Is this a good time to lock in or refinance your mortgage?

Mortgage Refinancing Rates are at an all-time low. Mortgage refinance interest rates move up and down based upon the funds rate of the New York Federal Reserve Bank.

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If the yield on the ten-year bond changes, so will the interest rates on home mortgage refinance loans. Taking into account the fact that this means mortgage refinance rates will soon be moving up again, there is likely no better time than now for a home mortgage refinance.

The main points to consider when you decide if you should get a home mortgage refinance at these all-time low mortgage refinancing rates are how long you intend on living at your home and how much you currently owe on your home mortgage. Refinance loans in this environment may be the most beneficial route for most homeowners. Some people just won’t qualify because of bad credit or other issues.

Your home’s equity is one of the most important factors to consider when planning a home mortgage refinance. Whether you plan on getting cash out of your home at the time of the mortgage refinance or not, you will need to have equity. This is why you will need to closely examine the mortgage refinance package that is being offered to you by the bank or mortgage company. Some lenders will add in closing costs and points to your mortgage. Some lenders will cover these costs. However, others will include these fees in your refinance, which can mean you will wind up with a much bigger balance on your mortgage, which in turn will decrease your equity.

A lot can also depend on the area where you live and the real estate market trends in the in your local. Some areas may have experienced an increase in property values, while many others have had a decrease in value. This means your equity in your home may have gone up, thus meaning you could be in a better position for a mortgage refinance. In a situation where the property values have gone down, you may no longer have enough equity for a home mortgage refinance loan. Many lenders look for 20% equity or Continue reading Is this a good time to lock in or refinance your mortgage?

New HUD Rule Allows Reverse Mortgages For Home Purchase

Hud Rules Help Reverse Mortgages Borrowers Buy Homes
Hud Rules Help Reverse Mortgages Borrowers Buy Homes

Annapolis, MD — (SBWIRE) — 12/15/2008 — Reverse mortgages have been available for more than two decades for senior homeowners that have significant amount of equity in their homes and want to tap it. With recent HECM guideline changes, the HUD is backing a program to help older homeowners purchase a home with the increasingly popular financing program. 

The Federal Housing Administration, a component of the U.S. Department of Housing and Urban Development, insures the nation’s most popular reverse mortgage — known as the HECM or Home Equity Conversion Mortgage. 

The Housing and Economic Recovery Act of 2008 recently approved that mortgage for its purchase program, allowing lenders to close them after Jan. 1. This new ruling allows older homeowners to make a large downpayment on a new home and then utilize the reverse mortgage as permanent financing. 

The same law reduced some costs of securing the HECM reverse mortgage by limiting maximum fees associated with the loan; the maximum loan fee on reverse mortgages to 2 percent on the initial $200,000 of the home’s value and 1 percent on the balance thereafter, with a cap of $6,000. Previously, the fees were capped at 2 percent of the home’s value or the county lending limit, whichever was lower.  Continue reading New HUD Rule Allows Reverse Mortgages For Home Purchase