from last week’s 2.85 percent with 0.7 points to 2.81 percent with 0.5 points this week. On the other hand, 1-year ARMs decided to be the runt of the bunch and increase slightly, jumping to 2.73 percent with 0.5 points from last week’s 2.70 percent with 0.6 points.

Last year at this time, 5/1-year ARMs and 1-year ARMs averaged 3.41 percent and 3.11 percent, respectively.

If you remember last week, my pal Frank Nothaft, vice president and chief economist of Freddie Mac, wasn’t necessarily as giddy as I would have expected him to be, considering mortgage rates were at unprecedented levels.

What’d he have to say this week?

He explained, “Following April’s weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week. The economy added just 115,000 jobs, bellow the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs.”

Oh let’s talk about European stability and the unemployment rate and just glaze over the fact that mortgage rates are at all time lows.

It’s so hard to read this guy sometimes.

Regardless, you know where I’m going with this – all of those times when I said “Now is the best time to refinance or get a mortgage,” I lied. I apologize.

NOW is the best time to refinance or lock in to an amazingly low mortgage rate. What are you waiting for? Don’t miss out!

New Group Builds Off Occupy Wall Street Movement

NewsUSA — Wed, 09 May 2012 19:49:00 +0000

(NewsUSA) - Occupy Wall Street's most recent push, "May Day," exemplifies the crux of the protest: it's a great forum to express widespread discontent about financial issues, but less adept at affecting bona fide change between giant corporations and average consumers. Critics of the movement tend to call it politically dangerous and radical, like pollster Doug Schoen in the Wall Street Journal. On the other hand, President Obama is embracing a 2012 platform crusading for the 99 percent against the presumptive GOP nominee. However, Obama's administration didn't fulfill its original vows promising Wall Street culpability or repercussions for reckless bankers. Despite public sentiment created by the Occupy movement, in four years, the federal government hasn't filed a single charge against any Big Finance executives. "It's perplexing at best," said Phil Angelides, the Democratic former California treasurer who chaired the bipartisan Financial Crisis Inquiry Commission. "It's deeply troubling at worst." While Occupy Wall Street succeeded in presenting a means to express concern, the federal government continues to hedge upon promises of financial accountability. How can individual consumers take action? A budding movement called All Our Power offers an alternative that's designed to build off the momentum created by Occupy Wall Street and spur real action. As the fledgling movement spreads, millions of members will give All Our Power the ability to negotiate with top bankers, retailers, health insurance companies, cell phone providers and more. In fact, the Occupiers at Zuccotti Park were joined by a large rally of protesters from All Our Power in early May. Their signs and chants urged passersby and Occupiers alike to join their member base to amass a group 10 million strong. As the movement continues to swell in size and influence, the group intends to secure lower prices, significant discounts and long-term contracts for all members -- and membership is free. "With these kinds of numbers, we can truly bring negotiating power to make huge corporations concede to the needs of individual consumers," explains Joe Kalfa, founder of All Our Power. "Our plan is to hold a bunch more rallies in the coming months across the U.S. Our movement is a solution that bridges the gap between the 1 percent and the rest of us. To learn more about joining All Our Power and receiving significant discounts at no charge, visit www.allourpower.com.

Dallas Financial Expert Urges Consumers to Communicate

NewsUSA — Wed, 09 May 2012 16:50:48 +0000

(NewsUSA) - Communication is a necessary foundation for any good relationship, even the one you have with your financial professional. Regular meetings and connecting through conversation, not just email, create the basis for trust that will sustain your relationship and, ultimately, enable a promising financial future. Few people are comfortable "getting personal" in the beginning of a relationship. A good financial professional will be able to put you at ease and work to develop a financial plan that will achieve your goals. He or she will want to know about your income, savings, debt and life insurance coverage. Your attitude toward risk, different types of investments, need for security and financial priorities will also be examined. In preparation for your meeting, you should be ready to discuss these subjects. Life events: A new baby, job loss or purchase of a home affect your finances and should prompt conversations with your financial advisor. Market fluctuation: While the recent economy has instructed investors to stay the course, it's important to address any concerns you have about the short- and long-term effect on your portfolio. Tax law: During the first quarter of the year, ask your financial professional about any changes to the tax code that could affect you. College funding: If you have children, don't be reticent about reviewing your strategy for saving for higher education. Life insurance: Ask your financial professional to evaluate the amount of coverage you have and whether your policy aligns with your needs and goals. Regular conversations are key. It's important that you set the expectations for the kind of relationship you desire with your financial professional. Because your financial plan should not be a "once and done" transaction, you'll want to set up regular visits to address any changes in your life that would affect your plan. You might be satisfied with once-or-twice-yearly meetings, but a quarterly check-in wouldn't be excessive. Finally, make sure your financial professional's goals are aligned with yours. To find a qualified financial professional, please visit www.Pennmutual.com or contact Frances R. Gardner, CFP, CFEd, CDFA, of ARMOR Wealth Management in Dallas, T.X., at (972) 980-9600.

Refinancing from an ARM to a Fixed-Rate Mortgage – Watch-It Wednesday

Eric Mally — Wed, 09 May 2012 15:14:28 +0000

Watch-It Wednesday is back and at it with another informative three minutes for everyone who wants to gain more knowledge and insight into the mortgage world out there.

This week, my main man Bryan Lyons, a former Home Loan Expert with several years of experience, sat down to talk with me about the pros and cons of refinancing from an adjustable rate mortgage to a fixed-rate mortgage.

That’s a very valid question to be asked – if you have an adjustable rate mortgage of around 2.80 percent, why should you want to refinance to a fixed rate in the 3.80 percent to 3.90 percent range?

Bryan also chimes in on why now is the best time ever to lock in to an amazingly low mortgage rate or refinance to try and keep some more cash in your pocket.

Check out the video below, and if you can’t view it, click here.

Refinancing to a Long-Term, Fixed-Rate Home Loan Makes Sense

Shannon Martin — Wed, 09 May 2012 15:08:14 +0000

So, you’ve probably heard by now that mortgage rates are at historic lows – again. People everywhere have been saying that now is a great time to refinance to a fixed-rate mortgage. And it could very well be – especially if you’ve currently got an adjustable rate mortgage.

As always, there are things you’ll need to qualify for refinancing to these record-breaking low mortgage rates. Our Home Loan Experts are happy to help walk you through the qualification process and the different loan options that would best fit your individual situation and needs.

In the meantime, check out what Kiplinger has to say about refinancing right now:

The 30-year fixed-rate mortgage is one of the great gifts to the American middle class,” says Mark Helm, a planner at Helm Financial Advisors in Falls Church, Va. No one is suggesting that you load up on debt you can’t afford, but a long-term mortgage at a fixed rate so low you’re unlikely to see it again in your lifetime can work to your advantage.

Next, consider the tax break. Someone in the 28% tax bracket with a 30-year mortgage at 4% will average more than $1,300 a year in tax savings over the life of the loan, according to Bankrate.com, whittling the after-tax mortgage rate to 2.9%. Nothing in the stock or bond markets is guaranteed, but a well-balanced portfolio has a good shot of beating that rate of return in the long term, especially in a tax-advantaged account.

Read the entire article here.

And check out this helpful video from MSN to learn more about how refinancing now could help you save money.

Visit msnbc.com for breaking news, world news, and news about the economy

First-Time Home Buyer Tips and Tools

Shannon Martin — Fri, 04 May 2012 20:59:18 +0000

It’s time to buy your first home! Hooray! This is a big deal and a major milestone in your life. It’s definitely not something to do on a whim. There are a gazillion things you should know before you take the plunge.

We want to make sure you have all the information you need to make a smart decision, not only on which home is the best choice for you, but also on which financing option will best fit your unique situation.

Our own Clayton Closson wrote a very helpful post a few years ago, and much like the man himself, it is still relevant today. Did he use a few words you haven’t heard before? Check out our mortage glossary for a quick explanation.

We’re obsessed with finding a better way to do things. Because of this, we’ve added a new section to Zing! to help you, our dear readers, find your way through the maze of financing your home. Check out our Learning Center, which can be found through a tab on the Zing! homepage.

Still looking for a real estate agent? In-House Realty will pair you with an experienced agent who is knowledgeable in your area, and that suits your personality and house-hunting style. Speaking of realtors, did you know things you say to your realtor could slow down the process?

Already out looking at houses? We’ve got an app that can help you keep track of your options. Try out our Mortgage Calculator to figure out monthly mortgage payments, take pics of homes you see, and compare your options side by side. But, that’s not all this app can do – see for yourself!

Let’s see here… There’s so much to tell you. Fellow Zinger Gabriela is currently shopping for a new home and has been writing a series about her experiences. Try these subjects for starters: home inspections, appraisals, making an offer, new construction vs. older homes. She even lists top websites for home buyers. She’s been there and done that, so learn from her experience!

And, mortgage rates just hit record lows again today! You’ve picked the best time to buy your first home. If you’ve been waiting for a sign that you should take the plunge, you got it!

Don’t forget, we’re America’s Home Loan Experts! We’re here to help you out through this entire process – from your pre-approval to your closing. Give us a call today at (800) 687-0522, and we’ll get you started!