fixed rate loans
Wall Street Journal says, “Mortgage Rates Fall for Third Week”
January 21, 2010 by pomposelli · Leave a Comment
JOAN E. SOLSMAN
Mortgage rates fell this week, with the third-straight decline pushing the average for 30-year fixed-rate loans back below 5%, according to Freddie Mac’s weekly survey of mortgage rates.
Treasury yields have declined recently, and mortgage rates tend to follow the yields.
Meanwhile, the U.S. housing market remains unsteady. Wednesday, the Commerce Department reported that new home construction fell far more than expected in December, although building permits were issued at much higher-than-expected rate.
Freddie Mac chief economist Frank Nothaft noted Thursday that housing starts tend to be volatile in the winter months. And earlier this month, the National Association of Realtors reported pending sales of previously owned homes slid unexpectedly in November after 10 straight months of improvement.
The 30-year fixed-rate mortgage averaged 4.99% for the week ended Thursday, down from last week’s 5.06% average and 5.12% a year ago. Rates for 15-year fixed-rate mortgages were 4.4%, down from 4.45% and 4.8%, respectively. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.27%, down from last week’s 4.32% and 5.24% a year earlier.
One-year mortgages stood at 4.32%, down from 4.39% and 4.92%.
To obtain the rates, the 30-year fixed-rate mortgages required payment of an average 0.7 point, and the rest required an average of 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.
fixed rate loans
Banks Appease Home Loans with Festival Offers :)
October 6, 2009 by smcinvestmentindia · Leave a Comment
Banks appease home loans with festival offers
Banks are coming out with festival schemes on home loans ahead of Diwali.
The move is aimed to increase credit demand.
Meanwhile, deals include teaser rates for initial years, amid some lenders providing alternative to shift to either fixed or floating rates in following years.
Lenders like Canara Bank, Bank of Maharashtra (BoM) and Dena Bank are offering fixed-rate loans for the first five years, and afterward, linking the loans to their prime lending rates.
However, others like Bank of India are offering fixed-rate loans for the first two years.
Besides, SBI is offering fixed rates for the first three years.
Moreover, the competition to gain market share has resulted in a small price war.
Development Bank of Credit introduced a fixed rate of 7.95 per cent for the first year, which is the lowest for the first year, in any case. From the second year onwards, the home rates will be linked to floating rate loans.
BoM and Dena Bank offer a fixed rate of 8 per cent for loans up to Rs 30 lakh in the first two years.
Canara Bank offers 8 per cent in the first year for Rs 30 lakh and SBI offers 8 per cent for the first five years for loans up to Rs 5 lakh.
Summer sales during the existing year were flat due to uncertainties.
Now, builders and lenders are making a fresh pitch to push sales during Diwali through limited period offers.
Most banks have also waived off the processing fee during the festival season.
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fixed rate loans
A Little Info On Home Equity Loans…
September 8, 2009 by Mortgage Align · Leave a Comment
Many people call the home equity loan as “the second mortgage” This is distinguished from a refinance home loan because it allows property owners, for example in Colorado, to borrow money by leveraging the home equity. The primary reason for the home equity loan is for certain tax changes to be accommodated or circumvented. The reason is, when a borrower from Washington acquired the new loan amount, and then he could use the interest rates of the new loan to subtract costs for his or her tax returns.
Types
There are two basic types of home equity loans or what was previously referred to as second mortgages. These are the fixed-rate mortgage loans and the LOC or the line of credit. We are reminded that the fixed-rate loans are the major source of refinancing cases particularly in New York and Virginia. The line of credit on the other hand will be discussed later.
LOC
When a bank, or a financial lender, and a mortgage borrower reached an agreement regarding a clear drawn ceiling on the maximum amount that the borrower can avail for his loan is what is referred to as the line of credit. The concept roughly resembles that of refinancing but one of the distinct benefits of the line of credit if you are a resident of Pennsylvania is that the borrower need not pay the interest for the LOCs that are not utilized.
Home Equity LOC
If the mortgage borrower in his or her transaction with a Virginia local lending institution had his property of home used as a collateral for the extension of a line of credit, then it is called as the Home Equity Line of Credit or more popularly know around New Jersey as the HELOC. In the event that the previously explained ceiling is reached then the borrower can decide how much credit he is willing to avail.
fixed rate loans
Fixed Rate Mortgages To A Refinance Home Loan
September 3, 2009 by Mortgage Align · Leave a Comment
With a fixed rate mortgage, the interest rate will not change for the life of the loan. This means that monthly payment is always the same even if prevailing interest rates drop. It is important to note that fixed rate loans have usually higher interest rates than adjustable rate loans. Choosing a refinance home loan could be an option if you think that you are stuck and that continuing with the fixed rate mortgage is not feasible anymore. The drawback however is that new loan costs money to set up.
fixed rate loans
Common Refinance Home Loan Types
September 2, 2009 by Mortgage Align · Leave a Comment
There are various types of refinance home loan for the property owners. Some common loans are:
Adjustable Rate Mortgage / Refinance Home Loan:
The interest rate of these loans depend upon the financial index it is dependent upon and so after a fixed rate of interest for few years it starts to vary for the rest of the term.
Fixed Rate Mortgage / Refinance Home Loan:
These loans have a fixed interest rate for a particular period of time. So your budget can be calculated as the monthly installments remain constant.
Balloon / Refinance Home Loan:
This type of loan is repayable in the full amount when the term gets over. Generally a loan with the term of 5 to 10 years with a low rate of interest as found in ARMs loans.
Home Equity / Refinance Home Loan:
These fixed rate loans are taken on the equity that your property is valued at. They provide you with liquid cash so as to invest, renovate, education purposes. They have a fixed monthly payment and are basically safe.
Line of Credit / Refinance Home Loan:
A line of credit loan allows you to take cash on the mortgage. You can cash on the equity of the house. The monthly installments are of low interest. The advantage is that you can pay it back when you want.
