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Articles and News on Auto Loans, Mortgages and More |
Mortgage Rates Flat
According to Bankrate.com, the 30-year fixed-rate average held
at 5.25 percent, and the 15-year fixed-rate remained at 4.74 percent
in the third week of January. The 1-year adjustable was up at 3.53
percent.
Home-equity loan or line of credit?
Home equity debt traditionally has been spent on investments that
bring some kind of return -- renovating houses, paying for college,
starting small businesses. More recently, as consumers have become
more clever about using debt, equity loans have become to be seen
as a cheaper, smart way to consolidate debt and pay for long-lasting
things such as cars and furniture.
For a borrower, the decision of how to best tap into home equity
is fraught with confusion. Home-equity loans are generally the better
deal for someone looking to make a one-time move paid out over a
longer period of time.
A home-equity line of credit, by comparison, is ideal for someone
who might need to take money out on multiple occasions, or for someone
looking for a short-term deal, particularly with rates staying low
in spite of recent interest rate hikes by the Federal Reserve.
To get guidance on which type of home-equity borrowing might be
right for you, go to two types
getting a loan with your home equity page.
Getting a Mortgage Without Proof of Income
There's a growing number of people who don't have steady paychecks
and can't easily document their income but who are good candidates
for stated income loans. Among them are small- business owners,
commissioned salespeople, independent contractors and new immigrants.
If your income doesn't come from a paycheck or you don't want to
reveal all to some lender, you can still get a home loan with a
little bit higher interest rate.
By far the most popular such loans are the stated income mortgages,
experts say. To qualify for such a loan, borrowers typically need
to have FICO credit scores in the mid- to high-600 range. The loans
also are useful to people who've been out of work and are starting
new jobs.
A stated income mortgage loan is often a good choice if you have
verifiable employment including self- employment and verifiable
assets. Income that is stated on the application must be reasonable
in terms of your occupation and assets. Additionally, most stated
income loans require that the borrower have a down payment or equity
of at least 20 percent of the property's value.
Annual Average Mortgage Rates Lower Than Previously Forecast
Long-term fixed mortgage rates were flat to a bit lower this week,
while Treasury-indexed adjustable rate mortgages rose slightly,
Freddie Mac said.
Freddie Mac on Nov. 24th released the results of its Primary Mortgage
Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged
5.72 percent, with an average 0.6 points, for the week ending November
24, 2004, down a little from last week when it averaged 5.74 percent.
Last year at this time, the 30-year FRM averaged 5.83 percent.
The average for the 15-year FRM this week is 5.15 percent, with
an average 0.6 points, unchanged from last week. A year ago, the
15-year FRM averaged 5.17 percent.
"At this time last year, our forecast called for interest
rates for 30-year fixed-rate mortgages to exceed six percent by
this time this year," said Frank Nothaft, Freddie Mac vice
president and chief economist. "Today's annual average mortgage
rates are below even that projection thanks to the spring 'soft-patch'
in economic growth.
"Nevertheless, our outlook is that long-term rates are destined
to rise to a still homebuyer friendly range that will most likely
cause home sales to cool relative to their current record highs."
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