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Archive for the ‘Mortgage Information’ Category

As economy improves, mortgage rates go up

After record lows, mortgage rates have continued to rise in the last few weeks. They are technically still considered “low,” in comparison to years past, but with each increase, a home is that much less affordable. As the interest rate rises, so do monthly payments.

As of mid-February, the average rate for a 30-year fixed rate mortgage was 5.05% in the week that ended today, according to Freddie Mac, up from 4.81% the week before.

In a separate report, the online lender LendingTree.com reported the average 30-year rate was even higher, rising to 5.31% in the last week.

Frank Nothaft, vice president and chief economist at Freddie Mac, explained that long-term bond yields jumped because of recent reports of positive economic data. Lower unemployment rates have also been good news, but tend to have an opposite effect, translating into higher borrowing costs.

If you need help finding a lender, Meservier & Associates of Keller Williams Realty Mid Maine maybe able to help. Send an email  at agent@meservier.com or call us at 207-784-2525.

Here is a good resource for anyone struggling to make mortgage payments. Fannie Mae recently launched KnowYourOptions.com, a consumer education site that offers guidance on how to contact and work with their mortgage company to find solutions.

Know Your Options™ offers reliable and easy-to-understand information to help borrowers find alternatives to foreclosure. It focuses on finding solutions that work for their particular circumstances.

KnowYourOptions.com includes:

• Calculators to help borrowers understand how many of the options work, including refinance, repayment, forbearance, and modification;
• A virtual assistant to walk homeowners through key areas of the site; and
• Next steps and helpful forms, including a financial checklist and contact log to help borrowers be prepared when contacting their mortgage company or housing counselor.

Recent changes with Fannie Mae and Freddie Mac have made qualifying for a home loan a little more challenging for a lot of buyers. Some of my real estate networks predict that HUD might soon adopt similar guidelines for…

…story via Changes in the lending market and how they could affect you | Gray Maine Homes For Sale.