This BLOG On Home Loans With Low Rates And Best Time To Refinance Was UPDATED On June 14th, 2019
Home Loans With Low Rates:
Thousands of homeowners were ready to refinance their mortgage loans last year when mortgage rates were in the mid 3.0%.
- Unfortunately, their mortgage loan originators did not lock their mortgage rates
- In a matter of weeks, mortgage rates kept on spiking up with no signs of retraction and/or correction
- Mortgage rates have spiked up more than 1.25% in an 8 week period starting last May 2017 with no signs of coming back
- Mortgage rates have skyrocketed to almost 5.0%
- This left many homeowners who wanted to refinance out of the playing field
- The stock market went through major fluctuations like never seen in recent history this week
- Mortgage rates have plummeted this past Wednesday where mortgage rates now are back at near 4.5% for 30 year fixed rate conventional loans
- Home Loans With Low Rates are back
- With the uncertainty and volatility in the financial markets due to the world crisis that might cause worldwide panic, borrowers can expect mortgage rates to be extremely volatile
- Mortgage rates can spike right back up as fast as they dropped
- Home buyers and homeowners needing refinancing have a second chance in getting home loans with low rates
Where Are Conventional Home Loans With Low Rates Today?
Mortgage rates are literally changing hourly as of last Wednesday.
- Today’s lowest 30 year fixed conventional mortgage rates hit a low of 3.75% with 0.375% points
- 3.875% with no points on a 30 year fixed conventional mortgage loan with no adjustments for a prime conventional mortgage borrower
- A prime borrower is a borrower with at least a 740 credit score, 20% equity, 80% loan to value
- FHA mortgage rates and all other mortgage loan program mortgage rates are all under 4.5%
- Will this drop in mortgage rates continue?
- Nobody has a crystal ball
- But due to this major volatility in the markets and the public distrust of our politicians and uncertainty of where our economy is headed, it can affect the real estate and mortgage markets either way
- Mortgage rates can tank further
- Or mortgage rates can go back up where they were and keep on going up
- If homeowners lost out at the chance to refinance last year, now may be the second chance and final chance
- If the current mortgage rates make sense and are low enough, lock mortgage rates in order not miss out on a chance to take advantage of lower mortgage rates
Excellent Time To Refinance FHA To Conventional Loan And Eliminate FHA MIP
Homeowners currently with FHA loan may want to consider refinancing FHA loan into a conventional loan. Doing so can eliminate the costly annual FHA mortgage insurance premium.
- Currently, FHA borrowers with a 30 year fixed rate mortgage loan are paying a 0.85% mortgage insurance premium for the life of their FHA loan
- This is paid no matter what the loan to value is on their FHA Loans
- By refinancing out of the FHA loan into a conventional loan, homeowners can completely eliminate mortgage insurance if they have at least 20% equity in a home
- Or if homeowners with less than 20% equity can refinance FHA to a conventional loan with no mortgage insurance premium
- This is called lender paid mortgage insurance or LPMI
- Borrowers who select to pay private mortgage insurance on a conventional loan with greater than 80% loan to value, PMI on conventional loans depends on the borrowers’ credit scores
- Private mortgage insurance automatically cancels once the loan to value reaches a 78% loan to value
California Homeowners Need To Check Their Home Values
Many homeowners in California do not realize that their properties have appreciated in value drastically. Many California homeowners who purchased their homes several years ago via FHA loans do not realize that their properties have appreciated by more than 20% in value. California homeowners who currently have an FHA insured mortgage loan should consult a mortgage loan originator to get a free analysis on refinancing their FHA insured mortgage loan into a conventional loan and see if there is a net tangible benefit for them.
If and want a free analysis and rate, please contact Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response. Or email us at firstname.lastname@example.org.