Employment News Takes Mortgage Rates To Highest Levels In Over a Year

After weeks of worsening rates, it seemed California mortgage rates were getting stable. But the employment report and some other news last week delivered a knockout punch to any hope of rates getting better. Mortgage rates are directly impacted by how mortgage backed securities(MBS) are traded on wall street. If MBS fall in price, the rates go up. On Monday and Tuesday the MBS fell by 9 basis points (bps) each. Thats only a minor impact on rates. But then on Wednesday and Thursday it went down by a whopping 66 bps. If…continue reading →

Flames, Floods and Fury: Preparing Your Financial Records for the Unexpected

It is quite clear from many recent events that Mother Nature is more than capable of springing some nasty surprises with the weather which can cause terrible devastation and damage, not to mention some events that can be equally as damaging that are manmade. In times of upheaval and sometimes extreme difficulties, we want to get back to normal as quickly as possible and getting your financial paperwork in order is a sure fire way of speeding up the recovery process. Check your insurance details - Depending on the scale or severity of…continue reading →

FHA Wont Allow Cancellation Of Mortgage Insurance Anymore; Increases Premium

FHA recently announced changes to mortgage insurance premium for home loans insured by the agency. The new guidelines will make FHA loans more expensive. You will also need to pay mortgage insurance for the life of the loan in most cases. Changes to FHA Annual Mortgage Insurance Premium The below chart shows the changes coming to FHA mortgage insurance premium. This goes into effect for loan applications on or after April 1, 2013. If you got a 15 Year Fixed loan with a Loan to Value (LTV) ratio under 78%, you could avoid…continue reading →

Another Week, Another Increase In California Mortgage Rates

According to Mortgage Bankers Association's (MBA) weekly mortgage application survey, California mortgage rates has now increased seven of the last eight weeks. Most of the big banks are now advertising Annual Percentage Rates (APR) just under 4%. 30 Year and 15 Year Fixed Mortgage Rates The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) was up six basis points to 3.73%. The rate for 15-year Fixed Rate Mortgages also increased, by five basis points to 3%.The average interest rate for 30-year fixed-rate mortgages for high balance loans…continue reading →

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 →

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 →