Are Mortgage Interest Rates High?

by | Dec 8, 2016 | Mortgage Information

Mortgage interest rates have earned their way into the hottest topics of discussion lately, and since the recent presidential election, mortgage interest rates seem to have a mind of their own. In the months leading up to the election, mortgage interest rates were near an all-time low. In fact, the 30-year mortgage interest rate during that time was the second lowest point on record for the country, hovering around 3.44%. This was just outside the lowest recorded point in the country’s history, which was right around 3.350% – recorded approximately 3 years earlier. Since the presidential election, mortgage interest rates have been nothing short of volatile. In fact, on many days shortly following the election, rates were changing so frequently that many lenders temporarily restricted access to their pricing engines and stopped publishing rates until the volatility settled. For the month of November, the 30-year mortgage interest rate shot up to 3.77 from 3.47 in October; this was the single largest increase in the 30-year monthly average in over three years. Per Freddie Mac’s most recent market study effective 12/1/16, the current average 30-year mortgage interest rate is just shy of 4.10%. So, are mortgage interest rates high? Well taking into perspective historical mortgage interest rates, not at all. In all reality, a 4.10% interest rate is still extremely low. Imagine having a mortgage interest rate at 18%… Well that’s what they were around in the early 80’s. Yes, an 18% interest rate was uncommon, but double digit rates weren’t. In fact, from late 1978 until 1991, the average 30-year mortgage rate over that time was right around 12.30%. The return...

Are you eligible for a VA loan?

by | Jun 15, 2016 | Mortgage Information

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). The VA loan was designed to help eligible veterans purchase a primary residence with long-term financing by offering more flexible credit terms. Veterans can qualify for a VA mortgage loan with up to a 103.3% loan-to-value ratio without paying private mortgage insurance and interest rates are lower than conventional loans. There is an up-front funding fee for a VA loan which ranges from 0 to 3.3% of the loan amount and is paid to the Veterans Administration. The up-front-funding fee for the VA loan can be financed into the loan amount, resulting in a higher loan to value ration than 100%; this fee is waived for veterans who are receiving 10% disability or more for their time in the service. In addition to the low down payment, debt-to-income ratios on a VA loan can go higher than a conventional loan. This means that a buyer can qualify for a higher monthly mortgage payment in relation to their monthly income than they could for a conventional loan. The maximum VA loan guarantee varies by county. Currently, in Lee County, Collier County and Charlotte County the maximum guarantee is $417,000 at a 100% loan to value. VA loans are the most lax when it comes to credit history: no foreclosures or short sales within the last 2 years (opposed to 7 and 4 for a conventional loan respectively) and bankruptcies must be 2 years from discharge of chapter 7 (opposed to 4 years for a conventional loan). Credit scores can go below conventional loan, but most lenders require a minimum credit...

Mortgage Rates Plunge to Three Year Low

by | May 12, 2016 | Mortgage Information

Mortgage rates plummeted to their lowest levels in three years this week. According to the Washington Post, weak first-quarter economic growth, persistent global economic worries and last week’s anemic jobs report all contributed to pushing down bond yields. Because mortgage rates tend to follow the yield on the 10-year Treasury, home loan rates retreated. D&V Home Mortgage offers VA home loans, FHA home loans, conventional home loans and jumbo home loans in Lee, Collier and Charlotte counties. If you are looking to get a mortgage loan in the Southwest Florida market, give us a call today to see if you...

RSW Sets Record Quarter

by | Apr 25, 2016 | Mortgage Information

According to an article published by the News Press “Southwest Florida International Airport (RSW) scored record growth in the first quarter of 2016, including a 7.5 percent year-over-year increase in passengers for March. In March alone, the Fort Myers airport served 1,269,961 travelers, making it “the single-largest month for passenger traffic in our 33-year history,” said Bob Ball, executive director for Lee County Port Authority. The passenger count trifecta is especially significant because, for the airport, 2015 “was the best ever,” Ball noted.” With such high demand in the beautiful SWFL market, property values are strong and homes are selling fast. Interest rates are still at extremely low levels, so now is the time to finance the purchase of your dream home. We have extremely low interest rates and we offer great products including: VA mortgages, FHA mortgages conventional mortgages and jumbo mortgages. For a free consultation on real estate mortgages in Fort Myers, Collier County, Charlotte County or the SWFL market, call us...

What does the Fed Interest Rate Hike Mean for Mortgage Rates?

by | Dec 22, 2015 | Mortgage Information

It had been nearly a decade since the Federal Reserve increased the target rate and seven of those years had been spent near zero percent. This historical length of accommodative monetary policy all came to an end on Wednesday, December 16th, when the Fed announced a quarter of a point increase to their target rate, increasing it to .50%. Mortgage interest rates don’t directly follow the fed funds rate and are not expected to shoot up in the short term, but experts are calling for a 1% – 1.5% increase over the next 12 months. The average homebuyer isn’t quite aware of how low mortgage loan interest rates really are right now. According to CNBC, sixty-seven percent of prospective homebuyers surveyed by Berkshire Hathaway HomeServices, a network of real estate brokerages, categorized the level of today’s mortgage rates as “average” or “high.” The current rate of 4 percent on the 30-year fixed is less than 1 percentage point higher than its record low; this is drastically lower than the 18% the market saw in the 1980’s. So is now the time to get a mortgage loan? Doug Duncan, senior vice president and chief economist at Fannie Mae may have put it best: “The rule for when is it time to buy is always the same: given your household budget and where current interest rates are, if it makes good financial sense to take out a home loan today, then today is the day to do it.”  ...