Category Archives: Mortgage Information

Dodd-Frank reform could make it easier to get a mortgage

It should be easier for you to get a mortgage if President Donald Trump signs legislation that will lift lending restrictions on community banks.

Congress on Tuesday voted in favor of rolling back Dodd-Frank banking rules. The reforms would ease some of the mortgage laws from the Dodd-Frank Act of 2010, a massive financial law enacted in response to the financial crisis.

The new changes will allow community banks and credit unions to offer mortgages outside the typical Qualified Mortgage rule so long as they don’t sell that mortgage but keep it in-house. By holding that mortgage on the books, it would be deemed a Qualified Mortgage. The carve-out would apply to institutions with less than $10 billion in assets.

Many lenders think this change would allow more community lenders to offer mortgages. It would also be helpful for homebuyers, when mortgage rates are rising but still low.

It’s unclear how much of an impact a change to the mortgage laws would have on the housing market. A large portion of homebuyers already meet the requirements within the Qualified Mortgage rule. The Urban Institute says the Qualified Mortgage rule has had “little impact” on credit availability, though there are fewer mortgages being offered for under $100,000.

read more at: https://www.bankrate.com/mortgages/dodd-frank-reform-easier-to-get-mortgage/

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Mortgage rates highest since 2013

Mortgage rates surged to their highest level in almost five years this week.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average jumped to 4.58 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.47 percent a week ago and 4.03 percent a year ago. The 30-year fixed rate hasn’t been this high since August 2013.

The 15-year fixed-rate average climbed to 4.02 percent with an average 0.4 point. It was 3.94 percent a week ago and 3.27 percent a year ago. The 15-year fixed rate hasn’t been above 4 percent in seven years.

The five-year adjustable rate average grew to 3.74 percent with an average 0.3 point. It was 3.67 percent a week ago and 3.12 percent a year ago.

After plateauing the past couple months, mortgage rates are once again headed higher. The market is reacting to strong economic reports and statements from Federal Reserve officials who appear supportive of raising interest rates, which is having an effect on long-term bond yields.

The yield on the 10-year Treasury crossed the 3 percent threshold for the first time in four years this week, closing at 3.03 percent on Wednesday. Because mortgage rates tend to follow a similar path as long-term bond yields, home loan rates have also risen.

Read more at: http://www.chicagotribune.com/business/ct-biz-mortgage-rates-20180426-story.html

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FHA increases loan limits in nearly every area of U.S. for 2018

The Federal Housing Administration announced Thursday that nearly every area of the U.S. will see FHA loan limits increase in 2018.

The new loan limits will take effect for FHA case numbers assigned on or after Jan. 1, 2018.

FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, to set Single Family forward loan limits at 115% of median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county.

In high-cost areas, the FHA’s loan limit ceiling will increase to $679,650, up from $636,150 this year. The floor will also increase from $275,665 to $294,515 in 2018.

However, in 223 counties, the FHA loan limits will remain the same.

read more at: https://www.housingwire.com/articles/42038-fha-increases-loan-limits-in-nearly-every-area-of-us-for-2018

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