Mortgage Rates Skyrocket – Crosses 4% Mark At Some Banks

Mortgage Rates have skyrocketed to their highest levels since August 2012, prompting some banks to increase the rate to 4% and beyond. On Friday, MBS (the mortgage backed securities that directly influence mortgage rates) tanked 62 basis points. That came after 26 basis points drop on Thursday. More bad news continued on Monday when long-term rate-indicative 10-year Treasury note yields touched 2 percent for the first time since April 2012. When MBS prices are falling, that means investors are paying less for mortgages. This causes closing costs, rates, or both to move higher.…continue reading →

How To Get The List Of All FHA Approved Condos {Video}

I did a quick video to show you how you can find out a list of all FHA Approved condominiums. You can search for all approved condos in a certain State, City or Zip code. You can also search if a certain condo is FHA approved or not. And if you need help with FHA financing, you can always contact me. In the video this is the website I talk about https://entp.hud.gov/idapp/html/condlook.cfm  continue reading →

California 30 Year Fixed Mortgage Rates Climb For Third Consecutive Week

According to Mortgage Bankers Association (MBA) weekly survey, California mortgage rates increased again last week. The rates have now increased for five out of last six weeks. This is the third consecutive week that 30 year fixed rates have gone up. Overall the rates have gone up by .25% after hitting the lowest levels in November, 2012. Conforming, High-Balance and FHA 30 Year Fixed Rates The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.62 percent from 3.61 percent, with points increasing to 0.43…continue reading →

Conforming Jumbo and FHA Mortgage Rates Rise For Second Consecutive Week

According to Mortgage Bankers Association's (MBA) latest weekly survey, mortgage rates for conforming jumbo (also called High Balance Loans) and FHA loans increased again last week. This is second week in a row that the rates have gone up. And if that was not enough, by the end of Thursday, mortgage backed securities tanked by 50 basis points, further worsening the rates. 30 Year Fixed Mortgage Rates Per MBA survey, The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 3.61%, with 0.38 points. The…continue reading →

7 Things You Need To Know About Qualified Mortgage (Ability To Repay Rule)

What is a Qualified Mortgage rule? Qualified Mortgage (QM) rule, also called Ability To Repay rule is part of implementing the Dodd-Frank act. QM rule implemented by Consumer Financial Protection Bureau (CFPB), is the first ever attempt at defining and establishing a basic standard for qualifying borrowers for mortgage loans. Loans that qualify as “Qualified Mortgage will get a full legal shield from the CFPB mandating that judges rule in lenders favor if the borrowers contest foreclosures. I also talked about it in a post I wrote on Oct 24. 2012. On January…continue reading →

California Mortgage Rates Rise To The Highest Levels Since November – Now At 3.61%

According to Mortgage Bankers Association, mortgage rates for California, Washington, Oregon and rest of the country rose sharply in the first week of 2013. The rates are now at the highest levels since November. Fannie Mae 3% coupon (mortgage backed securities) tanked by 69 bps last week. This usually has inverse relation to the rates - mortgage backed securities going down in price means higher interest rates. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.61% with 0.41 points (origination fees). This rate is…continue reading →

Is HARP-3 For California Homeowners On It’s Way? #MyRefi

Refinancing help for underwater California homeowners whose loan is not backed by Fannie Mae or Freddie Mac may soon become a reality. Unofficially billed as HARP-3, it is one of the top priorities of Obama government. Obama government is considering expanding the Home Affordable Refinance Program (HARP) to include homeowners who are underwater but whose mortgage is not backed by government sponsored enterprise (GSE) namely, Fannie Mae and Freddie Mac. According to Core Logic, at the end of June 2012, about 22% of all homes or around 10.8 million homes were underwater meaning…continue reading →

Why 30 Year Fixed Mortgage Rates Should Be At 2.75% And Why They Aren’t?

Ben Bernanke must be tearing his hair (whatever is left of it). He has increased Fed's balance sheet to an all time high of almost $3 trillion mostly through bond purchases. But the mortgage rates haven't declined as much he would have hoped. He is frustrated that the lower yield on mortgage backed securities are not being passed on to the borrowers in form of lower mortgage rates. In fact, he called the trend "unfortunate" and Federal Reserve Bank of New York held a workshop to examine the issue. Imagine 30 year fixed…continue reading →

Qualifying For FHA Loans To Become Tougher, Costlier

Last month FHA announced increase in mortgage insurance premium and prolonging cancellation of mortgage insurance (read the full report here). But looks like those steps are not enough to restore FHA's reserve requirements as mandated by congress. FHA commissioner and government are proposing/considering several new proposals that would make qualifying for FHA loans tougher and costlier. Let's look at some of these proposals: Down payment on loan amounts over $625,500 to be increased by 1.5%. From 3.5% it would be raised to 5%. FHA is also considering eliminating loan amounts over $625,500 altogether,…continue reading →

2013 FHA Loan Limits For California(CA), Oregon(OR) And Washington(WA)

Federal Housing Administration (FHA) recently announced 2013 maximum loan limits for California, Oregon and Washington FHA mortgages. While the "floor" and maximum high-cost limit remained the same nationally, for some counties the loan limits changed. Every county will at least have the "floor" as their loan limit, also called FHA's minimum loan amount limit per below. One-unit applies to Single family residence (SFR), Condominiums and Townhomes. One-Unit: $271,050 Two-Unit: $347,000 Three-Unit: $419,425 Four-Unit: $521,250 For high-cost areas the maximum FHA loan limits for 2013 would be: One-Unit: $729,750 Two-Unit: $934,200 Three-Unit: $1,129,250 Four-Unit:…continue reading →