low mortgage rates
Low Mortgage Rates Lead to a 64% Surge in the Number of Homeowners Refinancing a Mortgage
February 19, 2009 by Mortgage Align · Leave a Comment
Last week, the number of Americans applying for mortgages increased from the previous week, according to a report released today by the Mortgage Bankers Association (MBA).
The Index, which measures and compares mortgage loan application volume from week to week, showed that for the week ending February 13, mortgage activity increased 45.7% from the previous week’s numbers. The number of refinance mortgage applications surged 64.3%, while applications from those seeking to purchase a home rose 9.1%.
“Mortgage applications rebounded nicely after last week’s 25% drop in activity. This is likely due to mortgage interest rates that have stabilized in a very attractive range after seeing some increases the week prior,” said Bob Walters, Chief Economist, Quicken Loans.
“But the real reason for the strong activity is simple – housing and financing have become affordable. This is what is driving mortgage activity, and should continue to do so as long as rates remain at these levels.”
low mortgage rates
Historically Low Mortgage Rates Go Even Lower With Points
February 14, 2009 by Mortgage Align · Leave a Comment
Welcome to the latest in a new series of audio news stories from Quicken Loans Relationship Marketing Manager Mark Smith. Below, you can listen to the audio file (mp3) or if you prefer, you can read the text.
Intro: You’re listening to the Your Mortgage and Money Podcast, brought to you by Quicken Loans, the nation’s largest online lender and one of the leading direct FHA lenders. Here’s your host, Mark Smith.
Anchor: Anyone who’s been paying attention to the mortgage market has surely noticed how far rates have dropped! Right now, you can find 30 year fixed-rate loans in the mid five percent range. These are historic lows for mortgage rates!
This is great news for a lot of people, especially those in adjustable rate loans who have seen their rates continue to climb. But, right now there is an opportunity to cut today’s interest rates even lower.
Paying points is a popular way to lower the standard mortgage rate being offered. A single point represents one percent of the loan amount. They are a great way for people to save some cash if they are looking to stay in their home for a while and are really popular when rates are high. But, the same advantages applies when rates are low.
Imagine this case: a homeowner wants to refinance their $200,000 loan. Without paying the points, the rate is 5 3/8 percent. But by paying one point – or $2000, they can lower the rate to 5 percent. That translates into a savings of $50 a month. The homeowner will recoup their $2,000 they paid in points in just 3 years, and then continue to pocket that extra $50 each month for the next 27 years/
Now, I know, $50 doesn’t seem like a lot, but over the full life of the loan, the homeowner will have saved $16,000. Now folks, that is some serious cash.
Paying points don’t make sense for everyone. For example, if you are planning to move soon, they might not make sense for you. The same goes if you do not have a decent amount of cash in the bank
The real story here is this: If you are looking to refinance, be sure you are working with a reputable lender who will ask you the right questions to understand your unique situation. They can help you explore the options that make the most sense for your individual situation.
Points or no points, right now is likely the best time to refinance in the last few decades. Start 2009 out right. Dust off your mortgage documents and see if you can benefit from today’s historic mortgage rates.
For Quicken Loans, I’m Mark Smith.
Wrap: For more information on how to build and maintain good credit, visit QuickenLoans.com. You’ll find hundreds of useful tips and articles about home buying, selling, refinancing, and personal financial planning. You can chat live with a mortgage expert, or use the free financial calculators to determine how much equity you have in your home, or how much home you can afford. You can also subscribe to the Quicken Loans mortgage news RSS service to receive free news articles and Podcasts to help you better understand what’s happening in the financial markets and how they may affect you.
low mortgage rates
Historically Low Mortgage Rates Go Even Lower With Points
February 10, 2009 by Mortgage Align · Leave a Comment
Welcome to the latest in a new series of audio news stories from Quicken Loans Relationship Marketing Manager Mark Smith. Below, you can listen to the audio file (mp3) or if you prefer, you can read the text. If you have any topics you’d like to see covered by our audio news series, please email Quicken at content@quickenloans.com.
Intro: You’re listening to the Your Mortgage and Money Podcast, brought to you by Quicken Loans, the nation’s largest online lender and one of the leading direct FHA lenders. Here’s your host, Mark Smith.
Anchor: Anyone who’s been paying attention to the mortgage market has surely noticed how far rates have dropped! Right now, you can find 30 year fixed-rate loans in the mid five percent range. These are historic lows for mortgage rates!
This is great news for a lot of people, especially those in adjustable rate loans who have seen their rates continue to climb. But, right now there is an opportunity to cut today’s interest rates even lower.
Paying points is a popular way to lower the standard mortgage rate being offered. A single point represents one percent of the loan amount. They are a great way for people to save some cash if they are looking to stay in their home for a while and are really popular when rates are high. But, the same advantages applies when rates are low.
Imagine this case: a homeowner wants to refinance their $200,000 loan. Without paying the points, the rate is 5 3/8 percent. But by paying one point – or $2000, they can lower the rate to 5 percent. That translates into a savings of $50 a month. The homeowner will recoup their $2,000 they paid in points in just 3 years, and then continue to pocket that extra $50 each month for the next 27 years/
Now, I know, $50 doesn’t seem like a lot, but over the full life of the loan, the homeowner will have saved $16,000. Now folks, that is some serious cash.
Paying points don’t make sense for everyone. For example, if you are planning to move soon, they might not make sense for you. The same goes if you do not have a decent amount of cash in the bank
The real story here is this: If you are looking to refinance, be sure you are working with a reputable lender who will ask you the right questions to understand your unique situation. They can help you explore the options that make the most sense for your individual situation.
Points or no points, right now is likely the best time to refinance in the last few decades. Start 2009 out right. Dust off your mortgage documents and see if you can benefit from today’s historic mortgage rates.
For Quicken Loans, I’m Mark Smith.
Wrap: For more information on how to build and maintain good credit, visit QuickenLoans.com. You’ll find hundreds of useful tips and articles about home buying, selling, refinancing, and personal financial planning. You can chat live with a mortgage expert, or use the free financial calculators to determine how much equity you have in your home, or how much home you can afford. You can also subscribe to the Quicken Loans mortgage news RSS service to receive free news articles and Podcasts to help you better understand what’s happening in the financial markets and how they may affect you.
low mortgage rates
Latest Mortgage Applications Report Shows Increase Driven by Refinances & Low Fixed Rates
February 5, 2009 by Mortgage Align · Leave a Comment
Last week, the number of Americans applying for mortgages increased from the previous week, according to a report released today by the Mortgage Bankers Association (MBA).
The Index, which measures and compares mortgage loan application volume from week to week, showed that for the week ending January 30, mortgage activity increased 8.6 percent from the previous week’s numbers.
The number of refinance applications jumped 15.8 percent, while applications from those seeking to purchase a home fell 11.2 percent.
Bob Walters, chief economist for Quicken Loans, attributed the increase in refinance applications to sustained low rates.
“Favorable long-term mortgage rates are continuing to entice consumers into the market to refinance their existing loans. Consumers are watching the market, reading the news, and realizing that refinancing can create payment security and perhaps lower their monthly payment,” said Walters.
low mortgage rates
Home Sales Increase due to Low Mortgage Interest Rates & Low Home Prices
January 31, 2009 by Mortgage Align · Leave a Comment
The National Association of Realtors announced today that existing home sales in December increased 6.5 percent as compared to November 2008. However, while home sales were up, the inventory of unsold homes fell 11.7 percent to 3.68 million units, representing a 9.3 month supply.
Quicken Loans Chief Economist Bob Walters says that low mortgage rates and extremely low home prices are attracting buyers to the market.
“We have seen a sustained run of extremely low mortgage interest rates which have certainly caught the eye of home buyers . When you pair this with the fact that homes are selling at astonishingly low prices, you have created the perfect scenario for strong home sales,” said Walters. “I’d still expect to see some additional deterioration in home prices which will help burn off excess inventory, especially if rates remain this attractive.”
