Loans And Mortgage |
- What's Happening With Mortgages? | Mortgage Rates Update (Interview)
- Mortgage And Refinance Rates Today, Dec. 1
- Video Press Release – Caliber Home Loans Introduces Caliber Elite Access
- What Is Reverse Mortgage? How It Can Help Senior Citizen? Reverse Mortgage Explained By CA Rachana
- Calculate Monthly Payments For Mortgage or Annuity Part A
- Who Pays Closing Costs? And How Can Buyers Avoid Them?
- Warning About Interest Only Loans
- Home Loan in tamil | வீடு கட்ட கடன் வழங்குவது எப்படி?
- When the Fed Cuts Interest Rates, Should You Refinance Your Mortgage? I Comment Below
- Mortgage Broker vs Bank: Who's the Best?
| What's Happening With Mortgages? | Mortgage Rates Update (Interview) Posted: 01 Dec 2020 10:18 AM PST
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| Mortgage And Refinance Rates Today, Dec. 1 Posted: 01 Dec 2020 09:41 AM PST Today's mortgage and refinance ratesAverage mortgage rates inched lower again yesterday. And conventional loans started out this morning at 3.063% (3.063% APR) for a 30-year, fixed-rate mortgage. I'm expecting mortgage rates to move a little higher today. However, Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin are testifying on Capitol Hill later. And it's just possible one of them could cause a stir. Find and lock a low rate (Dec 1st, 2020) Current mortgage and refinance rates
Find and lock a low rate (Dec 1st, 2020) COVID-19 mortgage updates: Mortgage lenders are changing rates and rules due to COVID-19. To see the latest on how coronavirus could impact your home loan, click here. Should you lock a mortgage rate today?Those with purchase mortgages steaming toward closing might well choose to lock now. They quite possibly have access to record-low mortgage rates. And even those refinancing are getting close to a new low. But, personally, I'd continue to float — unless I were getting near to closing. Because I think there may be more falls ahead. But those aren't guaranteed. And even I would be getting tempted to bank my winnings by locking my rate now. See "Are mortgage and refinance rates rising or falling?" (below) for more. Meanwhile, my personal rate lock recommendations are:
But with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So be guided by your gut and your personal tolerance for risk.
Market data affecting today's mortgage ratesHere's the state of play this morning at about 9:50 a.m. (ET). The data, compared with about the same time yesterday morning, were:
*A change of less than $20 on gold prices or 40 cents on oil ones is a fraction of 1%. So we only count meaningful differences as good or bad for mortgage rates. Caveats about markets and ratesBefore the pandemic and the Federal Reserve's interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that's no longer the case. The Fed is now a huge player and some days can overwhelm investor sentiment. So use markets only as a rough guide. They have to be exceptionally strong (rates are likely to rise) or weak (they could fall) to rely on them. But, with that caveat, they're looking worse for mortgage rates today. Find and lock a low rate (Dec 1st, 2020) Important notes on today's mortgage ratesHere are some things you need to know:
So there's a lot going on here. And nobody can claim to know with certainty what's going to happen to mortgage rates in coming hours, days, weeks or months. Are mortgage and refinance rates rising or falling?TodayI'm expecting a worse day for mortgage rates. In other words, I reckon they're likely to just inch higher today. But nothing's guaranteed during these troubled times. Of course, it's the pandemic and its effects on the economy that are responsible for current ultralow mortgage rates. They're almost always low during economically troubled times. True, they'll rise modestly from time to time (like today). But I can't see them turning higher by much or for long — absent some momentous change. And these times definitely count as troubled. Because the outlook for the pandemic and the economy is grim, almost certainly until the middle of next year and perhaps for longer. The danger is that the economic damage might cause scarring that slows the eventual recovery. Possible future threat?You need to be aware of a possible future threat to low mortgage rates. That's an announcement on Dec. 16 that will follow a meeting of the Federal Open Market Committee (FOMC), which is the Federal Reserve's policy body. We already know that the FOMC discussed reviewing its purchases of mortgage-backed securities (MBSs, the bonds that actually determine mortgage rates) at its last meeting. And if it decides to stop or significantly reduce those purchases, mortgage rates could rise that day and thereafter, perhaps sharply. Indeed, if enough investors believe a policy change is likely, rates might begin to rise before the announcement. Personally, I think the FOMC is unlikely to sacrifice the main bright spot (the housing market) in the current gloom. But others are concerned. And you should know of this threat. RecentlyOver the last few months, the overall trend for mortgage rates has clearly been downward. A new all-time low was set during each of the weeks ending Oct. 15 and 22 and Nov. 5 and 19 according to Freddie Mac. And that latest record low was the 13th this year. Last week, Freddie said these rates held steady. But note that Freddie's figures relate to purchase mortgages alone and ignore refinances. And if you average out across both, rates have been consistently higher than the all-time low since a record set in early August, though they're close now. The gap between the two has been widened by a controversial regulatory change. Expert mortgage rate forecastsLooking further ahead, Fannie Mae, Freddie Mac and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates. And here are their current rates forecasts for the last quarter of 2020 (Q4/20) and the first three of 2021 (Q1/21, Q2/21 and Q3/21). But note that Fannie's (released on Nov. 17) and the MBA's (also Nov. 17) are updated monthly. However, Freddie's are now published quarterly. And its latest was released on Oct. 14. The numbers in the table below are for 30-year, fixed-rate mortgages:
So predictions vary considerably. You pays yer money … Find your lowest rate todaySome lenders have been spooked by the pandemic. And they're restricting their offerings to just the most vanilla-flavored mortgages and refinances. But others remain brave. And you can still probably find the cash-out refinance, investment mortgage or jumbo loan you want. You just have to shop around more widely. But, of course, you should be comparison shopping widely, no matter what sort of mortgage you want. As federal regulator the Consumer Financial Protection Bureau says:
Verify your new rate (Dec 1st, 2020)
Mortgage rate methodologyThe Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Video Press Release – Caliber Home Loans Introduces Caliber Elite Access Posted: 01 Dec 2020 09:39 AM PST
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| What Is Reverse Mortgage? How It Can Help Senior Citizen? Reverse Mortgage Explained By CA Rachana Posted: 01 Dec 2020 07:19 AM PST
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| Calculate Monthly Payments For Mortgage or Annuity Part A Posted: 01 Dec 2020 07:17 AM PST
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| Who Pays Closing Costs? And How Can Buyers Avoid Them? Posted: 01 Dec 2020 06:08 AM PST Who pays closing costs? Usually, both sides doTypically, buyers and sellers each pay their own closing costs. A home buyer is likely to pay between 2% and 5% of their loan amount in closing costs, while the seller could pay 5% to 6% of the sale price to their real estate agent. But it doesn't always work out that way. Buyers may be able to get someone else — like the seller, the lender, or a down payment assistance program — to cover some or all of their out of pocket expenses. Here's what you should know about closing costs and how to avoid them. Verify your home buying eligibility (Dec 1st, 2020) In this article (Skip to…) Buyer's closing costsWhen most people think about closing costs, they're thinking about the buyer's closing costs. These are your out-of-pocket fees to set up a home loan, get the house appraised, have the title transferred to your name, and so on. Buyers typically pay between 2% and 5% of their loan amount in closing costs. That means if you're taking out a $200,000 mortgage loan, closing costs could range from $4,000 to $10,000 (though they'd likely be on the lower end of that spectrum.) The amount a home buyer has to pay in closing costs can vary a lot depending on the home price, location, and other factors. Typical closing costs paid by the buyerHere are the most common and expensive closing costs home buyers have to pay:
Your down payment will also be due at closing, although it's not typically thought of as a 'closing cost.' Any earnest money you paid when you made an offer on the house will be credited toward your down payment at closing. Also note that closing costs depend on the mortgage lender. While some closing costs are set by third parties and cannot be changed, others are controlled by the lender and can vary a lot. Shopping for the lowest fees is a simple and effective way to lower your closing costs as a home buyer.
Seller's closing costsSellers have closing costs, too. Unfortunately, they don't have the same flexibility to shop for and negotiate lower closing costs that buyers do. But home sellers should still be aware and prepared to pay the out of pocket charges on their sale. The biggest single item in a seller's closing costs is usually the commission paid to real estate agents. That's commonly 5% or 6% of the purchase price, Yes, that's often shared with the buyer's agent— but it's typically still paid for by the seller. Home sellers should also expect charges for transfer taxes, title fees, escrow fees, and so on. There's not much you can do about some taxes and fees. But your agent's commission may well be negotiable. If you're looking to avoid closing costs as a seller, be sure to explore alternatives: selling your home yourself; finding a discount broker, or using a different agent. Checking all your options will give you a basis for negotiation. If you want a full service, you're going to have to pay for it. But sellers can often shop around and get a lower commission rate than the one they were originally quoted. Closing costs vary by loan typeFor borrowers, the type of mortgage you choose can have a big effect on your closing costs. And the biggest of these is mortgage insurance. Mortgage insurance (MI) is only paid by those with low down payments — below 20% of the home's market value. And there's usually a sliding scale. So your MI costs are likely to be higher the lower your down payment. Most of the burden of mortgage insurance comes in the form of an annual premium that you pay monthly. But an initial mortgage insurance premium may be payable on closing day as well. FHA upfront mortgage insurance premium (UFMIP)FHA loans require annual mortgage insurance and an upfront insurance fee. The latter — called upfront mortgage insurance premium, or UFMIP — is equal to 1.75% of the loan amount, or $1,750 for every $100K borrowed. Despite its name, FHA upfront mortgage insurance doesn't have to be paid at closing. Most borrowers roll this cost into their loan amount rather than pay it with cash. Rolling UFMIP into your loan will greatly reduce your closing costs. But it does mean you'll pay interest on the fee over the life of your home loan. VA loan funding feeVA loans do not require annual mortgage insurance. But they do require a one-time 'funding fee' due at closing. For first-time home buyers, the VA funding fee is usually equal to 2.3% of the loan amount. Buyers who've used a VA loan before will pay 3.6% of their loan amount. If you make a down payment of 5% or more, the VA funding fee is reduced. VA home buyers also have the option to roll this fee into their loan amount instead of paying it along with their closing costs. USDA guarantee feeLike the FHA loan, the USDA home loan program requires both an upfront mortgage insurance fee and an annual one. USDA's upfront fee is equal to 1% of the loan amount and can be added to the mortgage balance to reduce closing costs. Verify your home loan eligibility (Dec 1st, 2020) How to shop for the lowest closing costsThe amount you pay in closing costs can vary a lot by lender — which is why you need to consider closing costs as well as interest rates when shopping for a mortgage. The amount you can expect to pay in fees will be listed on your Loan Estimate. This is a standard document lenders are required to give you when you apply for a home loan. The Loan Estimate lets you easily compare fees and understand which lenders are less expensive overall — which may be different from the ones simply offering the lowest mortgage rates. Comparing closing costs on your loan estimateHere's an example of page 2 of the standard Loan Estimate, which lists all the fees a buyer can expect to pay on closing day.  Image: Consumer Financial Protection Bureau Pay special attention to section (A), "Loan Costs." These are the lender's own fees — which are the main ones you'll want to look at when comparison shopping. The first row, "Points," shows how much you're paying to 'buy' the rate offered. The next two rows, 'Application fee' and 'Underwriting fee,' show what the lender is charging for its services. Compare mortgage lenders. Start here (Dec 1st, 2020) 4 ways to avoid closing costsHome buyers don't always have to pay closing costs out of pocket. There are a variety of ways to reduce your costs — or even, if you're lucky, avoid them altogether. 1. Negotiate closing costs between lendersLoan Estimates are just offers. And you're free to negotiate. If you get some Estimates with lower interest rates but higher closing costs, and vice-versa, call up the lenders and get them to compete for your business. "I'd love to work with you but your origination fee is X amount higher than lender Y's," might be a good start. Don't expect your closing costs to go away completely. But you may be able to make a significant dent in your upfront costs or even your interest rate simply by asking. 2. Lender-paid closing costsSome (but not all) lenders have their own programs that can help with closing costs and down payments. These come in the form of a 'lender credit.' A lender credit typically means the lender will cover part or all of your upfront costs — and in exchange, you'll pay a higher interest rate. For example, Bank of America has its America's Home Grant® program. It "offers a lender credit of up to $7,500 that can be used towards non-recurring closing costs, like title insurance and recording fees, or to permanently buy down the interest rate [discount points]. The funds do not require repayment." And, separately, it provides down payment grants. As you'd expect, that quote from BoA's website refers you to a footnote that contains a pile of terms and conditions. But its offer is genuine enough — as are countless others from other lenders. 3. Get the seller to pay your closing costsMany buyers are able to avoid closing costs by getting the seller to pay them instead. This arrangement is known as 'seller concessions.' Typically, the money comes out of the proceeds of the sale. So the seller doesn't have to cut a check, because the sum is deducted at closing. Be aware that cash-back is not a possibility here. The total amount of the buyer's closing costs is the most that can be put on the table. And, there are limits to the amount of money a seller can contribute to the buyer's closing costs. By loan type, these limits are:
Seller concessions are not uncommon. But the main issue is that sellers are much more willing to pay the buyer's closing costs if they're motivated to sell the house. In a market with buyer competition, sellers are far less likely to cut such a deal. In this case, you might want to look elsewhere for help — like a closing cost assistance program. 4. Rolling closing costs into your loan amountRefinance loans have closing costs, just like home purchase loans. And they typically cost around the same amount. Homeowners looking to refinance can shop around for the lowest closing costs. But there's no home seller to help them pay. However, current homeowners have one option home buyers do not: They can often roll closing costs into their loan amount. Just remember that there's no such thing as a free lunch. You'll be paying down those closing costs — and the interest on them — until you pay down the mortgage, sell the home, or refinance again. Verify your reifnance eligibility (Dec 1st, 2020) Closing cost assistanceFor those who need some extra help with closing costs, there's one more route to try: closing cost assistance. Closing cost assistance can come in the form of grants, loans, or gift money to help cover your upfront costs. Here's what to know about each one. Closing cost grants and loansClosing cost assistance is part and parcel of many down payment assistance (DPA) programs. There are thousands of down payment assistance programs spread across the country — meaning there's bound to be one (maybe several) covering the area in which you want to buy. Each DPA program is different.
As their name suggests, DPAs primarily exist to help you fund your down payment. But oftentimes that money can be used to help cover your closing costs, too. Just make sure this is allowed by the program(s) you apply to. Gift money from family and loved onesLenders are generally relaxed about receiving gifts toward your down payment and closing costs from loved ones. Fannie Mae and Freddie Mac define "loved ones" as family, fiance(e), or domestic partner. But other programs (like FHA loans, for example) widen the field to include close friends. There are two strict rules about such gifts.
This is usually straightforward enough. But lenders can get picky if they suspect that you're hiding something. So it's important to make sure your gift funds are correctly sourced and documented. For more information on how to receive gift funds toward your closing costs, see this article. The bottom lineSo who pays closing costs? The buyer and seller both do. If you're a home buyer, you'll likely pay 2% to 5% of your loan amount at the closing table (and that's on top of your down payment). But if you put in some time comparing lenders and looking for help, you may end up paying a lot less than you would have.  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warning About Interest Only Loans Posted: 01 Dec 2020 05:48 AM PST
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| Home Loan in tamil | வீடு கட்ட கடன் வழங்குவது எப்படி? Posted: 01 Dec 2020 05:38 AM PST
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| When the Fed Cuts Interest Rates, Should You Refinance Your Mortgage? I Comment Below Posted: 01 Dec 2020 05:25 AM PST
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| Mortgage Broker vs Bank: Who's the Best? Posted: 01 Dec 2020 05:04 AM PST
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