Homebuyers Get Special Financing Perks for Energy-Efficient Construction

(PR Newswire)- Focus on Energy, Wisconsin utilities' statewide program for energy efficiency and renewable energy, is pleased to announce a first-of-its-kind financing program through North Shore Bank of Wisconsin. Under the new model, homebuyers who plan to build an energy-efficient home through Focus on Energy's New Homes Program will be eligible for lucrative financial rewards not afforded to individuals building a conventional home.

Unprecedented New Home Financing Model
North Shore Bank will now offer home mortgage loans at low rates for Wisconsin residents who build a home through the Focus on Energy New Homes Program.

"North Shore Bank recognizes the financial savings that energy efficiency brings," said Rovinski. "That's why we created a special package to allow higher debt to income ratios for those who have Focus on Energy certified homes. We want this program to succeed and for our customers to love their new efficient homes." Read more here…

Getting A Home Loan In Today's Market

(KTXS)- Getting a home loan has changed a lot the past couple of years. Sub-prime lenders - those who would give out loans to buyers who couldn't afford it - have been put out of business.

The change has affected the number of people able to get a home loan, but money is still available, especially here in Abilene.

A tighter real estate market has given a lot of potential buyers the impression home loans are just too hard to come by.

"A lot of people just don't understand and realize there are other options besides putting 20% down, and that scares them away and they don't ask, I wonder if there is something else for me," said Jeff Dressen, co-manager of Guild Mortgage in Abilene says it's important for folks to know there are still options for a loan. Read more here…

Shorter Term Mortgages Becoming Popular as Mortgage Rates Fall

(LoanRateUpdate)- Shorter term mortgages have grown more attractive to borrowers as interest rates on fixed rate loans continue to decline fueling a 31 percent increase in 15-year fixed rate mortgage requests according to the data collected by LendingTree’s Weekly Mortgage Rate Pulse.

Fixed Rate Mortgages (FRM) as of August 16, 2011:

The average home loan rates offered by network lenders for 30 year FRMs was 4.35 percent (4.59% APR), which is down from 4.49 percent reported the previous week.

The lowest mortgage rate offered for a 30 year FRM was 3.875 percent (4.01% APR), which is down from 4.125 percent offered the week before.

The average home loan rates offered by network lenders for 15 year FRMs was 3.59 percent (3.68% APR), a drop from 3.72 percent reported the previous week

The lowest mortgage rate offered for a 15 year FRM was 3.125 percent (3.36% APR), which is down from 3.25 percent offered the week before.

Adjustable Rate Mortgages (ARM) as of August 16, 2011:

The average home loan rate offered by network lenders for 5/1 adjustable rate mortgages (ARM) was 3.56 percent (3.80% APR), which was up from 3.40 percent reported last week.

The lowest mortgage rate offered for a 5/1 ARM was 2.5 percent (3.04% APR), which is down from 2.625 percent offered the week before. Read more here…

Is it time to switch your home loan?

(Moneycontrol.com)- 'Refinancing' or 'switching' your existing home loan to another lender is also known as a 'Balance Transfer'. In a Balance Transfer, your outstanding loan is transferred to another lender of your choice by conforming to their rules and regulations. There are many reasons for which people opt for switching the lender, of which the following are the most common ones:

To lower Interest Rates: Suppose, you have taken a home loan from a bank two years back and if the interest rate in the market has become lower now, it may not make economic sense for you to continue paying a higher EMI. You do have the option to apply for a refinance with a new lender or even with your existing bank if they are open to shifting your loan to the new lower interest rate. Read more here… 

Chase Opens Columbus Loan-Counseling Center to Help Keep Families in Their Homes

(MarketWatch)- Chase today officially opens its new Columbus homeownership center to help families struggling with their mortgage payments. Borrowers with a Chase or EMC mortgage may call (614) 985-1513 to make an appointment at the Columbus center if they are:

-- Behind on their mortgage

-- Are current on the loan but face financial hardship that may cause them to fall behind

-- Would like more information

"We created these local homeownership centers so our borrowers can sit down and discuss their situation face-to-face with trained loan advisors in these challenging times," said Steve Stein, head of Homeownership Preservation at Chase. "They are part of a wide-ranging initiative to help families stay in their homes whenever possible." Read more here…

Mortgage rates plunge: For a few borrowers, 30-year fixed loans under 4%

(Los Angeles Times)- Would a 30-year fixed-rate mortgage for less than 4% make you think about refinancing or even buying a home in today's battered housing markets?

Home loans at that seemingly hallucinatory rate were out there this week, mortgage industry insiders said Tuesday -- at least for those few gold-plated borrowers willing to fork over king-size upfront discount points and origination fees.

Home loans almost always march in tandem with the yield on long-term government bonds.

And a combination of bleak economic news and lawmakers' agreement to raise the federal debt ceiling sent the yield on the 10-year Treasury note plunging to 2.62% on Tuesday -- down from more than 3.7% in February.

As usual, mortgage rates followed, reaching their lowest point since November. Read more here…

Mortgage Investors May Be Owed Three Times More in BofA Deal

(Bloomberg)- Investors in Countrywide Financial Corp. mortgage bonds may be owed three times or more of what they’re being offered in an $8.5 billion settlement with Bank of America Corp. (BAC), a group of Federal Home Loan Banks said.

The home loan banks, which invested more than $8.8 billion in the mortgage-backed securities, are trying to get access to more information about the deal by joining the case and said a reasonable settlement could range from $22 billion to $27.5 billion or more. Read more here…

Deadline is today for emergency home loans

(Fort Worth Star Telegram)- Texas homeowners at risk of foreclosure have until today to see whether they qualify for the federal Emergency Homeowners' Loan Program. For Texas, HUD has set aside $135.4 million.

The program helps "homeowners who have experienced a reduction in income and risk foreclosure because of involuntary unemployment, underemployment due to economic conditions or a medical condition," according to HUD. Read more here…

Mortgage Miseducation

(Las Vegas Review-Journal)- Many borrowers, plain and simple, don't understand how mortgages work. here's what they should know before they go shop for a loan. 

According to the results of a recent Zillow Mortgage Marketplace survey, 44 percent of prospective homebuyer respondents admitted they are not confident in their knowledge of mortgages or the mortgage process, overall. The 1,005 adult surveyed incorrectly answered basic questions about mortgage information nearly half of the time. The poll also revealed that 37 percent of respondents believe pre-qualifying for a loan means they have secured financing, and 57 percent don't know how adjustable rate mortgages work. Read more here…

Six reasons why your home loan can be REJECTED

(Rediff)- Buying a dream house is one of significant goals in everyone's life. If you are planning to buy a house in the near future, make sure you start exploring pre-conditions you will need to satisfy to apply for home loan and be prepared about the same. 

1. A good credit score is of course one of significant deciding factors. Make sure you have a good credit score in place so as to brighten the prospects to get a loan. How can you achieve that? Make sure you pay your credit card dues in full and on time. Read more here…

Make your home loan work for you

(Neesa Moodley-Isaacs)- Taking out a mortgage bond to buy a home is considered “good debt” as you are buying an asset that will appreciate in value.

There are several things you can do to make sure you make your money work for you and get the most benefit out of your home loan.

Nico Louis-Minnie, the head of investments at Liberty, says if you are in your early twenties you should think about saving as much as possible from your first pay cheque until you purchase your first home so that you have a significant deposit. “Don’t use the deposit to buy a more expensive home, but rather to reduce your monthly repayments,” he says. Read more here… 

Do the math before you switch your home loan lender

(Moneycontrol.com)- Two aspects associated with BT are prepayment penalty and processing fee. Lending is the business of the bank and the interest on the loan, one of its major sources of income. This is one of the major reasons why a bank would charge a customer if he desires to switch lenders. This charge is known as 'prepayment penalty', the definition varying from bank to bank. Normally, a bank will charge up to 2 per cent of the total loan outstanding as a prepayment penalty.  Read more here…

How drop in home loan limit could affect you

(OCRegister)- Primarily the impact is the result of equity requirements.  The biggest advantage of the higher loan limits is the ability to obtain a mortgage with less than twenty percent equity.  For FHA you can purchase or refinance an existing mortgage to $729,750 with only 3.5% equity in your property (85% equity if you are getting a cash out refinance).  With a conventional mortgage you are able to finance up to 90% for a purchase or refinance and existing mortgage. Read more here…

Wrapping the cost of energy improvements into a mortgage

(Contra Costa Times)- Stuck with soaring utility bills in a home that's a glutton for energy? Buying a home that has a lot to be desired in terms of energy-efficient features?

There's hope. An under-the-radar program that has been around since 1995 can help buyers save on their utility bills by letting them fold the cost of energy improvements into their mortgage.

The program, dubbed Energy Efficient Mortgage, can be used by homeowners with both Federal Housing Administration and Veterans Administration loans. Read more here…