High Balance Loan Limits Set to Expire

June 22, 2011

High Balance Loan LimitsOn September 30, 2011, the high balance loan limits are set to expire.  Currently, for “high cost” areas, the high balance loan limit is set at $729,750.  This limit was originally established as part of the Economic Stimulus package of 2008. This amount will be adjusted down to $625,500 for high cost areas. This reduction in the high balance loan limit could have dramatic impacts. Loans could be subject to tighter credit conditions.  

For one, the interest rate you are securing will most likely be at a higher amount.  For example, if you are shopping for a home and have determined that you will need a loan amount between $625,500 and $729,950 that loan will now be secured at a higher interest rate.  As of this article, a jumbo loan rate is about ½% higher than a conforming 30 year fixed rate according to Bankrate.com.

Another impact is that a loan over the $625,500 mark will require a down payment of at least 20%.  The option to put less than 20% down for loans between $625,500 and $729,950 will be no longer.

Both factors could mean weaker demand for homes in the high cost markets.  This eventually could lead to downward pressure on prices.

Mortgage Rate Update Ending 11/18/10

November 18, 2010

Interest RatesBankrate.com  conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s the outcome for 11/18/2010:

  • 30 Year Fixed Rate: 4.62 percent
  • 15 Year Fixed Rate: 4.02 percent
  • 5/1 ARM (Adjustable): 3.71 percent 

According to the Mortgage Bankers Association:

The financial markets globally have been impacted by a highly negative response globally to the Federal Reserve’s “QE2″ program.  This program is designed to pump money into the American banking system. Earlier this week, global markets also were rocked by a financial crisis in Ireland.

Although the U.S. housing market remains in a slump, the National Association of Realtors said this week that half of the metro areas it tracks showed modest home price increases in the third quarter. However, the national median price for existing single-family homes was little changed, dropping to $177,900 in the third quarter compared to $178,200 in the third quarter of 2009.

Mortgage Rate Update Ending 8/19/2010

August 23, 2010

Bankrate.com  conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s the outcome for 8/19/2010:

  • 30 Year Fixed Rate: 4.63 percent
  • 30 Year Fixed Rate Jumbo: 5.26 percent
  • 15 Year Fixed Rate: 4.11 percent
  • 5/1 ARM (Adjustable): 3.95 percent
  • 1 Year ARM (Adjustable): 4.80 percent 

According to the Mortgage Bankers Association:

  • Mortgage applications rose 13 percent when compared to a week earlier
  • Refinance applications shot up 17.1 percent when compared to a week earlier
  • Applications for new purchases fell 3.4 percent

Mortgage Rate Update Ending 05/06/10

May 10, 2010

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s this week’s outcome:

  • 30 Year Fixed Rate: 5.12 percent
  • 30 Year Fixed Rate Jumbo: 5.94 percent
  • 15 Year Fixed Rate: 4.49 percent
  • 5/1 ARM (Adjustable): 4.31 percent
  • 1 Year ARM (Adjustable): 4.91 percent 

Mortgage applications rose.

Applications for new purchases jumped.

Refinancing activity slipped.

Pending home sales rose.

Mortgage Rate Update Ending 01/20/10

January 21, 2010

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s this week’s outcome:

  • 30 Year Fixed Rate: 5.15 percent
  • 30 Year Fixed Rate Jumbo: 5.93 percent
  • 15 Year Fixed Rate: 4.56 percent
  • 5/1 ARM (Adjustable): 4.63 percent
  • 1 Year ARM (Adjustable): 4.92 percent 

Mortgage applications rose compared to a week earlier, according to the Mortgage Bankers Association.

Refinancing activity surged and applications for new home purchases increased.

Mortgage Rate Update Ending 08/19/09

August 26, 2009

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s this week’s outcome:

  • 30 Year Fixed Rate: 5.52 percent
  • 30 Year Fixed Rate Jumbo: 6.44 percent
  • 15 Year Fixed Rate: 4.84 percent
  • 5/1 ARM (Adjustable): 4.86 percent
  • 1 Year ARM (Adjustable): 5.19 percent 

Mortgage applications were higher for the week for new purchases and resale.  Refinancing activity also rose, according to the Mortgage Bankers Association.

According to RealtyTrac, foreclosure activity was up 7 percent during July. One in every 355 U.S. housing units received a foreclosure notice during the month.

Mortgage Rate Update Ending 07/01/09

July 5, 2009

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s this week’s outcome:

  • 30 Year Fixed Rate: 5.7 percent
  • 30 Year Fixed Rate Jumbo: 6.91 percent
  • 15 Year Fixed Rate: 5.07 percent
  • 5/1 ARM (Adjustable): 5.17 percent
  • 1 Year ARM (Adjustable): 5.17 percent 

Additional news centered around the government’s plan to expand the number of people who will be eligible for mortgage refinancing.  Under the Making Home Affordable plan, homeowners will now be allowed to refinance for up to 125 percent of their homes’ values (previously set at 105 percent of value).

Mortgage Rate Update Ending 05/06/09

May 7, 2009

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s this week’s outcome:

  • 30 Year Fixed Rate: 5.27 percent
  • 30 Year Fixed Rate Jumbo: 6.68 percent
  • 15 Year Fixed Rate: 4.78 percent
  • 5/1 ARM (Adjustable): 5.07 percent
  • 1 Year ARM (Adjustable): 5 percent 

Mortgage application activity rose slightly for the week ending May 1 according to the Mortgage Bankers Association. Refinancing activity edged up 1.2 percent while applications for new purchase rose 5 percent. Pending home sales for March rose 3.2 percent, according the National Association of Realtors.

Mortgage Rate Update Ending 02/25/09

March 3, 2009

Bankrate.com  conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s this week’s outcome:

  • 30 Year Fixed Rate: 5.41 percent
  • 30 Year Fixed Rate Jumbo: 6.87 percent
  • 15 Year Fixed Rate: 4.93 percent
  • 5/1 ARM (Adjustable): 5.4 percent
  • 1 Year ARM (Adjustable): 5.58 percent 

Mortgage loan application and refinancing activity fell,  while applications for new purchases dropped 2.6 percent. Home prices fell 18.2 percent in the final quarter of 2008.  This is compared with the same period a year earlier.

Mortgage Rate Update Ending 01/14/09

January 18, 2009

Bankrate.com  conducts a weekly national survey on the interest rates for the five most common consumer banking products.  Here’s this week’s outcome:

  • 30 Year Fixed Rate: 5.28 percent with points averaging: 0.42
  • 30 Year Fixed Rate Jumbo: 7.07 percent
  • 15 Year Fixed Rate: 4.89 percent
  • 5/1 ARM (Adjustable): 5.51 percent
  • 1 Year ARM (Adjustable): 6.13 percent 

Fixed-rate mortgages continued their decent toward record lows this week.  Refinancing activity was at levels similar to those found back in mid 2003. Activity increased 25.6% from the previous week.

Foreclosure postponements for Fannie Mae and Freddie Mac borrowers have been extended for an additional three weeks. The postponement should be valid through January 31.

As the economy worsens, more foreclosures and short sales will continue to drag home prices down.  The main culprits creating a worse housing condition are the poor economy and subsequent rising unemployment.

Next Page »

Disclaimer: The information contained in this website is for general guidance on matters of interest only. Each post is solely the work of the author and constitutes only his opinion. The views expressed in this website are those of the author. Comments left by visitors to this website are the sole responsibility of that individual. The author does not endorse these comments and will not be held accountable for the comments left by others. Any and all information and advice given does not constitute and is not to be construed as legal advice, tax advice, debt counseling, bankruptcy advice, or other professional advice and services.

There may be delays, omissions or inaccuracies in information contained in this site due to the altering nature of laws, rules, regulations, prevailing credit markets and economic conditions, as well as the intrinsic hazards of electronic communication. This website should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers.

LOAN MITIGATION ADVOCATES IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS, OR FOR THE RESULTS OBTAINED FROM THE USE OF THIS INFORMATION. ALL INFORMATION IN THIS SITE IS PROVIDED "AS IS", WITH NO GUARANTEE OF COMPLETENESS, ACCURACY, TIMELINESS OR OF THE RESULTS OBTAINED FROM THE USE OF THIS INFORMATION, AND WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO WARRANTIES OF PERFORMANCE, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT WILL LOAN MITIGATION ADVOCATES BE LIABLE TO YOU OR ANYONE ELSE FOR ANY DECISION MADE OR ACTION TAKEN IN RELIANCE ON THE INFORMATION IN THIS SITE OR FOR ANY CONSEQUENTIAL, SPECIAL OR SIMILAR DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Certain links in this site connect to other Web sites maintained by third parties not related to Loan Mitigation Advocates and over whom Loan Mitigation Advocates has no control. Loan Mitigation Advocates makes no representations as to the accuracy or any other aspect of information contained in other websites.


Copyright © 2008 - Loan Mitigation Advocates - LoanMitigationAdvocates.com