Tag: mortgage

The Reserve Bank extends mortgage holiday, but issues warning to borrowers

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a close up of a hand: Banks can continue to offer temporary mortgage deferrals to their customers.

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Banks can continue to offer temporary mortgage deferrals to their customers.

The Reserve Bank has extended the mortgage deferral scheme – but it comes with a warning to borrowers.

The extension means banks can continue to offer temporary mortgage deferrals to their customers, without those loans being viewed as being in default.

However, Reserve Bank Deputy Governor and General Manager of Financial Stability Geoff Bascand urges customers to consider their long-term interests when considering taking up the scheme.

“Borrowers should be aware that interest will continue to accrue on their loan during a deferral, potentially prolonging the repayment period,” he says.

“We recommend that customers considering extending, or applying for a deferral, contact their banks to discuss the best solution for them.”

Banks too are asked to take their customers’ situations into account when deciding whether to offer an extension.

Bascand says if a lender thinks it unlikely

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4 tips for bagging one of those mortgage rates under 3%

dhita yudha

You’ve seen the headlines: With the economy in a COVID-19 tailspin, mortgage rates that have been falling and falling have now reached depths below 3% for a 30-year loan.

The national average rate dropped earlier this month to an all-time low 2.98%, according to mortgage giant Freddie Mac, which has been tracking rates since 1971. On Thursday, Mortgage News Daily reported that the average sank to an even more jaw-dropping 2.87%.

But if you’re a homeowner wanting to refinance or a homebuyer ready to make a purchase, you can’t assume that a mortgage lender will always give you one of those spectacularly low rates.

In some cities, different lenders can offer rates that vary by close to one full percentage point, a recent study from LendingTree found.

In other words, Lender X might want to give you a 30-year fixed-rate mortgage at 3.9%. But you might discover that Lender Y

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This is how you get one of those mortgage rates under 3%

dhita yudha

You’ve seen the headlines: With the economy in a COVID-19 tailspin, mortgage rates that have been falling and falling have now reached depths below 3% for a 30-year loan.

The national average rate dropped earlier this month to an all-time low 2.98%, according to mortgage giant Freddie Mac, which has been tracking rates since 1971. On Thursday, Mortgage News Daily reported that the average sank to an even more jaw-dropping 2.87%.

But if you’re a homeowner wanting to refinance or a homebuyer ready to make a purchase, you can’t assume that a mortgage lender will always give you one of those spectacularly low rates.

In some cities, different lenders can offer rates that vary by close to one full percentage point, a recent study from LendingTree found.

In other words, Lender X might want to give you a 30-year fixed-rate mortgage at 3.9%. But you might discover that Lender Y

… Read More

How to get a record-low mortgage rate even if you’re self-employed

dhita yudha

If you work for yourself and are thinking about buying a home or refinancing, historically low mortgage rates aren’t out of reach.

But first, you have to qualify for the mortgage. As the unemployment rate stays high, lenders are trying to predict whether potential borrowers will be able to make payments. They’ll check — and then double-check — that your income hasn’t been impacted by the pandemic.

“Self-employed people have to jump through hoops like never before,” says Nicole Rueth, producing branch manager of Fairway Independent Mortgage Corp. in Englewood, Colorado. “The paper trail is much more extensive than it’s ever been.”

As mortgage rates continue to dip below 3%, here’s what self-employed people can do to prepare for a mortgage application and score a rock-bottom rate.

Income documentation you’ll need

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You’ll need to provide tax returns and other income documentation.

“Income verification” might sound

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More Wells Fargo customers say the bank decided to pause their mortgage payments without asking

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In March, Tammi Wilson was checking on her family’s mortgage online at Wells Fargo, when she saw a link to information about COVID-19 on the bank’s website. After clicking through, she provided contact information so she could receive materials on programs at the bank. Days later, she said she returned to the payment page to transmit what she and her husband David owed on their loan. A message popped up saying she had no active accounts and she could not make the payment.

Wilson later learned what had happened. Without her knowledge, the bank had put her into a program that suspended payments on her federally backed loan. Known as forbearance, it is a CARES Act program that aims to help borrowers who are having trouble making their payments because they’ve been hurt by COVID.

Because she had not asked for the bank’s help, Wilson continued to make all her

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With mortgage rates now under 3%, most home loans are due for a refinance, study says

dhita yudha

Few people ever expected to see mortgage rates slide so low, and many homeowners have been caught off guard. Thirty-year fixed-rate mortgages are now averaging less than 3% in multiple surveys — and are offering major refinance savings.

Though mortgage holders have been flocking to get new loans with sharply reduced interest rates, plenty of homeowners are still sitting on mortgages that are now too expensive.

In fact, a new report from mortgage company Fannie Mae says most mortgages with outstanding balances should be refinanced. Maybe that includes yours.

If you have a mortgage that’s closer to 4% than 3%, your monthly mortgage payment is probably hundreds of dollars higher than it could be.

Who needs to refinance?

Roschetzky Photography / Shutterstock

An estimated 60% of homeowners with mortgages can chop down their interest rates by at least one-half of one percentage point by refinancing, Fannie Mae says.

“The

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Mortgage rates hit new low under 3%; forecast says they’re going lower

dhita yudha

This year’s amazing mortgage rates have gotten even more stunning. A widely followed survey shows that after tumbling for months, the average rate for a 30-year mortgage has now fallen all the way down to a level below 3%.

That’s a first for mortgage giant Freddie Mac’s weekly survey, which started in 1971 when Richard Nixon was president and 30-year mortgages were averaging 7.33%. The rates would skyrocket above 18% in the early 1980s.

This year, mortgage rates have been turned on their heads by the coronavirus crisis and how investors and the Federal Reserve have been responding to it.

And, a new forecast says rates under 3% could become the norm next year.

Mortgage rates make history

Andrii Yalanskyi / Shutterstock
Mortgage rates have hit a new all-time low for the seventh time since March.

Mortgage rates have hit a new all-time low for the seventh time since

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Mortgage rates just officially got ridiculously low

dhita yudha

This year’s amazing mortgage rates have gotten even more stunning. A widely followed survey shows that after tumbling for months, the average rate for a 30-year mortgage has now fallen all the way down to a level below 3%.

That’s a first for mortgage giant Freddie Mac’s weekly survey, which started in 1971 when Richard Nixon was president and 30-year mortgages were averaging 7.33%. The rates would skyrocket above 18% in the early 1980s.

This year, mortgage rates have been turned on their heads by the coronavirus crisis and how investors and the Federal Reserve have been responding to it.

And, a new forecast says rates under 3% could become the norm next year.

Mortgage rates make history

Andrii Yalanskyi / Shutterstock
Mortgage rates have hit a new all-time low for the seventh time since March.

Mortgage rates have hit a new all-time low for the seventh time since

… Read More

4 must-dos when refinancing into a record-low mortgage rate

dhita yudha

Mortgage rates have fallen to unbelievably low levels, and many borrowers are landing 30-year home loans at under 3%.

If you’re a homeowner with an existing mortgage, you might want to consider refinancing — even if your current loan is only a year old. More than 16 million mortgage holders are ripe for a refi, according to one recent study.

Refinancing at today’s record-low rates could save you a few thousand dollars a year in interest, and tens of thousands of dollars over the course of your loan.

If you think it might be time to replace your mortgage with a new one, here are four tips to make sure you get the most out of your refinance.

1. Be certain a refi is the right move

Before you commit to a refinance, there are a few important things you need to consider. Today’s basement-dwelling mortgage rates may look good

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