4 Myths of Buying vs. Renting

According to a recent report by Harvard University’s Joint Center for Housing Studies, the past 15 years have seen a drastic shift in how Americans approach renting and owning. More people are renting, while fewer are buying houses. In fact, the average annual growth number for renters is now approaching the peak number for homebuying reached in 2006, just before the housing market crash.

The reasons for such explosive rental growth are numerous: lingering effects from the economic collapse in 2008, the revitalization of many urban cores, Baby Boomers aging out of their houses, and high rates of student loan debt among Millennials. Many millennial renters are postponing “next-steps” like marriage or starting a family, and still see home ownership as out of reach.

But should they? Maybe not. We at ABODO know a little something about renting, and have broken down four of the most common myths about buying a house versus renting an apartment.

MYTH #1: Ownership Is More Expensive

Not always — at least month by month. As demand for rental properties has grown, so have rents. In fact, in 2015 rents nationwide rose 4.6%, the largest increase in almost 10 years. According to a recent study, it’s cheaper to buy a house than rent it in 42 states. The overall price tag might give you sticker shock, but more often than not, a monthly mortgage payment will be comparable (or less) than rent, and at least you’ll be gaining equity. Plus, mortgage interest payments are tax-deductible. This handy calculator from the  New York Times can tell you if homeownership might actually be a good financial move.

MYTH #2: Your Savings Will Be Depleted, Forever

You might think that after a downpayment, and mortgage payments, and furnishing, and repairs, and maintenance, and property taxes… saving money is a lost cause. But think of it this way: Every mortgage payment that pays down principal and interest is a kind of “forced savings account.” You have to pay it, so you do. But unlike a rent payment, that money isn’t vanishing into the ether (or, as it’s more commonly known, your landlord’s pocket). Assuming you don’t default on your loan and go into foreclosure, you’ll see that money again, in a different form. By establishing equity in your house, you’ll be seeing long-term value in the form of an investment. You’ll also be eligible for new lines of credit. It might take 30 years, but it won’t be 30 years of checks down the drain.

MYTH #3: You Can’t Get a Loan

Yes, the days of subprime lending are over — and thank goodness, given how that turned out. Given the events of 2007-2009, banks are understandably cautious about handing out large loans for new homeowners. But that doesn’t mean it’s impossible. In 2014, Fannie Mae and Freddie Mac announced a new initiative, aimed at encouraging first-time homeowners, that backs mortgages with extremely low down payments — as low as 3%. There are conditions, of course: Potential homebuyers must buy private mortgage insurance and have a high credit score (at least 620). But such a low down payment (the standard is 20%!) is a major help for younger homebuyers who might still be paying off student loans.

MYTH #4: You’re Too Young to Own

According to the National Association of Realtors, over 35% of new homebuyers in 2015 were Millennials, making them the largest group of recent buyers for two years running. And the median age for Millennial homebuyers was 30. So it’s not just Gen X or Boomers buying houses. (In fact, Boomers are moving into apartments in droves.)

Convinced? We hope not. It takes more than just an internet article to know whether you’re ready for homeownership. In addition to this list, take an honest and hard look at your finances, your life goals, and your tolerance for home-repair before you commit. But if you decide to go ahead on the rewarding path of homeownership, get in touch with Jodi Toebe RE/MAX Realty Center to set up a consultation. And happy house-hunting!

What You Really Need To Qualify For A Mortgage

 

 

What You Really Need To Qualify For A Mortgage

Tuesday December 8th, 2015Tuesday December 8th, 2015 simplify Down Payments, For Buyers

A recent survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 5% or less.
Below are the results of a Digital Risk survey done on Millennials who recently purchased a home.

2. FICO Scores

The Ipsos survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower.
Below are the numbers from the latest Ellie Mae report.

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able,’ let's get together and discuss your options. To Discuss your options Contact Jodi Toebe Total Mortgage Services NMLS#251066

TRID Causing Noticeable Delays -Ellie Mae

BY: JANN SWANSON

TRID Causing Noticeable Delays -Ellie Mae

Decrease Font SizeTextIncrease Font Size

Dec 28 2015, 2:43PM

The new RESPA-TILA Know Before You Owe regulations, commonly called TRID, was cited as a probable reason for a three day increase in the average time it took to close a mortgage loan in November compared to October.  Ellie Mae said the average application-to-closing time of 49 days was the longest time to close a loan since February 2013.  Conventional and FHA loans each took 49 days while VA loans took an average of 50.

Ellie Mae's Origination Insight Report also showed the average FICO score on loans originated in November was 721, a decrease of 1 point from October and the sixth month the average score has declined.  Average FICO scores for all loans has dropped 10 points since January.  Ellie Mae said the driver of the November reduction appears to be a decline, for the second month in a row, of FHA scores.

Closing rates for all loans reached their highest point, 68.4 percent, since Ellie Mae began tracking data in August of 2011. The closing rate on purchase loans increased to 72 percent.

Loans for home purchases had a 53 percent share of all originations during the month - down 2 percentage points from October.  The refinancing share rose to 46 percent from 44 percent.

 "We are beginning to see the anticipated impacts of the Know Before You Owe changes that went into effect in October," said Jonathan Corr, president and CEO of Ellie Mae. "The time to close loans has crept up to 49 days, a 3-day increase over October, while the closing rate on purchased loans increased to 72 percent. Additionally, we've seen the percentage of refinances increase to 46 percent of all closed loans, most likely driven by a recent dip in rates over the last three months since the 2015 high point in August."

Conventional loans made up 64 percent of all originations while FHA loans comprised 23 percent, both unchanged from the previous month.  The VA share ticked up one percentage point to 10 percent.
The Origination Insight Report mines its application data from a sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution.

If you are looking for a Realtor or Mortgage Originator in Southeastern Wisconsin that can close your purchase on time contact Jodi Toebe REMAX Realty Center!

Where Are Mortgage Rates Headed? This Winter? Next Year?

 

 

Where Are Mortgage Rates Headed? This Winter? Next Year?

Monday November 9th, 2015Friday November 13th, 2015 simplify Featured, For Buyers, Interest Rates

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.
Below is a chart created using Freddie Mac’s October 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.4% from this time last year and are predicted to be 4.7% higher next year.
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Let's meet to evaluate your ability to purchase your dream home.

For a FREE Preapproval call Jodi Toebe Total Mortgage Service, Servicing All of Wisconsin! NMLS#251066

What is the difference in Sale Price and Lendable Value when buying or selling a home?

You Will Need to Sell Your Home Twice

 

 

Thursday December 10th, 2015Wednesday December 9th, 2015 simplify For Sellers, Pricing

A recent post on “The Home Story”, a site published by Fannie Mae, explained the difference between the price a seller may get for their home and the value an appraiser might assign the property.

The Sales Price

Of course, most sellers want to maximize the value they get for the house. However, the price they set might not be reflective of the other comparable homes in the neighborhood. As the article stated:

“People tend to view their homes emotionally, and that can become quickly apparent when they decide to sell.”

That doesn’t mean that the home won’t necessarily sell for that price.
A seller can set an asking price and actually have a buyer agree to that price. However, that value may not be necessarily in agreement with what most buyers are willing to pay. For example, one person can view a property, determine it is exactly what they are looking for and well worth the asking price, whereas another person could look at the same property and feel the asking price is too high.
Steven Corbin, Director of Valuation in Fannie Mae’s CPM Real Estate division gives an example:

“Someone may have driven by the property countless times, and they really want to live in that house. So in reality they may overbid for that property. This would be a situation where the actions of a specific buyer do not represent the actions of a typical buyer.”

The Appraised Value (or Market Value)

Fannie Mae explains what they look for when appraising the house:

“When a contract is established on a property, an appraised value is determined by a professional real estate appraiser. The appraiser works on the lender’s behalf to determine that value by taking many factors into consideration, including the neighborhood, the value of properties of similar size and construction, and even such things as the type of fixtures on the premises and layout of the floor plan.”

Corbin adds:

“From a lending perspective, a bank would want to know the probable price a typical buyer would offer for the property. That’s what an appraiser would set as the market value.”

The Challenge when Sales Price and Appraisal Value are Different

If the appraiser comes in with a value that is below the agreed upon sales price, the lending institution might not authorize the mortgage for the full amount a buyer would need to complete the transaction.
Quicken Loans actually releases a Home Price Perception Index (HPPI) that quantifies the difference between what sellers and appraisers believe regarding value. The HPPI represents the difference between appraisers’ and homeowners’ opinions of home values.
Currently, there is approximately a 2% difference between what homeowners believe their home to be worth and what appraisers value that same home. On a $300,000 sale that would be a $6,000 difference. That could be a challenge that might prevent the home sale proceeding to the closing table.
Quicken Loans Chief Economist Bob Walters recently commented on this issue:

“The more homeowners are in line with appraisers, the easier it will be to refinance their mortgage and easier for those looking to buy a home. If the two are aligned, it eliminates one of the top stumbling blocks in the mortgage process.”

Bottom Line

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.
With escalating prices, the second sale might be even more difficult than the first. Let's get together and discuss the market in your neighborhood and the best listing price for your home.

Contact Jodi Toebe RE/MAX Realty Center to help navigate you through the process and ensure your closing goes smoothly.  Jodi has 20+ yr mortgage lending experience and has had her Realtor License since 2007!

What is Ahead for Mortgage Rates?

MBS Day Ahead: Fed Rate Hike Week And What It Means For Rates

Dec 14 2015, 7:33AM

Roughly 3 months after the Fed's last stellar opportunity to enact its long-anticipated rate hike, we come to meeting that is all but certain to host their unfinished business.  The Fed has the green light, and moreover, no deterrent on the same scale as the late August global economic drama.  The absence of a rate hike this week would be an utter calamity, because the Fed's forward guidance (the stuff they say about where they think rates will go and when) would become utterly useless.   Folks would question their motives and intelligence.  Investors would lose a lot of confidence in the system.  In short, all hell would break loose.
Such hypothetical scenarios are moot, however, because until and unless we see such a crazy turn of events, they're too crazy to give any legitimate consideration. We'd do much better to discuss what the formality of the hike means at this point.
You'll be happy to know that, in the bigger picture, the hike is not the end of the world for mortgage rates.  While the last several "hiking cycles' also coincided with longer-term rates moving higher, the last cycle (that began in 2004), was the most gradual of those.  There we saw rates actually move lower at first and ultimately hold fairly flat by the end of the cycle. 
There can certainly be some market volatility in the response, but no one really knows what to expect from that.  What we do know is that domestic bond markets have been doing as much as possible to "price in" a Fed rate hike.  They'll require additional convincing if they're going to be pushed higher in the sort of way that many financial news outlets espouse.  Ironically, a higher Fed Funds rate makes it increasingly difficult for the economy to generate the sort of momentum required scare up higher long term rates.  But then again, cooling the economy is sort of the point of a Fed Funds hike anyway.
Then there are the longer term trends in stocks and bonds.  As has been a popular topic of conversation from as early as September, what would it mean for bond markets if stocks ended up taking a big turn at the recent highs (the ones they can't seem to get back above)?  The flight of capital out of stocks has to go somewhere.  Maybe some would go to bonds...
Then there are bonds themselves.  Never say never, but I will say that it's been a historically bad idea to bet against longer term momentum for that past 30 years that bonds have rallied.  In the following chart, notice that every major consolidation in 10yr yields (like the one we've just seen), has been broken with a move lower in yields. 
While there is other economic data on the calendar this week, the focus is on Wednesday afternoon's Fed events.  These include the announcement itself as well as the release of the Fed's economic forecasts and the Press Conference with Fed Chair Yellen.

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MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

MBS	FNMA 3.0 100-15 : +0-00	FNMA 3.5 103-17 : +0-00	FNMA 4.0 105-31 : +0-00
Treasuries	2 YR 0.9150 : +0.0360	10 YR 2.1430 : +0.0107	30 YR 2.8790 : +0.0027
Pricing as of 12/14/15 7:30AMEST

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Tomorrow's Economic Calendar

Time Event Period Forecast Prior Tuesday, Dec 15 8:30 Core CPI index, sa * Nov 243.70 8:30 Core CPI mm, sa (%)* Nov 0.2 0.2 8:30 NY Fed manufacturing * Dec -6.00 -10.74 10:00 NAHB housing market indx * Dec 63 62 Wednesday, Dec 16 7:00 Mortgage Market Index w/e 424.1 8:30 Housing starts number mm (ml)* Nov 1.140 1.060 8:30 Building permits: number (ml)* Nov 1.150 1.161 9:15 Industrial output mm (%) Nov -0.1 -0.2 9:15 Capacity utilization mm (%) Nov 77.5 77.5 14:00 FOMC rate decision (%)* N/A 0.375 Thursday, Dec 17 8:30 Philly Fed Business Index * Dec 1.9 1.9 8:30 Initial Jobless Claims (k)* w/e 282

About the Author

Matthew Graham

Chief Operating Officer, Mortgage News Daily / MBS Live

A former originator, Matthew began writing for Mortgage News Daily in 2007, covering a wide range of topics. Seeing a need in the marketplace, his focus increasingly shifted toward relating MBS and broader financial markets for loan originators. ... more

The HSH Two-Month Mortgage Rate Forecast

Author: Keith Gumbinger - HSH.com

WEEKLY MORTGAGE STATISTICS

LOCAL MORTGAGE RATES

HISTORICAL STATISTICS

MORE CURRENT STATISTICS

October 30, 2015

Preface
Global economic concerns and persistently low inflation have put the Fed on hold, possibly for an indefinite period. The drag of weak manufacturing and a difficult export climate have trimmed the sails of the U.S. economy, even as it continues to perform, albeit at a lesser and more erratic pace.
At present, there are few available signals that growth or inflation is set to accelerate in a meaningful way; in fact, the present trend for growth seems likely to be closer to the sub-1 percent rate at which we began 2015 than the near 4 percent rate of the second quarter. Inflation is tougher to gauge, with some measures firm or firming while others are flat or falling, but suffice it to say that the Fed remains more concerned about deflationary prospects than inflationary ones.
It may be that these issues are fleeting, or at least likely to fade as we move forward into 2016 and beyond. However, for the purposes of our coming forecast period, their effects are both pronounced and influential, and we may end 2015 not much closer to "liftoff" for Federal Reserve policy than we began it. Slow (or no) growth, slow (or no) inflation, no Fed... and not much action for interest rates.
Just as most baseball teams have signed off their seasons with "Wait 'til next year!", it's a distinct possibility that this statement has come to apply to monetary policy, too.
In the news, much was made of the Fed's statement that closed the October 28 meeting. A subtle change to the language used to describe potential future policy action was the cause for interest; "In determining how long to maintain this target range" (for the federal funds rate) became "In determining whether it will be appropriate to raise the target range at its next meeting", which markets rightfully interpreted as a statement that a move in December remains a possibility; it does, but probably a small one at the moment.
We don't think this signals much by way of change in the likelihood of a move in December, but given that the Fed has made a number of allusions to the idea that any meeting could be in play for a rate change, this language update merely formalizes this sentiment. We expect that "next meeting" will become a more or less permanent fixture until rates get closer to historic norms, when something akin to "raise or lower" will likely replace it.

Recap
Our last forecast was somewhat dependent upon an expected move by the Fed in September. We now know now that the Fed made no change, and at the time of the last forecast, we took occasion to note: "If the Fed punts at the September meeting, we might see some downside for rates, but not much." This turned out to be exactly the case: Mortgage rates have retreated from levels we saw in August (when we wrote the last Two-Month Forecast) but only slightly, even as this small decline was sufficient to put us closer to the this year's lows for mortgage rates than highs.
At the time of the last writing, we thought that we'd see a range for HSH's FRMI of 3.90 percent to 4.27 percent. With the Fed stepping out of the picture, we tended toward the lower end of that range, and achieved a narrow 3.89 percent to 3.99 percent pairing. At the same time, we expected that the FRMI's 5/1 Hybrid companion would wander between a 2.92 percent to 3.22 percent set of bindings, and the markets produced just a 2.92 percent to 3.01 percent set to corral rates. Meanwhile, we called for the average for conforming 30-year fixed rate mortgages to bounce between barriers of 3.88 percent on the low end and 4.25 percent on the high, and were presented with a 3.88 percent and 4.00 percent paid of fences. The near-stasis for rates during the period was unexpected, but in itself isn't all that unusual, even in recent experience. We'll call the forecast successful, but perhaps only fair in its prescience.

Forecast Discussion
It seems to us that for the last few years, the economy has been much like a car in second gear; Hit the gas, and it takes off with a burst of strong acceleration, but as soon as the pressure on the throttle is lifted, the deceleration is quite pronounced. There's been precious little opportunity for simply lugging along at a low RPM in any higher gear, and every time it seems as though such a shift will come, some internal or external force exerts itself, and the economy remains in second gear.
Obviously, this presents a quandary, from both a business and monetary policy perspective. How to plan for future activity that, for at least a time, seems so likely to come... then doesn't? How to adjust policy for strong and possibly self-sustaining growth, the kind that foments greater price pressures, when it only comes for brief periods? The fact is, it's difficult (if not impossible) to do so, and this fits-and-starts process breeds the kinds of caution we see expressed in both growth and monetary policy at the moment. Yes, we are in an expansion, and a fairly long-dated one, too, but it continues to have such a tenuous feel that its durability remains in question even as we are years into it.
We are now at the portion of the program where a once fairly-certain Fed path has become rather uncertain. When we began 2015, we (and many others) expected a lift for rates in perhaps June; June became September, September has become December but the reality is that without a drastically different and stronger set of economic reports for October and November (not impossible, just unlikely) that we are probably looking at February for the first Fed change... if not beyond. The last couple of years have featured very soft starts, and even if the economy does pick up in the fourth quarter at a pace sufficient to put the Fed back in play for December, the repeated pattern of slow growth to start each of the past two years may give them a bit more caution than not about making a change.
With the economy seemingly in deceleration at the moment, there is almost zero chance of a lift in the short-term interest rates the Fed controls, and certainly not at next week's FOMC meeting. In fact, in recent weeks, there have again been heard some rumblings in the markets that the Fed might again need to consider reopening QE-style programs if the current economic slowness become more pronounced, or if inflation should retreat significantly further. That too is quite unlikely at this point, and certainly not a likely happenstance during the next nine weeks. The reality is that the markets are on their own for the foreseeable future and any moves in rates over the forthcoming forecast period will be data-driven. This will likely produce some volatility at times, at least relative to the pretty flat period though which we just passed.
Forecast
Given the climate as we write this, we have little choice but to ratchet down the ranges we expect for rates over the next two months. Neither an accumulation of very solid economic data or a marked upturn in inflation readings is likely to move rates up by much, and any continued weakness (or even a continuation of the current subdued trend) would tend to see rates move lower than not, if only slightly.
Between now and the end of the forecast period, we think that HSH's FRMI may still have a little space to ease, so we'll set a bottom for the range here at 3.81 percent; leaving a little room for upside, the FRMI might not break past perhaps 4.08 percent even if we pick up some steam. The overall 5/1 Hybrid ARM should hold in a valley of 2.83 percent to 2.99 percent, and the conforming 30-year FRM should be restrained by borders of 3.82 percent and 4.09 percent, respectively.
This forecast will expire on January 1,2016. Amid the holiday revelry, why not stop back and see if the market gave us a present or a lump of coal? Also, given the holidays, we may not have a new forecast ready to go at that point, so this one could turn into a 10-week forecast as a result.

You just got 3 mortgage rate quotes, all different! Which one should you believe?

Mortgage Rate Surveys: Which Survey Can I Actually Believe?

Which Mortgage Rate "Survey" Is Best?

It's hard to window shop for mortgage rates anymore. Markets have changed and so do rates -- sometimes four or five times per day.
So, when you're looking for "ballpark mortgage rate", where do you do turn?
A great mortgage lender will want your information before giving you a quote because great lenders know that rate quotes mean nothing without context.
And, bad lenders -- well, nobody wants to work with a bad lender.
Because it's so hard to get real-time mortgage rate information, a cottage industry of sorts has sprouted. There are now tens of places where you can find "mortgage rate surveys" online, each purporting to tell you where interest rates are at today.
However, mortgage rates often vary by as much as 50 basis points (0.50%) between mortgage rate surveys, and rates are rarely in-line with an actual rate quote from an actual mortgage lender.
So, why the differences? Why do mortgage rate surveys show so such different rates? And which can you believe?
Click to see today's rates (Dec 4th, 2015)

What Is A Mortgage Rate Survey?

A mortgage rate is the rate of interest paid on a home loan. Mortgage rates are "charged" by banks and paid by homeowners.
In this way, a mortgage rate quantifies the risk that a particular borrower represents to its lender. Borrowers who present with high risk pay higher rates than borrower who present with low risk.
Risk comes in many forms.
Risk may come in the form of credit score, or state of residence, or disposition of the property (i.e. primary home, vacation home, investment property).
Risk can also vary by loan type.
VA loans, for example, are guaranteed by the Department of Veterans Affairs which means that banks are unlikely to take a loss. By contrast, conventional loans are not guaranteed.
This is why VA mortgage rates have been the lowest rates available and why a conversation with a lender is required to find the specific mortgage rate for which you're eligible.
You are different from your neighbor, after all, so your loan will be different from your neighbor.
But that won't appease you. You just want a "ballpark" rate. To get it, you turn to the internet where  mortgage rate surveys proliferate.
What's a mortgage rate survey?
It's a report which shows (1) an average mortgage rate, (2) for a specific mortgage borrower type, (3) for a given period of time.
For example, a mortgage rate survey may show the mortgage rate for an FHA borrower with a 600 FICO score buying a $200,000 single-family home with 3.5% down in Washington State as 3.75% for last Tuesday.
Yes, the surveys are that specific in their assumptions. And you may not meet those particular assumptions which, in truth, means that the rate survey doesn't actually help you.
Your mortgage rate may be higher or lower than what you find online.
Furthermore, mortgage rates change all the time -- several times daily, even. So, even if you meet the assumptions made by mortgage rate survey online, you're going to miss the timing of it.
The rate you see online has already expired. The rate you get "right now" is the rate you can take to the bank.
Click to see today's rates (Dec 4th, 2015)

Some Popular Mortgage Rate Surveys

There are a large number of mortgage rate surveys available online and in print. This is a review of some of the more common ones.

Freddie Mac Primary Mortgage Market Survey (PMMS)

Freddie Mac is a government- backed entity which buys mortgages from banks and sells them as mortgage-backed securities.
And, because of its role in the mortgage market, then, Freddie Mac is highly qualified to tell you "what are today's mortgage rates".
Here's how they do it.
Each week, Freddie Mac surveys about 125 lenders and asks them about their going rate for mortgage borrowers making a home purchase with 20% down on a conventional loan; with excellent credit scores; and, whom are purchasing a detached single-family home.
Freddie Mac rates are quoted with discount points included. Discount points are an optional closing cost which lowers a quoted mortgage rate.
In general, each point lowers are mortgage rate quote by 25 basis points (0.25%).
Most banks reply to Freddie Mac no later than Tuesday afternoon. Results are published Thursday morning. This 2-day delay introduces some well-documented issues.
Freddie Mac data doesn't apply to low-downpayment loans -- only to loans with twenty percent down. This is relevant to home buyers with little or nothing to put down.

Mortgage Bankers Association (MBA) Mortgage Rate Survey

The Mortgage Bankers Association (MBA) is the largest mortgage banker trade group and, since 1990, it too, has produced a rate survey.
However, the MBA does its survey a little differently.
For the MBA's mortgage rate survey, actual mortgage application information is collected from member banks over the course of a week which, for survey purposes, runs Saturday through Friday.
The MBA then calculates the "average contract rate" over a wide array of loan types including fixed-rate and adjustable mortgages; conforming mortgages; jumbo mortgages; and, government-backed mortgages including FHA loans and VA loans.
According to the trade group, "more than 75% of U.S. mortgage applications" make it into their weekly survey.
The survey is released Wednesdays after a 5-day delay.
The MBA survey is notable because it includes many different loan types so there's a god chance you'll see your preferred loan type in its survey. However, it's sourced from loan applications and not loans closed.
This means that the rates in the survey are sometimes invalid.
The MBA survey is also released with discount points. However, the typical number of discount points is lower with the MBA as compared to Freddie Mac which causes the MBA's rates to appear higher (even though they aren't).
This is because Freddie Mac's 4.00% rate with 1 point is roughly equivalent to the MBA's 4.125% rate with 0.5 points.

Ellie Mae Origination Insight Report

Mortgage-software provider Ellie Mae publishes a mortgage rate report, too, known as the Origination Insight Report.
Using data from the millions of mortgage applications it helps mortgage lenders to process each year, Ellie Mae publishes average rates for actual closed mortgage loans for most common borrower types, and for many popular products.
For example, the Origination Insight Report shows the average rate FHA borrowers received; and VA borrowers received; and, rates for conventional mortgage loans, too.
As compared to Freddie Mac and the MBA survey, Ellie Mae's published rates are often the highest and that's because mortgage borrowers tend to close loans without paying points.
Loans with no points come with higher rates than loans with them.
Freddie Mac's 4.00% rate with 1 point is roughly equivalent to Ellie Mae's 4.25% rate with 0 points.
Of all the published surveys, the Origination Insight Report is likely the most accurate report but rates don't get published until 1-2 months later.
Click to see today's rates (Dec 4th, 2015)

Popular Consumer News Websites

Daily and weekly mortgage rates can also be found on common consumer news websites such as Bankrate.com, HSH.com, Zillow, and in the sidebar of just about every personal finance business out there.
These rates are typically "advertised" mortgage rates, though, and -- like the MBA survey -- don't account for actual rates on closed loans.
That said, for ballpark shoppers, advertised rates can be more helpful than "closed rates". When you want to know "what are mortgage rates doing today", tracking real-time changes can let you know if rates are rising or falling, at least.
Caveat: Be sure to check assumptions!
Sometimes, online mortgage rate advertisements get "loose" with their interest rate assumptions. If you're shopping for a low-downpayment loan, make sure your preferred online site isn't showing you a loan for 20% down.
Mortgage rates can vary wildly.

What Are Today's Mortgage Rates?

It can be tough to shop for mortgage rates online and the proliferation of mortgage rate surveys does little to simplify the process. It's often best to right to the source.
Get today's live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.
Show Me Today's Rates (Dec 4th, 2015)

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Call Jodi Toebe , she has 20+ yr mortgage experience and is also a Realtor with Remax.  She can help guide you through  the entire process from qualifying for a mortgage to closing on your new home.  Direct# : 262-352-0484  Oconomowoc, Waukesha County ,WI

4 Resources for First-Time Homebuyers

4 Resources for First-Time Homebuyers

Mon, October 26, 2015
           

Surveys show that first-time buyers aren’t aware of how much they need to save for a down payment. Many people believe that buying a home requires they put down at least 20 percent of the purchase price, but down payments aren’t as big of an obstacle as people think. For example, a loan through the Federal Housing Administration could require a down payment as low as 3.5 percent; Fannie Mae and Freddie Mac have similarly low requirements.

If you qualify for a loan with a low down payment but still have trouble coming up with the cash, here are a few of the many programs out there that can help. Do some research to find out what’s available in your area.

1. Help getting down
The federal Department of Housing and Urban Development (HUD) gives community development block grants to states and local governments across the country to help revitalize certain areas. HUD’s HOME Investment Partnerships Program (HOME) is one such program. States often have their own programs for down payment assistance, too.

2. Opening up options for closing
The Federal National Mortgage Association, a.k.a. Fannie Mae, designed the HomePath Ready Buyer program to attract new homebuyers to the market. Through the program, qualifying first-time homebuyers can get assistance of up to 3 percent of closing costs after they pass an online homeownership course.

3. Making ownership less taxing
Some state governments provide first-time buyers with a tax credit to boost homeownership.

4. Helping heroes
The U.S. Department of Veterans Affairs (VA) Home Loan Guaranty Service helps veterans or surviving spouses obtain better terms for their mortgage by guaranteeing a portion of the loan. Some VA mortgages require no down payment.

Check the National Council of State Housing Agencies for more opportunities available in your state.
A buyer’s agent will be able to help you find the programs that operate in your area and are appropriate to your financial situation. A great agent is easy to find here.  Call Jodi Toebe RE/MAX 262-352-0484.