Refinance Mortgage Now Could Be A Good Time To Refinance

Refinance Mortgage Now Could Be A Good Time To Refinance



Refinance Mortgage - Now could be a​ good time to​ refinance
The mortgage market is​ currently experiencing an​ increase in​ rates as​ 30 year mortgages rates push slightly over six percent,​ and 15 year mortgages move over the​ 5.50 level .​
Both of​ these loan rates assume that you​ would be putting 20% down at​ borrowing,​ which is​ customary amongst most commercial lenders .​
While most people are hesitant to​ move into the​ market at​ these rates,​ there exist other options you​ could possibly take advantage of .​
The federal government is​ attempting to​ ease the​ crisis in​ the​ mortgage market with the​ Federal Housing Administration .​
Passing new legislation,​ the​ government hopes to​ spur on​ new applications by allowing lenders to​ introduce mortgages with only a​ 3% down payment .​
For a​ first time home buyer with not much savings this could be an​ extremely welcome opportunity .​
Additionally,​ buyers who are in​ a​ bit of​ trouble with plummeting market rates may be able to​ benefit from FHA backed refinancing .​
In August,​ the​ government allowed over 200,​000 homeowners to​ refinance,​ and now additional people may be able to​ refinance their home down to​ its current market value,​ giving people and incentive to​ stay in​ the​ home .​
The FHA is​ now getting authority to​ refinance homes that are in​ the​ $700,​000 range,​ were as​ before,​ they were only allowed to​ come in​ on​ loans in​ the​ high 300s .​
Families looking to​ get into a​ home fast,​ who have suffered from the​ recent recession,​ may find FHA backed loans quite attractive .​
The down payment requirements,​ which now stand at​ 3%,​ may be lowered to​ 1.5% .​
Moreover,​ there is​ no credit history requirement and no fixed income requirement either .​
But,​ you​ do have to​ pay an​ upfront premium for these reduced lending guidelines,​ which amounts to​ 1.5% of​ the​ loan total at​ closing,​ and half a​ percent every year .​
Not too bad on​ a​ reasonable mortgage,​ especially when compared to​ a​ 20% down payment .​
For potential buyers,​ home prices look pretty attractive right now,​ with the​ median national home price just under $240,​000 .​
Prices have fallen recently,​ just a​ bit,​ to​ make the​ market even more attractive .​
People are rushing to​ buy homes in​ areas that have had record numbers of​ foreclosures .​
The inventory in​ hard hit states like California,​ Florida,​ and Utah is​ truly stunning .​
If you​ are an​ eager home buyer,​ who has some cash saved,​ now is​ a​ great time to​ be searching for a​ great deal .​
And with so many people and institutions looking to​ sell homes as​ fast as​ they can,​ you​ may walk away with the​ deal of​ a​ lifetime.




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