Mortgage Update

Mortgage News You Can Use  

 

On 1/26, Fannie Mae will debut their Appraisal Collateral Underwrite (CU).  This tool will enhance FNMA’s appraisal porthole currently used to account for appraisals.  The CU will be far more detailed in its review of completed appraisals and will provide feedback to lenders which , in some cases, could require additional information from the appraisers to make the reports acceptable.

 

The Consumer Financial Protection Bureau added a mortgage rate tool to its web site this week. The link can be found at http://www.consumerfinance.gov/blog/nearly-half-of-mortgage-borrowers-dont-shop-around-when-they-buy-a-home/. The purpose is to let consumers know what other customers in their area with the same down payment and credit score are being offered as an average interest rate. The bureau stresses it is up to the consumer to find their best terms on a mortgage by shopping lenders. My referral partners and educated consumers know receiving a competitive mortgage rate and  working with a proven and experienced local lender is what is really essential in this market.

 

Next week FHA will be cutting its monthly mortgage insurance MIP by .50%. This improvement will cut an average of $100 off mortgage payments for FHA loans and opens the door for more eligible home buyers.  Current FHA home owners since June of 2013 can save by refinancing into the lower premiums.

 

The Average 30 Year Mortgage Rate Declines for a Third Week 

Freddie Mac reported that the 30 year fixed rate averaged 3.66% from 3.73% with .6 discount points.  Declining stock prices pushed money into bonds for most of the week. The strong consumer sentiment reading Friday rallied stocks and interest rates rose.  If the stock market picks up steam next week,  mortgage rates will creep back up a little. One year ago the 30 year average was 4.41%.  The 15 year mortgage average was 2.98% from 3.05%.

John Melnick

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