As Europe continues to battle its financial crisis, there is a lot of volatility happening in markets these days. Earlier this month, Spain officially requested a bailout making this the largest and fourth European economy to request help.
While these global events continue to take place, fluctuations are keeping low mortgage rates here in the U.S. on track.
Overall applications increased 1.3% with refinances accounting for 78% of all business for the week ending June 1st, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
While the purchase index decreased only slightly, mortgage refinances increased 2%. FreeRateUpdate.com’s survey of direct and wholesale lenders shows that mortgage rates remained steady over that week with 15 year fixed mortgage rates at 2.750%, 30 year fixed mortgage rates at 3.375%, and 5/1 ARM loan rates at 2.125%, all of which are available with 0.7 to 1% origination fee to well-qualified borrowers.
High affordability for a home purchase could bring some positive action as the active summer buying season is now underway.
Homebuyers need stable income and employment, enough assets for the closing and reserves, along with good credit in order to receive lender approval.
Current homeowners who have mortgages with Freddie Mac or Fannie Mae are finding that the Home Affordable Refinance Program (HARP) is helping them to refinance to lower mortgage rates, thus avoiding a short sale, future foreclosure, or strategic default.
In order to be eligible for HARP, the existing mortgage must have been sold to either of these GSEs before June 1, 2009. It’s easy to obtain additional information about HARP with an online inquiry which returns a response within minutes.
Online HARP inquiries are more successful because there are more lenders available in one place at one time who are willing and eager to assist borrowers with their needs.
The FHA Streamline Refinance, with reduced upfront and annual mortgage insurance premiums, is now in place and is expected to bring in millions of FHA refinances until the end of 2013. The program is now available to FHA borrowers with mortgages endorsed prior to June 1, 2009 and is expected to be a huge success.
While the program does not allow for cash out, it does have no verifications required, meaning that even borrowers who have lost income can be approved.
Due to the large number of borrowers applying for this FHA loan program, obtaining an online inquiry which doesn’t require a social security number can produce the quickest results to a lower FHA mortgage rate.
Currently FHA 15 year fixed mortgage rates are at 2.625%, 30 year fixed mortgage rates are at 3.125%, and FHA 5/1 ARM loan rates are at 2.625%.
FHA purchase mortgages have decreased since the increase in the upfront mortgage insurance premium on new loans makes FHA closing costs high. However, it’s important for borrowers to know that in most cases these expenses can be added to the mortgage amount.
Jumbo mortgage rates have also remained steady for the week ending June 1 with jumbo 15 year fixed mortgage rates at 3.125%, jumbo 30 year fixed mortgage rates at 4.125%, and jumbo 5/1 ARM loan rates at 2.250%.
These are the lowest jumbo mortgage rates available with 0.7 to 1% origination fee for borrowers with excellent credit.
The Kleer Team is committed to providing clients with value added services in all aspects of the real estate transaction. Allan Kleer and his team are known for representing high profile celebrity clients, as well as high net worth international clientele. TheKleerTeam team also represents many first time luxury condo (I.E. Apogee Miami Beach & St. Regis Residences Bal Harbour) and homebuyers. Schedule an appointment for a personal interview.