The super-low mortgage rates everyone has enjoyed for more than a year may likely be coming to an end. The Federal Reserve is expected to end their campaign of buying up mortgage-backed securities this week.
The Federal Reserve Bank, last March began a 1 trillion-plus shopping spree to buy up mortgage-backed securities from Fannie Mae and Freddie Mac. This artificial involvement in the mortgage market was the main tool the Fed could use to keep interest rates low. That campaign is scheduled to be wrapped up Wednesday March 31st, the end of the first quarter.
Many experts predict this will cause mortgage rates to spike up. If you have been considering a refinance or purchase it may be best to pull the trigger before rates do go up. It seems inevitable at this point.
Call Today to lock in your low rate! 773-529-7000
www.ChicagosMortgageChoice.com
Monday, March 29, 2010
Tuesday, March 23, 2010
Thursday, March 18, 2010
Source: Market Watch March 18, 2010, 1:21 p.m. EDT
The number of people applying for unemployment benefits fell by 5,000 in the latest week, marking the third straight drop, but there's little evidence companies are ready to hire at a pace that would sharply reduce the nation's high jobless rate. Unemployment predicted to stay high for some time.
Yet senior economic officials at the White House repeated a warning this week that unemployment might remain near its current level of 9.7% for an "extended period." White House officials predict the economy will add an average of 100,000 jobs a month in 2010, but that would just keep pace with natural growth in the labor force. Jobs would have to be created at double that pace to sharply reduce unemployment.
To help millions of workers who can't find jobs, Washington is set to extend benefits until the end of the year. Regular unemployment benefits run out after 26 weeks.Lawmakers this week also passed another stimulus bill, worth $17.6 billion, aimed at creating more jobs. Included in the measure are temporary tax credits for businesses that hire additional workers.
In the week of Feb. 27, the number of workers receiving extended federal benefits climbed 352,000 to 6.04 million, not seasonally adjusted.Altogether, 11.65 million people were collecting some type of unemployment benefits in the week of Feb. 27, up from 11.36 million. The numbers are not seasonally adjusted.
Wednesday, March 17, 2010
Home Affordable Foreclosure Alternatives-HAFA-Kicks off April 5
The new program, Home Affordable Foreclosure Alternatives, or HAFA, kicks off in April 5. Some real estate industry experts see it as a response to the limited success of a government loan modification drive known as the Home Affordable Modification Program, or HAMP.
Under the new HAFA program, if a homeowner doesn't qualify for a HAMP modification they must be offered a short sale. Borrowers can also be offered a deed in lieu of foreclosure.
Homeowners who qualified for a HAMP modification, but have missed two consecutive payments, will also be offered a short sale or deed in lieu through HAFA.
A short sale happens when the borrower and the mortgage servicer agree to sell a home for less than the value of the loan or loans. A deed in lieu of foreclosure occurs when a homeowner voluntarily gives the deed of the property to the servicer.
To help kick-start HAFA, there are government incentives. Borrowers get $1,500 to help them move to a new home and up to $3,000 in short sale proceeds can be given to holders of second mortgages on the homes in the program.
Need Help With Your Mortgage? www.ChicagosMortgageChoice.com
Under the new HAFA program, if a homeowner doesn't qualify for a HAMP modification they must be offered a short sale. Borrowers can also be offered a deed in lieu of foreclosure.
Homeowners who qualified for a HAMP modification, but have missed two consecutive payments, will also be offered a short sale or deed in lieu through HAFA.
A short sale happens when the borrower and the mortgage servicer agree to sell a home for less than the value of the loan or loans. A deed in lieu of foreclosure occurs when a homeowner voluntarily gives the deed of the property to the servicer.
To help kick-start HAFA, there are government incentives. Borrowers get $1,500 to help them move to a new home and up to $3,000 in short sale proceeds can be given to holders of second mortgages on the homes in the program.
Need Help With Your Mortgage? www.ChicagosMortgageChoice.com
Tuesday, March 16, 2010
Fed stands pat on rates-But will mortgage rates go up?
Although the Federal Reserve kept its benchmark interest rate at a record low level Tuesday and made no changes to the key "extended period" policy pledge, a signal that it believes the economy still needs support to get to a sustainable path.
Many are predicting the long term mortgage rates to spike upward. Primarily due to the fact the Fed's buying of mortgage backed securities comes to an end at the end of this month. This has a direct impact on mortgage interest rates that were held at historical lows by the Treasury buting Mortgage Backed Securities creating a false market.
If you have been considering a refinance, or a purchase it may be a good idea to move forward sooner rather than later.
Call Today: 773-529-7000
www.ChicagosMortgageChoice.com
Many are predicting the long term mortgage rates to spike upward. Primarily due to the fact the Fed's buying of mortgage backed securities comes to an end at the end of this month. This has a direct impact on mortgage interest rates that were held at historical lows by the Treasury buting Mortgage Backed Securities creating a false market.
If you have been considering a refinance, or a purchase it may be a good idea to move forward sooner rather than later.
Call Today: 773-529-7000
www.ChicagosMortgageChoice.com
Monday, March 15, 2010
Homebuyer Tax Credit Creating Activity
With the Homebuyer Tax Credit deadline of April 30th fast approaching, there has been a substantial increase in potential buyers calling to get Pre-Approved. With the mad rush to secure a contact by April 30th and close by June 30th. There will be a log jam so to speak getting loans through underwriting and scheduled with the title companies.
Call or visit my website today to beat the rush.
773-529-7000
www.ChicagosMortgageChoice.com
Call or visit my website today to beat the rush.
773-529-7000
www.ChicagosMortgageChoice.com
Friday, March 12, 2010
Shows true cost of borrowing
That’s essentially how the APR works. It takes any fees you pay for a mortgage loan or refinance, and recalculates their cost as part of an interest rate. It’s a handy way of comparing loan offers with differing fees and interest rates. For example, you may have one loan offer at 5.5 percent, zero points and $2,500 in fees, vs. another at 5.25 percent, two points and $7,000 in fees. Your APR on the first might be 5.6 percent, but 5.75 percent on the second. The first loan is the least expensive, even though it has a higher interest rate.
The APR can be used to compare offers on adjustable rate mortgages, even though the rates may fluctuate over time. The way that works is, the APR is calculated assuming you’ll have the mortgage for the full term of the loan and simply pay the new rate whenever it resets. Because no one can predict what interest rates will do in the future, the calculation simply assumes the base rate, or rate index, that rate resets are based on will remain unchanged, so the calculation simply depends on how much the resets vary from the base rate.
Call Us Today!! 773-529-7000
Visit Us On The Web: www.ChicagosMortgageChoice.com
That’s essentially how the APR works. It takes any fees you pay for a mortgage loan or refinance, and recalculates their cost as part of an interest rate. It’s a handy way of comparing loan offers with differing fees and interest rates. For example, you may have one loan offer at 5.5 percent, zero points and $2,500 in fees, vs. another at 5.25 percent, two points and $7,000 in fees. Your APR on the first might be 5.6 percent, but 5.75 percent on the second. The first loan is the least expensive, even though it has a higher interest rate.
The APR can be used to compare offers on adjustable rate mortgages, even though the rates may fluctuate over time. The way that works is, the APR is calculated assuming you’ll have the mortgage for the full term of the loan and simply pay the new rate whenever it resets. Because no one can predict what interest rates will do in the future, the calculation simply assumes the base rate, or rate index, that rate resets are based on will remain unchanged, so the calculation simply depends on how much the resets vary from the base rate.
Call Us Today!! 773-529-7000
Visit Us On The Web: www.ChicagosMortgageChoice.com
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