Horizon Financial » Greenville SC Best / Lowest Mortgage Rates

Mortgage Rates This Week – August 29, 2011

admin — Thu, 01 Sep 2011 20:13:00 +0000

Last week was another volatile week for mortgage rates. Wall Street alternately sought risk and shunned it, causing mortgage-backed bonds to rise and fall rapidly.

There was a lot to move markets, too, including banking concerns across Europe, inflation figures within the U.S., and a public speech by Fed Chairman Ben Bernanke.

Conforming rates in South Carolina rose to their highest levels of the week Wednesday afternoon, then receded into the weekend. 3

0-year fixed rates remain above their all-time lows set 2 weeks ago. 5-year ARMs are at all-time lows.

This week, mortgage rates figure to be equally jumpy. As well as a full slate of economic data, because of Labor Day, bond markets will be light on volume. When volume is light, pricing gets volatile.

The week’s calendar of data includes:

Monday : Pending Home Sales Index; Personal Income and Outlays
Tuesday : FOMC Minutes; Fed President Kocherlakota speaks
Wednesday : Factory Orders
Thursday : Jobless Claims; ISM Manufacturing Index
Friday : Non-Farm Payrolls

Of all the reports, though, it’s Friday’s Non-Farm Payrolls that might move mortgage markets the most.

Jobs are crucial to the ongoing economic recovery and, from Wall Street to Capitol Hill, it’s top of mind.

If the jobs report shows more jobs created than expected, or a positive forward trend, expect bond markets to fall, pushing mortgage rates up. On the other hand, if the jobs report is soft, mortgage rates may improve.

We can’t know what rates in Greenville will do on any given day, so the best strategy for a shopper is to shop with purpose. Know what you want, and be ready to lock when you see it.

If you wait too long, the rate will be gone.

Underwater? Check Out HARP Rates…

admin — Wed, 09 Feb 2011 21:28:30 +0000

According to a recent report by Zillow, 27% of all homeowners are “underwater” on their mortgage.

Being “underwater” or upside-down on your mortgage means that you owe more money on your mortgage than your home is worth.

In some markets the numbers are even uglier. More than a third of Chicago homeowners owe more on their mortgage than their homes are worth. In Atlanta over 50% of homeowners are “underwater”.

And those numbers don’t include the homeowners whose current equity is between 0% and 20%. Many people have purchased homes with a 20% down payment to avoid paying PMI (Private Mortgage Insurance) only to have their homes fall in value resulting in their inability to refinance at lower rates without paying PMI.

The surplus of existing inventory on the market, the current foreclosure moratorium, and falling prices are the reasons that home values have decreased across the country.

Some experts say that we are getting closer to the bottom. Obviously! The question is, “Just where is the bottom?”

The good news for some homeowners is that the government has extended the HARP program until June 30, 2011. HARP stands for Home Affordable Refinance Program.

You may qualify for the HARP program if you have a conventional (under $417,000) Fannie Mae or Freddie Mac mortgage and are not currently paying PMI. If that is the case, you may be able to refinance at or close to the historically low mortgage rates now available, without paying PMI, even if you owe 25% more than your home is worth. If you have two mortgages or an equity line that would have to be included in the refinance you would not qualify.

We can quickly determine whether or not you qualify for the HARP program. If you have an adjustable rate mortgage or a fixed rate mortgage with a rate that is higher than the currently available low rates, you should check to see if you qualify for the HARP program.

Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon Financial. Terry can be reached toll free @ (877) 627-9211 x150 or email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org

HAVE A VERY, VERY MERRY CHRISTMAS!

admin — Thu, 23 Dec 2010 19:56:36 +0000

Rates Are Very Low…In Case You Hadn’t Noticed

admin — Thu, 28 Oct 2010 20:47:40 +0000

Mortgage rates for the last few months have been extremely low. Fixed, Adjustable, even Jumbo mortgage rates have fallen to levels never seen before.

Unless you have refinanced in the last few months, it wouldn’t hurt to see if you can improve your mortgage situation. You may be able to do a “No Cost” loan and reduce the term of your mortgage by several years with a payment that is the same or lower than your current payment.

But be forewarned, if you do decide to refinance, be prepared for a longer than normal loan process. Loans that took less than 30 days to complete several months ago, are now taking 30 to 60 days to complete. But it is certainly worth the wait if you can save some money and improve your current situation.

Pricing Adjustments To Mortgage Rates

admin — Fri, 01 Oct 2010 21:02:28 +0000

Jump back to January of 2008. If you had a middle credit score of 700 and a loan-to-value ratio of 80% or under, you would qualify for the very best mortgage rate. You were perfect!

Not anymore.

By April of 2008, Fannie Mae and Freddie Mac imposed Loan Level Pricing Adjustments (read…Penalties) for credit scores below 740 and LTVs over 60%.

There are also additional Pricing Adjustments imposed on Cash-Out loans (when more than one mortgage is being refinanced or cash is being taken out of a refinance).

Mortgage rates are advertised based on the “perfect” customer in a “perfect” scenario. Don’t be surprised if you are offered a mortgage rate that is higher than advertised rates if your credit score or loan scenario doesn’t fit the “perfect” model.

Posted by Mike Owens Partner/Mortgage Planner with Horizon Financial. Inc. You can reach Mike at MOwens@HorizonFinancial.org or at (864) 907-2678

admin — Tue, 28 Sep 2010 14:37:47 +0000

How To Reduce Your Closing Costs

The good thing about closing costs is that they’re negotiable, in some respects. You can’t avoid paying underwriting fees or taxes to the government, for example, but you can arrange to have loan costs paid on your behalf.

It’s called a “zero-cost mortgage”.

A zero-cost mortgage is exactly what it sounds like — it’s a mortgage in which all closing costs are paid by the lender instead of the borrower. Loan sizes don’t increase and nothing is “rolled in”. It’s a true no-cost loan. However, there is a trade-off. In order to have your closing costs waived in full, you’ll be asked to accept a higher mortgage rate than the “market” rate.

For larger loan sizes, the bump to interest rate is usually about a quarter-percent; for smaller sizes, it’s about a half.

Zero-cost mortgages are excellent in a falling interest rate environment because they limit costs to zero, and because they offer an immediate payback. Not every bank or lender will offer them, though. Horizon Financial, Inc. does.

If you’d like to see the math on a zero-cost mortgage, call or email me. I’m happy to talk to you about it.

Posted by Bob Dangelo, a senior Loan Officer with over 20 years mortgage lending experience. You can reach Bob toll free at Horizon Financial (877) 627-9211 ext 110 in Greenville, SC 864-527-8900 ext 110 or email at bdangelo@horizonfinancial.org.

ARMs…the Good, the Bad, and the Ugly

admin — Fri, 09 Jul 2010 17:47:37 +0000

Adjustable rate mortgages or ARMs can be a wonderful mortgage tool or they can be downright ugly.

ARMs typically come in flavors such as the 3/1, 5/1, 7/1 or 10/1. The first number is the number of years that the initial interest rate is fixed. The second number means that after the initial fixed rate period ends, the interest rate can change once a year.

ARMs have caps, typically 5/2/5. The first number means that the interest rate can go up 5% in the first adjustment after the fixed rate period. The second number means that the interest rate can go up a maximum of 2% per year after the initial adjustment. The third number means that the interest rate can only go as high as 5% over the initial fixed rate.

So, if you have a 5/1 ARM with 5/2/5 caps and an initial fixed rate of 4%, the interest rate could go up to 9% at the very first adjustment after 5 years. But if the ARM rate only went up to 6% after the first adjustment, the rate could only increase by 2% in the second adjustment to 8%. And the rate could never go above 9%.

ARMs can be a great mortgage tool if you are planning to pay off your mortgage or move within the fixed rate time frame. Rates on 5/1 ARMs are below 4% at this moment.

If you are not planning to move or pay off your mortgage within the fixed rate time frame, ARMs can pose a big risk. With the U.S. Government spending money as fast as they can print it, mortgage rates are going to go up in the near future. And rates are probably going to go up dramatically. If you are in an adjustable rate mortgage and are not planning to move or pay off the mortgage, it would probably be wise to refinance into a fixed rate mortgage while rates are low.

And now for the ugly. If you have an Option ARM and have been paying the minimum payment, you probably have a negative amortization loan, meaning that the amount of principle that you owe is increasing every month. You are either underwater or sinking fast. Refinance if you can, as soon as you can.

Happy Fourth Of July!

admin — Fri, 02 Jul 2010 19:28:31 +0000

Loan Approvals Tougher But Not Impossible

admin — Fri, 11 Jun 2010 18:43:23 +0000

The reason Fannie Mae has started its Loan Quality Initiative is to improve its loan pool’s performance.

Better loan quality should help keep conforming mortgage rates down, while reducing the taxpayer’s burden for foreclosures. Unfortunately, it’s also going to lead to more mortgage denials and a lot of busted purchase closings. Therefore, be extra careful with your credit between the date of application and the date of closing. If you must buy something “big”, consider paying cash. Anything that goes on a card can be used against you as grounds for revoking your approval. Even if your loan is underwritten and ready to close.

What the bank will do: Look at the Credit Inquiry section of your credit report to look for “non-disclosed liabilities”. If items are found, the bank will ask for supporting documentation on the inquiry, and will use the information to re-underwrite your mortgage.

What you should do about it: Don’t go looking for new credit until after your loan is funded. Period. Now re-read the prior sentence, please, to help it sink it.

For help with your mortgage approval, or questions about the Loan Quality Initiative, let us explain your options in easy terms.

Posted by Bob Dangelo, a senior Loan Officer with over 20 years mortgage lending experience. You can reach Bob at Horizon Financial (877) 627-9211 ext 110 or email at bdangelo@horizonfinancial.org.

Have A Wonderful Memorial Day Weekend!

admin — Fri, 28 May 2010 15:31:43 +0000

God Bless Our Troops And Veterans!