Mortgage rates are driven lower as the Fed held bond auctions to help lower the treasury yield to 3.289%. Many real estate professionals are hoping for a 4.5% target soon to revive stagnant housing market activities where home buyers get off the fence where they have been waiting for good opportunities.
Jumbo loans are following suit with lower interest rates to entice buyers as well.
Ocwen Financial Corporation voluntarily refunds prepayment penalties to mortgage borrowers. The company acts on behave of lenders to collect mortgage payments from homeowners. In Maryland, prepayment penalty charges are illegal if the lending company is chartered in Maryland. This is the one ethical state that actually advocates protecting consumers from unscrupulous mortgage contracts.
Please read all mortgage loan contracts very carefully. If there is a prepayment penalty clause, simply renegotiate or find a more reasonable lender because it is ludicrous for lenders to lock you in an endless debt cycle.
Ocwen knew it was wrong, and did the right thing before charges were brought up by the State of Maryland.
http://www.bizjournals.com/baltimore/stories/2009/07/06/daily36.html
Mortgage applications, and refinance loan applications increased last week according to the Mortgage Bankers Association. Which means there’s buyer interest for homes with the low 30-year borrowing interest rates in place.
http://www.reuters.com/article/economicNews/idUSNYS00521120090708
Did you know that 32% of home buyers did not know the terms of their mortgage loans? This is what got the housing market into a crisis the first place, a few years back. When you are borrowing larges sums of money for a once in a lifetime transaction, please do everyone a favor and read the contracts and obligations very carefully before signing the dotted line.
Mortgage brokers have access to lenders, and sometimes wholesale lenders. It is your job to know that the mortgage broker you decide to work with are in good standing with banks and lending institutions. You have to understand that they are only looking out for their own self interest as to getting a referral fee to connect the borrower (you) with a lender; and little regard for your financial welfare.
Do your due diligence by checking up on the mortgage broker’s reputation, and comparable rates that they can get for you as a client.
http://www.mainstreet.com/article/moneyinvesting/real-estate/benefits-behind-mortgage-broker
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