Demand for mortgages, refinancing increasing

[Jul 21, 2010.]

 

The Mortgage Bankers Association (MBA) reports that demand for purchase money mortgages is rising for the first time in five weeks. Homeowners are also taking advantage of record low mortgage rates as refinance applications rose to their highest level in 14 months. This news could indicate that troubled U.S. housing markets may begin recovery with the summer home buying season well under way. Homeowners wishing to complete home improvement projects, pay off high-cost consumer debt or pay for college expenses can find good deals on refinancing provided they can meet home equity and credit requirements.

Low mortgage rates, home prices offer borrower benefits

For homebuyers, getting the home you want at a great price with a mortgage at a low rate increases affordability and buying power. Homeowners wishing to refinance may encounter problems with home equity if home values have fallen, but considering current low mortgage rates, determining your home's present value and investigating refinance options can be worthwhile.

Government-backed home loans: fueling purchase momentum

The MBA notes that federal home loans, including VA and FHA loan programs, are fueling home mortgage applications as first-time buyers and veterans can more easily find affordable mortgage loans with low down payment requirements and current mortgage rates. Homeowners seeking refinance mortgage loans are primarily going with conventional mortgage loans.

Mortgage loans: lenders suffering "hangover" from tax credit program

Financial experts suggest that the expiration of the federal tax credit program for qualified buyers has created a slump in home purchases after the April 30 eligibility deadline for making an offer on a home passed. Consumers also continue to be wary of economic conditions, and are not buying homes in spite of low mortgage rates.

Homeowners refinancing to 15-year mortgage loans

Homeowners wishing to pay off their mortgages faster are refinancing to 15-year mortgage loans, which typically offer lower rates than 30-year loans. Current mortgage rates are making the larger monthly payments more affordable, and are assisting homeowners with paying off their mortgage loans sooner.

For homeowners with sufficient home equity, cash-out refinancing can provide funds for liquidating consumer debt, making home improvements, or starting a business. Using free mortgage calculator tools can help with estimating affordability and comparing mortgage loans. Mortgage lenders can provide mortgage quotes and discuss details of your specific needs.

 

About Author:

Karen Lawson is a freelance writer with extensive experience in mortgage banking and home loan loss mitigation programs. She holds BA and MA degrees in English from the University of Nevada, Reno.