Tag Archives: refinance
Update! Are mortgage interest rates starting to rise?

arrowIn comparison, last week’s average rate was 3

38%

  When you compare rates from 30 years ago, rates still remain lower and very attractive for a purchase or a refinance

The average rate on a 15-year, fixed-rate loan was 2

71%

 

 

pmms chartWhen creating any debt it requires you must have a net tangible benefit to you the borrower

 If purchasing a home you must feel comfortable that you will still have a life after paying the mortgage

 If you refinance, then you must see a benefit that saves you both monthly payments, increases your cash flow and provides for a reduction in long term interest payments

 

Housing starts and new construction are up over last year

Existing home inventory for most of Delaware seems to have dwindled from 2012,  which means a return to demand

Some areas in Delaware has seen purchasing has moved from a buyers market to a sellers market

This equates to less negotiation room for buyers

Bottom line, if you are considering buying or purchasing a home,  the timing for you is still good

If you are thinking about refinancing and it makes sense by providing you a tangible benefit, then no time is better than now

(rate source 

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Let us know, where do you see interest rates going in the near future?

Leave your comments below

 

 

 

Should mortgage rates be lower?

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Mortgage interest rates are still low!

interest rates, delaware, mortgageDelaware mortgage rates have improved since the Federal Reserve started its QE3 program by pumping in an additional $40 billion to boost the housing market.  This should keep rates low for a while, so the sooner you get refinanced, the sooner you will start saving money monthly and increasing your cash flow.

If you are considering refinancing your home, now is the time is take advantage of these all time record low rates. 

Did you know that 69 % of homeowners today have mortgages exceeding 5% according to recent data.

Why aren’t more people  refinancing if they know they can get a lower interest rate?  It
turns out that many homeowners who purchased prior to 2008 and even into 2010, may find they are underwater, (underwater is owing more on your mortgage than your home is worth). Still some homeowners have run up credit card debt and in some cases unfortunately lost their jobs, making it impossible to qualify.

The good news is there is help for Delaware homeowners.  First, we are seeing there is an increase in home sales and home values, especially in New Castle County and other areas, depending on property location.  Next, many Delawareans have kept up on their mortgage payments despite being in a down economy.   Keeping up to date with your mortgage payment is a key element in getting refinanced or maybe even buying a new home.

Finally, the HARP 2.0 Program is still available which may mean further easing for borrowers who are underwater. 

How do you know whether or not you qualify?  Simply, you won’t know unless you ask.  If this whole topic seems a little confusing, please do not hesitate to give us a call at 302-266-6500 to see if you may qualify for a lower rate and a refinance.

 

 

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Homeowners in Delaware get fired up about refinancing!

interest rates, mortgage, DelawareAs mortgage rates have tumbled to all-time lows, the demand for refinancing has fired up homeowners in Delaware.

And it’s not just those Delaware homeowners who have underwater mortgages. With rates for 30-year mortgages at an all time low, many Delaware homeowners are trying to get their monthly mortgages reduced.

Along with months of low interest rates, other factors are driving the refinancing boom: a more competitive lending market and changes in some federal refinancing programs for struggling homeowners.

If you are among those Delaware homeowners who are struggling, you can call us here at Delaware Financial Capital about changes in the federal Home Affordable Refinance Program (HARP 2.0) and FHA refinance programs that have made refinancing options more plentiful.

 

WHY REFINANCE?  Some primary reasons for refinancing a mortgage could be to:

  • Lower monthly mortgage payments.
  • Free up home equity cash for home improvements, college costs or other expenses.
  • Shorten the loan term from a 30- to a 15-year mortgage, which can save thousands in interest payments.
  • Saving money is usually the biggest incentive.

SHOULD YOU REFINANCE?

Every homeowner’s situation is different. There’s no right or wrong answer. The only answer is what works for you and your family.

Our mortgage specialists are here to answer your questions, simply call us at (302) 266-9500 or simple fill out our online form below:

 

 

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Will Your Credit Score Affect the Interest Rate You Get?

pre-approval

  I asked if he have any idea what his credit score was

  He said he went on line and it was 900+

  I advised him that that score was impossible because credit scores range from 300 to 850

The credit scoring mechanism used by mortgage lenders is called a FICO score

 This credit scoring pulls its scores from three different credit bureaus,

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com/”>Trans Union,

andContinue reading

Deciding if a mortgage refinance is right for you

 


 
Interest rates home mortgage loans are expected to end 2012 at a very low rate. If you’re considering refinancing your mortgage to save money, you have some time, but the deals won’t last forever. Here’s a checklist to run through to determine if it’s the right time to consider refinancing.1) What shape is your credit in?The best rates and the lowest fees go to those with great credit scores. It’s worth pulling your FICO score and credit reports before you shop around to see what your credit scores are. The official site to receive a free credit report is http://www.annualcreditreport.com.

 2) How much is your home worth, and how much do you owe?

Get a list of comparable recent sales in your area. If you’re underwater, meaning the current market value of your home is less than the value of the current loan, you’re unlikely to get an attractive refinancing offer.  If your loan is smaller — $100,000 or less — you’re unlikely to save much money by refinancing.

 
3) Are you selling soon?“It normally takes over 10 years to make your money back when paying a lot of points and fees” on a new mortgage, says Fred Arnold, public relations chair of the National Association of Mortgage Brokers. “Paying points” means you give the bank money up front in exchange for a lower interest rate, something you shouldn’t have to do in today’s record-low climate. Nonetheless, the fees on a refinancing, known as closing costs, can still run to thousands of dollars. Your savings on monthly interest cost may not offset the closing costs if you sell the home and buy a new one within a couple of years.4) Are you willing to drive a hard bargain?“Everything’s negotiable, especially if you shop the loan around,” says Arnold. Available rates change often, even multiple times a day, so it makes sense to get several quotes. At the same time, changes to federal rules in the wake of the housing crisis may have made it harder to get the best deal. For example, the government mandates that a broker offer the same rates for borrowers in similar financial situations to crack down on predatory lending, but Arnold says that has made lenders leery of waiving any fees.When shopping for home loans, ask for a fees worksheet, which should give you a rough idea of the closing costs. You are within your rights to ask for a receipt for any fee for a third-party service, such as an appraisal, notarizing document, or preparing your credit report — this may lower the fees.Another way to lower your closing costs is to pay what’s called a ” yield spread premium.” This is the reverse of paying points. It means you get a slightly higher rate, the bank pays the broker, and the broker charges you less for the loan — or even nothing, called a “no closing cost loan.” Taking this kind of deal may make sense if you think you might have to sell sooner than 10 years out, and if the higher rate is still lower than you’re paying now. “We talk about the rule of 2 percent,” says Arnold. “Your rate should go down at least 2 points to make that refinancing worth it.”
When you look at your monthly payment, remember the mortgage interest tax deduction. If you take out a new loan with a lower rate, you’ll pay less interest. Therefore there will be less to deduct.It’s a great time to refinance a mortgage, but that doesn’t mean it makes sense — or even is possible — for every borrower. Deciding if it’s right for you requires taking a hard look at the costs and benefits.

When refinancing my mortgage – How Can I Determine My Payment Terms?

1254516095q7S3i1When refinancing, determining the right term of your loan is an important decision, after all you want to continue making your mortgage on time, with little or no addred stress to your life. If you are currently in a 30 year mortgage, you most likely would consider doing a 25, 20, or 15 year term, but it it the right decision?

Having spoken to accountants and financial advisers, there are several schools of thought on refinancing.  Many think you should stay in a long term (30) mortgage, while others think going to the shorter term (15) is the way for folks to plan.  Sometimes the decisions are based on your income tax bracket and others, which I have listed below for your consideration:1.  How long do you plan to stay in your current home? 

  • Are you subject to a potential job transfer?
  • Are you considering downsizing in the near future?
  • Is your company going through a re-organization

2. How long have you been in your current mortgage?

  • Does the lower rate make good sense?
  • Have you lived in the house long enough to have some equity built in?
  • Maybe keeping the same term and reducing the rate, makes good sense for your cash flow, releasing more funds to pay down other debt.

3. Can you afford the shorter term?

  • Can you afford shortening the payment; for example from a 30 year term to a 15  year?
  • What is your current debt to income? 
  • How much will you save?  For example, if you have a 30 year term with 25 years remaining and refinance using a 15 year, you have just reduced 10 year of principal and interest savings.  This can be significant, but can you afford the payments?

Here is the bottom line, you are unique. Yes, everyone has their own particular set of circumstances as to whether or not to lessen, remain the same, or even extend the term of their exisitng mortgage. 

At Delaware Financial Capital Corp., our job is to help you ascertain what makes sense for you.  Give our team a call at 302-266-9500!  We will brainstorm with you to see which term makes the best sense for you and your family.

 

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Refinance or not to Refinance – Top Ten Considerations

describe the imageOne thing is for sure, if you have the right situation that works for you and your family, then you can greatly benefit from refinancing your home mortgage loan. The best way to figure out whether you, in particular, are in that situation is by talking to professionals and comparing mortgage rates and program; we do that for you here at Delaware Financial Capital Corp.

Did you know that everyday hundreds of people here in Delaware who refinance their home mortgage?  If you have the right situation refinancing your home mortgage can be the smartest financial decision you make this year.  Check out the top ten considerations in deciding whether to refinance or not to refinance. First, you have to determine if the fees and time it takes to refinance are going to be worth it for the amount of money you will save?

  1. Will refinancing my home lower my rate?
  2. Can I reduce my term or shorten the duration of current loan term?
  3. Do I have enough equity to take cash out, to pay for a home improvement, education, or some other worthwhile family endeavor?
  4. How long it will take me to recover my closing fees?
  5. Will rates get any better?  Or, can the bond market be timed?
  6. Is my mortgage an adjustable ARM?  Should I do a fixed rate loan why rates are this low?
  7. Will the process be overwhelming?
  8. How long will I be in my house?
  9. Can I consolidate some credit card debt using my home equity and create a lower payment and a tax advantgage?

There is a continuous change in the mortgage industry used to determine if your refinance loan makes both dollars and sense; such as, interest rates, your house value, credit rating, current equity and debt standing.  These things may make any possible now for you to consider a new favorable refinance loan.

  1. Take advantage of a lower interest rate
  2. Shorten or lengthen the duration of your loan
  3. Lower your monthly payments
  4. Get cash out
  5. Lock in a fixed rate while they are still low

It’s Alright to have Concerns about Refinancing

Just as with the creation of any other new loan there are fees associated with refinancing your home mortgage. Depending upon how long you have been paying on your current loan, the interest vs. principle pay down will be a consideration.

You also consider how much longer you will remain in your home. If you are going to save $2,400  a year by refinancing, but you have to spend $4,000 to get it the refinance done,  then you will have to own that home for at least almost two years to realize any savings on that level, which is a very good return.

Overall consideration should include not only payment, but total interest reduction, which can be significant in today’s interest environment.

Regardless of any of these concerns, if your situation is correct, you can save a ton of money by refinancing your current home mortgage loan. Do the research by comparing mortgage rates with us, time is of the essence and it may not be in your favor, but why?

Mortgage Rates Can Go Up Quickly

When will rates begin to tick up?  The answer is quite simply; no one knows, but we are sure it is just a matter of time before we see rates begin to tick up.  Rates have a tendency to go up a lot faster than they go down. 

Pressure on financial institutions, corporate earnings, taxes, and the ever lying snake in the grass, “Inflation” will be the culprits to the return of higher interest rates.

How Can You Be Sure My Rates Won’t Change?

Our loan locks are good for 60 days and our prices reflect a 60 day lock.  We don’t low ball our rates by quoting rates for 10 or 15 day locks just to get you into our grasp, that’s not what we are all about. We’re upfront and will fully disclose all fees. 

Check out More Resources:

 

Begin your search to refinance your home mortgage today by doing your homework, and find a loan that is right for you.

Start now by giving us at (302) 266-9500 or simply click the button below to contact Sam.

 

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Mortgage Rates Hit Record Lows, Again

lower mortgage rates, mortgage
The great housing debate continues, and this is another week for the bears. That is, unless you are looking to refinanceat a lower rate and not among those caught up in the backlog of demand.

The average 30-year fixed-rate mortgage hit a new record low, again, of 3.83% for the week ending May 10, down just a tad from 3.84%, according to mortgage giant Freddie Mac (FMCC.OB). The 15-year averaged lower as well, at 3.05%, down from 3.07%.

The latest data mark the second straight week of record low rates. Rates touched 4% briefly earlier this spring but have yet to return as a string of economic concerns weigh. (Track the average 30-year fixed mortgage rate, per Freddie Mac, in the chart below.)

 

“Following April’s weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week,” said Frank Nothaft, vice president and chief economist at Freddie Mac.

CreditSesame.com says its data show that homeowners are costing themselves an average of $4,788 a year, or $399 a month on average over the life of a mortgage, because they don’t own the best loans they’re qualified for. And that’s net of any administrative charges they would face to refinance.

“Refinancing is thought to be a painful, time-consuming process and to a large extent it is true,” says CreditSesame’s mortgage authority Tony Wahl.  “Overall, consumers just don’t feel that they are in control of the process and as such are less likely to act as a result.”

Underwater homeowners are the most reticent to act, says Wahl. Programs such as HARP II and FHA Streamline refinance products help underwater consumers “but you still don’t see consumers clamoring for details,” he says. “Many underwater homeowners seem to have given up; they think of their home as weight around their neck and have given up on the dream of owning their home outright.”

Those who have been in their homes a long time are also reticent. “They feel that by refinancing they’ll be effectively resetting the clock and returning to square one even though they might be able to drop their interest rate significantly,” he says, adding that they aren’t generally aware of the variety of loan products and loan terms that could be used to improve their finances.

Of course, not everyone is motivated, nor obligated, to help. Reduced rates mean the lenders will make less per payment, and in some situations the bank that you make your payment to might not own the mortgage anyway. And although Wahl says lenders in general are highly motivated to originate new loans, “many of the aggressive programs that you hear about in the news get significantly watered down by guideline overlays before they hit the streets,” he says.

 

What do you think? Have you been able to refinance lately? What was the process like? Let us know by clicking the button below:

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