Refinance News

According to recent Freddie Mac numbers, mortgage rates for both the 30 year and 15 year have hit records lows. Rates on the 30 year dropped to 3.75% and rates on the 15 year decreased to 2.97%.

However, many people are finding it difficult to refinance. Guidelines have tighten up and lenders have become very restrictive on who qualifies for a mortgage. Just because its difficult doesn't mean its impossible to refinance. Although one bank may have turned you down doesn't mean another will. Here is a list of some mortgage companies and mortgage brokers that have been able to help people in difficult situations.

IFG Mortgage Corp - Pennsylvania Mortgage Company
Ross Home Loans - Miami Florida Mortgage Company
Downs Financial - Colorado Mortgage Company
North Florida Mortgage - Jacksonville Mortgage Company

Don't worry if you don't see a mortgage company that's in your area. Many of these companies service multiple states. Also, feel free to contact us and we can put you in touch with reputable mortgage companies that can assist you.

The National Association of Realtor said that home sales dipped 3.8% from the prior month. Sales of previously owned U.S. homes fell to a six-month low in May and prices dropped 4.6%. This can be a pretext to a second real estate down turn. This should concern homeowners interestest in refnancing because lenders may be more hesitant lendng money. Also, homeowners are going to find that their equity in their homes are decreasing which may make it more diffcult to qualify with ltv guidelines.

Take advantage now while you can. Rates are low so homeowners that can qualify may find this an oppertune time to refinance.

Mortgage rates continue to climb to their 5 month high as investors sell treasuries. This past week rates increased .15% to 4.61% on the average 30 year mortgage. The previous 30 year average was 4.46%. Many borrowers that haven't taken advantage of these records low rates are still scrambling to qualify for a mortgage. Borrowers should speak with their mortgage professional to see if they can qualify and whether they are able to save money refinancing their present mortgage.

Mortgage applications fell last week .09%. While purchase applications increases 1.8%, refinance applications, which are a greater portion of the mortgage application universe, decreased 1.4%.

The increase in the purchase applications is a good sign but it may only be a one time occurrence. It may not be a sign of a strengthening real estate marketing. We will have to wait for more numbers to see if purchase applications continue to trend upwards. Expect refinance applications to fall if mortgage rates continue to rise.

Mortgage rates are close to an all time low yet borrowers are reluctant to take advantage of these historic rates. Even with rates averaging 4.8% for a 30 yr mortgage, refinance applications dropped for the first time in this month.

There are a variety or reasons affecting this mortgage market. Many homeowners are may be just tired of this refinance roller coaster. Homeowners have already refinanced recently and although these rates are attractive and could potentially save them money over the long term don't want to concede that they may have spent money for no reason if they refinance again. Some homeowners are underwater and unable to refinance or have damaged credit due to the downturn in the economy. Whatever the reason, borrower should consider numbers before making a decision to refinance. If they are able to save money by refinancing they should contact their mortgage professional to review their options. It's unlikely that these rates will be this low for long and its probably just as unlikely that we'll be seeing these rates again any time in the near future.

Existing home sales dropped .06% in Feburary to 5.02 million annual rate. This is the third straight month that purchase market has fallen. It is also the largest decrease in 8 months signifying a slower than expected recovery. Adding to the issue, houses for sale increased 312,000 to 3.59 million from January. The increase marked the greatest increase in homes for sale since April 2008.

The increasing home inventory is having an adverse affect for borrowers attempting to refinance. Typically, the more inventory on the market the lower home values will go. As home values depreciate homeowners' equity will decrease. As a borrowers loan to value (loan amount/home value) increases, their refinancing options decrease.

Although, it may become exceedingly difficult for homeowners with high ltv's to refinance, it doesn't mean that it's impossible. There are still options available for homeowners with high ltv's such as FHA loans. Some borrowers can obtain financing up to 97% through the FHA loan program. Depending upon a borrowers specific situation there may be other options as well. 

Feel free to contact me about different options available to you.

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