Mortgage Interest Rates Increase – Is It Time For Your To Buy A Bend Oregon Home?

Mortgage Interest Rates Increase

By Jason Boone

BEND – As of June 11th 2015 the average interest rate for a 30-year fixed mortgage loan is now 4.17 percent and the current interest rate is now at the highest it’s been since it was at 4.02 percent back then.

Rates Heading To 5 Percent?

If you’re thinking about buying a Bend Oregon Home now is a great time for you to get pre-approved for a mortgage loan since most analysts predict that mortgage interest rates will increase to at least 5 percent by the end of the year.

Mortgage Applications Increase

Thanks to the increase in mortgage interest rates more people decided to file mortgage applications this week and the result was an increase in mortgage application filings of close to 10 percent and this shows us that the Real Estate market continues to remain strong in spite of brief dips in activity around holidays like Memorial Day.

Rates Still At Historic Lows

The recent surge in mortgage application filings is a reminder that interest rates are still historic lows considering the fact that the 30-year fixed mortgage interest rates back in June 2007 was 6.6 percent so you’re still enjoying significant savings if you buy a Bend Oregon Home Now.

Some Economists Not Excited

Although it’s good to get positive Real Estate and economic news, some economists including analysts from Goldman Sachs said recently that the excitement over low mortgage interest rates and the surge in applications is misplaced considering that in spite of recent rate increases we are the market is still at levels comparable to where the market was back in 1996.

Buy a Bend Oregon Home

To get started with buying a Bend Oregon Home, or to view Bend Oregon Real Estate, contact me today by calling (541) 383-1426 or CLICK HERE.

Close To 1 million Homeowners Nationwide Are Missing Out On Lower Mortgage Payments

Mortgage

Freddie Mac survey shows most homeowners still not benefiting from low mortgage interest rates

 

New Survey By Freddie Mac Shows Many Homeowners Are Still Overpaying For Their Mortgages

By Jason Boone

Thanks to a recent survey by Freddie Mac we know that close to 1 million homeowners across the United States are overpaying for their mortgages each month.

Even though mortgage interest rates dropped to a low of 4.1% last week, for a 30-year fixed mortgage, the Freddie Mac data has shown us that most homeowners are not tapping into the resources which are available which will help them lower their monthly mortgage payments.

Home Affordable Refinance Program (HARP)

Started during the “great recession”, the Home Affordable Refinance Program has been one of the best opportunities for homeowners in Bend Oregon and across the United States to refinance their mortgages plus shave at least $200 or more per month off their monthly mortgage payments.

So far over 800,000 families across the United States have benefited from HARP and this program has helped both the consumer and lender since it’s kept more homeowners in their homes and helped lenders reduce the chances of a home slipping into foreclosure.

About HARP

Millions of homeowners found themselves in a difficult predicament after the U.S. housing bubble burst in 2008. As inventories soared nationwide, home prices plummeted. Many new homeowners saw the value of their homes drop below the balance of their mortgages, or nearly so. Later, these same homeowners were prevented from taking advantage of lower interest rates through refinancing, since banks traditionally require a loan-to-value ratio (LTV) of 80% or less to qualify for refinancing without private mortgage insurance (PMI).

Take for example a house that was purchased for $160,000 but is now worth $100,000 due to the market decline. Further, assume the homeowner owes $120,000 on the mortgage. In this scenario, the loan-to-value ratio would be 120%, and if the homeowner chose to refinance, he would also have to pay for private mortgage insurance. If the homeowner were not already paying for PMI, the added cost could nullify much of the benefit of refinancing, so the homeowner could be effectively prohibited from refinancing.

Source – Wikipedia

Who Qualifies For HARP?

If your mortgage is guaranteed or owned by either Fannie Mae or Freddie Mac you qualify for HARP.

You will also qualify for this program if your mortgage loan is over 80% of your home’s value and you have been current with your mortgage payments for the last 12 months.

Before Choosing HARP or Refinancing

Regardless if you choose HARP or decide to refinance your current mortgage loan make sure that you pull your credit score first and verify what your current credit score is because it make sense to wait a few months to improve your credit score before choosing to refinance your mortgage loan.

Contact Us

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To learn more about the benefits of refinancing your mortgage loan, HARP or the Bend Oregon Real Estate Market contact me, Jason Boone, Principal Broker at Duke Warner Realty | Skjersaa Group by calling me at (541) 383-1426 or by emailing me at jason@sgbend.com.

The Skjersaa Group pledges at least 1% of revenue to the preservation and restoration of the natural environment