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01
Feb
By Jim Hasek
Market Outlook, , ,

What’s Ahead For Mortgage Rates This Week – Feburary 1, 2016

Last week's economic events included S&P Case-Shiller's home price indexes, reports on new and pending home sales and the Fed's FOMC statement. The details: Case-Shiller Reports Fast Paced Home Price Growth According to S&P Case-Shiller Home Price Indexes, U.S. home prices grew at their fastest pace in 16 months in November. Portland, Oregon led the charge with home prices increasing 11.10 percent year-over-year followed by San Francisco, California at 11.0 percent; Denver, Colorado posted a year-over-year gain of 10.90 percent. 14 cities posted home price gains while four cities posted declines in home prices and two cities posted no change…
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29
Jan
By Jim Hasek
Mortagage Tips,

Video: What Is “Prime”?

What Is "Prime"? The Prime Lending Rate - sometimes just called "Prime"  - is the interest rate that banks charge each other for overnight loans. Some consumer rates - like ARMs - are set in relation to Prime.In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent above the Fed rate.The video shows  an example. The Federal Reserve loans to Bank A at 1% Bank A loans to Bank B at 4% Both banks - A & B - will recalculate variable-rate loans like ARMs on that 4% Prime figure.…
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28
Jan
By Jim Hasek
Market Outlook, , ,

FOMC Statement: Fed Holds Steady on Rates

According to statement issued at the conclusion of today's Federal Open Market Committee meeting, committee members decided against raising the target federal funds rate. Mixed economic conditions, slower economic growth in the 4th quarter and low inflation contributed to the decision against raising rates. The target federal funds rate was raised in December to a range of 0.25 to 1.59 percent after remaining at 0.00 to 0.25 percent for several years. While rising fed rates were expected to cause a hike in mortgage rates, mortgage rates fell after December's rate hike. Committee Cites Mixed Data in Decision While labor conditions…
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28
Jan
By Jim Hasek
Market Outlook, , ,

FOMC Statement: Fed Holds Steady on Rates

According to statement issued at the conclusion of today's Federal Open Market Committee meeting, committee members decided against raising the target federal funds rate. Mixed economic conditions, slower economic growth in the 4th quarter and low inflation contributed to the decision against raising rates. The target federal funds rate was raised in December to a range of 0.25 to 1.59 percent after remaining at 0.00 to 0.25 percent for several years. While rising fed rates were expected to cause a hike in mortgage rates, mortgage rates fell after December's rate hike. Committee Cites Mixed Data in Decision While labor conditions…
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27
Jan
By Jim Hasek
Home Mortgage Tips, ,

Struggling to Get Approved Because of Your Income? 5 Reasons to Consider a FHA Loan

Buying a home isn't cheap. But if you're determined to become a homeowner, the FHA home loan program can help. This loan program, ideal for first-time buyers with low incomes, can help you to build your credit and make home ownership a reality. So why should you consider an FHA loan? Here are just a few ways you'll benefit from these government-backed mortgages. You Can Get Approved With Just 3.5% Down Traditional mortgage lenders typically require you to pay 20% down on your mortgage, or 5% if you have good credit and agree to pay mortgage insurance premiums. But for…
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26
Jan
By Jim Hasek
Home Mortgage Tips, ,

A Guide to Financing Home Improvements and How Mortgage Refinancing Can Help

If you're planning to remodel or renovate your home in the near future - whether to provide a better living environment or as part of a house flip - you'll need to find a way to pay for your home improvements. There are several different possible sources of renovation money, each with their own advantages and disadvantages. One option that is gaining popularity is mortgage refinancing. How does mortgage refinancing work, and how does it compare to other renovation financing options? How can you use a mortgage refinance to get the most out of your renovation? Here's what you need…
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