Archive for the ‘current home mortgage rates’ Category

Should you Refinance your Home Mortgage?

Monday, June 23rd, 2014

Should you refinance your home mortgage? 

Mortgage Interest rates are low and have been for quite a while. While many home owners have taken advantage of the lower rates, some people don’t think they can or should.  Even if your house is “underwater”, in many cases you can refinance.    Should you?

There was a rule of thumb that rates have to be 1% less than your current rate for it to make sense. Not a good guide. The time it takes to recoup the fixed costs of refinancing is less for a large mortgage than for a small loan.  For example, on a $300,000 mortgage the savings associated with a drop of  .75 of 1% ,  would be approximately $130 a month.  On a $75,000 mortgage, the savings are approximately $30 a month.   That’s only the savings associated with the interest rate reduction.  When refinancing, the life of the mortgage is often reset to 30 years, so the amount paid towards principal declines.  This reduces the monthly mortgage payment further and benefits the mortgagor’s cash flow.  But if the  goal is to pay off the home mortgage, this is counterproductive, unless the home owner makes the same mortgage payment as before so the extra goes to principal reduction or they refinance into a shorter term mortgage.   Interest rates on 20 or 15 year fixed rate loans are lower than interest rates on 30 year mortgages for the same set of circumstances.  Homeowners also should consider the impact of refinancing on any mortgage insurance they pay.  Refinancing may eliminate or reduce their mortgage insurance.    

In some states, if you qualify for a HARP loan, the state has money to actually grant the home owner funds to reduce the amount of the mortgage. This falls under the Hardest Hit Funds.   Arizona does participate.   

Many lenders offer potential borrowers several rate options, one where the borrower pays all the closing costs, some of the costs or none of the costs. Clearly if a borrower can save money and not have any out of pocket costs, it makes sense to refinance.  However, if a borrower plans to own the house for the long term without future refinances, the lowest rate option may make the most sense.  Over the life of the mortgage they will save the most money.  The borrower should understand where the break-even point is for refinancing.  I am happy to discuss your situation and see if refinancing makes sense for you. 

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend.  Other limitations may apply. 

http://www.GoodMortgageInTucson.com

Minette Goldsmith, your Tucson Mortgage Loan Officer at V.I.P, Mortgage, Inc.  520-975-3909   mgoldsmith@vipmtginc.com

Company licenses    National – 172492   State – 0115261
Individual licenses    National – 261487   State – AZ: LO-0912618

VIP NMLS#145502  

 

Equal Housing Lender

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Tucson Real Estate Market Conditions & Mortgage Rates

Tuesday, December 3rd, 2013

According to the Tucson Association of Realtors, The TAR Scorecard, Lawrence Yun included Tucson as a real estate ”market to watch” for a turnaround.  “Nationally Yun said existing home sales will remain flat but prices will rise an average 6%.The top 10 markets on his watch list however, are likely to exceed those predictions. In additon to Tucson, those markets include Seattle; Denver;Boise;Salt Lake City; Houston; Atlanta; Charlotte; and Tampa and Naples, FL.” 

As of the end of October 2013, residential home unit sales are up 4% over the same year to date period in 2012,  The median home sales price is up 8.4%, to $155,000 for the month of October, down a bit from the year to date median of $156,239. Tucson home sales price per square foot has improved 13% over the year to $105 a square foot.  All of these figures cover the entire Tucson area, individual neighborhoods vary considerably in their appreciation and in some cases depreciation over last year. 

An indicative interest rate at the end of October 2012 for a 30 year fixed conventional mortgage for a home purchase in Tucson was 3.625%, at the end of October 2013, it was much closer to 4.625%. For an 80% loan to value mortgage on a house priced at $155,000, that increases the monthly mortgage by $71. Buyers should keep that in mind when they consider if they should wait to buy a home.  

Tucson Market Conditions seem to be rising prices and mortgage rates are trending up too.  Better to buy sooner than later to keep your  house payment affordable, if you are thinking of buying a new home in Tucson. 

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend.  Other limitations may apply. 

http://www.GoodMortgageInTucson.com

Minette Goldsmith, your Tucson Mortgage Loan Officer-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

520 975-3909

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender 

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Mortgage Interest Rates in Tucson

Thursday, June 20th, 2013

For the last month mortgage interest rates have been rising and over the last 3 days, we have been getting emails several times a day that pricing is worse.  What does that mean to someone getting a  mortgage?

First of all, my personal opinion is that I would not lock an interest rate at this moment unless I had to. The speed at which rates have moved indicate that sometime between a week and 2 weeks from now, things will settle down.  This seems to be an over reaction.   The Fed really did not make any significant changes. If you have already locked your home loan rate, your mortgage company should hold to that. You can sit back and smile because you are set while everyone else is panicking. 

Most mortgage companies (the loan officer’s get paid on a slightly different basis) get a certain amount back at different interest rates for loans with different qualities. The price for a loan for someone who has excellent credit is better than the price for a loan for someone who has poorer credit. The amount the company gets paid translates into a better or worse rate for the borrower. We  have an idea of how much we want to earn on a transaction, an amount that keeps us competitive with other mortgage companies but still pays the bills.  If we earn more, we can cover some borrower closing costs, if we earn less, then we need to charge an origination or discount fee to the borrower.  But it is a range, not an exact dollar amount.  So if the pricing changes a little bit during the day, usually if we quoted you in the morning and the pricing changes once during the day, we can keep that same rate. But if pricing changes several times during the day, it is likely the mortgage interest rate we quote may also change by at least  .125% during the day.  If you had a $100,000 loan that .125% impact would be about $7 a month.

I recently did a refinance mortgage for someone who had an interest rate over 6%, mortgage interest rates are still much better than that.  If your mortgage is over 5%, you should check if it makes sense to refinance.  Give me a call to see if you can save money by refinancing. 

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend.  Other limitations may apply. 

http://www.GoodMortgageInTucson.com

Minette Goldsmith-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

520 975-3909

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender

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Mortgage Loan Minimum Credit Score Change

Wednesday, May 8th, 2013

There is a recent change in the minimum credit score you need for a conventional home loan.  For Fairway Independent Mortgage and for most mortgage lenders the new minimum requirement is 620, it was 640.  For FHA, VA and USDA loans it is usually 640 still. 

There are still good reasons to have a better credit score.  If your score was 740 or above, the indicative rate on a purchase or refinance today is 3.75%  (APR 3.832%) with no origination fee. With a 620 credit score it is 4.375% (APR 4.547%) plus 1% origination fee.   On a loan of $150,000, that is a monthly payment difference of $54 plus an extra $1500 at closing. People will also save on credit card and car interest rates.  And, besides, you sleep better at night.  

 But, if someone wants a house NOW, they may be able to qualify when they could not have 2 weeks ago.  And, there is the possibility of refinancing once their credit improves.

So if you want to take advantage of the attractive home prices available in Arizona, and your credit wasn’t quite there, you may now be able to qualify.  Call your favorite Tucson mortgage loan officer (hope it is me!) for a home loan pre-qualfication so you can go out looking for the home of your dreams.  

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend.  Other limitations may apply. 

http://www.GoodMortgageInTucson.com

Minette Goldsmith-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

520 975-3909

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender

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Tucson real estate statistics 10 year comparison

Monday, April 8th, 2013

The residential real estate market in Tucson seems to have turned the corner.  Even though real estate companies might show sales prices declined from the prior month, just a few sales might skew the figures.  I am seeing multiple offers on attractively priced homes, sometimes higher than the asking prices.  Keep in mind this is the beginning of the prime selling season as people try to buy before school starts.  Realtors are all bemoaning the problem that there are so few houses available for sale.  Insufficient supply to meet demand, means higher prices.

Here is an interesting comparison.  Tucson Real Estate statistics from the Tucson Association of Realtors for February 2013 compared with what the Tucson Association of Realtors said in February 2003, just before things really started to heat up and then collapse. Ten years ago…

 Sales volume in the Tucson real estate market   February, 2013  $177.3 million…. $150.7 million in February, 2003 

Average Sales Price   February, 2013  $186,482, but single family residences averaged $207,900…. $167,676 but single family residences  were  $179,456 in February, 2003

Median Sales Price    February. 2013   $149,000…. $139,000 in February 2003

Unit sales in February, 2013   951….899 in February, 2003

Listings February, 2013 4,325……5,221 in February, 2003

Average days on Market  February, 2013  58 days…..55 days in February, 2003

Cash sales  40% – lots of investors again in February 2013…. in February 2003, there were 13% cash sales.

 Other than the cash sales and number of listings, the numbers are not dramatically different.  One realtor indicated to me that she is seeing a lot of retirees coming in and paying cash now too, besides the cash sales associated with real estate investors.  

If you bought a single family residence in 2003, the value has gone up over 15% over the last 10 years.  The problem for most is what happened in between.  Also, there were a lot of homes added to the inventory of available homes in 2003-2007, at increasingly higher prices so there may be bigger homes included in the sales in 2013 than in 2003.  My home in Oro Valley is now about the same price it was in 2003.

Another important fact is that mortgage interest rates are lower than they were 10 years ago. The monthly mortgage payment now – at current interest rates- would be lower than the monthly cost in 2003.

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend.  Other limitations may apply. 

http://www.GoodMortgageInTucson.com

Minette Goldsmith-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

520 975-3909

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender

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New Source for HARP II Mortgage Refinancing – Freddie Mac Loans

Wednesday, January 23rd, 2013

When HARP II came out, we had lenders we could broker to for both Fannie Mae and Freddie Mac owned mortgage loans that were bought by the now government agencies before June 1, 2009 but our sources for refinancing Freddie Mac loans left the market.  I just made a list of homeowners who had loans owned by Freddie Mac and promised to follow up with them when a program became available.  Finally, I started calling them earlier this week. 

At this time, and subject to underwriter approval (ALWAYS subject to underwriter approval) we can refinance many homeowners into a lower rate if their loan is owned by either Fannie Mae or Freddie Mac.  You can check if your loan is owned by either of these entities by going to : http://www.makinghomeaffordable.gov/tools/does-fannie-or-freddie-own-your-loan/Pages/default.aspx.  It also let’s you know when the loan was bought by the entity so you can tell if you pass the first test in being able to refinance under the HARP II program.  Often with these programs you do not need a new appraisal, but you do need to credit and income qualify.  You can not get cash out, but you may be able to reduce your mortgage interest rate and save money on your monthly mortgage payment.  Or, you can switch into a fixed rate from an ARM loan, and basically lock in the lower interest rates available today. If you did not have mortgage insurance, you will not need it when you refinance.

Give me a call if you have been waiting for the ability to refinance your underwater home.  Similar programs exist for people with FHA , VA and USDA loans.   And, if your rate is currently over 5.25%, it may be economic to refinance even if you need to add mortgage insurance because current rates are so attractive. 

The only way to see if you can save money on a mortgage is to give a mortgage originator a call.  Hope you will call  me!  Have a great day.

 This information is not intended to be an indication of loan qualification, loan approval or commitment to lend.  Other limitations may apply. 

http://www.goodmortgageintucson.com

Minette Goldsmith-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

520 975-3909

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender

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No Cost Mortgage Refinance

Wednesday, December 26th, 2012

One of the complaints about mortgage financing is the cost of refinancing. There are often ways to create a no cost mortgage refinance. Lenders, such as Fairway Independent Mortgage Corporation, get paid by mortgage investors based on the interest rate charged.  So if the interest rate is slightly higher, the lender’s income is also higher.  The relationship between the rate and the payment to the lender is not dollar for dollar, and can change whenever interest rates change.  In other words, an eighth percent increase in rate  could increase the amount the lender makes on the transaction by $500 one day and $850 another day.  And an additional eighth increase could just as likely mean an increase of $300 or $900, or anywhere in between or more or less. There is no telling in advance.  There is no consistent relationship.  When we need to price a loan, we reference proprietary rate sheets or a proprietary website with all the pricing options.   The pricing options are expressed as a percentage of the loan amount.

We can offer homeowners or home buyers several options:

1. The lowest rate and payment, if they want to pay points to get that low rate;

2. A rate that requires no origination or discount points;

3. A rate that provides us with sufficient income so that we can cover the borrower’s closing costs – a no cost mortgage refinance or purchase money mortgage.

We are indifferent which way the borrower wants to go.  We are trying to earn a certain amount and stay competitive on the mortgage interest rate.  If the borrower wants to have their mortgage costs covered, we can charge the rate that pays us sufficiently to allocate the extra money to borrower’s closing costs. 

This works fairly well on loan sizes of $150,000 or more, but  small loans, such as $70,000, there may not be enough to cover all the closing costs.  I think sometimes lenders indicate there are no costs if they just add the costs to your new mortgage balance, so there are no out of pocket costs.  Be sure to clarify with the lender what they mean by a no cost mortgage. 

So, if your goal is to refinance your mortgage with no closing costs, speak to your lender about what the rate would be if they cover your costs.  Rates are so low now, in many cases, you can still have significant savings each month on your mortgage payment, and have it cost you nothing to accomplish.

 

This information is not intended to be an indication of loan qualfication, loan approval or commitment to lend.  Other limitations may apply. 

http://www.goodmortgageintucson.com

Minette Goldsmith-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

520 975-3909

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender

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Mortgage Loan Testamonial

Friday, November 16th, 2012

Another Happy Home Owner in Tucson who got cash out and STILL ended up with a monthly mortgage payment LESS than the one he was paying before he refinanced. Current Home Mortgage rates are THAT low.   He loves his home and wants to do a little fix-up work to make it even better.  

Fairway Independent Mortgage comes through again with flying colors.

Minette:

We thank you much for the consistent efforts you had to do to get our re-financing through the many hurdles. The final cash check out of the $260,000 was for $24, 653.28, more than I anticipated. With the final refund from the closing escrow account, we should  have what we hoped to have.

You were a pleasure to work with. I’ll try to refer a client or two your way.

Most Appreciative,  Dan

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Tucson is in Season!

Monday, November 12th, 2012

There are several months of the year when Tucson is in Season! There are so many things to do and see in Tucson at this time of year.  Our weather is beautiful and the snow birds are coming back.  Some of our events are truly unique to Tucson.  Last week was the All Soul’s Procession. This Saturday, November 17th is the El Tour De Tucson, a terrific road bicycling event that raises funds for over 20 charities.  There are ride courses from 5 miles to 111 miles. 

 There are over 8000 riders. People come from all over, their visits introduce Tucson to hundreds of people and the event helps the local economy as people sample Tucson restaurants, stay at our hotels and enjoy other local attractions – like Sabino Canyon, Catalina State Park, various Casinos, etc.  Lot’s of places have free music in the evenings too.  Check out http://www.visittucson.org/ for more ideas of what to do in Tucson.

I am sure as people visit they see how affordable and enjoyable Tucson is for a second home or retirement.  There are always lots of open houses over the weekend to get an idea of home values here.  If you are visiting, stop in a few.  Current home mortgage rates are remarkably low too, making a second home purchase more affordable than ever. 

http://www.goodmortgageintucson.com

Minette Goldsmith-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

520 975-3909

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender

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It’s Not Just Leaves that are Falling, It’s the Mortgage Rates Too!

Wednesday, October 3rd, 2012

Fairway Independent Mortgage in Tucson is about to send this message out to their previous clients,  but the message is appropriate for all mortgage borrowers who have not recently refinanced under the HARP  program.   If you have an interest rate over 4% and a loan over $200,000, we can probably save you enough money to make it worthwhile for you to refinance.  Let’s talk to see.

I want to advise you that mortgage rates are near historic lows.  Not only might this be a great opportunity to refinance your home, it is an ideal opportunity to purchase a new home or investment property.  For most home owners and prospective home buyers, there is an enormous opportunity right now to save you money on your mortgage. 

This may also be the perfect time to reduce your mortgage term to 20 or 15 years, take cash out for home improvement projects, college… pay off an adjustable home equity line, move from an ARM to a fixed or vice versa. Perhaps you are considering buying an investment property? Maybe it is time for one of your children to make their first home purchase?  Mortgage finance needs vary tremendously from person to person - let’s talk to make sure that you are in the perfect mortgage loan program for your life today and for what your life may bring in the future.

Please forward this blog to anyone you know who has or may need a mortgage.  With the contraction in the mortgage industry there are many borrowers out there without a mortgage expert on their team.  With all the economic turmoil in the world right now – it is unclear what direction rates will take, what we do know, is that most of us have never seen rates this low in our lifetimes.

Please contact me today for a no cost, no obligation loan consultation.  I look forward to speaking with you soon.

Minette Goldsmith  520 975 3909

 

Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704

L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender

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