Michele Lerner --- The Washington Post September 9, 2019 9:56 am The 30-year fixed-rate home mortgage dominates the housing market, particularly for first-time buyers who appreciate the ability to extend their home loan payments for the longest possible term. The second most common fixed-rate loan term is 15 years, but many lenders also offer loan terms of 10 or 20 years. Sometimes lenders even offer a personalized term chosen by the borrower. “There are quite a few reasons I feel more people should refinance or purchase into a 20-year fixed-rate mortgage rather than looking at a 30-year or a 15-year fixed rate mortgage,’’ Jerry Robinson, broker/owner of 1st Choice Mortgage Co. in Meridian, Idaho, said in an e-mail. Here are four reasons to consider a 20-year mortgage, according to Robinson: Save on interest. The most obvious reason is that the interest rate of a 20-year mortgage is typically one-fourth of one point to three-eighths of one point lower than a … [Read more...] about Fall House Hunt: Four reasons to consider a 20-year mortgage
20 year fixed refinance rates
By Matt Phillips Published 6:27 pm PDT, Saturday, August 3, 2019 Cheaper mortgages are usually a boon to the housing market. But this year, a sharp drop in mortgage rates has not provided much of a lift, and that could bode poorly for the Federal Reserve’s efforts to shore up economic growth. To see why, consider what has happened in housing since mortgage rates began a sharp decline late last year. Consumer borrowing costs, including mortgage rates, are heavily influenced by the market for government bonds, and yields on those bonds have been falling this year. Similarly, the rate on the 30-year fixed mortgage rate is down more than one percentage point, to 3.75% last week, according to Freddie Mac. Over the last 30 years, the rate has averaged about 6.25%. So the current rates might reasonably have been expected to spark a flurry of refinancing and home buying. But, because of rising home prices, there has been no boom so far. Through June, sales of existing … [Read more...] about Lower rates hit housing, but aren’t helping much
Sections SEARCH Skip to content Skip to site index Business Log In Log In Today’s Paper Business | Lower Rates Already Hit Housing. They’re Not Helping Much. Advertisement Supported by ByMatt Phillips Aug 1, 2019 Cheaper mortgages are usually a boon to the housing market. But this year, a sharp drop in mortgage rates hasn’t provided much of a lift, and that could bode poorly for the Federal Reserve’s efforts to shore up economic growth. To see why, take a look at what has happened in housing since mortgage rates began a sharp decline late last year. government bonds, and yields on those bonds have been falling this year. Similarly, the rate on the 30-year fixed mortgage rate is down more than one percentage point, to 3.75 percenaccording to Freddie Mac. Over the last 30 years, the rate has averaged about 6.25 percent. So the current rates might reasonably have been expected to spark a … [Read more...] about Lower Rates Already Hit Housing. They’re Not Helping Much.
Adjustable-rate mortgages, known as ARMs, are back, despite having earned a bad reputation at the height of the housing crisis. Post-crisis borrowers saw them as risky because of their changing interest rates, and blamed the glut of foreclosures on the inability of homeowners to handle higher payments when the loans reset. “ARMs became a four-letter word after the housing crisis,” said Ann Thompson, a retail sales executive for Bank of America in San Francisco. “They got a bad rap and were lumped in with ‘pick-a-payment’ loans, which allowed people to pay as little or as much as they wanted on their mortgage.” Lately there’s been a resurgence in ARMs. In January 2019, 8.6 percent of new mortgage loans had an adjustable rate, compared with 5.5 percent in January 2018, according to Ellie Mae, a software company that processes 35 percent of mortgages in the United States. One reason for the resurgence could be the safeguards in place that make … [Read more...] about Are adjustable-rate mortgages worth the risk?
Fixed mortgage rates stumbled slightly this week, falling for the first time in more than a month.According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average slipped to 4.71 percent with an average 0.4 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.72 percent a week ago and 3.85 percent a year ago.The 15-year fixed-rate average slid to 4.15 percent with an average 0.4 point. It was 4.16 percent a week ago and 3.15 percent a year ago. The five-year adjustable-rate average increased to 4.01 percent with an average 0.3 point. It was 3.97 percent a week ago and 3.18 percent a year ago. The five-year ARM hasn't been this high in more than eight years.The last time the averages of the three major mortgage products were all above 4 percent was April 2010."Mortgage rates inched back a little in this week's survey . . . after hitting a seven-year high last week," Sam Khater, Freddie Mac's chief economist, said in a … [Read more...] about Mortgage rates retreat a bit but are expected to resume rising