Who is taking advantage of drop in mortgage rates?

Tuesday, February 07, 2012

Mortgage loan applications have increased 23% this last week due to record low rates.

Orlando, FL (MBNews.org) -- Historic record low have encouraged many homeowners to refinance according to the Mortgage Bankers Association.

We have seen refinancing activity climbed 26.4% just this week week ending January 13, to its highest level since early August, the MBA reported. Meanwhile applications for new mortgages climbed 10.3% week-over-week.

Time to buy a house? Home prices have fallen and mortgage interest rates are lower than they have ever been.

Miami (MBNews.org) — Time to buy a house? Home prices have fallen and mortgage interest rates are lower than they have ever been.

A recent report from J.P. Morgan Asset Management, titled “Housing: A time to buy,” written by David Kelly and David Lebovitz, made the case for why a home may be a wise purchase. Read more: Mortgage rates plunge beyond expectations.

Although the U.S. housing market remains extremely depressed, we believe that given current valuations and demographic dynamics, now may be the time to consider an investment in housing,” the report said.

Goldman, Two Firms Agree on Foreclosure-Signing Practice

Goldman Sachs will compensate some home loan borrowers for wrongful foreclosures under an agreement reached with a New York state banking regulator.

The agreement, which New York financial services superintendent Benjamin Lawsky reached with Goldman [GS 112.16 -4.06 (-3.49%) ] and Ocwen Financial [OCN 13.28 -0.52 (-3.77%) ], contains several measures to strengthen the oversight of foreclosure proceedings.

It also will allow Goldman's planned sale of its Litton Loan Servicing LP unit to continue.

U.S. asks Bank of America to report back up plans if conditions worsen

The U.S. Federal Housing Finance Agency plans to sue "more than a dozen" major banks for billions of dollars over alleged misrepresentation of mortgage-backed securities sold before the housing bubble burst, the New York Times reported late Thursday.

U.S. asks Bank of America to report back up plans if conditions worsen

U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation.

U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation. Read more...

More Americans at Risk of Foreclosure

The number of Americans at risk of foreclosure is rising, reflecting the U.S. economy’s continued struggles.

The Mortgage Bankers Association said Monday that 8.44 percent of homeowners missed at least one mortgage payment in the April-June quarter. That figure, which is adjusted for seasonal factors, rose 0.12 percentage point from the January-March period. Read more...

New York AG Kicked Off Foreclosure Probe Panel

Iowa Attorney General Tom Miller said late yesterday that his New York counterpart, Eric Schneiderman, had been removed from the executive committee working on a multistate foreclosure probe – and potential settlement – with U.S. banks.

Who is taking advantage of drop in mortgage rates?

Mortgage Crisis

Monday, 16 August 2010 18:33

By Elizabeth Martinez

Miami, FL-Although several incentives are out there for home buyers to take advantage of, many of these efforts are wasted as other factors are strongly affecting today’s housing market.

Last week, U.S. mortgage rates fell for the eighth consecutive week to a record low of 4.44% after the Federal Reserve said it would buy more government debt to help the economy recover. Help seems to be out there for people to use, but somehow it is always missing those that need the help the most.

When mortgage rates drop, this creates an opportunity for homeowners to lower their monthly loan payments by refinancing their existing loans. Some are taking advantage of this, and are definitely trying to lower their payments. The Mortgage Bankers Association reported last week that 78.1% of all mortgage applications fell under the refinance category, up from 58.7% in April. However, this number still means that there is an amount of homeowners filing out the paperwork who are only getting a rejection letter in response.

When homeowners apply for refinancing, they are subject to many limitations. The mortgage association does not specify how many of those who apply for refinance actually get approved, and mortgage brokers say many homeowners are ineligible. The creation of the Home Affordable Refinance Program (HARP) last year was meant to help homeowners get new loans, but reports indicated that the program has only resulted in a small fraction of the refinancing the government aimed to enable.
"The qualifications are so much stricter," says Dale Robyn Siegel, CEO of Harrison, NY-based Circle Mortgage Group and author of The New Rules for Mortgages. "Banks have realized that even the best of borrowers have lost their jobs. A lot of people are really tapped out."

Among the limitations for homeowners is a range of qualifications that include a higher FICO score of at least 620, a higher down payment and lower monthly debt service ratios. Additionally, banks have started charging higher fees. Furthermore, lenders will probably not give a loan of more than the appraised value of a home. The struggling housing market has left an estimated 15 million U.S. mortgages -- one in five -- worth more than the value of the homes they helped purchase. These all lead to only one conclusion: The 4.44% rate is unfortunately, one that most Americans cannot take advantage of.

Add your comments