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May 12, 2011

Home Mortgage Rates Fall Dramatically

Category: Mortgage Rate News – admin – 12:05 pm

According to Freddie Mac, the average rate on a 30-year fixed rate mortgage fell to 4.63 % in the week ended today from 4.71%. That is the lowest since the week ended Dec. 9. The 15-year rate slipped to 3.82% from 3.89% a week ago, the Virginia based government finance company said. The Mortgage Bankers Association’s weekly report measuring home loan refinancing activity jumped 9% last week which was the most significant rise in two months. According to MBA, the volume for home purchase loan applications rose 6.7%. 

Foreclosure listing firm RealtyTrac Inc, said fewer homeowners had their homes repossessed by banks in April than a year ago. But that’s because it’s taking mortgage lenders longer than expected to repossess house that are already in the foreclosure process because of bottle-neck of paperwork.

Home sales continue to see stagnant levels that have many economists predicting a second housing bubble looming. Most homebuilders reported a drop in new orders in the first three months of the year, an indication of future activity. Concerns on jobs and tighter lending standards have hindered potential home buyers. And the high number of foreclosures is forcing home prices down, leaving some would-be buyers concerned that prices have yet to bottom out.Read the original article > Home Mortgage Rates Decrease to Lowest Level in 5 Months

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May 6, 2011

Equity Loan Solutions for Cash Out, Home Improvement and Consolidation

Category: Home Equity Financing – admin – 3:34 am

Over the last few years the home loan industry consolidated most of the finance programs, but creative equity loan financing still exists if you know which home equity lenders to have the ability and experience to help you. If you do not already know, a home equity loan is a type of 2nd mortgage that features a fixed rate of interest.  Homeowners have the option to tap the equity in their home by gaining access to money that is paid back in a second mortgage payment monthly.  The home equity mortgage is an installment loan that has a fixed rate with fixed monthly payment and an equal number of payments to pay back the home loan.

What Do You Need to Qualify for a Home Equity Loan in 2011?

  • High Credit Scores in the 680-760 Range
  • Home Equity – Lenders like to see 20- 30% in most cases. (some programs will still go to 90% loan to value)
  • Full Documentation – Borrowers must document their income with paystubs, W2’s and 1040 tax returns
  • Low Debt to Income Ratio – Lenders approve equity loans when the borrowers are below 40% DTI

The most common purpose for an equity mortgage loan is debt consolidation. Homeowners can consolidate credit card debt and deduct the interest on the equity loan for tax purposes. This gives homeowners a significant financial edge over renters who usually try to consolidate their bills into another variable interest credit card.  Unsecured loans typically carry a high interest rate and the maximum loan amount on an unsecured loan is usually far less than a fixed equity loan. 

Maximize Your Home Equity by Financing a Home Remodel

Homeowners also like using an equity loan to help finance home improvement projects. Some construction loans will even base the home equity mortgage off the future value pending the home improvement changes.  The FHA 203K loan is similar in that it offers mortgage refinancing to 115% loan to value for the purpose of home rehabilitation. Don’t assume that all the lenders you are talking to offer home equity refinancing, credit lines and niche FHA products like the 203K.  Home Loan Wholesale will match you with home equity lenders that meet your needs and goals.

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May 5, 2011

New Home Loans

Category: Home Loan Market,Home Purchase Loan Tips – admin – 12:33 am

The housing market continues to struggle with slumping home sales, but for home buyers this has turned into good news, because prices have come down and mortgage rates remain at record lows.  Qualifying for a new home loan has its challenges as banks expect more income, more money for down-payments and higher credit scores. New home financing has evolved in the last few years with tighter loan guidelines to prevent loan defaults and delinquencies.   Fortunately for consumers there is a wide variety of 1st time home buyer loans to choose from:

  • FHA loans – These government home loans only require a 3.5% down-payment and you do not need to be in the military.  FHA financing does require monthly mortgage insurance, but the rates are great and most lenders are more flexible with credit scores than Fannie Mae or Freddie Mac lending.
  • VA home buying – These Veteran loans are for military borrowers and no down-payment is needed.  Buying a home with no money down is easy with the VA loan program. Like FHA, the VA program allows home loans for bad credit.
  • Fannie Mae – These conventional mortgages ensure great rates, but most home loan lenders want 20% down.  Fannie Mae still offers a new home loan for first time home buyers but there is mortgage insurance and in most cases the lenders want credit scores above 720.
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May 4, 2011

Best Practices for Home Loan Financing

Category: Published Articles – admin – 1:22 am

There are a few important steps you need to follow to make sure you are getting the best mortgage at the lowest possible home loan rate. Getting your income documentation ready and cleaning up your credit report should be top priorities befoes shopping online for home loan programs. Most lending companies will want your debt to income ratio to be below 30% after factoring in the perspective home purchase loan payment and housing expenses. Depending upon which home loan program you choose will dictate how much you will need for a down payment.

  • Conventional loans need 20% of the sale price
  • FHA mortgage programs require a 3.5% down payment
  • VA mortgages require no down payment

Read the original article online > Home Financing Tips for First Time Home Buyers.

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