Tag: Mortgage

Posted in Insurance

How the Fed could push mortgage rates even lower this week

Both homebuyers and homeowners are loving today’s record-breaking mortgage rates, which have been averaging less than 3% for the very first time. As rates have made history this month, mortgage applications have been rising.

Borrowers owe the Federal Reserve a big thank you for the plunging rates on new and refinance home loans, and Fed policymakers who meet this week could help push them even lower.

America’s central bank is expected to stick with and even sharpen its coronavirus-fighting policies that have driven interest rates down. Fed officials also are likely to spread more gloom about the economy — and when Fed chief Jerome Powell and his colleagues get grim, mortgage rates tend to drop.

What the Fed is likely to do

Paul Brady Photography / Shutterstock

Let’s get this out of the way first thing: No one’s expecting the Fed to make any changes in interest rates this

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Posted in Insurance

How the Fed could pound mortgage rates down even lower this week

Both homebuyers and homeowners are loving today’s record-breaking mortgage rates, which have been averaging less than 3% for the very first time. As rates have made history this month, mortgage applications have been rising.

Borrowers owe the Federal Reserve a great big THANK YOU for the plunging rates on new and refinance home loans, and Fed policymakers who meet this week could help push them even lower.

America’s central bank is expected to stick with and even sharpen its coronavirus-fighting policies that have driven interest rates down. Fed officials also are likely to spread more gloom about the economy — and when Fed chief Jerome Powell and his colleagues get grim, mortgage rates tend to drop.

What the Fed is likely to do

Paul Brady Photography / Shutterstock

Let’s get this out of the way first thing: No one’s expecting the Fed’s policy panel to make any changes in

Read More
Posted in Insurance

4 tips for bagging one of those mortgage rates under 3%

You’ve seen the headlines: With the economy in a COVID-19 tailspin, mortgage rates that have been falling and falling have now reached depths below 3% for a 30-year loan.

The national average rate dropped earlier this month to an all-time low 2.98%, according to mortgage giant Freddie Mac, which has been tracking rates since 1971. On Thursday, Mortgage News Daily reported that the average sank to an even more jaw-dropping 2.87%.

But if you’re a homeowner wanting to refinance or a homebuyer ready to make a purchase, you can’t assume that a mortgage lender will always give you one of those spectacularly low rates.

In some cities, different lenders can offer rates that vary by close to one full percentage point, a recent study from LendingTree found.

In other words, Lender X might want to give you a 30-year fixed-rate mortgage at 3.9%. But you might discover that Lender Y

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Posted in Insurance

This is how you get one of those mortgage rates under 3%

You’ve seen the headlines: With the economy in a COVID-19 tailspin, mortgage rates that have been falling and falling have now reached depths below 3% for a 30-year loan.

The national average rate dropped earlier this month to an all-time low 2.98%, according to mortgage giant Freddie Mac, which has been tracking rates since 1971. On Thursday, Mortgage News Daily reported that the average sank to an even more jaw-dropping 2.87%.

But if you’re a homeowner wanting to refinance or a homebuyer ready to make a purchase, you can’t assume that a mortgage lender will always give you one of those spectacularly low rates.

In some cities, different lenders can offer rates that vary by close to one full percentage point, a recent study from LendingTree found.

In other words, Lender X might want to give you a 30-year fixed-rate mortgage at 3.9%. But you might discover that Lender Y

Read More
Posted in Insurance

How to get a record-low mortgage rate even if you’re self-employed

If you work for yourself and are thinking about buying a home or refinancing, historically low mortgage rates aren’t out of reach.

But first, you have to qualify for the mortgage. As the unemployment rate stays high, lenders are trying to predict whether potential borrowers will be able to make payments. They’ll check — and then double-check — that your income hasn’t been impacted by the pandemic.

“Self-employed people have to jump through hoops like never before,” says Nicole Rueth, producing branch manager of Fairway Independent Mortgage Corp. in Englewood, Colorado. “The paper trail is much more extensive than it’s ever been.”

As mortgage rates continue to dip below 3%, here’s what self-employed people can do to prepare for a mortgage application and score a rock-bottom rate.

Income documentation you’ll need

Steve Heap / Shutterstock
You’ll need to provide tax returns and other income documentation.

“Income verification” might sound

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Posted in Finance

More Wells Fargo customers say the bank decided to pause their mortgage payments without asking

In March, Tammi Wilson was checking on her family’s mortgage online at Wells Fargo, when she saw a link to information about COVID-19 on the bank’s website. After clicking through, she provided contact information so she could receive materials on programs at the bank. Days later, she said she returned to the payment page to transmit what she and her husband David owed on their loan. A message popped up saying she had no active accounts and she could not make the payment.

Wilson later learned what had happened. Without her knowledge, the bank had put her into a program that suspended payments on her federally backed loan. Known as forbearance, it is a CARES Act program that aims to help borrowers who are having trouble making their payments because they’ve been hurt by COVID.

Because she had not asked for the bank’s help, Wilson continued to make all her

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Posted in Insurance

With mortgage rates now under 3%, most home loans are due for a refinance, study says

Few people ever expected to see mortgage rates slide so low, and many homeowners have been caught off guard. Thirty-year fixed-rate mortgages are now averaging less than 3% in multiple surveys — and are offering major refinance savings.

Though mortgage holders have been flocking to get new loans with sharply reduced interest rates, plenty of homeowners are still sitting on mortgages that are now too expensive.

In fact, a new report from mortgage company Fannie Mae says most mortgages with outstanding balances should be refinanced. Maybe that includes yours.

If you have a mortgage that’s closer to 4% than 3%, your monthly mortgage payment is probably hundreds of dollars higher than it could be.

Who needs to refinance?

Roschetzky Photography / Shutterstock

An estimated 60% of homeowners with mortgages can chop down their interest rates by at least one-half of one percentage point by refinancing, Fannie Mae says.

“The

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Posted in Insurance

Mortgage rates hit new low under 3%; forecast says they’re going lower

This year’s amazing mortgage rates have gotten even more stunning. A widely followed survey shows that after tumbling for months, the average rate for a 30-year mortgage has now fallen all the way down to a level below 3%.

That’s a first for mortgage giant Freddie Mac’s weekly survey, which started in 1971 when Richard Nixon was president and 30-year mortgages were averaging 7.33%. The rates would skyrocket above 18% in the early 1980s.

This year, mortgage rates have been turned on their heads by the coronavirus crisis and how investors and the Federal Reserve have been responding to it.

And, a new forecast says rates under 3% could become the norm next year.

Mortgage rates make history

Andrii Yalanskyi / Shutterstock
Mortgage rates have hit a new all-time low for the seventh time since March.

Mortgage rates have hit a new all-time low for the seventh time since

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Posted in Insurance

Mortgage rates fall to new low under 3%, forecast says they’re going lower

This year’s amazing mortgage rates have gotten even more stunning. A widely followed survey shows that after tumbling for months, the average rate for a 30-year mortgage has now fallen all the way down to a level below 3%.

That’s a first for mortgage giant Freddie Mac’s weekly survey, which started in 1971 when Richard Nixon was president and 30-year mortgages were averaging 7.33%. The rates would skyrocket above 18% in the early 1980s.

This year, mortgage rates have been turned on their heads by the coronavirus crisis and how investors and the Federal Reserve have been responding to it.

And, a new forecast says rates under 3% could become the norm next year.

Mortgage rates make history

Andrii Yalanskyi / Shutterstock
Mortgage rates have hit a new all-time low for the seventh time since March.

Mortgage rates have hit a new all-time low for the seventh time since

Read More
Posted in Insurance

Mortgage rates just officially got ridiculously low

This year’s amazing mortgage rates have gotten even more stunning. A widely followed survey shows that after tumbling for months, the average rate for a 30-year mortgage has now fallen all the way down to a level below 3%.

That’s a first for mortgage giant Freddie Mac’s weekly survey, which started in 1971 when Richard Nixon was president and 30-year mortgages were averaging 7.33%. The rates would skyrocket above 18% in the early 1980s.

This year, mortgage rates have been turned on their heads by the coronavirus crisis and how investors and the Federal Reserve have been responding to it.

And, a new forecast says rates under 3% could become the norm next year.

Mortgage rates make history

Andrii Yalanskyi / Shutterstock
Mortgage rates have hit a new all-time low for the seventh time since March.

Mortgage rates have hit a new all-time low for the seventh time since

Read More