Home Buyers Take Advantage of Record Low Rates

Home buyers are taking advantage of record low mortgage rates. Rates have hit a 5 decade low and home buyers are seizing this opportunity to purchase a home with a low mortgage rate. Mortgage applications were up 3.4% since last week.

Refinance applications were also up last week. Refinance applications were up 9% last week and over 30% for the last month.

Home buyers and home owners are seeing these rates as an opportunity to obtain cheap money. If you interested in buying a home or have a loan you should speak with your mortgage professional to see if there is a benefit for your situation.

Low Rates Lead to More Refinance Applications

Near low mortgage rates lead to a 6.7% increase in refinance applications. Borrowers are taking advantage of low mortgage rates.

Rates Hit New Low

The average 30 year mortgage rate hit a new low. Rates dropped to 4.57%. The lowest rate in 5 decades. Homeowners and potential buyers should contact their mortgage professional to see if these rates can benefit their situation. These rates will not remain this low for ever and once they rise we doubt that we will see these rates for a very long time.

Record Low Mortgage Rates

The 30 year mortgage rates hit a record low this week dropping to 4.58%. The previous record low was 4.69%. If you are able to qualify and have enough equity in your home you may be able to take advantage of these low rates. Don't expect these rates to stay this low for ever. Speak with your local mortgage professional to help determine your savings if you refinance or what your monthly payments will be if you purchase a home.

Can't Make My Mortgage Payments (Part 3)

Still can't make your mortgage payments and you have received a foreclosure notice. It's time to contact an attorney that concentrates on foreclosures and modifications. Attorneys can halt the foreclosure process some homeowners. There are instances where homeowners have stayed in their home for years while their attorney fought the foreclosure.

First thing to do is save all mail and correspondence from the lender or servicer. That includes the envelopes. This is very important. The envelopes provide attorneys with valuable information that can be used later to protect you as a client. Next you may want to find a good local attorney that concentrates on foreclosures and modifications. Meet with multiple attorneys to find one that you feel comfortable with. Ask some of the following questions as well as others:

- What is you ratio of cases lost to foreclosure?
- How many cases have you handled?
- Do you have any references (They may not be able to provide this due to privacy issues)?
- What are your fees?
- What is your process to challenge the lender?

Make sure you feel comfortable and confident with the attorney you choose. The more attorneys you speak with the more educated you may become on the subject which will help you wade through any BS.

Once you choose an attorney, they will inform you of your options. Listen to your attorney and let him/her work their magic. They can't help everyone, however you maybe surprised on what they are able to accomplish.

203k Loan Program

The new 203k loan program has been dubbed "the rehab loan". This loan was designed to make it easier for borrowers to obtain financing to purchase a home in need of rehabilitation or repair. In the past borrowers had to obtain multiple rounds of financing when rehabilitated a home. They would have to get financing for the rehabilitation and financing for the home. Once the rehabilitation or repair was completed than they would be able to obtain financing to cover the original loans. The rates on the original loans were never the most attractive. Now with the 203k loan program borrowers can obtain financing at more affordable terms when rehabilitating a new purchase. If interested in rehabilitating and purchasing a home, you should ask your mortgage professional for more details about this loan program.

Can't Make My Mortgage Payments (Part 2)

If you want to keep your home and your income problem is temporary, talk to your lender about these FHA workout plans. While the options listed here are for borrowers with FHA-insured loans, most lenders offer similar workout plans designed to help you keep your home. Even if you don't expect your income to increase in the near term they may be programs available that lower your over all payments to an affordable level. Speak to a modification attorney, specialist, or HUD housing counselor for more information.

HUD represents your the following as your options:

Special Forbearance. Your lender may provide for a temporary reduction or suspension of your payments to allow you time to overcome the problem that reduced your income. Then you may be offered a payment plan so you can pay back the missed payments a little at a time until you are caught up.

Mortgage Modification. A modification is a permanent change to your loan through which the overdue payments may be added to your loan balance, the interest rate may be changed or the number of years you have to pay off the loan may be extended.

Partial Claim. This is a one-time loan from the FHA insurance fund to bring your mortgage current. The loan is interest free and does not need to be repaid until you pay off your first mortgage or sell your house. This option is only available to borrowers with FHA-insured loans. However, if you have a conventional loan, ask your lender if they offer an “advance claim.”

FHA-Home Affordable Modification Program (FHA-HAMP). This option combines an enhanced partial claim with a loan modification. Under the FHA HAMP, the partial claim loan from FHA will not only include any amounts necessary to bring your mortgage current but may also include an amount to reduce your existing loan balance by up to 30%. The reduced loan balance will then be modified to lower your monthly mortgage payment to an affordable level. As described above, the partial claim loan is interest free, but must be repaid when you pay off your first mortgage or sell your house.

To qualify for any of these options, you will need to provide your lender with current information about your income and expenses. Also, your lender may suggest that you agree to a payment plan for three or more months to demonstrate your commitment before you are approved for a modification or partial claim.

It is important not to lie to the lender or the government, however there are instances where items can be stated in certain ways to help your situation. It may be advantageous to speak with an modification attorney, modifications specialist or HUD housing counselor before submitting information.