30 Year Mortgages——–4.42%
2010 High (April 8)——– 5.21%
2010 Low (Aug 19)-——4.42%
15 Year Mortgages——–3.90%
5/1 Hybrid ARMs———–3.56%
1 Year Adjustables——3.53%
10 Year Treasuries——2.58%

More homeowners are refinancing into shorter-term loans, saving a bundle by taking advantage of the lowest rates in decades. Nearly a third of borrowers refinancing fixed 30-year loans in April through June picked loans with 15- or 20-year terms, according to housing finance giant Freddie Mac.

It was the highest share since 2004. The trend has been driven by near-weekly drops in rates all summer. Average rates on fixed 15-year loans fell below 4% for the first time in mid-August, dropping to 3.92%, according to Freddie Mac. A year ago, the average 15-year rate was 4.68%.

Meanwhile, the rates on fixed 30-year loans now averaged 4.44% in mid-August, Freddie Mac found. At today’s rates, a borrower with a 30-year loan at a 6.5% interest rate and a $200,000 principal balance could save some $70,000 in interest over the life of a shorter 20-year loan. “Borrowers are looking to build equity more quickly, and they have generally been paying down their loans more quickly,” says Keith Gumbinger, vice president of HSH Associates, a publisher of consumer loan information…

They keep talking about the “double dip” in the news and just in case you hear that expression, a double dip is not what you do to an ice cream cone! Well, these days, it is always good to introduce some humor when the news is not always great. However, there is some really good news right now. Rates are the lowest they have been all year. That is really saying something, because rates have been very low all year. As a matter of fact, rates on home loans are the lowest they have been in our generation. That is pretty low. Why is that good news? If someone is thinking about purchasing a home or a car or refinancing, it is a great time to move now. Prices are low and rates are ridiculously low, thus the time is right. We need more people to buy homes and cars over the next few months so we can avoid a double dip recession. And that would be a very good thing.

What is the bad news? Rates as low as these are indicative of a slow economy. We just need to see one number from this week to demonstrate how slow things are: first-time claims for unemployment insurance went over the 500,000 mark in the past week. While still lower than the heights of the recession, it was the first time we had crossed the 500,000 barrier since late last year. Once people step up their purchases of homes and cars, this will prompt companies to hire more employees. In turn, this will make consumers more confident to purchase more homes and cars. Then the cycle of economic growth will start back up and talk of a double dip will quiet down. And when that happens, we promise rates will go up. We just can’t say when. So, for those who are waiting for the economy to get better, it will cost more for you to purchase if you are behind this curve. The trend setters will just buy their ice cream now while there are enough sprinkles to double dip…q

1. What is the owner occupancy ratio of the community you’re interested in? Knowing this upfront could save you a lot of time, as most lenders require at least 51% owners residing in the complex when you’re putting down less than 20%.

2. Is the community your subject property located in under any litigation? Lenders do not want to grant loans on properties in litigation, so it’s usually an issue for them, even if you plan to put 20% down.

3. Planning to use an FHA loan and get a “spot approval” if it doesn’t qualify? Well, think again – the new rule is they’ve been eliminated. The entire project has to meet FHA guidelines, before you can get that loan if you plan to use that type of financing.

4. Again, if you plan to use FHA financing understand that only 30% of the condominium project can have FHA mortgages, so if they’ve already reached their maximum of that many loans, you will need to look elsewhere.

5. Last but not least, if you’re looking at a developer’s condo project, FHA won’t insure a loan until 50% of the units have been sold. It’s kind of a catch 22 ruling as to get the first 50% sold will be tough if you can’t use FHA loans to begin with… As if that’s not enough, Fannie Mae and Freddie Mac require up to 70% of the units in the project to be sold before they will even back a loan.

Our market is flooded with properties that are in some stage of the foreclosure process. While these properties can be a fantastic deal, there are many special details that must be considered. Here is a short over view. Call me anytime, and I’ll go over your personal situation with you. No Obligations.

SHORT SALES
A short sale is a property that is usually in the process of foreclosure, with the seller still the owner. The home may or may not be vacant. In short, the seller is trying to sell the house for less than what they owe to the bank on their loan. You may find homes offered at unbelievable bargain prices. Of course the bank must approve this price, and they often don’t.

The bank approval process can take days, weeks, or months to get you an answer after your offer is presented.

Another snag that can come up is often there is not just one bank that has to agree to the short sale price. There can be many lien holders that must agree to basically give up their interest in the property. This includes 2nd mortgages, securitized asset holders (Fannie Mae or Freddie Mac) and even private mortgage insurance companies. Getting all those people to agree is very tricky and time consuming. Closing on time, or actually closing at all, is always questionable. It’s a frustrating process in most cases and unless you have a very flexible move date and a lot of patience, you might want to steer clear of short sales.

FORECLOSURES
Once a house has been foreclosed on, it is a much simpler process. There is only one bank and all other liens have been wiped out. A new strategy that has recently emerged is banks pricing foreclosures at super low prices. This seems to be working in their favor because they get so many more showings it generates multiple offers. Many homes are selling quickly with multiple offers, and over the banks asking price.

There are many things to think about when buying a foreclosure. For instance, how long has the house been sitting vacant? In most cases it will be several months, sometimes a year or more. Indiana winters can be very hard on a vacant house. Many are not heated and the utilities have been shut off for a long time.

If you can no longer make your mortgage payments and your home is now worth less than you owe on it, foreclosure may not be your only option.

A short sale, in real-estate terms, is the sale of a house for less than what the owner still owes on the mortgage. If the lender agrees to a short sale, the rest of the homeowner’s debt typically is forgiven. Lenders sometimes agree to the procedure in order to take a small loss and avoid the lengthy and costly foreclosure process.

While there are some significant negative consequences to a short sale, an ever-increasing number of properties are being advertised with that label.

Short sale: Win-win-win situation
The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here’s how:

The seller gets out of the mortgage liability without facing bankruptcy.

The buyer gets the home at a reduced price.

The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property.

While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit from the process, too.

“The lender benefits by not having to go through the protracted process of foreclosing on the borrower and then having to put the property on the market and go through the whole marketing process,” says Stuart Wilson, a real-estate agent with Paragon Real Estate in San Francisco.

A market saturated with foreclosures can cost lenders billions — and as much as $50,000 per foreclosure — according to a study by the congressional Joint Economic Committee.

A buyer’s dream
For a buyer, a short sale is a boon since he or she is getting a property at a reduced price. However, the process of waiting for a lender to decide whether to agree to a short sale can make a lengthy home-buying process longer and more arduous.

Buyers looking to negotiate a short-sale deal should come armed with enough documentation to convince the lender that settling for the lower price is the best option.

If you are currently in a financially devastating situation like most Americans today and have been contemplating whether or not to let your home go into foreclosure here are a few points of interest.

Anyone with an FHA mortgage that is foreclosed upon must wait 3 years until they are able to purchase a new home through FHA and the great thing about it is that you can still obtain the most competitive rate available if your credit score is a minimum of 680.

If you do a short sale with no late payments on a conventional Fannie Mae or Freddie Mac loan you can be back in the game and purchase a new home in 2 years on a conventional loan with 5% down granted your credit score is at least a 620.

If you do a short sale or deed in lieu & have late payments on a conventional Fannie Mae or Freddie Mac loan you can be back in the game and purchase a new home in 4 years on a conventional loan with 5% down granted your credit score is at least a 620.

And on a straight foreclosure on a conventional Fannie Mae or Freddie Mac loan you can be back in the game and purchase a new home in 5-7 years on a conventional loan with 5% down granted your credit score is at least a 620.

For those who are veterans of the United States various branches of the armed forces or those who are on active duty with the armed forces, there are special loan options available when purchasing a new home. Of course, there are some regulations on your service time in order to be eligible for a VA purchase loan. However, if you qualify for what these loans have to offer and you want to purchase a home, there are definitely advantages to choosing these options for your home purchase.

You will find that a VA purchase loan can offer you the ability to purchase a home, even if you have found it difficult to find other financing. There are excellent terms available on these loans and the VA loan rates are low and affordable as well. Here is a look at just a few of the excellent advantages that you can enjoy when you choose this type of a loan when buying your new home.

First of all, you will find that you do not have to pay any down payment on the home, one of the big benefits of going with a VA purchase loan. With no down payment options available, having cash reserves set aside is not a requirement to buy. This allows most anyone to have the opportunity to qualify for a loan and purchase the home of his or her dreams.

Even though you will be getting 100% financing with your VA purchase loan, you will not have to carry mortgage insurance, which is another important benefit. Mortgage insurance can be quite expensive, and the option to go without this type of insurance when purchasing your home can save you quite a large sum of money, freeing up more of your money to purchase your dream home.

Of course, the best part of VA loans is the VA loan rates they provide borrowers. These rates are low to help keep your mortgage payment as low as possible. The rates are not driven by your credit score either, so even if you have credit that is not perfect, you will still be able to get your mortgage for excellent rates that will save you money through the years. The combination of these factors provides an ideal opportunity for former military personnel to qualify for loans.

Once you have a VA purchase loan, refinancing is easy. This is another advantage, because if market conditions get better and interest rates go down, it is possible to refinance your loan to get a better interest rate on your home mortgage. In some cases, this can happen very quickly with minimal paperwork.

FHA home loans that are insured through the Federal Housing Administration (FHA) are wonderful financing choices for any homeowner who desires to get a home or refinance their existing house loan. These financing options have low interest rates in most cases only require down payments of 3.5 percent! FHA loan requirements tend to be simple, therefore existing and prospective homeowners are more apt to be eligible for these loans than other kinds of loans. A FHA 203K Mortgage can be a great way to buy a home that needs repairs or even refinance home improvements on your existing home.

There is an exception to the FHA requiring a 3.5% down payment. The exception is the special “HUD $100 Down Payment Incentive.” You can buy a HUD foreclosed home with only a $100 down payment. You can get more information on this special HUD $100 Down Payment Incentive Program by clicking on the links at the end of this article.

FHA 203K Mortgage Rehabilitation Insurance Program

The FHA has a special mortgage loan plan to assist homeowners who intend to make improvements or repairs on their home, but don’t have the finances to do so. These mortgages are called FHA 203k Mortgages and may be used for either a purchase or even a refinance. There are a couple of forms of mortgages in this program, one loan is for repairs that cost less than $30,000 and the other mortgage is for repairs that cost over $30,000.

A Streamline FHA 203K Mortgage choice is also available to homeowners that are considering doing non-structural repairs or improvements. This particular mortgage loan involves a smaller amount paperwork and will be less costly. It enables a homeowner to finance up to an extra $35,000 into their house loan in order to make improvements to the home. An FHA home inspector or appraiser will be able to identify home repairs that have to be made.

How The FHA 203K Mortgage May Be Used?

Despite the fact that there are a few limitations on what the FHA 203K Mortgage may be used for, there are numerous renovations and home repairs that the mortgage can cover. In general, included in this are modernizations, getting rid of safety or health dangers, making a home more accessible for those that have disabilities, or making a home more energy efficient. More precisely, the mortgage loan can be utilized for roofing, plumbing, flooring, painting, and modest remodeling plus much more.

FHA 203K Loan Requirements

There are several FHA 203K Loan Requirements along with this kind of financing. Homeowners used to need to spend at the very least $5000 on their home repairs to become eligible, but that requirement has been removed. Homeowners must get cost estimations from a licensed as well as insured contractor(s) in advance of signing the sales agreement. The full cost of the mortgage loan, such as the repairs, have to stay within the FHA 203K loan requirements for the county in that the home is located.

This FHA 203K Mortgage can’t be used to flip houses, and also the homeowner must make use of the mortgage loan on the home in which they lives. The work being done on the home need to commence within 30 days from the loan closing. All work need to be concluded within six months to abide by the loan requirements.

If a homeowner would like to make repairs to their home and needs additional financing, this kind of funding may be the smartest choice. Most of the same eligibility standards used for standard FHA home loans applies to the FHA 203K Mortgage. The majority of loan providers require that the borrower have a credit score that is at least 620 to be eligible. To be eligible for the mortgage loan, certain energy efficiency standards, in addition to particular structural standards, have to be fulfilled.

This FHA 203K Mortgage might be excellent answer for homeowners who desire a better approach to finance home repairs and improvements while not using up their savings.

Now couldn’t be a better time for you to improve your credit. No matter what your future needs may be, a new home, a new car, a new business, your credit will be a determining factor in your progress towards that goal. If you feel just a little insecure about your credit history, you should know that you don’t always have to feel that way. You have the option to make improve your credit. It will take a little time and much dedication, but once you commit to changing your credit history you will find that whatever sacrifice you may have to make will be well worth the benefits and prosperity you will experience.

One thing you can do to improve your credit is to consider your credit card balances. If all of your credit cards are maxed out or almost maxed out, you should work towards lowering the balance on your credit cards. When you lower the balance on your credit cards so that you are only using 10-20% of the credit limit, you will notice an improvement in your credit rating.

The second thing you can do to improve your credit is to pay more attention to your payments. When you make late payments on your credit cards or any other bills it negatively affects your credit rating. Therefore paying your bills on time will help you to improve your credit rating.

The third thing that will improve your credit rating is to not apply for too many loans at one time. When you continuously apply for credit whether it is for car loans, mortgage loans or anything else, you shouldn’t apply to more than 2 or 3 lenders at one time. The less you apply for credit the more chance you have at improving your credit rating.

The fourth thing you want to do to improve your credit rating is to solidify a long history with your creditors. It is better if you have 2 or 3 creditors that you have been in good standing with over many years. This will strengthen your creditworthiness and improve your credit rating.

The fifth thing you want to do to improve your credit rating is to have a variety of creditors. It is best if you have a credit card, a home loan and a car loan rather than all credit cards. The variety in lenders will show that you are capable of receiving credit from all types of lenders with many different requirements.

The sixth thing you want to do to improve your credit rating is to have at least one paid off line of credit. Showing that you are capable to follow through with your payments all the way through to the end will greatly improve your credit rating.

The seventh thing you can do to improve your credit rating is to work towards having any derogatory accounts removed from your credit report. You can do this by providing a letter to the creditor before you pay off the debt. This will give you room to negotiate the removal of the negative mark.