This ARTICLE On Mortgage Rates Is At An All-Time Year Low Was PUBLISHED On July 29th, 2020
Will Mortgage Rates Continue To Drop? Mortgage rates are now at historic lows.
- The coronavirus pandemic has not affected the housing market
- The housing markets are stronger than ever
- This holds true despite the COVID-19 pandemic and the highest unemployment rates in decades
- Mortgage rates on 30-year fixed-rate conventional mortgage loans dropped again 0.09% last week for prime borrowers to a national average of 2.69% nationally due to the uncertainty in the market and the volatility of the stock market
- 15-year conforming mortgage rates dropped below the 3.0% mark, a drop of 0.09% to a year low of 2.47%
- Both the 30 year and 15-year mortgage rates are at a year low and are approaching the all-time low which was in May 2020
- The drop in mortgage rates is spiking the housing market and increasing home sales
- Low mortgage rates are not jump-starting home buyers look for homes to buy but are also stimulating the refinance mortgage market
- Homeowners are inquiring about refinancing their current home loans where they have refinanced them recently to see if they can save more money by refinancing their home loans again
In this article, we will discuss and cover Interest Rates On Home Loans Is At An All-Time Year Low.
2.96% Conforming Mortgage Rates On 30 Year Fixed Rate Mortgages
Conventional rates are normally higher than FHA rates.
- This past week’s 2.96% rates on conforming loans are spurring interest on FHA borrowers with rates in the mid 4.0% where they can refinance their FHA loans into a conventional loan
- This holds true even if the homeowner has less than 20% equity in their homes
- Conventional mortgage borrowers with less than 20% equity in their homes are required to have private mortgage insurance
- However, private mortgage insurance on conventional loans is much lower than the expensive FHA mortgage insurance premium
- Plus, with conventional loans, private mortgage insurance can be canceled when the home has at least 20% equity with conventional loans
With an FHA loan, the FHA mortgage insurance premium is mandatory for the life of the FHA loan.
Low Mortgage Rates Means Savings For Homeowners To Refinance
Homeowners who currently have rates of 4.5% or higher should definitely consider refinancing their current home loans.
- It does not matter what type of loan program you have
- All mortgage rates across the board are down and most rates are now trading at a 21 month low
- Homeowners with FHA loans, VA loans, USDA loans, and Conventional loans should start shopping for interest rates
- Borrowers can see if they can get a net tangible benefit by refinancing their current mortgage loans
- FHA borrowers can also benefit from FHA lowering their annual 1.35% FHA mortgage insurance premium to 0.85% on January 26, 2015
On a larger mortgage loan balance, the 0.50% reduction in FHA mortgage insurance premium is a huge saving.
FHA Streamline Refinance: No Appraisal, No Credit, No Income
FHA streamline refinance mortgage loans are super easy refinance mortgage loans that streamline the refinance loan process. Limited documentation is required and no appraisal is required. The borrower can have recent late payments and low credit scores and that does not matter because the borrower’s credit scores and credit history will not be taken into account. The only thing FHA Streamline Lenders require is that the homeowner is on time with his or her mortgage payments for the past 12 months. The homeowner can be late on part or all of his or her monthly payments except for the mortgage payments and they can qualify. There is no appraisal required with FHA Streamline Refinance. There is no income verification required so debt to income ratios will be no issues. If your interest rates on your FHA loan are greater than 4.5% and you are paying the higher FHA annual mortgage insurance premium of 1.35%, you will definitely get a net tangible benefit by refinancing with an FHA Streamline Refinance Mortgage. Call us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at email@example.com if you have an FHA loan and see if you qualify and will benefit from an FHA Streamline refinance mortgage loan.