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Conventional refinances continue to be hot in 2012. Regardless of the value of their homes, owners are taking advantage of historically low-interest rates.
Information taken from Mortgage News Daily –
Refinancing through Freddie Mae and Fannie Mae jumped sharply in August as homeowners continued to take advantage of record low rates. The two government sponsored enterprises (GSEs) refinanced 420,021 loans during the month, up from 356,091 in July. 138,678 of the loans were refinanced through Freddie Mac and 281,343 through Fannie Mae. So far in 2012 there have been 2,945,844 refinances completed through the two GSEs.
Loans through the Home Affordable Refinance Program HARP also increased, but only slightly, from a combined total of 96,371 in July to 98,900. There have been 1.64 million HARP refinancings since the program began in April 2009. In late 2011 the Federal Housing Finance Agency (FHFA) announced “enhancements” to the program in hopes of encouraging more refinancing of homes that were underwater with their mortgages. Since the first of 2012 618,217 homeowners have taken advantage of the revised program…
Do you need to refinance your current mortgage?
Remember the days of the ‘cash out refi’? When homeowners eager to make a large purchase, consolidate debt, or splurge on a big vacation, would pull money (equity) out of their homes through a refinance.
Those days seem to be gone.
Consider these 3 recent trends as reported by Freddie Mac:
1) Homeowners are trading in their 30 year fixed rates for shorter terms. This move shaves years off the mortgage and saves 10’s of thousands in interest owed to the bank.
2) Almost 84% of homeowners either brought money to the table to pay down their balance, or kept their balance the same when they refinanced. With so much uncertainty remaining in the housing market, those who were able to refinance, didn’t take any chances, and sought to improve their equity position – or at least not worsen it.
3) The average rate was reduced by 28% through refinancing. This is the biggest drop in 27 years, since Freddie Mac began tracking this type of data.
Still facing economic pressures, homeowners who were able to better their position by increasing equity, saving money, and eliminating long-term debt, did so through refinancing.
Have you refinanced your mortgage this year? Please leave a comment.
Interest rates across the board continue their downward plunge into record low territory.
30-year fixed-rate mortgage (FRM) averaged 3.36 percent with an average 0.6 point for the week ending October 4, 2012, down from last week when it averaged 3.40 percent. Last year at this time, the 30-year FRM averaged 3.94 percent.
15-year FRM this week averaged 2.69 percent with an average 0.5 point, down from last week when it averaged 2.73 percent. A year ago at this time, the 15-year FRM averaged 3.26 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.72 percent this week with an average 0.6 point, up from last week when it averaged 2.71 percent. A year ago, the 5-year ARM averaged 2.96 percent.
1-year Treasury-indexed ARM averaged 2.57 percent this week with an average 0.4 point, down from last week when it averaged 2.60 percent. last week. At this time last year, the 1-year ARM averaged 2.95 percent.
Source: Freddie Mac
Are you taking advantage of these low rates? Please comment.
by The KCM Crew
Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:
With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.
Prices will bounce along the bottom this winter. However, projections call for appreciation after that. Several studies and surveys call for price increases over the next few years starting in 2013. One such survey shows that prices will increase over 10% by 2016.
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I will be traveling for the next couple of weeks, and taking lots of pictures to share. See you when I get back!