Recent News

How To Find Interest Only Mortgages In An Amortizing Mortgage World

Starting next week, Fannie Mae is putting major restrictions on the popular "interest only" loan product. This follows Freddie Mac's earlier announcement to discontinue interest only loans entirely.

How Shopping For Mortgage Rates Is Like Shopping For A Suit

When people visit national mortgage sites for "rates", what they're looking is for something akin to a MSRP for Mortgages; a way to keep their lender honest about rate quotes and such. Sadly, markets don't work that way. You can't visit a national website for a single mortgage rate any more than that you could watch a national forecast for a single weather report.

Mortgage Rates Are Range-Bound And, Therefore, Are Doomed To Rise

Mortgage rates are rising. 5 percent, 30-year fixeds will be here soon. It's apparent with just one look at a chart going back 16 months.

There Is A 1.03% Interest Rate Spread Between Adjustable Rate Mortgages And Fixed Rate Mortgages

It's a common question with rate shoppers. Which is better? A fixed rate mortgage or an adjustable rate mortgage? In short, it depends. And the chart at top shows why. ARMs And Fixed Rates Don't Move In Unison Mortgage rates are based on the price of mortgage-backed bonds, a group of securities bought and sold […]

Mortgage Rate Velocity Accelerates In April; Rates Change Every 4 Hours, 6 Minutes

In April, mortgage pricing crossed the threshold every 4 hours, 6 minutes, on average. For rate shoppers, it means that the rate quote you got this morning -- from your loan officer, from your bank's website, or from wherever -- is 100% useless to you by the time this afternoon rolls around.

Greek Debt Concerns Are Dropping Mortgage Rates For Home Buyers And Refinancing Households

Default concern is now spilling beyond the Greek border to the rest of the PIIGS -- Portugal, Ireland, Italy and Spain. Contagion mentality has set in. Markets have moved into Safe Haven mode. It's helping mortgage rates fall but it won't last forever.

The Federal Reserve Does Not Set U.S. Mortgage Rates

The Federal Open Market Committee starts a 2-day meeting today, one of 8 scheduled meetings for the year. Bernanke & Co. are expected to leave the Fed Fund Rates unchanged after the meeting, but that doesn't mean mortgage rates will be unchanged, too. Au contraire, mortgage rates will be all over the place.

Adjustable Rate Mortgages Are An Absolute Steal Right Now. Have You Checked The Rates Lately?

Home buyers would be silly to not at least consider the 5-year ARM right now. As compared to the 30-year fixed, the 5-year ARM is an absolute steal.

Planning To Use The $8,000 Tax Credit? It’s Time For A Re-Pre-Approval.

If your pre-qualification and/or pre-approval letter is more than 8 weeks old, get yourself "re-pre-approved". Mortgage guidelines have been in flux and your original lender letter may now be invalid.

The Mortgage Rate Roller Coaster

Ride the mortgage rate roller coaster. Literally.

Spring 2010 FHA Changes : Higher Fees, Bigger Downpayments, And More Mortgage Insurance

Life as an FHA borrower is getting tougher. In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority is rolling out sweeping financial changes. FHA borrowers have to look better on paper and be better credit risks. Mortgage insurance premiums are rising, too.

The Lowest Mortgage Rates of 2010 Will Be Locked In March And April

Mortgage rates tend to climb with the mercury. It's been the case in each of the last 3 years. As spring months turn into summer, the average 30-year fixed mortgage rate rises. This year should be no different.

A Real Estate And Mortgage Technology Conference You’ll Want To Attend

A fair number of my readers are mortgage- and/or real estate-related businesses. Consider this a public service announcement. REtechSouth is March 25-26, 2010 in Atlanta -- 4 weeks away. This is a show you should make time for.

Mortgage Markets Pass The Tipping Point; Mortgage Rates Up For Good?

Thursday, shortly after the markets closed, the Federal Reserve announced a 25 basis point increase to the Discount Rate. The Discount Rate is now 0.750%. Mortgage markets are selling off on the news. The Era of Low Mortgage Rates may be officially over.

You Can’t Get Your Mortgage News From A Newspaper. And Here’s The Proof.

There's a reason why everyone from first-time home buyers to bona fide investors hate the mortgage process -- the media tells them one thing about mortgage rates, and in-the-game loan officers tell them something else.

The Crystal Ball : Housing Market, Mortgage Rates, FHA Guidelines, And Investor Overlays

I gave a television interview with Beejal Patel of First Business this week and we covered a lot of ground topics like housing, mortgage rates, and the FHA.

FHA Mortgage Insurance Premiums : Don’t Confuse The FHA’s Wish List For Your Own Reality

This is a snippet from page 348 of the Special Topics sub-section in the 2011 Congressional Budget. It recaps the new FHA mortgage insurance guidelines for case numbers assigned after April 5, 2010. It also shows the FHA's request to have authority over its mortgage insurance premiums from Congress. According to the highlighted text, the FHA wants make two changes, pending congressional approval.

The Bankrate Mortgage Rate Trend Index Was Less than 25% Accurate In 2009

If you want to know where mortgage rates are headed in the future, you may be better off ignoring the experts. I conducted a 50-week study of the popular Mortgage Rate Trend Index and it showed that the "expert consensus" on mortgage rates is wrong 3 times more often than it's right. That's not good.

The Future Of Mortgage Rates, Jumbo Mortgages And Portfolio Lending

Tuesday, I asked my Twitter friends what mortgage questions they'd like to have answered. I picked 3 replies and pushed it to video.

Foreclosure Distribution In The United States (2005-2009)

Clearly, some states are more foreclosure-heavy than others. And always have been.