High Balance Loan Limits Set to Expire
June 22, 2011
On 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
Bankrate.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:
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.
Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
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