Mortgage Refinance Rates Continue Low and Steady Ride
After what has been a volatile year for mortgage refinance rates, mostly to the good side for refinancing homeowners, we have experienced somewhat of a steady rate state in the market over the past several weeks. After the dip in rates off the government announcement that it would buy US Treasuries and Fannie/Freddie mortgage-backed securities, the market bounced back up a bit into the current low and steady interest rate environment.
The biggest changes in the interim regarding mortgage refinance has really been the change to the Loan-to-Value (LTV) cap on cash-out refinances and the FHA minimum credit score change from 580 to 620. For the most part, 85 percent is the cap and most likely will not change upward until home prices act in kind. Expect the same for lower credit score qualifications. Lenders and HUD are just not willing to expose themselves to any undue risk until the housing market stabilizes.
FHA rate/term and cash-out refinance programs continue to offer excellent rates for those with high LTV’s and those with less than perfect credit down to a 620 mid FICO score. Conventional home loan rates for those with excellent credit and refinancing less than 80 percent of the appraised value of their home continue at historic low levels.
Recent housing reports suggest that we are still nowhere near stabilization for home prices. The best we can hope for is that inventories decrease over the next several months. This would be a nice way to alter the supply-demand while mortgage rates are still ultra-low.
Refinance shoppers keep telling me that they heard that refinance rates will hit a 4.0 percent “par” or “even” rate shortly, so they are waiting on the refinance fence. Be very careful if you are sitting on a current pre-qualified mortgage rate that is providing a significant benefit, and waiting for that coveted 4.0 percent par rate. The likelihood of that event occurring is not in your favor and with the 10-Year Treasury now breaching 3.0%, you run the risk of losing your “sure-thing” benefit, possibly for months, years, or forever. That could be a costly mistake, a tens-of-thousands dollar mistake.
You know what they say … “Get it while the Getting is Good”!
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
The biggest changes in the interim regarding mortgage refinance has really been the change to the Loan-to-Value (LTV) cap on cash-out refinances and the FHA minimum credit score change from 580 to 620. For the most part, 85 percent is the cap and most likely will not change upward until home prices act in kind. Expect the same for lower credit score qualifications. Lenders and HUD are just not willing to expose themselves to any undue risk until the housing market stabilizes.
FHA rate/term and cash-out refinance programs continue to offer excellent rates for those with high LTV’s and those with less than perfect credit down to a 620 mid FICO score. Conventional home loan rates for those with excellent credit and refinancing less than 80 percent of the appraised value of their home continue at historic low levels.
Recent housing reports suggest that we are still nowhere near stabilization for home prices. The best we can hope for is that inventories decrease over the next several months. This would be a nice way to alter the supply-demand while mortgage rates are still ultra-low.
Refinance shoppers keep telling me that they heard that refinance rates will hit a 4.0 percent “par” or “even” rate shortly, so they are waiting on the refinance fence. Be very careful if you are sitting on a current pre-qualified mortgage rate that is providing a significant benefit, and waiting for that coveted 4.0 percent par rate. The likelihood of that event occurring is not in your favor and with the 10-Year Treasury now breaching 3.0%, you run the risk of losing your “sure-thing” benefit, possibly for months, years, or forever. That could be a costly mistake, a tens-of-thousands dollar mistake.
You know what they say … “Get it while the Getting is Good”!
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: business, economy, fha refinance, finance, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
7:28 PM
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