Homeowners are now able to refinance

After months of hovering near 50-year lows, mortgage rates have fallen even further, into uncharted territory and to a level lenders say is finally igniting more homeowner refinancing. For this week the average interest rate on new 30-year fixed-rate mortgages was 4.44%, according to mortgage giant Freddie Mac. This week’s rate was down from 4.49% a week earlier and 5.2% in early April.

One reason activity is growing stronger is that today’s rates are not only lower, but refinancing has become cheaper. That is because investors have begun paying more for mortgage bonds than in the past, enabling lenders to use this additional money to cover some refinancing costs that borrowers would traditionally bear.

The economist for National Association of Home Builders, Robert Denk’s prediction is coming true. He said, “There will be softness in the summer months followed by firming conditions and momentum as the year unfolds and the economy strengthens”.

There is also the good news the Federal Housing  Administration ,FHA, underwater financing program  will be starting soon and is on track to help 3-4 million homeowners.

If the near record low mortgage rates being advertised everywhere has you wondering whether now might be the time to consider refinancing your mortgage, here are some things to keep in mind:

First, use a good mortgage calculator to see how much you might save by refinancing to a lower rate. If you can save a significant amount each month, then consider how much you’ll have to pay in closing costs to refinance. If you find that you’ll save a considerable amount on the monthly payment in addition to factoring in your closing costs, then proceed with the type of mortgage you might want to consider.

Keep in mind if you currently have an FHA loan, FHA Streamline guidelines have changed, so you may have to do an FHA inspection whereas previously it was not required.

The next thing you have to consider is how long you’ve been in your current home. Lenders review your record of payment and the length of stay before approving your mortgage refinance. Also, keep in mind that the more you owe, the higher your refinance cost may be, due to fees, interest, and possible penalties.

Finally, don’t forget about the appraisal process. Many property values have dropped recently, so make sure this won’t affect your refinance amount.

If you still have quite some time left before your home is paid off, refinancing now and locking in a lower rate can easily save you thousands in the long run.

*********************************************************************************

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at www.bestbuyerbroker.com or www.bestbuyersbroker.com

The truth is not everyone can take advantage of either the home buying or refinancing market today, despite rates being at historic record lows right now. There are people who would love to lower their payment or buy a home at the record low prices some areas are seeing, but can’t. Why? The answer isn’t always easy, but for the most part these folks fall into three categories:

1) Those who have bad credit. Bad credit is no longer something that lenders can look the other way about. In fact, it’s probably one of the main reasons that people can’t get a mortgage in today’s market. Credit is tight, and mortgages are harder to qualify for than any time in recent history.

But the good news is that it’s the easiest problem to fix if you understand credit, know what steps to take to improve your credit, and have the patience and discipline to actually do what it takes to improve your credit. Doing this is almost never easy. It requires cutting back, saving, spending less, paying off debt and making sacrifices.

It’s a tough road, but improving credit is possible if one is willing to adopt an any-means- necessary approach.

2) Those who need a jumbo loan. Many think of “jumbo loans” – a loan over the conforming loan limit of $417,000 – as something only rich and famous folks get or think about. Not so. In fact, in many popular urban areas, a loan at the upper edge of the conventional limit barely has the purchasing power of a small starter home.

Most often the interest rate for jumbo loans runs at least one percentage point higher than smaller conventional loans. This means that the historically low rates that people are enjoying around the country haven’t made it to the most expensive homes. Ironically, these are the homeowners who would benefit most from lower rates.

There really isn’t much homeowners in this niche can do, other than keep their fingers crossed and hope that one day jumbo loans drop down to match the great deals that those with smaller mortgages are enjoying today.

3) Those who owe more than their house is worth. The third group unable to take advantage of historically low mortgage rates are homeowners whose homes have lost value, and they now owe more on their mortgage than their property is worth. They want to refinance but can’t because they lack equity. While this may seem like a terrible predicament to be in, it’s really not so bad.

The key here is to be patient. Home values will rise eventually. And the longer these folks stay in their homes and pay down their mortgages, the more equity they’ll have. While it’s true that most of these homeowners can’t refinance today, as long as they make smart financial decisions, pay down their mortgage, and have patience, they may find a great mortgage rate and lower payment coming to them soon.

The first step is to talk with someone who can help. The second step is to make some good financial decisions. The third step for all consumers is to put money back in their pocket – not in their mortgage payment.

*********************************************************************************

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at www.bestbuyerbroker.com or www.bestbuyersbroker.com

Fixed-rate mortgage rates, though not directly tied to the Fed Funds Rate, have been responding positively to market rate cuts over the past few months.

Just as an overview, the Fed Funds Rate has a strong (if not direct) affect on the following:

• credit card rates
• adjustable-rate mortgages
• interest on savings accounts
• Prime Rate (home equity lines are based on this)

If you’re considering refinancing or purchasing a home, now is the time. With rates at these levels, you’ll enjoy more house or mortgage for the same payment. Just lowering your rate 1% on a typical $200,000 mortgage can save you about $125 a month or $45,360 for the life of your loan.

And don’t forget, housing prices are the lowest they’ve been in generations. The opportunity to purchase a home with a low price and low rate is unprecedented. Real estate investors who do their homework and invest wisely can also get deals they couldn’t have even dreamed about just a few years ago.

Thanks to the Fed Funds Rate dropping to the lowest level in history, mortgage rates have also dropped.

Waiting may be one of the costliest decisions you’ve ever made!

*********************************************************************************

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at www.bestbuyerbroker.com or www.bestbuyersbroker.com