However, Ken H. Johnson, a housing economist at Florida Atlantic University, is less optimistic about a quick economic recovery. “Rates will remain low for at least another year,” he says. “I just do not see full or near-full economic recovery until COVID-19 no longer or minimally impacts the economy.”
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If you’re retired and are thinking about downsizing or relocating, and it involves buying a home, you might want to look into how you would finance it.
You may discover that qualifying for a mortgage is different from the last time you bought a house. Not only have lenders tightened credit during the coronavirus pandemic, retirees generally have left a steady paycheck behind.
It can be tricky for retirees to get a mortgage, said Al Bingham, a mortgage loan officer with Momentum Loans in Sandy, Utah.
“You can have a lot of money but show very little income and have difficulty qualifying for a mortgage,” Bingham said. “It frustrates a lot of them.”
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If you’ve been comparing mortgage rates for the purchase of a second home or an investment property, you’re already on a promising path: You’ll either have a place to go for vacations, or you’ll have a place that’ll generate income and put more money in your pocket.
Either way, the opportunity to own more than one property is an enviable position to be in, but how you classify that property makes a difference in how much you’ll pay to finance and own it.
Second home vs. investment property
Are you buying a second home, or are you making an investment?
This might be confusing, especially if you’re thinking about occasionally renting out the property – using it regularly for vacation, for example, but also making it available on Airbnb for some of the time you’re not using the property
Instead of spending another weekend quarantining in front of Netflix or reuniting on Zoom with classmates or former co-workers you barely remember, why not do something really valuable?
Mortgage rates in 2020 have never been lower: The average for a 30-year fixed-rate mortgage dropped below 3% for the first time, and some lenders are offering loans at 2.50% and even lower.
So this weekend, why not start the ball rolling on a mortgage refinance that will cut your housing costs?
Chances are, it’s time for you to refi. The data firm Black Knight recently said 19.3 million mortgage holders are ripe for a refinance and could save an average $299 per month. Close to 2.5 million could save $500 a month or more.
Sure, with a refinance there are forms to fill out, tax returns and other documents
— Economic recovery could boost rates
Greg McBride, CFA, Bankrate’s chief financial analyst, sees rates holding steady in the coming year. “Mortgage rates will remain at historically low levels and in no way be an impediment to well-qualified borrowers, but they won’t be quite as low as what was seen in the summer of 2020,” he says. “A refinance fee taking effect in Q4 2020 and further economic improvement will push rates a bit higher.”
Audrey Boissonou of Guarantee Mortgage in Walnut Creek, California, says the direction of the economy will prove crucial. “I’m locking people in in the high 2s
The 15-year fixed-rate average reached 2.36 percent, down from 2.40 percent, with an average 0.7 point. The five-year adjustable-rate average at 2.90 percent, with an average 0.2 point, was unchanged from the previous week. The 15-year rate was 3.14 percent and the five-year was 3.38 percent a year ago.
“Mortgage rates are in a holding pattern because we have lots of big things looming and investors are waiting to see what happens,” said Danielle Hale, chief economist with Realtor.com. “Obviously, they’re waiting on the election results, but also on the next stimulus plan, which seems to start and stall. I expect mortgage rates to stay stable and not go up or down much until we get some of this big news.”
Freddie Mac’s Primary Mortgage Market Survey, from which the averages are derived, is confined to rates on conventional home loans for borrowers who make a 20 percent down payment
Nearly two years ago, Ocwen acquired PHH Corporation, and Glen Messina became the president and CEO of the newly combined companies. Today, Ocwen Financial Corporation is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. HousingWire spoke with Messina on the progress that’s been made in reshaping the mortgage servicer and originator, its evolving business model and its progress in turning around the company.
HousingWire: How does the Ocwen of today compare to the companies that merged two years ago?
Glen Messina: The Ocwen of today is a different organization, and I believe we are stronger, more efficient and more diversified. We’ve transformed the business to be both a lender and servicer, and our originations business is growing at a very fast clip to keep up with demand.
In servicing, we are one of the largest and most experienced special
Point of Interest
Cash-out refinancing allows you to convert the equity in your home to a lump sum of cash by extending your mortgage.
A cash-out refinance can help fund major expenses that would otherwise take years of saving. Here are the pros and cons of a cash-out refinance.
A cash-out refinance allows homeowners to use their home equity for immediate access to cash, tax-free! It can be an excellent option for homeowners looking for ways to fund a large purchase like a renovation.
Historically, refinancing activity picks up when interest rates fall. In response to historically low-interest rates, the average 30-year fixed-rate mortgage has fallen from 3.77% to 3.02% year-over-year (as of July 2020), leading many homeowners to refinance their mortgage. According to CoreLogic, refinance loan originations increased by 59% in 2019.
Interest rates are expected to remain low for the foreseeable future. If you bought your home in
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
A swathe of UK companies are reporting today that Covid-19 continues to hurt their businesses, more than six months after the UK first imposed restrictions to battle the pandemic.
High street baker Greggs has warned that staff faced reduced hours, and potentially job cuts, as it tries to cut its employment costs.
Greggs, famous for its steak bakes, sausage rolls and new vegan offerings, reports that like-for-like sales in September are only 76.1% of the 2019 levels (an improvement on a ‘slow’ August).
With the government’s furlough scheme wrapping up in a month (replaced by a less generous wage subsidy package), Greggs says it must make cuts:
With business activity levels
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Interest rates continue to hover near historical lows, so it’s not too late to lock in a lower mortgage payment for potentially the next decade or more. But a mortgage refinance isn’t necessarily the right choice for everyone. You’ll need to consider a number of variables, and it’s important to understand the terms lenders use in a refinance and how the process works.
So before you start down the mortgage refinance path, take a look at our guide on how to refinance your mortgage and learn all the ins and outs — it’ll help you decide if a refinance makes sense for you.
Refinancing is the process of paying off your existing mortgage with the funds from a new mortgage. While most people refinance to take advantage of a lower interest rate on a new loan, other reasons to refinance include switching mortgage companies, changing the terms of your loan