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Lexapro Online Reviews, Lexapro Dreams Nightmares ^ Online Order to Expect in 2011
- Roger J
During the last year there were predictions that the last quarter of the year held the promise of better times, but that prediction did not come true.
Mortgage Rates: What to Expect
The Federal Reserve kept pumping money in mortgage backed securities for most of the year and most predicted an increase in interest rates as the program wound down. However investors kept buying mortgage backed securities, since they had nothing better to do with all the cash on their hands, keeping the rates suppressed and under control.
So what does 2011 have in store for us? Difficult to say, the economy is unpredictable and a rise in inflation rate remains a threat.
Unemployment is still way too high and underemployment a reality of life.
Will mortgage rates go up, stay about the same or fall? The question remains unanswered as the debate continues. The variables are numerous and the future unpredictable even for those who normally predicted fairly accurately.
Will There Be a Refi Boom?
The Federal Home Affordable Refinance Program (HARP) was introduced to save the average American’s home with the hope of benefitting some two million homeowners. In reality only just under three hundred thousand homeowners were able to refinance under the program in the first 11 months of its existence.
With mortgage rates at historic lows a great many people who could benefit from refinancing are unable to do so for a number of reasons. For one thing the house values are simply not there and for another a lot of people who have found work, after losing their jobs, either don’t make as much money as before or experienced hard times and lost their credit ratings.
Mortgage companies’ main complaint is that they have a lot of applications but very few actually pan out. “I have never worked so hard and made so little” said a long time associate of mine who has 22 years of mortgage lending experience.
Will FHA Remain Popular?
FHA lost one of its main attractions in 2010. Under conventional loan underwriting guidelines, seller contribution to the closing costs of a borrower are limited to 3% of the purchase price. FHA use to allow 6% which made it an attractive alternative to help to buyers.
The foreclosure rate in instances where the seller contributed 6% was far above the norm and as such FHA decided to change its guidelines in line with conventional lenders.
What About Jumbo Loans?
After the mortgage market meltdown of 2008, the jumbo loan market pretty much disappeared. It started a slow come back with tight guidelines of 25-30% equity requirement, tough credit standards and high rates.
But most of the jumbo loan programs have been slowly easing during 2010 to 20% equity requirement and lower rates.
If you are thinking of refinancing or purchasing a new home; your best is to be as informed as possible, and always use mortgage calculators to compare every single offer.
