Interest rates YET AGAIN have hit all-time lows! This taken From the Mortgage News Daily -

“After yesterday’s FOMC Announcement, Mortgage Rates moved to all time lows.  The rally in bond markets extended overnight and throughout today’s trading, resulting in rate offerings improving even more.

Please keep in mind that lenders simply cannot move mortgage rates lower at the same pace as a rapid rally in Benchmark Treasuries.  Although you might hear talking heads on TV or read articles saying that mortgage rates are tied to Treasuries, THEY ARE NOT, and you’ll be perennially frustrated if you expect them to be. Today’s Rates:  The current market is in a state of flux at the moment and mortgage rates moving up and down around ALL TIME LOWS. 

Whereas Best Execution 30yr Fixed rates were mostly near 3.875% yesterday with some lenders at 4.0%, today, they’re closer to 3.75% with quite a few lenders still at 3.875%.  FHA/VA deals are in a bit of a predicament that’s keeping them blocked off below 3.75% (there’s no secondary market for rates any lower than that right now!).  For similar reasons, 15 year fixed conventional loans may be stuck at 3.25%.  The secondary market factors driving adjustable rate loans are in a massive state of flux, but one that is mixed between positive and negative.  5 year ARMS remain near 3.125%, but with variations from lender to lender.  Bottom line, adjustable rates aren’t participating in this rally to the same extent as fixed rates.

Lenders also must be careful not to lower rates so quickly that borrowers who recently locked actually break those lock commitments in order to move down to a lower rate.  Even if borrowers do this at the same lender, it costs lenders a lot of money.  So whether it’s to avoid that sort of cannibalization or to avoid capacity issues, there’s an elevated risk right now of lenders RAISING rates without warning, even if the underlying market movements would not suggest it.  If you remember “the wall” that existed for a long time in loan pricing moving from a 4.75% Best Execution to 4.625%, the same underlying problems will make it a slow, difficult process to move from the high to mid 3′s, and one that might not happen at all.  If you’ve been waiting for an opportunity to lock in the high 3′s, you now have it.”

So if you are looking to refinance best to move quickly currently refinances are taking 45 days.  Feel free to contact us for a list of documentation needed to start the process.

Please email me at info@garrick.biz or fill out this form if you would like a quote for purchase or refinance:

http://www.garrick.biz/forms/rateTracker.html

Related Stories:

Information on the Government Refinance Program:

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/a/u/1/tLW3_dfS_SI

Debt Ceiling Raised Rates GO NUTS

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/5/Db_JxgC2xu4

Original Article…

http://www.mortgagenewsdaily.com/consumer_rates/230011.aspx

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With home values still declining in the Bay Area many homeowners cannot take advantage of today’s low rates on a home mortgage loan refinance. Values in the Bay Area are still declining and we see appraisal issues quite often when refinancing properties in San Francisco, Oakland and Alameda.

If you are an eligible veteran or member of the armed forces and currently have a conventional loan, then yes, you can refinance into a VA loan! In fact, we are working with a client here in Alameda, CA doing exactly this type of refinance, and the great news is he will be saving $600 per month!

Transferring from a conventional mortgage to a VA mortgage is known as a “Conventional to VA Refinance Loan,” and is a very straightforward process.

Here are some of the advantages offered by switching from a conventional mortgage to a VA mortgage:

• You may be able to lower your interest rate and your monthly payment with low VA refinance rates.

• You are not required to put any money down to get a VA loan refinance.

• Private mortgage insurance is also not required even for those borrowing more than 80% of the home’s value. Not having to pay private mortgage insurance (or PMI for short) can result in significant savings.

• You have the option of refinancing to a fixed rate mortgage to ensure that your interest rates do not fluctuate over time.

Remember, even if you can only lower your interest rate by a .5% percent you could be saving thousands of dollars over time!

Add to that the saved costs of not having to pay private mortgage insurance, and you’re truly looking at substantial savings in both the long and short run.

If you are comfortable with your current mortgage payment you could choose to pay off your loan more aggressively by selecting a shorter term for your refinance loan.

By moving from a 30 year loan term to a 20 or 15 year term you will pay off your loan years sooner, eliminating a decade or more of interest payments. In addition, interest rates for shorter term loans are often lower than 30 year term loans and will save you thousands of dollars in interest paid. 

As always, if you or someone you know is looking to explore their options with VA financing feel free to contact us, The Werdmuller Group. We are here to help and we love serving those who serve.

Other VA Posts You May be Interested in:

VA Mortgage Loans in Alameda, CA- a Piece of Island History

VA Interest Rate Reduction Loan

VA Loan Requirements and Eligibility in Alameda, CA

Approved Property Types and Loan Limits for VA Loans

Here in Alameda, much of the higher priced real estate on Harbor Bay Island, or Bayfarm Island, has been hit hard recently by the market. Many pockets of the Bay Area are stable now, however, this higher priced area is losing equity.  We were able to help many of the Veteran Homeowners refinance and save their homes with a niche VA refinance product. We can go to 95% of the current appraised value and the best part is there is no Mortgage Insurance!

Now is an incredible time to refinance your home with a VA mortgage loan! You can take advantage of lower interest rates that can ultimately save you money in both the long-run and the short-run by lowering your monthly payment.

If you currently have a conventional loan, you can refinance into a VA loan if you are an eligible veteran or member of the armed services. Transferring from a conventional mortgage to a VA mortgage is known as a “Conventional to VA Refinance Loan” and is a very straightforward process.

In 2008 a law titled the “Veteran Benefits Improvement Act” was passed to assist veterans who were upside down on their mortgage. This law created the opportunity for eligible veterans to get a VA refinance and improve their financial circumstances.

Of course, you are also allowed to refinance your home if you currently have a VA mortgage. An Interest Rate Reduction Refinancing Loan (IRRRL) is considered a VA Streamline Refinance. This is a quick and easy way to either lower your monthly mortgage payment or take money out of your home with minimal work, at no cost to you!

There is a great opportunity in the market to refinance a VA loan you or someone you know may have! To learn more feel free to contact us, we are here to help you and we love serving those who serve.

Other VA Posts You May be Interested in:

VA Interest Rate Reduction Loan

VA Mortgage Loans in Alameda, CA- a Piece of Island History

VA Loan Requirements and Eligibility in Alameda, CA

Approved Property Types and Loan Limits for VA Loans

Is a VA Loan Better than a Conventional Mortgage

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The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 30, 2010.

Here is an excerpt from the report:

The MBA’s loan application survey covers over 50% of all U.S. residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a snapshot view of consumer demand for mortgage loans. In a low mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out a lower monthly payment. If consumers are able to reduce their monthly mortgage payment and increase disposable income through refinancing, it can be a positive for the economy as a whole (creates more consumer spending or allows debtors to pay down personal liabilities like credit cards). A falling trend of purchase applications indicates a decline in home buying demand, a negative for the housing industry and the economy as a whole.

Plain and Simple: Refinance demand continues to bolster the mortgage market as purchases account for only 22% of new loan apps. Home buyers are utilizing the FHA for low downpayment home financing. This is no surprise given the massive destruction of wealth that has occurred over the last two years. Although mortgage rates are hovering near record lows, and will likely hit new lows in the next release as more lenders are offering 4.25% on rate sheets this week, refinance demand just isn’t what it was last spring. This proves the theory that the pool of qualified borrowers has shrunk right along with the industry, or is it the other way around?

HAS PURCHASE DEMAND HIT A BOTTOM YET?
It’s still too soon to say, especially because it’s supposed to be the summer buying season, but three consecutive weeks of index improvement is a start. We just have to hope purchase loan DENIALS don’t rise right along with the increase in purchase loan demand. That whole qualification thing should raise doubts around any uptick in Pending Home Sales.

To read the full report click the link below.
http://www.mortgagenewsdaily.com/08042010_stolen_loan_demand.asp

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