Realty World - Viking Realty » Mortgage loan

Fixed-Rate Mortgages Preferred

Brian Ripp — Tue, 20 Mar 2012 23:01:00 +0000

Fixed-rate loans accounted for more than 95% of all refinance loans in the 4th, regardless of whether the original loan was an adjustable-rate mortgage (ARM) or a fixed-rate, according to a report by Freddie Mac. Nearly two-thirds of borrowers who had a hybrid ARM (58%) chose a fixed-rate loan during the 4th quarter, while the remaining 42% refinanced into a similar type of product.
An increasing number of refinancing borrowers chose to shorten their loan terms. Of those who paid off a 30-year fixed-rate loan, 43% chose a 15-year or 20-year loan, the highest such share since the 1st quarter of 2003. The strong refinance activity is attributed to continuing low interest rates on fixed-rate mortgages, which averaged 4% for 30-year loans and 3.3% for 15 years during the 4th quarter, according to Freddie Mac’s Primary Mortgage Market Survey.
great info from March/April 2012 CRS magazine
Related articles

Adjustable Rate Mortgage vs. Fixed Rate Mortgage (loans.org)
More Americans Opting for Shorter-Term Mortgage Refis (usnews.com)
More interest in fixed rate mortgages (news.smh.com.au)

Mistakes Home Buyers Make

Zaida Patel — Fri, 03 Sep 2010 16:56:00 +0000

According to the Wall Street Journal, affordable home prices and historically low interest rates have created an ideal situation for many qualified first-time home buyers to purchase a house. Despite this opportunity, some buyers may be overconfident and make mistakes during the home-buying process.

MAKING SENSE OF THE STORY FOR CONSUMERS

Some first-time buyers are unaware of the vast amount of paperwork and negotiations that go into purchasing a home. As a result, buyers may think they can save money by forgoing the use of a REALTOR®. However, managing the nuances of offers, inspections, financing, and other pivotal steps when buying a home often causes confusion and anxiety for buyers. Working with a REALTOR®–who is obligated to put the buyer’s best interests first–will help to alleviate buyer concerns during this process.

Online mortgage calculators can help buyers estimate the amount of house they can afford, but calculators should not be the sole source for mortgage-approval information. Buyers are advised to meet with a mortgage broker or banker prior to beginning the home search to help determine the loan amount for which they are most likely to be approved.

Although there is a large selection of homes available for sale, home buyers should not assume they can make low offers or unreasonable demands. Even in hard-hit housing markets, homes in desirable neighborhoods are receiving multiple offers.

To read the full story, please click here.

Is it a good time to BUY?

Zaida Patel — Fri, 02 Apr 2010 22:15:00 +0000

Yes, but no need to rush. According to the Wall Street Journal, many housing economists have said that for borrowers with stable incomes, good credit history, and FICO scores of at least 620, now is an opportune time to purchase a home. Although inventory rates are below the long-run average, there still are plenty of options available for buyers of high-end homes. Things to think about are as follows:

Closely-watched indices, including the Standard & Poor’s/Case Shiller Index, indicate that the high end of the market didn’t experience the same dramatic price appreciation as the low end. Home prices in this segment have not declined as steeply as homes in the mid- to low-end of the market. Additionally, many discretionary sellers in the high end—those who do not have to sell their homes—are opting to wait until home prices rise before listing their homes for sale.
The high end of the market also is facing challenges with buyers qualifying for financing. During the height of the market, many high-end home purchases were fueled by exotic mortgage products. Now that those mortgages are no longer readily available, many lenders are requiring borrowers to provide proof of income, such as W-2s and recent paystubs, as well as demonstrate their ability to meet the monthly mortgage obligation.
To read the full story, please click here.