Mortgage rates today were unchanged. Thirty-year fixed, 15-year fixed and 5/1 ARM rates remained steady, according to a NerdWallet survey of current mortgage rates published by national lenders Tuesday morning.

Tomorrow, the Federal Reserve will announce its decision regarding short-term interest rates. Most Wall Street analysts are expecting the Fed to delay any further hikes in interest rates until later this year.

While calm today, mortgage rates have been volatile lately. After the Fed’s announcement tomorrow, the Labor Department’s jobs report to be issued on Friday will likely provide the next motivation for substantive rate movement.

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Mortgage Rates Today,
Tuesday, Jan. 31

(Change from 1/30)
30-year fixed: 4.43% APR (NC)
15-year fixed: 3.82% APR (NC)
5/1 ARM: 3.84% APR (NC)

Home prices hit all-time high for third month in a row

A leading measure of national home prices has hit an all-time high for the third consecutive month. The S&P CoreLogic Case-Shiller National Home Price Index reported a 5.6% annual gain in Nov. 2016, fueled by low interest rates and an improving economy.

>> MORE: Calculate your monthly mortgage payment

“With the S&P CoreLogic Case-Shiller National Home Price Index rising at about 5.5% annual rate over the last two and a half years and having reached a new all-time high recently, one can argue that housing has recovered from the boom-bust cycle that began a dozen years ago,” David M. Blitzer, managing director at S&P Dow Jones Indices, said in a release.

For the 10th month in a row, Seattle, Portland and Denver notched the highest year-over-year price gains among the 20 cities surveyed.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
Calculate your mortgage payment
Compare mortgage rates
How much home can you afford?

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

The article Mortgage Rates Today, Jan. 31: Steady; Home Prices Hit All-Time High Again originally appeared on NerdWallet.

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An article written by Fannie Mae’, “What Consumers (Don’t) Know About Mortgage Qualification Criteria,” illustrated that only 5 to 16 percent of those surveyed know the correct ranges for required mortgage qualification criteria when buying a home.

Myth #1: “20% Down Payment is required”

Fannie Mae’s survey showed that buyers overestimate the amount of required down payment cash to qualify for a home mortgage. The report showed that 76% of Americans either don’t know or are misinformed about the required down payment.

Many buyers think they need at a minimum 20% down to purchase their dream home, but there are several loan programs that let buyers put down, often times, as little as 3%.

Here are the results of a Digital Risk survey. This surveyed Millennials who had recently bought a home.

It shows that 64.2% were able to buy their home by putting down much less than 20%.  43.8% put down less than 10%!

Myth #2: “A 780 FICO Score or Higher is Required to Buy”

The survey Showed 59% of the public either don’t know or are misinformed about what FICO score is required to qualify for a home mortgage.

Many believe a credit score is 780 or higher is “Good”.

In an attempt to debunk this myth, let’s eximine Ellie Mae’s latest Origination Insight Report, which concentrates on recently closed home loans. You can see below that 54.7% of approved mortgages had a credit score between 600 and 749.

Final Thoughts

Regardless if you are a first time home buyer or purchasing your dream home, Educating yourself on your options will make the mortgage application process quicker and easier. Your dream home is right around the corner!

At Realty Solutions Group, we are committed and experienced real estate professionals, dedicated to providing truly exceptional care and services. We are a full service real estate agency representing buyers and sellers of the purchase and sale of homes, land, condos, commercial and investment properties. Let us show you what we can do! Call us at 414.745.3339, email us at [email protected]

Mortgage rates were mostly lower today. Thirty-year fixed and 15-year fixed rates fell, while 5/1 ARM rates remained steady, according to a NerdWallet survey of mortgage rates published by national lenders Monday morning.

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Mortgage Rates Today,
Monday, Jan. 30

(Change from 1/27)
30-year fixed: 4.43% APR (-0.05)
15-year fixed: 3.82% APR (-0.03)
5/1 ARM: 3.84% APR (NC)

Futures market expects Fed to stand firm

The Federal Reserve will meet this week and announce a decision on short-term interest rates Wednesday. The futures market, where investors can hedge everything from the weather to the price of orange juice, is not expecting a rate hike during this meeting. The CME Group, a leading derivatives marketplace, shows a 96% probability that the Fed will stand pat on interest rates.

In fact, most traders aren’t looking for the Fed to make a move until its June 14 meeting, according to 30-day Fed Fund futures prices.

>> MORE: Calculate your refinance savings

The Fed last raised short-term rates at its December 2016 meeting. Fed rate adjustments don’t affect mortgage rates directly, but they can influence lender pricing over the long term.

On Dec. 15, the day after the last 0.25 percentage point Fed rate hike, 30-year fixed mortgage rates stood at 4.52%, according to the NerdWallet Mortgage Rate Index, a daily survey of mortgage lenders. Rates have been volatile ever since, but as of Friday, Jan. 27, they were slightly below that mark, at 4.48%, according to NerdWallet.

Mortgage rates had already begun trending higher, immediately after November’s presidential election.

Float or lock your interest rate?

“This week is extremely busy, with eight economic reports for the markets to digest, including two highly important releases,” Al Bowman, a mortgage rate analyst in Tampa, Florida, said in a report to clients Sunday. In addition to the Federal Reserve meeting, Bowman is tagging Friday’s Labor Department employment report as having the potential to move rates.

“We have something of importance set for each day of the week, making it likely that we will see plenty of movement in mortgage rates,” he added.

Bowman says that if he were considering financing or refinancing a home, he would lock his interest rate if his closing were to take place within seven to 20 days — and float his rate if the loan closing were scheduled for sometime beyond three weeks from now. He adds that this is his opinion and might not be in the best interest of other borrowers.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
Calculate your monthly mortgage payment

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

The article Mortgage Rates Monday, Jan. 30: Lower; Fed Decision Looms originally appeared on NerdWallet.

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So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. More often than not, your agent may have made your offer contingent on a clean home inspection.

This contingency allows you to renegotiate the price paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. Realtor.com suggests that you consider the following 5 areas when choosing the right home inspector for you:

1. Qualifications – find out what’s included in your inspection & if the age or location of your home may warrant specific certifications or specialties.
2. Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. The more detailed the report, the better in most cases.
3. References – do your homework – ask for phone numbers and names of past clients that you can call to ask about their experience.
4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that there is continued training and education provided.
5. Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human after all, and it is possible that they might miss something they should have seen.

Ask your inspector if it’s ok for you to tag along during the inspection, that way they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof, crawling around in the attic, and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace & chimney, the foundation and so much more!

Bottom Line

They say ‘ignorance is bliss,’ but not when investing your hard-earned money in a home of your own. Work with a professional you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.

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Highlights:

• 5.45 million existing homes were sold in 2016! This is the highest mark set since 2006.
• Inventory of existing homes for sale dropped to a 3.6-month supply, the lowest level since NAR began tracking in 1999.
• The median price of homes sold in December was $232,200. This is the 58^th consecutive month of year-over-year price gains.

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An FHA streamline refinance offers you something you rarely get in the financial world: a bit of a short cut, saving you time and money.

But not everyone can get it. Only borrowers who meet certain conditions can get a break when refinancing a home purchase loan that was originally backed by the Federal Housing Administration.

We take a look at the five strict conditions you need to know about if you want to score an FHA streamline refinance — and one big bump in the road to this savings shortcut that you’ll want to look out for.

How streamlined is it?

“We’re already insuring the loan that is going to be refinanced, so this is about as streamlined as it gets,” says Kevin Stevens, an FHA spokesman. “There is no income check required and no appraisal required.”

Eliminating the income and credit verification and appraisal not only reduces time, hassle and paperwork, but also saves the extra fees, as well.

The reasoning is that the FHA has already valued the property, and most of the work it takes to get an FHA loan has already been done. So the do-over is not overdone.

>> MORE: Best lenders for FHA loans

The first 4 hurdles to clear

Of course, mortgages are rarely push-button easy. Here are four conditions you’ll need to know about before beginning an FHA streamline refinance:

• You can’t be delinquent on your current FHA loan. “We have [other] tools for borrowers who can’t afford their payments,” Stevens says.
• You can’t take out more than $500 in cash from the refinance.
• It must be at least six months since your current mortgage was issued.
• You can’t increase your loan amount to cover closing costs.

The biggest requirement of all

There is a fifth — and quite unusual — stipulation.

“We do require that there be a benefit to the buyer,” Stevens says. That means the FHA is looking for you to reduce your term or lower your mortgage interest rate — or both.

The FHA used to mandate that a refinance simply provide a lower payment, but the agency realized that could result in a false economy. “While a [lower] payment itself could be beneficial, if you’re getting there just by increasing your term, there is no net benefit because you’re paying more,” Stevens says.

The added costs of interest compounded over an additional number of years can significantly outweigh the advantages of a lower monthly payment. Using a mortgage refinance calculator can help you understand the financial trade-off between lowering your payment and adding years to your loan term.

While the FHA allows borrowers to increase their loan term by up to 12 years, it has to be offset by a rate reduction. “Otherwise it’s not worth refinancing,” Stevens says.

>> MORE: FHA loans: What you need to know

There is a catch

One potential downside to an FHA streamline refinance: You’ll pay a fresh upfront mortgage-insurance premium and continue shelling out monthly premium payments.

In an FHA streamline refinance, you can wrap the upfront premium — but no other closing costs — into a higher loan amount as a part of the refinance — as long as there is still a “net financial benefit” to the borrower, Stevens says. That means the numbers have to work in your favor, all costs considered.

The upfront premium is 1.75%, except for FHA loans originated before April 2009; those require an upfront premium of only 0.01%. Monthly premium payments vary according to the loan amount and loan-to-value ratio, which is determined by dividing the loan amount by the home’s purchase price.

Tips to maximize your FHA streamline refinance

As always, it pays to comparison shop with different lenders. Just because the FHA guarantees your loan doesn’t mean every lender’s terms will be the same.

Mortgage lenders often add “overlays” — additional costs and requirements to FHA loans. For example, a lender may require a credit report on an FHA streamline refinance, even though the FHA doesn’t.

And Stevens offers another word of advice: Calculate your own long-term savings.

“Just because [a refi] meets our ‘net tangible benefit analysis’ doesn’t mean it is for sure in the best interest of that individual consumer. They are still going to have to make that choice on their own,” he says.

More from NerdWallet
Calculate your refinance savings
Compare online mortgage refinance lenders
Compare mortgage refinance rates

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

The article FHA Streamline Refinance: 5 Strict Conditions originally appeared on NerdWallet.

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Thirty-year fixed rates were up a couple of ticks and 15-year fixed rates were unchanged, while 5/1 ARM rates fell a notch Friday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

“Mortgage rates hit 2017 highs this week, as the new administration’s plans grew clearer, stocks rallied and Fed members stressed further rate hikes,” Ted Rood, a senior loan officer in St. Louis, told NerdWallet via email. “Bond markets are still digesting election results, and the multiyear trend to lower rates is comatose, if not deceased.”

Rood says it may be time for home buyers to lock in their mortgage rate.

“I’m advising clients to lock their loans early, or be prepared for higher rates by closing. Floating here involves a far greater risk than the potential reward,” he adds.

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Mortgage Rates Today,
Friday, Jan. 27

(Change from 1/26)
30-year fixed: 4.48% APR (+0.02)
15-year fixed: 3.85% APR (NC)
5/1 ARM: 3.84% APR (-0.01)

A 15-mile drive to affordability

A real estate agent axiom may apply here: “Drive until you qualify.” While some of the most expensive housing markets continue to confound buyers, new research from Zillow finds that affordable homes may be as little as a 15-mile drive away.

Small cities next door to housing hot spots can offer relief from high prices, the report says. For example, home buyers in Palo Alto, California, can expect to spend 75.4% of their income on a house payment. But 15 miles away, in Milpitas, California — the “place of little cornfields” — they would need to budget only 34.8% for housing.

>> MORE: Calculate your monthly mortgage payment

“The Bay Area and other expensive West Coast markets get a lot of attention for being unaffordable, but even they have some areas where the share of income spent on housing is relatively low,” Svenja Gudell, Zillow chief economist, said in a release. “Of course, buyers have to be willing to make some trade-offs to live in more affordable cities within the metro.”

Zillow says the trade-offs can include “fewer amenities or longer commutes.”

In the New York metro, home buyers in Passaic, New Jersey, can expect to spend 45.7% of their income on housing, while Brentwood, New York, residents would shell out only 14.7% of their budget for a home.

Zillow examined 35 metropolitan areas in the U.S., finding cities with the smallest and the greatest mortgage burden in each metro.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
How much home can you afford?

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

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It is common knowledge that a large number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes on the market until then. The question is whether or not that will be a good strategy this year.

The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring, as compared to the rest of the year? The National Association of Realtors (NAR) recently revealed the months in which most people listed their homes for sale in 2016. Here is a graphic showing the results:

The three months in the second quarter of the year (represented in red) are consistently the most popular months for sellers to list their homes on the market. Last year, the number of homes available for sale in January was 1,820,000.

That number spiked to 2,140,000 by May!

What does this mean to you?

With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring; they are out looking for a home right now. If you are looking to sell this year, waiting until the spring to list your home means you will have the greatest competition for a buyer.

Bottom Line

It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today.

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Thirty-year fixed and 15-year fixed rates were slightly higher, while 5/1 ARM rates stood firm Thursday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

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Mortgage Rates Today,
Thursday, Jan. 26

(Change from 1/25)
30-year fixed: 4.46% APR (+0.02)
15-year fixed: 3.85% APR (+0.02)
5/1 ARM: 3.85% APR (NC)

What does Dow 20,000 mean for mortgage rates?

The stock market and mortgage rates don’t dance in “La La Land” unison. If only they were that perfectly choreographed. However, they do hear the same music — but just choose to make their own moves on occasion.

Mortgage rates are guided by the bond market and demand for mortgage-backed securities, particularly in the short term. The 10-year Treasury often trends with mortgage rates.

>> MORE: Calculate your refinance savings

And again, particularly in the short term, stocks and bonds move in different directions. When stocks move higher, bonds generally sink lower. Lower prices on bonds result in higher yields, and those higher yields push mortgage rates up as well.

Sure, it sounds confusing and perhaps a bit counterintuitive. In reality, it’s even more complicated. But for general purposes, that’s how stocks, bonds and mortgage rates interact.

With the Dow closing above 20,000 for the first time ever, what’s that mean for mortgage rates?

“With stocks rallying through the 20,000 level, bonds are taking it on the chin, and mortgage rates are moving higher,” Hugh W. Page, a mortgage loan officer with Seacoast Bank in Palm Beach Gardens, Florida, told Mortgage News Daily. “No sense playing any [interest rate] float games in this environment. So, if you’re in a position to lock in your interest rate, by all means I think you should do so.”
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
Calculate your monthly mortgage payment

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

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According to ATTOM Data Solutions’ 2017 Rental Affordability Report, buying a home is more affordable than renting in 354 of the 540 U.S. counties they analyzed.

The report found that “making monthly house payments on a median-priced home — including mortgage, property taxes and insurance — is more affordable than the fair market rent on a three-bedroom property in 354 of the 540 counties analyzed in the report (66 percent).”

For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).

Rents have been surging faster than home prices in about 37% of the markets measured. Daren Blomquist, Senior Vice President of ATTOM Data Solutions warns that rising interest rates could be the tipping point of affordability:

“While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017. In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.”

Bottom Line

Rents will continue to rise and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, meet with a local professional who can help you determine if you are able to buy a home of your own and lock in your monthly housing expense.

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