Mortgage Rates Newsletter - Market Analysis

Provided courtesy of: http://www.mortgagenewsdaily.com/reports/mortgage_rates/archive

Mortgage Rates Sticking Close to Long-Term Lows
Tue, 19 Feb 2019 22:17:23 GMT - Mortgage rates fell modestly today, making it the 7th straight business day where they've moved in the opposite direction from the previous day. This see-saw pattern is commonly seen during periods of consolidation in the bond market (which serves as the foundation for mortgages and most other interest rates). And a consolidation is often seen during times of indecision just before markets embark on their next big move higher or lower. With many uncertainties set to be resolved by mid-March, there's a good enough chance that the recent sideways momentum in rates will give way to a bigger move. There's no way to know whether that move will be toward higher or lower rates (it will likely depend on the economic data, fiscal headlines, and Fed policy updates that have yet to be announced). For
Mortgage Rates in a Holding Pattern
Fri, 15 Feb 2019 20:42:26 GMT - Mortgage rates were slightly higher today, marking the 6th day in a row where they've reversed course versus the previous day. This is the sort of behavior we see when underlying financial markets are having a hard time making up their mind (or are simply waiting for something before committing to the next big move). In the case of mortgage rates, the underlying financial market is the bond market. There are specific bonds that most directly affect mortgage rates, but they are almost always moving in the same direction as other bonds anyway. That allows us to use something like the 10yr Treasury yield to keep an eye on interest rate momentum. There we see yields locked in an increasingly narrow range since the beginning of the year. Movements inside that range aren't important to the bigger
Rates Are Better Today, But Not Back to 1-Year Lows
Thu, 14 Feb 2019 22:19:30 GMT - Mortgage rates recovered today after rising to the highest levels in a week as of yesterday. The improvement followed a much-weaker-than-expected Retail Sales report--something investors have been waiting on for nearly 2 months due to the government shutdown. Retail sales comprise an important part of economic activity, and the economy is one of the biggest considerations for interest rates. Generally speaking, economic strength pushes rates higher, all other thing being equal. Thus, the unexpectedly weak retail numbers had the opposite effect. How big was the effect? Not quite as big as most other media outlets would suggest. The discrepancy is due to the regular Thursday release of the industry's most widely-cited mortgage rate report from Freddie Mac. While that report is accurate for the
Veterans Affairs Loan

Veterans Affairs Loan

DEFINITION of 'VA Loan'

A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms of the mortgages offered and insure VA loans against default.

BREAKING DOWN 'VA Loan'

VA loans offer up to 100% financing on the value of a home. To qualify for a VA loan, borrowers must present a certificate of eligibility, which establishes their record of military service, to the lender. VA loans, FHA loans and other loans insured by departments of the United States government are securitized by the Government National Mortgage Association (Ginnie Mae). These securities carry the guarantee against default of the United States government.

If you are stationed in the United States, you may want to consider a VA loan instead of living in base housing.

The advantages of VA loans are that they do not require a down payment and that they are easier to get than conventional loans.

In addition to this, VA loans limit the buyers closing costs. Things like escrow fees and photo inspection fees are not allowed to be paid for by the buyer. The seller can pay for these. In fact, the seller will usually agree to pay for all of the buyers closing costs (if the deal is fair to the seller).

A VA home loan is guaranteed with no money down for as much as $1,094,625.00!

Before you apply for a VA loan, you should determine if you are eligible for a VA loan.

If you are active duty and have served for 181 days (or 90 days in a war), or are the spouse of a veteran who is MIA or has died as a result of duty, or if you are former military and have been honorably discharged, you are eligible.

Conventional loans require a down payment of 5% minimum. A 20% down payment is required to avoid mortgage insurance. The VA loans do not have a mortgage insurance requirement.

VA loans also feature a special government inspection of the home to ensure you are getting a fair deal.

Another great thing about VA loans is that the interest rates are 0.5% to 1% lower than those of conventional house mortgages.

A VA loan can be used to buy a new home or existing construction. Regardless if you chose to buy a new home or an older home, you can also add energy efficient improvements (up to $6,000). The only requirement is that the improvements must save the borrower money on their electric or other utility bill.

For example, if you live in San Diego and you get a VA loan, you can install a tank-less water heater in your home. By adding the installation to the loan amount, you may be able to receive California Stat tax incentives, San Diego County tax incentives and federal tax incentives for residential energy efficiency in conjunction with your San Diego VA mortgage.

Depending on the overall property condition and land rights, you can also use your VA loan to buy a manufactured home and land.

To get more information on possible uses for your VA loan, consult with a VA Counselor before you submit your VA house loan application.

Before you apply for a VA loan you should realize that you are not automatically approved. Each VA loan has a private funder / or investors that will still require you to show an acceptable credit record (no late payments in the last 12 months) before they approve your loan application.

 

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