For those of you located in states that have already transitioned onto the Nationwide Mortgage Licensing System (NMLS), you are probably already intimately familiar with the new NMLS. However, if you are not licensed in one of the 23 states that have transitioned or are in the process of transitioning on to the NMLS, you may be asking yourself, "What exactly is the Nationwide Mortgage Licensing System?"
There are many different rumors going around. Some people are saying that the Nationwide Mortgage Licensing System (NMLS) will replace licensing with each individual states. Others are saying that the NMLS will allow you to get one Loan Originator License to be able to originate in all states. Although some of the rumors out there have partial truths to them, we prefer to know the actual truth. So what is the NMLS?
The NMLS is a database. That's it. It does not change any state mortgage licensing requirements. It does not reduce what states require to obtain a license. It also does not eliminate the requirement to be licensed separately in each state. The NMLS only acts as a central repository for the gathering of information for the procurement of a state mortgage license. The only current benefit to the NMLS is that when you apply for a license in a new state, you don't have to fill out a new form for each new state listing the information that the NMLS collects in it's database. This is the only benefit at this time. Since each state has access to the NMLS database, you only have to edit your record to show that you want to apply for a license in a new state, and the state then has access to your information. Although the NMLS gathers a lot of information, it doesn't gather all of it. Each state still requires numerous documents to be sent by paper outside of the NMLS to the states themselves. The only way that the licensing process will become easier is if the states actually change their laws to make the process more streamlined, less expensive, and more similar to other states.
The NMLS does have some other proposed benefits that have not been put in place yet. In the next 2 to 3 years, the NMLS proposes to make the initial and continuing education requirements for each state more reciprocal. Basically, the NMLS plans to start tracking completion of education courses, and plans to work with states so that if you take an education course for one state, it will cross-certify or count for the other states that you need education in. However, this again must be approved by the state legislatures before the states can allow reciprocity between courses.
To make it as simple a possible, the NMLS is a way to reduce the amount of paperwork required to be duplicated for each state, but it does not change any laws with each state. For the NMLS to work the way it was intended, each state needs to begin working together better to eliminate the duplication and overwhelming time consuming process of licensing in each state.
Steven Sheasby, founder of Integrity Mortgage Licensing and Ionic Water for Health. Steven has worked with numerous mortgage companies with licensing across the country. He has managed multiple compliance departments for nationwide lenders and brokers. His experience in mortgage licensing and other mortgage regulatory compliance issues has given him the inside track for dealing with the states. Steven also has provided the most advanced technology for creating Alkaline Water through his company Ionic Water for Health Contact Integrity Mortgage Licensing or Ionic Water for Health at 714-721-3963 or ssheasby@integritymortgagelicensing.com and steven@ionicwaterforhealth.com Or Visit his websites at http://www.integritymortgagelicensing.com and http://www.ionicwaterforhealth.com
Article Source: http://EzineArticles.com/?expert=Steven_Sheasby
Sunday, 22 March 2009
How to Ask For a Mortgage Rate Reduction
Asking for a mortgage rate reduction can be tricky business. What lender in their right mind would give you more favorable terms on a contract that you already signed off on? The kind of bank that isn't sure that they have their "i's" dotted and their "t's" crossed, that's what kind!
Asking for an interest rate reduction is still not a simple process. It often takes as long as 6 months for the entire process to take effect and in the interim you can expect to be expected to pay the original rate. Many times, banks won't even work with borrowers until they are delinquent on payments and almost in default. It's only then that the bank realizes that the borrower may indeed be losing their home and in fact needs a mortgage rate reduction. There is a better way, though.
Attorney based loan modification companies are the powerhouse of the loan modification industry. Instead of asking for a mortgage rate reduction, attorneys flex their muscles a little and demand a rate reduction for their clients. This is much more effective.
A few ways that this is accomplished are:
An attorney sends out a QWR to the lender. A QWR is a written legal document that in effect sepinas the file for review. This lets the bank know that we mean business. It means that the lender must go through their files and send the attorney the originally signed documents from closing for forensic auditing.
Also, an attorney will send out a letter of representation to the borrower's bank letting them know that they have obtained council. This in turn takes away the ability of the bank to use high pressure techniques to pressure the borrower into paying their inflated mortgage payments. It also removes the right to report to the credit rating agencies while the case is under review. And, in most cases, this can also stop, or at least delay, a foreclosure sale or trustee sale. At this point, any and all correspondence with the bank must be done through the borrower's representative (the attorney).
During the paper filing stage, an attorney generally uses a forensic accountant to go through the original documentation and look for errors and signs of predatory lending. [As a side note, I'll tell you that in my office, on average we're finding 9 errors per loan.] Once the forensic accountant is done finding errors the attorney can go back to the bank, only this time they'll have a little leverage to negotiate with. You see, every error on a file could cause the bank a fine of up to $2000 per occurrence. So, you can see the amount of leverage this brings to the table.
At this point, there is a significantly greater chance that the lender will grant a mortgage rate reduction, and sometimes, mostly on second mortgages, even a principal reduction for the borrower.
For more information on how you can ask your bank for a mortgage rate reduction, please visit http://www.modification4loans.com
We help home owners renegotiate the terms of their loans. Our service is NOT credit driven and does not require that a borrower be behind on their mortgage. For more information on how we can help you lower your monthly payments and keep your home from foreclosure, please visit: http://www.modification4loans.com
Article Source: http://EzineArticles.com/?expert=James_Stickel
Asking for an interest rate reduction is still not a simple process. It often takes as long as 6 months for the entire process to take effect and in the interim you can expect to be expected to pay the original rate. Many times, banks won't even work with borrowers until they are delinquent on payments and almost in default. It's only then that the bank realizes that the borrower may indeed be losing their home and in fact needs a mortgage rate reduction. There is a better way, though.
Attorney based loan modification companies are the powerhouse of the loan modification industry. Instead of asking for a mortgage rate reduction, attorneys flex their muscles a little and demand a rate reduction for their clients. This is much more effective.
A few ways that this is accomplished are:
An attorney sends out a QWR to the lender. A QWR is a written legal document that in effect sepinas the file for review. This lets the bank know that we mean business. It means that the lender must go through their files and send the attorney the originally signed documents from closing for forensic auditing.
Also, an attorney will send out a letter of representation to the borrower's bank letting them know that they have obtained council. This in turn takes away the ability of the bank to use high pressure techniques to pressure the borrower into paying their inflated mortgage payments. It also removes the right to report to the credit rating agencies while the case is under review. And, in most cases, this can also stop, or at least delay, a foreclosure sale or trustee sale. At this point, any and all correspondence with the bank must be done through the borrower's representative (the attorney).
During the paper filing stage, an attorney generally uses a forensic accountant to go through the original documentation and look for errors and signs of predatory lending. [As a side note, I'll tell you that in my office, on average we're finding 9 errors per loan.] Once the forensic accountant is done finding errors the attorney can go back to the bank, only this time they'll have a little leverage to negotiate with. You see, every error on a file could cause the bank a fine of up to $2000 per occurrence. So, you can see the amount of leverage this brings to the table.
At this point, there is a significantly greater chance that the lender will grant a mortgage rate reduction, and sometimes, mostly on second mortgages, even a principal reduction for the borrower.
For more information on how you can ask your bank for a mortgage rate reduction, please visit http://www.modification4loans.com
We help home owners renegotiate the terms of their loans. Our service is NOT credit driven and does not require that a borrower be behind on their mortgage. For more information on how we can help you lower your monthly payments and keep your home from foreclosure, please visit: http://www.modification4loans.com
Article Source: http://EzineArticles.com/?expert=James_Stickel
Refinancing Your Home Mortgage
In the past 30 years, interest rates have ebbed and flowed significantly in a financial tide of home mortgage offerings. Near the beginning of the 1980s, for example, rates for traditional 30 year, fixed rate mortgages were around 18 percent. Right now, though, we're seeing rates for the same type of loan around 5 percent - and on some days recently, in the 4 percent range.
Many home owners who bought when rates were sky-high are now considering refinancing in order to reap the benefit of today's lower rates. If you're one of these people, know that there are some costs involved in refinancing your home, such as an appraisal, title insurance, and a loan origination fee, just to name a few. To figure out whether these costs will balance out with the potential money you can save by refinancing, you can use the general rule of thumb called the 2 percent rule. In plain English, this rule suggests that the percentage difference between the current rate you have on your loan and the new rate being offered should be at least 2 points. So, if you were one of those borrowers in the 1980s who got a rate in the teens (and you can get a rate now for around 5 percent), it would make pretty good sense to refinance.
I've included below 3 benefits for refinancing with a lower rate:
1) Lowering monthly payments - By lowering the rate of your loan, you can see a significant difference in your monthly mortgage payment. And, every little bit adds up. Some borrowers who refinance can save thousands of dollars over the course of their loan period. How much you save, though, completely depends on your numbers. So, be sure to talk with a mortgage specialist who can do the number crunching for you to see how much you can potentially save by refinancing.
2) Changing the type of loan you have - Some borrowers choose to refinance even if they won't save any money by doing so. Think of the many borrowers who got an adjustable rate mortgage. We're seeing a lot of these borrowers refinancing simply to switch to the fixed rate mortgages. Also, some borrowers who have a balloon worked into their mortgage choose to refinance when it's gets closer to the time to make that bulk payment.
3) Getting money from your equity - If you've been in your home for ten or more years, you probably have a good bit of equity due to the overall appreciation of your home (even with the current dip in home values) and to the fact that you've been making those monthly payments for some time. For this reason, some borrowers opt to pull money out when they refinance their mortgage in order to help with retirement or with their children's costs for college.
If you're considering refinancing your home, be sure to talk with a home loan professional - someone experienced in refinancing who can sit down with you and go over your numbers and the options available to you. And, know that each situation is different. Your lender should be able to go over short-term and long-term benefits (or consequences) that are specific to you and geared towards your financial future.
Lee Keadle specializes in the James Island SC real estate market, but he works with all Charleston homes for sale
Article Source: http://EzineArticles.com/?expert=Lee_Keadle
Many home owners who bought when rates were sky-high are now considering refinancing in order to reap the benefit of today's lower rates. If you're one of these people, know that there are some costs involved in refinancing your home, such as an appraisal, title insurance, and a loan origination fee, just to name a few. To figure out whether these costs will balance out with the potential money you can save by refinancing, you can use the general rule of thumb called the 2 percent rule. In plain English, this rule suggests that the percentage difference between the current rate you have on your loan and the new rate being offered should be at least 2 points. So, if you were one of those borrowers in the 1980s who got a rate in the teens (and you can get a rate now for around 5 percent), it would make pretty good sense to refinance.
I've included below 3 benefits for refinancing with a lower rate:
1) Lowering monthly payments - By lowering the rate of your loan, you can see a significant difference in your monthly mortgage payment. And, every little bit adds up. Some borrowers who refinance can save thousands of dollars over the course of their loan period. How much you save, though, completely depends on your numbers. So, be sure to talk with a mortgage specialist who can do the number crunching for you to see how much you can potentially save by refinancing.
2) Changing the type of loan you have - Some borrowers choose to refinance even if they won't save any money by doing so. Think of the many borrowers who got an adjustable rate mortgage. We're seeing a lot of these borrowers refinancing simply to switch to the fixed rate mortgages. Also, some borrowers who have a balloon worked into their mortgage choose to refinance when it's gets closer to the time to make that bulk payment.
3) Getting money from your equity - If you've been in your home for ten or more years, you probably have a good bit of equity due to the overall appreciation of your home (even with the current dip in home values) and to the fact that you've been making those monthly payments for some time. For this reason, some borrowers opt to pull money out when they refinance their mortgage in order to help with retirement or with their children's costs for college.
If you're considering refinancing your home, be sure to talk with a home loan professional - someone experienced in refinancing who can sit down with you and go over your numbers and the options available to you. And, know that each situation is different. Your lender should be able to go over short-term and long-term benefits (or consequences) that are specific to you and geared towards your financial future.
Lee Keadle specializes in the James Island SC real estate market, but he works with all Charleston homes for sale
Article Source: http://EzineArticles.com/?expert=Lee_Keadle
Select the Best Mortgage Lender
Most borrowers ask the obvious questions about fees, interest rate and term. But there's so much more you need to know to get the best mortgage possible. In your search for the best mortgage lender there are certain steps you can take that will increases your chances of success. Here is a list of questions you want to ask so you can find the best mortgage lender to work with.
First what is their level of experience?, have they been doing this for quite some time or are you going to be their first deal.
Second try to see if they have a general understanding of the mortgage market, economics and the flow of money. While no one can predict what interest rates will do tomorrow or next week. Your Pennsylvania mortgage lender better have an understanding of how the mortgage market moves it is beneficial to you.
Find out what their philosophy is on when to lock the rate. Many times you can get a rate locked from application to closing but if there are delays it's nice to know that your interest rate isn't going to go up and cost you thousands of dollars more.
There are so many different loan programs available, be leery of any mortgage lender that just quotes you a rate off the top of their head and tells you this is the best deal going. There's probably more research involved in finding the best mortgage loan for your situation.
If you follow these steps and asked these questions, when you're done you should be able to commit to which mortgage lender will get your business. You should also have a level of confidence that the person you picked is not going to be a disappointment later.
You will have increased your confidence in the financial direction you're heading. Knowing that you are improving your skills with money and financing that will serve you well throughout your life. And of course you know that you've done your homework and your going to get the most competitive terms and extraordinary service.
Picking the right mortgage lender will ensure you get the best loan possible and you will have a house with wall-to-wall carpet and not a house with a back-to-the wall payment.
Whenever you get a Mortgage in Pennsylvania it is regulated by the Pennsylvania Department of banking, consumer services division, you can reach them at one 800 PA-banks or on the Internet at www.banking.state.PA.US.
You do have specific rights for mortgages in Pennsylvania such as the truth in lending act, which allows borrowers when someone's at least three days after closing to back out, as is called right of rescission.
If you think you've been treated unfairly in a mortgage loan transaction call the 800 number listed above or check them out on the Internet.
Mortgage financing is usually the largest financial transaction in most peoples lives. Be sure you have all the facts about mortgage financing before you sign on the dotted line. There is plenty of information about http://www.pamortgagefinance.com/ Pennsylvania mortgage lenders on the internet. Tim McGovern is the author of this article and has over 25 years experience as a real estate developer, consultant and broker
Article Source: http://EzineArticles.com/?expert=Tim_McGovern
First what is their level of experience?, have they been doing this for quite some time or are you going to be their first deal.
Second try to see if they have a general understanding of the mortgage market, economics and the flow of money. While no one can predict what interest rates will do tomorrow or next week. Your Pennsylvania mortgage lender better have an understanding of how the mortgage market moves it is beneficial to you.
Find out what their philosophy is on when to lock the rate. Many times you can get a rate locked from application to closing but if there are delays it's nice to know that your interest rate isn't going to go up and cost you thousands of dollars more.
There are so many different loan programs available, be leery of any mortgage lender that just quotes you a rate off the top of their head and tells you this is the best deal going. There's probably more research involved in finding the best mortgage loan for your situation.
If you follow these steps and asked these questions, when you're done you should be able to commit to which mortgage lender will get your business. You should also have a level of confidence that the person you picked is not going to be a disappointment later.
You will have increased your confidence in the financial direction you're heading. Knowing that you are improving your skills with money and financing that will serve you well throughout your life. And of course you know that you've done your homework and your going to get the most competitive terms and extraordinary service.
Picking the right mortgage lender will ensure you get the best loan possible and you will have a house with wall-to-wall carpet and not a house with a back-to-the wall payment.
Whenever you get a Mortgage in Pennsylvania it is regulated by the Pennsylvania Department of banking, consumer services division, you can reach them at one 800 PA-banks or on the Internet at www.banking.state.PA.US.
You do have specific rights for mortgages in Pennsylvania such as the truth in lending act, which allows borrowers when someone's at least three days after closing to back out, as is called right of rescission.
If you think you've been treated unfairly in a mortgage loan transaction call the 800 number listed above or check them out on the Internet.
Mortgage financing is usually the largest financial transaction in most peoples lives. Be sure you have all the facts about mortgage financing before you sign on the dotted line. There is plenty of information about http://www.pamortgagefinance.com/ Pennsylvania mortgage lenders on the internet. Tim McGovern is the author of this article and has over 25 years experience as a real estate developer, consultant and broker
Article Source: http://EzineArticles.com/?expert=Tim_McGovern
5 Great Tips For Mortgage Refinance
This may be one of the best times to refinance if there ever was one. The FOMC has just lowered the key target lending rate to less than 1% for the first time in over 50 years. Here are 5 tips to certainly go over before you commit to refinancing:
1) Do your homework!
Know ahead of time what payment amount you are comfortable paying. Use mortgage calculators ( available online) to determine what your payments will be. There are three major variables to compute your mortgage payment and they are your mortgage amount, interest rate, and term (number of months).
2) Shop around!
Shop at least three different and reputable lenders. Know that you're comparing the same exact programs with the same terms. Don't shop three different lenders with three different programs because there is no way of knowing if you are getting a good deal. The objective here is to analyze three deals of the exact same program (i.e. 30 year fixed rate).
3) Get Good Faith estimates upfront and in writing.
I cannot emphasize enough how important this step is. There are a lot of fast talking salesman out there who are much smarter on the subject than the average consumer. This will help ensure you know what you are getting and help avoid any misunderstandings or misrepresentations down the road. Compare everything but pay special attention to the APR (annualized percentage rate) as this is the "true interest rate" because it takes into account your closing costs.
4) Avoid paying any monies upfront.
The only fee you should ever be asked to pay upfront before you close on your mortgage is an appraisal fee. However this should only be done after you already decided on your lender and specifically ask you to. Typically this fee is in the $300 range for an average home although it could go up to $5oo-600 for a larger one.
5) Beware of early redemption charges and variable rate loans.
As mentioned earlier, this is an opportunistic time to refinance. Conventional and FHA mortgage rates are currently in the 4-5% range. Now is a great time for a fixed rate and conversely, a poor time for an adjustable rate mortgage. Avoid all loans that charge early redemption fees or prepayment penalties for paying off ahead of time.
Paul McParland has been involved in finance and real estate for more than twenty years. For more information on ways to save money visit his website at http://www.consolidation-guide.com
Article Source: http://EzineArticles.com/?expert=Paul_Mcparland
1) Do your homework!
Know ahead of time what payment amount you are comfortable paying. Use mortgage calculators ( available online) to determine what your payments will be. There are three major variables to compute your mortgage payment and they are your mortgage amount, interest rate, and term (number of months).
2) Shop around!
Shop at least three different and reputable lenders. Know that you're comparing the same exact programs with the same terms. Don't shop three different lenders with three different programs because there is no way of knowing if you are getting a good deal. The objective here is to analyze three deals of the exact same program (i.e. 30 year fixed rate).
3) Get Good Faith estimates upfront and in writing.
I cannot emphasize enough how important this step is. There are a lot of fast talking salesman out there who are much smarter on the subject than the average consumer. This will help ensure you know what you are getting and help avoid any misunderstandings or misrepresentations down the road. Compare everything but pay special attention to the APR (annualized percentage rate) as this is the "true interest rate" because it takes into account your closing costs.
4) Avoid paying any monies upfront.
The only fee you should ever be asked to pay upfront before you close on your mortgage is an appraisal fee. However this should only be done after you already decided on your lender and specifically ask you to. Typically this fee is in the $300 range for an average home although it could go up to $5oo-600 for a larger one.
5) Beware of early redemption charges and variable rate loans.
As mentioned earlier, this is an opportunistic time to refinance. Conventional and FHA mortgage rates are currently in the 4-5% range. Now is a great time for a fixed rate and conversely, a poor time for an adjustable rate mortgage. Avoid all loans that charge early redemption fees or prepayment penalties for paying off ahead of time.
Paul McParland has been involved in finance and real estate for more than twenty years. For more information on ways to save money visit his website at http://www.consolidation-guide.com
Article Source: http://EzineArticles.com/?expert=Paul_Mcparland
Reverse Mortgage - How Much 'More' Money Can I Get?
The new Administration in Washington recently passed legislation that changed the FHA Home Equity Conversion (HECM) Reverse Mortgage 'Lending Limit' to $625,500! Previously the FHA capped the Lending Limit at $417,000. The Lending Limit is the maximum home value used to calculate the benefit a senior can receive from a HECM Reverse Mortgage.
So now the question is 'How much more money can I get?' under the new guidelines. The easiest way to answer this question is to provide an example. A 70 year old homeowner could receive as much as $264,000 under the old guideline. Under the new guideline they could receive as much as $403,000. They would receive an additional $139,000 benefit. In both cases their home value must equal or exceed the Lending Limit to qualify for the maximum benefit.
Why is the new limit so important? What if the homeowner had an existing home mortgage of $300,000 and their objective was to eliminate their mortgage and the monthly mortgage payments? Under the old guidelines there would not be enough money from the Reverse Mortgage to pay off their mortgage. The homeowner would need to pay an additional $36,000 toward their loan payoff, an amount that would be difficult for most to shoulder. Under the new guidelines, they could pay off the mortgage and have over $100,000 to spare. That is truly a day and night difference to the borrower.
Another group of homeowners that will gain from the new limits are those seniors already benefiting from a Reverse Mortgage. Many of these homeowners only have about half of what they could receive under the new guidelines (depending upon their home value). These seniors can refinance their Reverse Mortgage and if their current Reverse Mortgage is a HECM the FHA will discount the Mortgage Insurance Premium on the new loan. The discount can be in the thousands of dollars.
Here is a review of how Reverse Mortgage benefits are calculated. When a senior applies for a Reverse Mortgage the lender will ask for the following information:
* The birthdates of the applicants
* The address of their primary residence
* The approximate value of their home
* The balance on any mortgage(s)
This information is entered into a proprietary Reverse Mortgage calculator from which a net dollar benefit is determined for the applicant. The calculator takes the applicant's information as follows:
1. Younger borrowers get less money than older borrowers.
2. Higher value homes provide more money than lower value homes up to but not surpassing home lending limits set by the FHA, currently $625,500.
3. The Reverse Mortgage money is net of the payoff of any current mortgage(s).
Would you like to know how much money you can get with a Reverse Mortgage? Try the Reverse Mortgage Calculator on my web site.
Steven Moline is a Reverse Mortgage Consultant with First Priority Financial serving all of California
I help senior homeowners who need extra cash for living achieve financial freedom for life. You need the facts to make an informed decision. I will come to your home in most cases and explain your benefits without pressure or obligation. For more information, to ask questions or to receive a complimentary brochure contact me toll free at 866-885-5573 or on the web at http://www.royalreversemortgage.com/Contact_Steve.htm See my Web Log (Blog) for an open discussion with questions and answers at http://reversemortgageqanda.blogspot.com
Article Source: http://EzineArticles.com/?expert=Steven_Moline
So now the question is 'How much more money can I get?' under the new guidelines. The easiest way to answer this question is to provide an example. A 70 year old homeowner could receive as much as $264,000 under the old guideline. Under the new guideline they could receive as much as $403,000. They would receive an additional $139,000 benefit. In both cases their home value must equal or exceed the Lending Limit to qualify for the maximum benefit.
Why is the new limit so important? What if the homeowner had an existing home mortgage of $300,000 and their objective was to eliminate their mortgage and the monthly mortgage payments? Under the old guidelines there would not be enough money from the Reverse Mortgage to pay off their mortgage. The homeowner would need to pay an additional $36,000 toward their loan payoff, an amount that would be difficult for most to shoulder. Under the new guidelines, they could pay off the mortgage and have over $100,000 to spare. That is truly a day and night difference to the borrower.
Another group of homeowners that will gain from the new limits are those seniors already benefiting from a Reverse Mortgage. Many of these homeowners only have about half of what they could receive under the new guidelines (depending upon their home value). These seniors can refinance their Reverse Mortgage and if their current Reverse Mortgage is a HECM the FHA will discount the Mortgage Insurance Premium on the new loan. The discount can be in the thousands of dollars.
Here is a review of how Reverse Mortgage benefits are calculated. When a senior applies for a Reverse Mortgage the lender will ask for the following information:
* The birthdates of the applicants
* The address of their primary residence
* The approximate value of their home
* The balance on any mortgage(s)
This information is entered into a proprietary Reverse Mortgage calculator from which a net dollar benefit is determined for the applicant. The calculator takes the applicant's information as follows:
1. Younger borrowers get less money than older borrowers.
2. Higher value homes provide more money than lower value homes up to but not surpassing home lending limits set by the FHA, currently $625,500.
3. The Reverse Mortgage money is net of the payoff of any current mortgage(s).
Would you like to know how much money you can get with a Reverse Mortgage? Try the Reverse Mortgage Calculator on my web site.
Steven Moline is a Reverse Mortgage Consultant with First Priority Financial serving all of California
I help senior homeowners who need extra cash for living achieve financial freedom for life. You need the facts to make an informed decision. I will come to your home in most cases and explain your benefits without pressure or obligation. For more information, to ask questions or to receive a complimentary brochure contact me toll free at 866-885-5573 or on the web at http://www.royalreversemortgage.com/Contact_Steve.htm See my Web Log (Blog) for an open discussion with questions and answers at http://reversemortgageqanda.blogspot.com
Article Source: http://EzineArticles.com/?expert=Steven_Moline
Where Will Mortgage Rates Head in 2009?
One of the most asked questions for every home owner in the year of 2009 will be, "where are mortgage rates headed?" Obviously, no one can be 100% confident in making this prediction, but if we look at the recent events in the United States economy, we can at least make an educated guess.
Many lenders are advertising that rates under 5% are currently available. These rates are truly only available to applicants who have 20% to put down on a mortgage and a FICO score of over 700. Many Americans do not have these financial standards due to the struggling economy. The average 30 year fixed rate mortgage is currently at 5.26%. Once again, to gain access to this rate, one must have a solid credit rating and some financial backing. With that known, where are rates headed?
If rates are currently at 5.26% and have declined steadily over the last eight weeks, why would anything change? Shouldn't they continue to head lower? That would be the logical guess, but sometimes markets do not work in ways that seem logical.
The amount of mortgage applications has increased by 48% over the last few weeks, so it has been quite difficult on the mortgage lenders. Some lenders have even increased rates so they could complete all the applications that are flooding in. Yes, the overall trend is down for mortgage rates, but it would not be surprising at all if there was a quick bounce just to get most lenders caught up with their paperwork.
Even if there is a bounce, it is still not a bad idea to keep an eye on the overall trend which seems to be downward sloping. Look for a quick bounce in rates and then a steady decline as the year wears on.
To learn more about mortgage rate forecasts and the housing market as a whole, be sure to join Subprime Blogger. Make sure to find out what the mortgage interest trend is as well as many other financial articles that are available at Subprime Blogger. Take advantage of the low rate market we are in
Article Source: http://EzineArticles.com/?expert=Jesse_Wojdylo
Many lenders are advertising that rates under 5% are currently available. These rates are truly only available to applicants who have 20% to put down on a mortgage and a FICO score of over 700. Many Americans do not have these financial standards due to the struggling economy. The average 30 year fixed rate mortgage is currently at 5.26%. Once again, to gain access to this rate, one must have a solid credit rating and some financial backing. With that known, where are rates headed?
If rates are currently at 5.26% and have declined steadily over the last eight weeks, why would anything change? Shouldn't they continue to head lower? That would be the logical guess, but sometimes markets do not work in ways that seem logical.
The amount of mortgage applications has increased by 48% over the last few weeks, so it has been quite difficult on the mortgage lenders. Some lenders have even increased rates so they could complete all the applications that are flooding in. Yes, the overall trend is down for mortgage rates, but it would not be surprising at all if there was a quick bounce just to get most lenders caught up with their paperwork.
Even if there is a bounce, it is still not a bad idea to keep an eye on the overall trend which seems to be downward sloping. Look for a quick bounce in rates and then a steady decline as the year wears on.
To learn more about mortgage rate forecasts and the housing market as a whole, be sure to join Subprime Blogger. Make sure to find out what the mortgage interest trend is as well as many other financial articles that are available at Subprime Blogger. Take advantage of the low rate market we are in
Article Source: http://EzineArticles.com/?expert=Jesse_Wojdylo
Subscribe to:
Posts (Atom)
