ARAMCO Report - The Mother of ALL Mortgage Blogs!

Zillow to offer home trade-ins, like cars

Posted by Mehran Aram on Sat, Sep 28, 2019 @ 05:09 AM

Many don’t find car shopping to be the most pleasant experience but the idea of simply turning in the keys and upgrading to a new model is an exciting concept. So much so, that online real estate site Zillow is in talks to make changing your home just as easy.

Zillow is partnering with home builders to create a model that would allow homeowners who buy newly constructed homes to sell their current house directly to Zillow Offers without needing to list their property on the open market.

“One of the last things buyers want to deal with when searching for a new home is the stress and hassle that comes along with selling their existing home,” said Zillow brand president Jeremy Wacksman. He adds that the feature was designed to make it easier for buyers to oversee construction of their new home while still living in their old one.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Zillow, Mortgage rates, Homeowner, Zillow Offers, Home Trade-In

Getting a mortgage with bad credit

Posted by Mehran Aram on Wed, Sep 25, 2019 @ 05:09 AM

The desire to become a homeowner is not unique to those with stellar credit. With demand for housing at it’s highest levels in decades, some lenders have returned to offering mortgages for a wider variety of consumers, including those who have sub-par FICO scores.

Borrowers with credit scores in the low 500s can find it easier to be pre-approved through government home loan programs like FHA, VA and USDA loans. Borrowers with negative reporting on their credit history may still find lenders willing to give them a mortgage but will have to accept a higher interest rate in exchange.

Fortunately, if a borrower’s over financial status meets the lender’s standards, less weight may be placed on credit. For instance, a solid work history, appropriate debt-to-income ratio and a growing savings account can count for a lot.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: credit report, VA Loans, VA, FHA, Mortgage rates, Home Loan, Homeowner, Credit Score, Mortgage Debt, USDA Loans, FICO, FICO Scores

Poll: Home buyers have no regrets

Posted by Mehran Aram on Wed, Sep 11, 2019 @ 05:09 AM

Despite high prices, becoming a homeowner may still pay off. According to new data from Bank of America, 93 percent of renters who transitioned to homeownership have no regrets about their decision. They report being happier than they were leasing and 80 percent said they would never go back.

A whopping 88 percent stated that buying a home was the “best decision they ever made” and 79 percent of respondents say that owning has changed them for the better.

The data supports other studies that show that long-term, homeownership is more affordable that renting and is one of the primary ways American’s build wealth.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home buying, homeownership, Mortgage rates, Renters, home buyers, Homeowner, Housing Poll, Bank of America

Mortgage applications jump following drop in rates

Posted by Mehran Aram on Mon, Jun 17, 2019 @ 08:06 AM

Applications for mortgages shot up last week as mortgage rates declined. The dip in borrowing cost made millions of homeowners eligible to refinance their existing mortgage and lock in a lower rate. Refinances were the main driver behind the 26.8 percent spike in mortgage loan application volume during the week ended June 7.

The Mortgage Bankers Association reports that although home purchases also increased, it was applications to refinance soaring 47 percent over the week that was behind the overall increase. Refinance applications accounted for 49.8 percent of total application volume – the highest level since January 2018.

This latest data shows that even the slightest drops in mortgage rates can motivate borrowers to act quickly on locking in the savings.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: purchase, Mortgage applications, refinance, Mortgage rates, low rates, Purchase Applications, Homeowner, Low Interest Rates, Refi, Refinance Applications

Cash-out refinances on the rise

Posted by Mehran Aram on Wed, Apr 17, 2019 @ 06:04 AM

Homeowners in the U.S. are sitting on $5.7 trillion in equity borrowing potential according to Black Knight, a mortgage-data and technology company. This is a record high. When coupled with low mortgage rates, it’s not surprising that cash-out refinances are near their highest levels since 2007. Freddie Mac has previously reported that approximately 8 out of every 10 refinances happening have the homeowner taking cash-out of their home’s equity.

Some experts predicted that cash-out refinances would drop after new federal tax laws eliminated the interest deduction for equity loans unless the money is spent on home improvements that will raise property value. However, any declines due to these changes in tax law have apparently been countered by favorable borrowing rates.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home equity, Freddie Mac, Black Knight, Mortgage rates, Property Values, cash out refinance, Homeowner, Federal Tax Laws

Judge orders Calif. to use bank settlement funds to help homeowners

Posted by Mehran Aram on Mon, Apr 8, 2019 @ 07:04 AM

In 2012 California was granted $331 million in a settlement reached between the state and the nation’s largest banks that had been accused of abusing lending practices leading up to the Great Recession. The state has held on to that money, using some of it to pay off debt and housing bonds. Last week a judge ordered that California’s Finance Department use that money for its intended purpose: to help homeowners victimized by foreclosures during the recession.

Gov. Jerry Brown had managed the redirecting of the funds after approval by the legislature, but a court of appeals ruled that the funds were unlawfully misappropriated.

The money will be used to fund hotlines to help foreclosed homeowners, legal aid, consumer education and efforts to combat financial fraud.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: foreclosures, Homeowner, Lending Practices, California Finance Department

Changes for gov’t flood insurance program announced for 2020

Posted by Mehran Aram on Wed, Mar 27, 2019 @ 08:03 AM

New rates for single-family homeowners who have flood insurance with the National Flood Insurance Program will take effect next year, under a new plan announced by the Trump Administration this week. The new system will now assess properties on an individual basis rather than using flood zone maps from the Federal Emergency Management Agency.

The new rates will be announced on April 1, 2020 and go into effect in October of that year. There are currently 3.5 million homes on public flood insurance that would see their rates change.

The government program allows home and business owners to buy federally backed flood insurance if private insurance carriers are too costly or unavailable in their area. The changes come as a series of natural disasters over the past several years have put the program in a financial bind.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: single family homes, Mortgage rates, Homeowner, National Flood Insurance Program, Flood Insurance, Federal Emergency Management Agency

Homeowner equity levels still climbing

Posted by Mehran Aram on Sun, Mar 10, 2019 @ 08:03 AM

Homeowners are sitting on near record-levels of equity according to a new report, gaining an average of 8.1 percent in the last year alone. As a result, homeowners have greater access to ready cash in the form of a home equity line of credit (HELOC).

Equity levels climbed $9,700 in 2018 compared to the year before but California residents saw much higher increases. Property owners in the Golden State saw their home equity levels climb an average of $19,600 last year. Nevada led the nation with gains topping $29,400 on average.

The increases in equity could mean an increased number of home equity loans this year, particuarly as interest rates slide.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: California, home equity, Mortgage rates, California Housing Market, Homeowner, Homeowner Equity