Houston Refinance
Refinancing in Houston area
Posts tagged interest rates
Mortgage Interest Rates at Record Low
Nov 12th
Bankrate.com mortgage analysis showed that mortgage interest rates are at its lowest. For those in Houston looking mortgage refinance, the rates has never been lower. Interest rates are in a near record low. Fannie Mae and Freddie Mac have been tightening lending standards for more than 2 years to prevent loans to be given out poorly. They are planning to launch a new underwriting software to help loan decision making easier called Desktop Underwriter or DU 8.0. The projected launch date for the Desktop Underwriter 8.0 is Dec 12th. Fannie Mae has also raised the minimum allowable credit score from 580 to 620. However, there is no minimum credit score for refinancing under Obama administration’s Home Affordable Refinance Program.
Mortgage rates are near historic lows, but lenders continue to make it harder to get a home loan.
The benchmark 30-year fixed-rate mortgage fell 16 basis points, to 5.19 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.38 discount and origination points. One year ago, the mortgage index was 6.39 percent; four weeks ago, it was 5.32 percent.
The benchmark 15-year fixed-rate mortgage fell 11 basis points, to 4.61 percent. The benchmark 5/1 adjustable-rate mortgage fell 6 basis points, to 4.58 percent.
The 30-year fixed hasn’t been this low since Bankrate’s April 15 survey, when it fell to 5.18 percent. In the 24-year history of Bankrate’s weekly survey, the all-time low was 5.13 percent, ;which was on April 1 this year.
Source:Bankrate.com
5 Reasons to Refinance Your Mortgage
Nov 2nd
With the current economic conditions, everyone’s wallets are very tight. The upside to this economic downturn can be found in your mortgage payments to help improve your cash flow. Here are the five reasons to refinance your mortgage.
- Interest rates are currently at an all-time low, but when the economy starts picking up again, which it will, interest rates will continue to rise. So the longer you wait, the higher the interest rates will get. The lower your interest rate, the more cash you will have in your hands.
- With interest rates being this low, its a good idea to change your loan program. For those who has ARM(Adjustable Rate Mortgage), you should probably switch to FRM(Fixed Rate Mortgage) because it is highly unlikely that mortgage rates will be as low as it is today.
- With lower interest rates, you will have lower monthly payments. If you can maintain the same monthly payment, with a lower interest rate, you will be able to build equity faster.
- Refinancing your mortgage term from 30 year loan to 15 year loan might also be more affordable with lower interest rates. The lower your mortgage term, the faster you can pay off your mortgage.
- Your equity will continue to rise in a much faster rate, this will allow you to pay off your child’s college tuition, pay off credit card or buy yourself a nice vacation home you’ve always wanted.
