Mortgage With Low Mortgage Rates: Lowest Levels

Mortgage With Low Mortgage 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 and in a matter of weeks, mortgage rates kept on spiking up.  Mortgage rates have spiked up more than 1.25% in an 8 week period starting last May 2013 with no signs of coming back.  Mortgage rates have sky rocketed to almost 5.0% and 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 and mortgage rates have plummeted this past Wednesday where mortgage rates now are back under 4.0% for 30 year fixed rate conventional loans.  Mortgage With Low Mortgage Rates are back. With the uncertainty and volatility in the financial markets due to the world crisis and the ebola epidemic that might cause a world wide panic, you can expect mortgage rates 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 mortgage with low mortgage rates.

Where Are Conventional Mortgage With Low Mortgage 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 loan borrower.  A prime borrower is a mortgage loan borrower with at least a 740 FICO credit score and 20% equity in their home, 80% loan to value.   FHA mortgage rates and all other mortgage loan program mortgage rates are all under 4.0%.  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 president and politicians and uncertainty of where our economy is headed as well as the Ebola epidemic crisis, 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 you lost out at the chance to refinance last year, now is your second chance.  If the current mortgage rates make sense to you and are low enough, lock your mortgage rates so you do not miss out on a chance to take advantage of lower mortgage rates.

Excellent Time To Refinance FHA Loan To Conventional Loan And Eliminate FHA MIP

If you currently have a FHA loan, you may want to consider refinancing your FHA loan into a conventional loan and eliminate the costly annual FHA mortgage insurance premium.  Currently, FHA mortgage loan borrowers with a 30 year fixed rate mortgage loan are paying a 1.35% mortgage insurance premium for the life of their FHA loan no matter what the loan to value is on their mortgage loan.  By refinancing out of the FHA loan into a conventional loan, you can completely eliminate mortgage insurance if you have at least 20% equity in your home or if you have less than 20% equity, you can refinance your FHA mortgage loan to a conventional loan with no mortgage insurance premium, which is called lender paid mortgage insurance or LPMI.   If you select to pay private mortgage insurance on a conventional loan with greater than 80% loan to value, private mortgage insurance on a conventional loan is over half less than FHA mortgage insurance premium and you the private mortgage insurance automatically cancels once your 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 a 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 you are a homeowner in Illinois, Florida, California, Washington, Indiana, or Wisconsin and want a free analysis and rate, please contact Neighborhood Loans at www.gustancho.com.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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