Borrower's Choice - Mortgage Refinance News
mortgage refinance solutions for everyone!
Mortgage services by www.ratestate.com
Mortgage Refinance News:
Marshall Loeb | MarketWatch.com Inc. Posted February 26, 2006 NEW YORK -- Higher short-term interest rates mean payments on many adjustable-rate mortgages could surge. And with the 30-year rate averaging 6.26 percent nationwide, now is the time to exchange your ARM for a fixed-rate mortgage.
But if you're not sure you'll keep the house you're in, how can you take advantage of current low fixed rates without committing to a 30-year mortgage?
Look at a so-called 5/1 ARM, suggests Greg McBride, a senior financial analyst at Bankrate.com, which tracks mortgages for consumers.
Hybrid ARMs, which include 5/1 and other loans, give you a fixed rate for a set number of years, in this case five, at which point the rate becomes adjustable once each year. Right now, that fixed rate is around 6 percent.
There are also 3/1, 7/1 and 10/1 ARMs, with the 5/1 being the most popular. The longer the fixed-rate period, the higher that rate will be as it approaches the 30-year benchmark.
There are some downsides to consider. If you're moving in the next year or two, the fees for refinancing your mortgage may negate any savings from the lower interest rate of a 5/1 ARM.
Also, if your income is growing faster than your adjustable rate, you may simply want to stick it out.
Real estate 30-year mortgage rates fall to 6.26% February 24, 2006 Email this Print this BY JEANNINE AVERSE ASSOCIATED PRESS WASHINGTON -- Rates on 30-year mortgages as well as for some other home loans dropped this week, a dose of good news for prospective home buyers. Freddie Mac, a big player in the mortgage business, reported in its nationwide survey released Thursday that rates on 30-year, fixed-rate mortgages averaged 6.26%, the first drop in five weeks. That was down from last week's rate of 6.28%, which had marked a two-month high. The decline represents confidence on the part of bond investors -- whose actions influence the movements of long-term mortgage rates -- that new Federal Reserve Chairman Ben Bernanke and his colleagues will be reliable inflation fighters. "Market confidence that the Fed will continue to keep inflation low kept mortgage rates in check this week," said Frank Nothaft, Freddie Mac's chief economist. "Over the long term, we expect mortgage rates will bounce back and forth a bit." Some economists, however, think rates on 30-year mortgages will slowly drift higher, ending the year anywhere from 6.5% to 7%. This expectation fits into economists' forecasts that the housing market, which racked up record high sales for five years in a row, will slow this year. Bernanke and other economists are hopeful the slowdown will be smooth and gradual. A jarring collapse would spell trouble for the overall economy. Other mortgage rates also declined this week. Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.89%, down from 5.91% last week. One-year adjustable-rate mortgages dipped to 5.32%, compared with 5.36% last week. However, rates on 5-year hybrid adjustable-rate mortgages edged up to 5.96% this week, from 5.95% last week. The mortgage rates do not include add-on fees known as points. The 30-year, 15-year and 5-year hybrid adjustables each carried a nationwide average fee of 0.6 point this week. The 1-year ARM carried an average fee of 0.7 point. A year ago, 30-year mortgages averaged 5.69%, 15-year mortgages stood at 5.22%, 1-year adjustable-rate mortgages were at 4.16% and 5-year hybrid adjustable-rate mortgages averaged 5.05%. Separately, a Federal Reserve study, released Thursday, said that 69.1% of families in the United States owned a primary residence in 2004. That was up from 67.7% in 2001. Analysts credited low mortgages rates with pushing up home ownership rates. The median value of this principal residence was $160,000 in 2004, up 22% from the median value of $131,000 in 2001. The median is the middle point, where half the homes are valued higher and half are lower. In other real estate news, mortgage applications in the United States increased this week for the first time in four weeks as home purchases rebounded from a two-year low. Home purchase applications have declined since reaching a high in June, and economists predicted housing will contribute less to economic growth this year. Bloomberg News contributed to this report.
Mortgage Refinance News:
Marshall Loeb | MarketWatch.com Inc. Posted February 26, 2006 NEW YORK -- Higher short-term interest rates mean payments on many adjustable-rate mortgages could surge. And with the 30-year rate averaging 6.26 percent nationwide, now is the time to exchange your ARM for a fixed-rate mortgage.
But if you're not sure you'll keep the house you're in, how can you take advantage of current low fixed rates without committing to a 30-year mortgage?
Look at a so-called 5/1 ARM, suggests Greg McBride, a senior financial analyst at Bankrate.com, which tracks mortgages for consumers.
Hybrid ARMs, which include 5/1 and other loans, give you a fixed rate for a set number of years, in this case five, at which point the rate becomes adjustable once each year. Right now, that fixed rate is around 6 percent.
There are also 3/1, 7/1 and 10/1 ARMs, with the 5/1 being the most popular. The longer the fixed-rate period, the higher that rate will be as it approaches the 30-year benchmark.
There are some downsides to consider. If you're moving in the next year or two, the fees for refinancing your mortgage may negate any savings from the lower interest rate of a 5/1 ARM.
Also, if your income is growing faster than your adjustable rate, you may simply want to stick it out.
Real estate 30-year mortgage rates fall to 6.26% February 24, 2006 Email this Print this BY JEANNINE AVERSE ASSOCIATED PRESS WASHINGTON -- Rates on 30-year mortgages as well as for some other home loans dropped this week, a dose of good news for prospective home buyers. Freddie Mac, a big player in the mortgage business, reported in its nationwide survey released Thursday that rates on 30-year, fixed-rate mortgages averaged 6.26%, the first drop in five weeks. That was down from last week's rate of 6.28%, which had marked a two-month high. The decline represents confidence on the part of bond investors -- whose actions influence the movements of long-term mortgage rates -- that new Federal Reserve Chairman Ben Bernanke and his colleagues will be reliable inflation fighters. "Market confidence that the Fed will continue to keep inflation low kept mortgage rates in check this week," said Frank Nothaft, Freddie Mac's chief economist. "Over the long term, we expect mortgage rates will bounce back and forth a bit." Some economists, however, think rates on 30-year mortgages will slowly drift higher, ending the year anywhere from 6.5% to 7%. This expectation fits into economists' forecasts that the housing market, which racked up record high sales for five years in a row, will slow this year. Bernanke and other economists are hopeful the slowdown will be smooth and gradual. A jarring collapse would spell trouble for the overall economy. Other mortgage rates also declined this week. Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.89%, down from 5.91% last week. One-year adjustable-rate mortgages dipped to 5.32%, compared with 5.36% last week. However, rates on 5-year hybrid adjustable-rate mortgages edged up to 5.96% this week, from 5.95% last week. The mortgage rates do not include add-on fees known as points. The 30-year, 15-year and 5-year hybrid adjustables each carried a nationwide average fee of 0.6 point this week. The 1-year ARM carried an average fee of 0.7 point. A year ago, 30-year mortgages averaged 5.69%, 15-year mortgages stood at 5.22%, 1-year adjustable-rate mortgages were at 4.16% and 5-year hybrid adjustable-rate mortgages averaged 5.05%. Separately, a Federal Reserve study, released Thursday, said that 69.1% of families in the United States owned a primary residence in 2004. That was up from 67.7% in 2001. Analysts credited low mortgages rates with pushing up home ownership rates. The median value of this principal residence was $160,000 in 2004, up 22% from the median value of $131,000 in 2001. The median is the middle point, where half the homes are valued higher and half are lower. In other real estate news, mortgage applications in the United States increased this week for the first time in four weeks as home purchases rebounded from a two-year low. Home purchase applications have declined since reaching a high in June, and economists predicted housing will contribute less to economic growth this year. Bloomberg News contributed to this report.