Smart Borrower Blog

Archive for the ‘Mortgage Refinancing’ Category

Obama Announces New Mortgage Refinance Aid

On Wednesday, President Barack Obama announced some modifications to his administration’s previous foreclosure-prevention plans in hopes of extending relief to more struggling homeowners. “I am sending Congress a plan that will give every responsible homeowner in America a chance to save about $3,000 a year on their mortgage by refinancing at historically low rates,” he told an audience in Falls Church, VA as quoted in a New York Times article. “No more red tape. No more runaround from the banks.” The President did admit that previous efforts have been less effective than expected, but he said this new round of... more »

Lenders Struggle with Mortgage Refinancing Boom

Mortgage rates have reached historically low levels, with the average 30 year fixed loan interest rate coming in at 4.15% – and has resulted in large volumes of homeowners looking to refinance their mortgages to secure a lower interest rate. Lenders are struggling to keep up with the number of refinance applications coming in. The Mortgage Bankers Association shows the number of mortgage refinance applications have increased 83% since February. Some lenders are holding their mortgage rates higher than the average simply to slow down the number of people applying for mortgage refinances. During the housing market bust, many lenders... more »

Mortgage Applications Continue to Fall Despite Low Rates

Even though mortgage interest rates keep falling, it has not been enough to increase U.S. mortgage applications. Total applications for refinance loans and home purchase loans dropped 5.1 percent in the past week, according to the Mortgage Bankers Association, marking the fourth consecutive weekly decrease. The number of home purchase requests, often a sign of future home sales, fell 2.6 percent in the past week. The unemployment outlook and tightened loan standards continue to be significant issues for many potential homebuyers. Says Celia Chen, a housing economist at Moody’s Analytics Inc as quoted in a Bloomberg article “Without stronger job... more »

Mortgage Applications Rise to Highest Pace in Three Months

The number of applications for mortgage loans bounced up to it highest level since December, according to data from the Mortgage Bankers Association. Based on its seasonally adjusted index of mortgage application movement, refinances and home purchase applications were collectively up 15.5 percent during the last week. The refinance index alone was up 17.2 percent, while the home purchase index also jumped by double digits – 12.5 percent. “An improving job market is beginning to pave the way for an improving housing market,” said Michael Fratantoni, MBA vice president of research and economics. “Additionally, mortgage interest rates remained below 5... more »

Demand Falls as Mortgage Rates Jump

Mortgage interest rates jumped up this week, according to the Mortgage Bankers Association , and as a result home loan applications took a dive, a sign that the housing market is not reviving on pace with the rest of the economy. The MBA reported that the average rate on a 30-year fixed rate mortgage broke the 5 percent barrier this week, moving up to 5.13 percent from 4.81 percent the week before. That is the highest rate in almost 10 months. As rates increased, demand for mortgages slowed with the MBA seasonally adjusted mortgage application index falling 5.5 percent. “Mortgage... more »

Low Rates Finally Make Mortgage Loans Palatable

Even though long-term mortgage interest rates have been at all-time record lows for weeks, very few borrowers were taking the bait. At least until this past week, according to the Mortgage Bankers Association. Last week, home loan applications rose by 7.6 percent based on the MBA’s seasonally adjusted index. Home purchase applications rose for the first time in five weeks, after dropping to a 13-week low the previous week, and refinance applications jumped to their highest level in over a year. Mortgage giant Freddie Mac reported last week that the average rate on a 30-year fixed rate loan sunk to... more »

Trial Loan Modifications Spur Lawsuit Against JPMorgan Chase

JPMorgan Chase is being sued again by angry homeowners. Three Queens, New York residents, who were recipients of trial mortgage modifications under Obama’s Home Affordable Modification Program, have filed a suit against Chase for reneging on its promises to convert those loans into permanent payment modifications. Alex Lam, 35, Shanaz Begum, 40, and Tamara Williams, 39 are being represented by the Urban Justice Center and all claim Chase denied them permanent mortgage modifications even though they were eligible under HAMP rules. In the case of Alex Lam, he was told by his bank last year that he needed to miss... more »

New Association Aims to Combat Loan Modification Scams

NeighborWorks America, a non-profit created by Congress, has launched a national public education campaign aimed at helping homeowners, particularly those facing foreclosure, avoid mortgage modification scams. Their recently launched website, www.loanscamalert.org, provides information and resources to help spot scams, as well provides a central place to notify authorities of scams they may have encountered. In addition to the website, the campaign will draw on the support of public agencies at all levels of government as well as other financial institutions and non-profits to get the word out. According to their press release: The national foreclosure rate has reached an all-time... more »

Some May Avoid Foreclosure with Loan Modification

Thousands of people have recently been facilitated with the process of home loan modification during this recession. Recipients are able to repay their loan amount as they’re able, which protects them from ruining their credit and allows them to remain in their homes. Dealing with everyday living expenses and mortgage payments at the same time can become overwhelming and complicated. A majority of people are unaware of the details concerning the numerous qualifications for home loan modification. Don’t be discouraged to apply, even if you have bad credit, because there are many ways to get approval for a home loan... more »

Frank Considers Reviving “Cram Down” Legislation

Barney Frank, House Financial Services Committee Chairman, is concerned that lenders aren’t doing enough to help modify home loans that are in stress. Frank is threatening to revive the “cram-down” legislation that failed to pass Congress earlier this year. Under this legislation, federal judges are given the power to cut interest rates, reduce mortgage balances and extend terms. The judges would have the authority to do this even if the lender protests. Although Congress has given the mortgage industry many tools to quickly and easily modify loans, the results have been dismal, according to Frank. An article on Bloomberg.com tells... more »