Adjustable-rate Mortgage | M Squared Real Estate

Nov 13

When It Pays To Refinance Your Mortgage — Literally

November 13, 2012 By Joshua Oliver Leave a Comment

To refinance a mortgage means to pay off your existing loan and replace it with a new one. There are many reasons why homeowners opt to refinance, from obtaining a lower interest rate, to shortening the term of the loan, to switching mortgage loan types, to tapping into home equity. Each has its considerations. Lower Your Mortgage Rate Among the best reasons to refinance is to get access to lower mortgage rates. There is no "rule of thumb" that says how far rates should drop for a … [Read more...]

Filed Under: Selling Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, Closing Costs, Fixed interest, Fixed rate mortgage, Home equity, Loan, Loan Term, mortgage, Mortgage loan, Refinance, Refinancing

May 09

With LIBOR Low, Don’t Rush To Refinance Your ARM

May 9, 2012 By Jessica Wilkie Leave a Comment

Is your mortgage scheduled to adjust this season? You may want to let it. This year's ARM-holding homeowners in District of Columbia are finding out that an adjusting mortgage may be the simplest way to get access to today's low mortgage rates -- without paying the closing costs. Currently, conventional adjustable-rate mortgages are adjusting to near 3.00 percent. If your home is financed via an adjustable-rate mortgage, you're likely cognizant of your loan's life-cycle. At first, your … [Read more...]

Filed Under: Buying Real Estate in Washington, DC, Selling Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, Adjustable-Rate Mortgages, ARM, Closing Costs, Fixed rate mortgage, LIBOR, Loan, Mortgage loan, Percentage, Teaser rate

Nov 10

Banks Resume Tightening Mortgage Guidelines

November 10, 2011 By Mark Mlakar Leave a Comment

As part of its quarterly survey to member banks nationwide, the Federal Reserve asked senior loan officers whether last quarter's "prime" residential mortgage guidelines have tightened, loosened, or remained as-is. A "prime" borrower is defined as one with a well-documented, high-performance credit history; with low debt-to-income ratios; and who chooses to finance a home via a traditional fixed-rate or adjustable-rate mortgage product. After a 2-year easing cycle, the nation's biggest … [Read more...]

Filed Under: Buying Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, buying real estate, Debt-to-income ratio, Federal Reserve, Federal Reserve System, Mortgage loan, mortgage rates, Prime Mortgages, real estate, Senior Loan Officer Survey, washington dc

Oct 07

Freddie Mac : Mortgage Rates Sub-4 Percent

October 7, 2011 By Joshua Oliver 1 Comment

Mortgage rates have dropped past 4 percent. For the first time in more than 40 years, data from Freddie Mac's weekly Primary Mortgage Market Survey shows the average 30-year fixed rate mortgage falling below 4 percent, dropping to 3.94 percent nationwide. It's the lowest average 30-year fixed reading in the survey's history. In addition, Freddie Mac shows the 15-year fixed and 5-year ARM making new all-time lows, too, falling to 3.26% and 2.96%, respectively. It's a great time to be … [Read more...]

Filed Under: Buying Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, Basis point, Fixed rate mortgage, Freddie Mac, Mortgage loan, Operation Twist, PMMS, Point (mortgage), washington dc

Sep 16

Choosing A 15-Year Fixed Rate Mortgage Over A 30-Year Fixed Rate Mortgage

September 16, 2011 By Mark Mlakar Leave a Comment

It's not just 30-year fixed rate mortgages that are posting all-time lows these days. The 15-year mortgage has been plunging, too. If you've ever considered a 15-year loan term, it's a terrific time to talk to your lender. According to Freddie Mac's weekly mortgage rate survey of roughly 125 U.S. lenders, at 3.30 percent, the 15-year fixed rate mortgage is at its lowest point in history. The 3.30% rate doesn't come for free, however. Based on average loan term nationwide, borrowers in DC … [Read more...]

Filed Under: Buying Real Estate in Washington, DC Tagged With: 15-Year Fixed, 30-Year Fixed, Adjustable-rate mortgage, District of Columbia, Fixed rate mortgage, Freddie Mac, Mortgage loan, Mortgage Strategy, Refinancing, washington dc

Sep 13

Adjustable-Rate Mortgages Starting To Adjust Higher

September 13, 2011 By Barbara Morrocco 1 Comment

For the first time in a year, homeowners with adjusting mortgages are facing rising mortgage rates. The interest rate by which many adjustable-rate mortgages adjust has climbed to its highest level since September 2010, and looks poised to reach higher. This is because of the formula by which adjustable-rate mortgage adjust. Each year, when due for a reset, an adjustable-rate mortgage's rate changes to the sum of fixed number known as a "margin", and a variable figure known as an "index". … [Read more...]

Filed Under: Buying Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, Fixed rate mortgage, LIBOR, London Interbank Offered Rate, Mortgage loan, Pending ARMs, real estate, washington dc

Sep 08

After A Pause, Mortgage Guidelines Resume Tightening

September 8, 2011 By Barbara Morrocco 1 Comment

Mortgage guidelines appear to be tightening with the nation's largest banks. In its quarterly survey to senior loan officers nationwide, the Federal Reserve uncovered that a small, but growing, portion of its member banks is making mortgage approvals more scarce for "prime" borrowers. A prime borrower is described as one with a well-documented payment history, high credit scores, and a low monthly debt-to-income ratio. Of the 53 responding "big banks", 3 reported that mortgage … [Read more...]

Filed Under: Buying Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, Credit score, Debt-to-Income, Federal Reserve, Fixed rate mortgage, Loan, Mortgage loan, Senior Loan Officer Survey, Washington D.C.

Aug 05

Mortgage Rates Make New 2011 Lows

August 5, 2011 By Barbara Morrocco 2 Comments

Mortgage rates in District of Columbia plunged to new 2011 lows this week. According to Freddie Mac's weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage fell to 4.39% this week -- the lowest 30-year fixed reading since November 18, 2010. The 0.16 drop from last week is the largest one-week rate drop in more than 2 years, and, although the 30-year fixed remains above its all-time lows from November 2010, two other benchmark products made new records … [Read more...]

Filed Under: Buying Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, Fixed rate mortgage, Freddie Mac, Mortgage loan, PMMS, Tax rate, washington dc

Jul 01

5-Year ARM Falls To Historic Lows

July 1, 2011 By Barbara Morrocco 1 Comment

The interest rate differential between fixed-rate and adjustable-rate mortgages continues to widen and has now reached historic levels. There's never been a better time to lock an ARM. According to Freddie Mac's weekly Primary Mortgage Market Survey, homeowners in DC who lock their mortgage rate today will save 129 basis points on rate, on average, by choosing a 5-year ARM as their mortgage product as compared to a 30-year fixed rate loan. The average 30-year fixed rate is 4.51%. The … [Read more...]

Filed Under: Buying Real Estate in Washington, DC Tagged With: Adjustable-rate mortgage, ARM, Basis point, Fixed Rate, Fixed rate mortgage, Freddie Mac, Refinancing