April 17th, 2009 by jayblogger
The average 30 year fixed rate mortgage should close the week around 4.85%. This is slightly above the all time low of 4.71% posted the week of April 2, 2009.
Ten years ago the average rate was 6.92%. The all time high was 18.45% in October 1981. Can you imagine that!!!! To get an idea of the pricing impact: Assume that you are in need of a $250,000, 30 year, fixed rate mortgage. At 4.85% the monthly principal and interest payment would be $1,319; at 18.45% the payment would be $3,860 a difference of $2,541. That’s about $440,000 more in interest over the life of the loan!!!!
Unfortunately for home builders and sellers these historically low rates have not translated into a significant increase in home sales. There was an article on MSN today titled “Ten companies that could go bankrupt” (http://articles.moneycentral.msn.com/Investing/Extra/10-companies-that-may-go-bankrupt-this-year.aspx?page=2). One of these companies was Beazer Homes, one of the largest homebuilders in the country.
In recent months 80% of home loan applications were from borrowers seeking to refinance. In March alone Fannie Mae refinanced $77 billion in loans. This was almost twice February’s refinancing volume and the most in in one month since 2003.
Keep in mind that qualifying for a home loan remains tough. The 4.85% rate is only available to those with the very best credit.
Tags: askmeme, homewowners connect, loan modifications, mortgage news, mortgages, refinancing
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April 7th, 2009 by jayblogger
I read several articles today in regards to scam artists (i.e. crooks!) taking advantage of homeowners attempting to save their homes from foreclosure. One article was in the St. Petersburg Times while the other was in the L.A. Times.
The St. Pete article stated that federal and state officials are cracking down on modification scams that take advantage of desperate homeowners. The article stated that scammers take advantage of borrowers in danger of default by charging them upfront fees of up to $3,000 for help with loan modifications. On Monday the Illinois attorney general urged people to stay away from anyone who offer to save their home by charging an upfront fee.
The L.A. Times reported that the California attorney general pledged to investigate and prosecute, when appropriate, companies that fraudulently charge homeowners fees to help get more favorable refinancing terms. The attorney general stated there is no need to pay fees to consultants offering to persuade a lender to relax payment terms.
At the same congressional hearing held at Los Angeles Southwest College, Rep. Maxine Waters (D-Los Angeles) stated “Don’t pay anybody for mortgage modification,” Waters said. “Call your bank and tell them you want it.”
I noticed that there are a couple of blogs on askmeme.com, the homeowners info website, that provide homeowners with tips on how to negotiate with their lenders as well as other tips on how to obtain free help in this area. It appears free help is available from government-approved housing counselors. You may want to check out the site before you seek outside help it may say you $$$
Tags: askmeme, credit counselors, government approved counselors, homeowner alert, homeowner counseling, loan modifications, mortgage alert, mortgage schemes, mortgages, refinancing, refinancing scams
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March 28th, 2009 by jayblogger
Welcome to Homeowners Connect Social Network. This is your first post. Edit or delete it, then start blogging!
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