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
Refinance 20 year fixed rates
By Jeff Lazerson | [email protected] | MortgageGrader.com PUBLISHED: August 22, 2019 at 11:44 am | UPDATED: August 22, 2019 at 11:54 am What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take. . Rate news summary From Freddie Mac’s weekly survey: The 30-year fixed-rate averaged 3.55%, its lowest level since Nov. 3, 2016, and 5 basis points lower than last week. The 15-year fixed-rate averaged 3.05%, down 4 basis points from last week. The Mortgage Bankers Association reported a 1% decrease in loan application volume from the previous week. Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $484,350 loan, last year’s payment was $269 big bucks higher than this week’s payment of $2,188. What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages without points and closing costs: A 15-year FHA (up to $431,250 in the Inland Empire, up to … [Read more...] about How low will fixed-rate mortgages go?
By Ilyce Glink and Samuel J. Tamkin, Tribune Content Agency Published 5:00 am CDT, Friday, October 12, 2018 Q: I was offered a mortgage "recast" and I need help evaluating if it is a sound financial move. My home is worth $250,000. I owe about $68,000, as I have been paying additional principal on the loan. My understanding is that when you do a recast of your mortgage, the lender simply takes the existing balance and adjusts it to the current amortization schedule. The appeal of having my current monthly payment lowered is attractive in case of a job change or if something happens and I suddenly earn less. I would still pay additional principal and pay off the loan sooner but would have the peace of mind knowing I only owed a lower payment each month. How do I measure the difference between my payment now and what it would be after a recast in terms of interest paid? All of the online calculators require a lump sum payment to the principal upfront, so I'm not sure I'm … [Read more...] about How to achieve a ‘home run refinance’
Janna Herron USA TODAY Published 1:47 PM EDT Oct 10, 2018 Buying a home just got a bit more expensive. Rates on the most common mortgage topped 5 percent for the first time since February 2011, making it even harder for buyers to get an affordable house. The average rate on the 30-year fixed-rate home loan – the most popular mortgages for purchases – increased to 5.05 percent last week, up from 4.96 the previous week and 4.16 percent a year earlier, according to the Mortgage Bankers Association. Rates on other types of home loans – jumbo, FHA, 15-year and 5/1 adjustable-rate – all hit multi-year highs. The steadily rising 30-year rate also has cooled the appetite from borrowers. The volume of purchase applications slid 1 percent last week from the previous one, while the number of refinance applications sank 3 percent, according to the MBA. “Up until two weeks ago, I was quite busy," said Scott Sheldon, branch manager of New American … [Read more...] about Mortgage rates on 30-year home loan hit 5 percent
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