Does a new home loan make sense? There are at least seven reasons to refinance a mortgage. You probably can think of the first one -- to get a lower mortgage rate. The average interest rate on an outstanding mortgage at the beginning of 2012 was 5.098 percent, according to the Bureau of Economic Analysis. However, lenders today are offering rates well below that benchmark, making a refinance a no-brainer for many. But low rates are not the only motive nowadays, here are some more good reasons to consider to refinance. Refi for a lower rate The No. 1 reason to refi is to get a lower mortgage rate. Despite sinking rates, a lot of people haven't refinanced. Many homeowners would like to refinance but can't because they have little or no equity due to falling home values, too many can't refi for this reason. Convert an ARM Stability-hungry borrowers are ditching adjustable-rate mortgages and refinancing into fixed-rate loans. Other borro...

Home values were up 7.6 percent nationally from the third quarter of 2011 to the same period of 2012, according to data from the National Association of Realtors. See the five best markets where prices went up fastest. 1. Phoenix-Mesa-Scottsdale, Ariz. 2012 Q3 median home price: $153,400  Up: 34.9 percent 2. Cape Coral-Fort Myers, Fla. 2012 Q3 median home price: $127,000  Up: 27.6 percent 3. Akron, Ohio 2012 Q3 median home price: $118,800  Up: 26.9 percent 4. Boise City-Nampa, Idaho 2012 Q3 median home price: $146,000  Up: 21.9 percent 5. Lansing-East Lansing, Mich. 2012 Q3 median home price: $95,700  Up: 19.5 percent Thanks to BankRate for this article, read more here

A big part of my job is helping our clients project the most likely scenarios for the housing market.  Now that we know who will be President, my job just got easier because we have 4 years of experience with Obama and a divided Congress, so we know what we are getting.  However, there is never a dull moment.  Here is what keeps me up at night: Mortgage Rates Dictated by Leadership : Geithner and Bernanke have worked closely together to implement very accommodative housing policies.  Geithner has already announced he is leaving and Bernanke is rumored not to want another term beginning January 2014.  Who will the replacement(s) be?   Who will slow down the housing market when it heats up again - something I believe Bernanke is trying to engineer ASAP? Mortgage Rates Dictated by China : While Bernanke has a lot of power, the bond markets are more powerful.  International bond buyers, particularly in China, can wreak a lo...

Aurthor: Washington, March 06, 2012 Housing affordability conditions have reached the highest level since record keeping began in 1970, according to the National Association of Realtors®. NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent down payment and 25 percent of gross income devoted to mortgage principal and interest payments. For first-time buyers making small down payments, the affordability levels are relatively lower. NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest data underscores buyer opportunities in today’s market. “T...

The Consumer Financial Protection Bureau (CFPB) released a report Thursday showing that although reverse mortgages are meant to help borrowers in retirement, they are in fact causing problems for many who don’t fully understand them. A reverse mortgage is a type of home loan that lets older homeowners access the equity they have built up on their homes and defer loan payment until they sell the home, move out, or pass away. The original purpose of reverse mortgages was to allow these homeowners to convert home equity into an income stream or line or credit to use in retirement. Borrowers were largely expected to age in place with their loans, living in their current homes until they passed or needed skilled care. Reverse mortgages require no monthly mortgage payments, but borrowers must still pay property taxes and homeowner’s insurance. The report showed that nearly 10 percent of reverse mortgage borrowers are at risk of foreclosure because they failed to pay those costs. “Revers...

A home-buying tracking service reports all-cash buyers moved into the market at a record pace last year, purchasing homes for themselves and other properties as investments. The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey found a record 33.2% of transactions were all-cash, up from 29.6% from a year earlier. Among investor homebuyers, the proportion of cash buyers was 74%. The survey said cash buyers were driving down prices because they offered shorter and more reliable closings. HousingPulse also indicated many of the purchases were of distressed properties, where banks are more likely to negotiate settlements in an effort to get them off their books. Article brought to you by Old Republic, Real Estate Digest, April 2012, Vol 38 Do you see this as a trend in your business, let Title Junction know!

Non-government holders of delinquent mortgages are offering more payment plans with debt forgiveness as Fannie Mae and Freddie Mac resist, according to the U.S. Office of the Comptroller of the Currency. Principal reductions were granted in 8.5 percent of the 116,153 delinquent mortgages that received permanent modifications in the fourth quarter, according to a report by the unit of the Treasury Department. That’s up from 8.1 percent in the prior three-month period. Debt forgiveness was included in 16 percent of loans held by private investors, 25 percent of loans held in bank portfolios and in none owned by the government-run companies. Read more at Boston Globe How do you feel about this? Let TITLE JUNCTION know!

Since the September 2008 conservatorship, Fannie Mae and Freddie Mac have completed nearly 1.1 million loan modifications, according to the FHFA’s fourth quarter 2011 Foreclosure Prevention and Refinance report. Overall, the GSEs have completed more than 2.1 million foreclosure prevention actions since the same time period. “Data from the Office of the Comptroller of the Currency show that in the two years ending in the third quarter of 2011, modifications on Fannie Mae and Freddie Mac loans accounted for 40 percent of all loan modifications,” said General Counsel for the FHFA Alfred M. Pollard in a written testimony before congressmen Monday. For just the 2011 fourth quarter, about 71,100 loan modifications were completed, compared to about 83,500 in the third quarter. Pollard said a contributing factor to the decline in modifications seen may be that the initial backlog of eligible borrowers in 2009 has been addressed to some extent, and added the GSEs offer substantial incentive pay...

Getting a mortgage loan has become challenging in recent years. Don't expect that to change anytime soon. Lending standards will remain tight in 2012, but that doesn't mean you won't be able to snag a mortgage with an attractive rate. Savvy borrowers who understand the rules and prepare will improve their chances of success. These tips will help you stay on top of your game as you try to secure a mortgage in 2012. Study your credit Good credit is the key to snagging a mortgage in this tight lending environment. Get copies of your credit scores and credit history from the three main credit-reporting bureaus. Study the reports carefully to make sure there are no errors or issues to resolve before applying. Most lenders require a minimum credit score of 680 to comply with Fannie Mae and Freddie Mac’s guidelines. Federal Housing Administration loans — which are guaranteed by the FHA — allow for lower scores, but most lenders want to stay away from scores lower than 620. Prepare...

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit. The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago. Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters. However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability. Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings. Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.” In contrast to a low of 74 percent reached in mid-2010, banks are now lending...

Here's another great article brought to you courtesy of Old Republic Title Insurance: An improved employment forecast for the remainder of the year will help improve the housing picture as well, according to Frank Nothaft, chief economist for Freddie Mac. Nothaft said he anticipates an unemployment rate of 8.6 percent by the end of the year, down from more than nine percent. Mortgage rates will likely remain between 4.5percent and five percent. The economist noted that more financing is becoming available to the rental housing construction sector and that vacancy rates are falling and rents rising, all harbingers of a housing turnaround.