Lower Rates Stimulate Refinancing

Borrowers come out of the woodwork when interest rates drop. That is why the market is in a mad rush to refinance — as a result, refinance volume is now at the highest level in over a year.

Recent increases have jumped 8%, according to the Mortgage Bankers Association. Refinances were entirely behind the gains Borrowers with larger loans tend to be more sensitive to a drop in rates, because they stand to benefit more from refinancing.

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Is an FHA Loan Right for You?

FHA loans have become very popular for mortgage borrowers for many reasons. Primarily the require a lower down payment and the lending standards are not as restrictive as many other types of home loans.

FHA loans are insured by the Federal Housing Administration. By paying for mortgage insurance, the lender is protected from a loss should a borrower default on the loan. For many the extra cost is worth it to be able to get financing. (more…)

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Low Credit Scores Keeping You Out of the Market?

Many consumers with low credit scores fear being denied a loan so they simply not bother applying for a mortgage. But, while you’ll still have to provide proof of your income and assets and an explanation of your low credit score, it is possible to get a mortgage with a low credit score from some lenders.

Yes, your credit score is a part of the qualification process, but it’s not the whole piece of the pie.


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Spring Housing Market Begins

Presidents Day is traditionally the start if the Spring Housing Market but reports from many sectors indicate that buyers may not have a lot of homes to choose. Many factors influence the market, including consumer confidence, the stock market, and shortages in available land to build on and lack of labor in some areas.

The HMI component measuring sales expectations in the next six months did rise, by 1 point to 65.  The index measuring current sales conditions was down three points to 65 and the component charting buyer traffic dropped sharply by five points to 39. That last number matched the 2015 traffic component as the most recent index low.  If this is the Spring you plan to buy, don’t let the grass grown under your feet.

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When applying for a mortgage, be sure disclosures are sent to you as required by the Federal Truth In Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA) and other federal and state laws. These disclosures include details of your cost of credit, good faith estimates of your settlement costs, certain HUD mandated booklets, notice that your mortgage loan servicing may be transferred and your right to a copy of any appraisal performed on your home. The Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of the applicant's income derives from any public assistance program, or because the applicant has, in good faith, exercised any right under the Consumer Credit Protection Act. The Federal Trade Commission administers compliance with these laws and may be contacted at: The Federal Trade Commission, Equal Credit Opportunity, Washington, D.C. 20580.

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