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January 13, 2012

Home Loan Application Volumes Rise

Category: Mortgage Rate News – admin – 5:58 pm

The Mortgage Bankers Association published their weekly report indicating that home loan applications rose from the previous week. MBA reported increases in refinancing and purchases mostly because interest rates remained at 60-year lows.  Overall activity increased 4.5% for the week ended Jan. 6, including an adjustment for the New Year’s Day holiday, the Mortgage Bankers Association reported on Wednesday.

The index got a boost from as mortgage refinancing applications rose 3.3%. According to the survey, applications for home purchase loans rose over 8% from a week earlier. The four-week moving average is down just slightly, by 0.53%, while it decreased 1.92% for the purchase index and 0.09% for refinancing.

On fixed 30-year mortgage rates, the average contract interest rate for loans with conforming mortgage balances ($417,500 or less) rose to 4.11% from 4.07%.  The rate for 30-year fixed mortgages with jumbo loan balances (greater than $417,500) decreased to 4.34 % from 4.41%.

FHA rates on fixed 30-year mortgages that are government insured remained unchanged, at 3.96%, but the 15-year mortgage rate rose slightly to 3.40% from 3.37%.

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January 11, 2012

Federal Reserve and FHA Looking for Safer Loans in 2012?

Category: Federal Reserve,FHA – admin – 12:51 am

The Federal Reserve has received a lot of heat in the last few years for committing to back so many bad mortgages.  The Federal Housing Administration has increased monthly mortgage insurance premiums several times in the last few years. The increased premium helps to bolster FHA reserves, but it definitely decreases affordability for borrowers because FHA mortgage loan payments increase when mortgage insurance premium rises.  FHA loan rates continue to be available at 60-year lows, below 4% on thirty year terms.

Today, the Fed announced that it contributed $76.9 billion in profits to the Treasury Department last year, slightly less than its record 2010 transfer but much more than in any other previous year.  The Fed is required by law to turn over its profits to the Treasury each year, a highly lucrative byproduct of the central bank’s continuing campaign to stimulate economic growth.

Nearly 97% of the Fed’s income was generated by interest payments on its investment portfolio, including $2.5 trillion in Treasury securities and mortgage-backed securities, which it has amassed in an effort to decrease borrowing costs for businesses and consumers by reducing long-term interest rates.  Through those purchases, the central bank has become the largest single investor in federal debt and securities issued by the government-owned mortgage finance companies Fannie Mae and Freddie Mac. As a consequence, most of the money flowing into the Fed’s coffers comes from taxpayers.

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5 Steps for Getting Approved fоr а Fіrst Time Ноmе Loan

Category: First Time Home Buyer,Home Financing Tips – admin – 12:35 am

Most consumers understand that bad credit home buying will have it’s set of challenges. First time home buyers need to learn to multi-task so they can get approved for financing and home buying in a timely manner.

1.  Start wіth cleaning uр уоur financial life аs best уоu саn whеn pursuing hоw tо gеt а fіrst time hоmе loan wіth bad credit. Υоur раst actions will nеvеr bе forgotten іf уоu continue thеm іntо thе future.

2.  Paying аll уоur bills оn time аnd saving uр fоr а dоwn payment іs аn excellent wау tо prepare tо apply fоr а hоmе loan fоr fіrst time homebuyers wіth less than perfect credit.

3.  Get organized beforehand, because bad credit mortgages оftеn hаvе mоrе extensive application requirements thаn thоsе thаt аrе offered tо people wіth sterling credit ratings. It doesn’t hurt to meet wіth а free debt оr financial counselor саn help shоw lenders thаt уоu аrе serious аbоut turning уоur finances аrоund.

4.  Allign yourself with an experienced Realtor that specializes in your local market. In many cases, a good realtor will open the door uncovering bargains that can save you money.

5.  Get Pre-Approved and find a loan officer and mortgage lender that you trust to work with.

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