ARAMCO Report - The Mother of ALL Mortgage Blogs!

Trump administration shakes up housing market

Posted by Mehran Aram on Wed, Sep 11, 2019 @ 06:09 AM

The Trump administration announced last week a sweeping new plan that would revamp the housing market in the U.S. with 50 new proposals aimed at shrinking the government’s role in the real estate industry.

Among the most notable changes is a proposal to end the decade-long government control Fannie Mae and Freddie Mac which back over half of the nation’s mortgages. The two mortgage giants buy mortgages from lenders, package them into securities and sell them to investors. The government put them under conservatorship 11 years ago amid the financial crisis.

The changes are unlikely to happen quickly however as they require approved by a divided Congress.

Meanwhile, 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: mortgages, real estate, Fannie Mae, Freddie Mac, Mortgage Market, Mortgage rates, Donald Trump, Trump Administration

Mortgage application volume on the slide

Posted by Mehran Aram on Sun, Sep 8, 2019 @ 08:09 AM

For the third consecutive week, the volume of mortgage applications has declined. According to The Mortgage Bankers Association’s weekly Market Composite Index for the week ended August 30, total mortgage applications in the U.S. fell 3.1 percent on a seasonally adjusted basis from the week prior.

Applications to refinance an existing mortgage declined seven percent, although lower rates kept that figure elevated above 2018’s numbers. Despite last week’s decline, the volume of refinances remain 152 percent higher than they were in August 2018 when mortgage rates were nearly a full percentage point above today’s levels.

Currently, mortgage rates are at their lowest point since November 2016 with 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: mortgages, Mortgage applications, refinance, Mortgage rates, Mortgage Payments, Refi

FHA introduced more stringent borrowing standards

Posted by Mehran Aram on Tue, Mar 26, 2019 @ 05:03 AM

The Federal Housing Administration, which insures mortgages for many first-time homebuyers or those with minimal down-payments, is tightening its standards. In an announcement on Monday, the FHA announced that it would begin flagging more loans as high risk which would require them to undergo a more rigorous manual underwriting process.

While some experts are saying that the new standards will not have too much of an effect on those whom it it approves for an FHA loan, it will likely impact those with sub-par credit or higher than average debt-to-income ratios.

This latest move by the government agency is a reversal of a loosening of underwriting standards introduced in 2016. The FHA currently insures $1.3 trillion in home loans.

Meanwhile, 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: mortgages, Down Payment, first-time buyers, FHA, Mortgage rates, Federal Housing Administration

Other Major Things to Think About Before a VA Loan

Posted by The Aramco Group on Mon, Mar 16, 2015 @ 13:03 PM

Veterans, VA loan

Refinancing

If you are thinking of refinancing rather than purchasing a new home, then it is important to compare your current interest rates to the rates currently being offered in the market. Are you paying more then the market rates? If not, then good. If yes, next you have to consider how long you plan to stay in your current home. If you plan on moving in the next six months, it may not be worth while to refinance with a VA Loan. While it is one of the least expensive refinancing options for those who qualify, it still has some up front costs. The savings you make in your monthly payments may just be too little to justify the loan if you plan to make a home change in the short term. If you plan on staying in your current home for a long time, then definitely seek more advantageous rates when you can. Even small savings per month add up to big dollars over the long term.

 

Purchasing a Home with a VA Loan

If you are purchasing your home, including your first home, with a VA Loan, then it is important to seek out and receive a pre-approval letter for your VA home financing. You may contact ARAMCO for that help or any other real estate broker or lender. Your pre-qualification gives a general idea of the extent of financing and on what terms an particular borrower may qualify based on income and debt to income ratio. Most listing agents won’t connect potential buyers with properties without a pre-approval letter these days. It is short hand for what kind of housing market is right for your circumstances. It usually works that an automated underwriter makes a determination based on income, approved up to a pre-set debt to income ratio. 

VA home loan 

In Summary…

There are no restrictions on what you may use the proceeds from a VA Loan to do. While a VA Loan is always a lien against your home, one may use that line of credit how one wishes. You can purchase a new home without any money down, or refinance your existing home at better than market rates. Many Veterans consider a VA Loan in order to consolidate their debt into a more manageable terms and rates. Remember that qualified Veterans can get a VA Home Loan for up to 100% of the total home value. Freddie Mac and Fannie Mae, on the other hand, will not allow for loans above 75% of a home’s value. That 25% can be a big difference to the amount of cash available to you. If your home is worth $400,000, for example, then the difference between a qualified veteran getting a VA Loan versus a non-VA Loan may be up to $100,000. 

 

Is a VA Home Loan right for you and your loved ones? Call ARAMCO Mortgage toll free at 1 (877) 700-0942 or continue exploring www.ARAMCO.biz in order to find out.

Ask Mehran Aram

Topics: Veteran's Administration, mortgages, ARAMCO, VA Loans, VA

ARAMCO Report - Friday March 13, 2015

Posted by The Aramco Group on Mon, Mar 16, 2015 @ 12:03 PM

Mortgage applications for new home purchases rose by 12 percent last month, according to the mortgage bankers association. Of that 12 percent 65.4 percent were conventional loans, 20.7 percent were FHA loans, 12.7 percent were VA loans, and 1.2 percent were RHS and USDA loans. There was no change in mortgage rates despite the big rally in stocks on Thursday. Conforming no point 30 year fixed mortgages remained at 3.875 percent, and the 15-year rate stated at 3.125 percent. And now for something completely different: Did you know that Al Capone self-estimated that he paid $30,000,000 per year paying people off? His moneybags for bribes went to judges, police, elected officials and newspapermen.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: mortgages, 30 year fixed rates, Mortgage applications, home purchases