Wells Fargo urges judge to reject New York suit over FHA loans
Baruch argued that the only FHA claims that can be brought against Wells Fargo would involve individual loans on which underwriters knew they were falsely certifying that the mortgage qualified for FHA insurance. He said the New York suit instead …
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Mortgage Rates: Low Mortgage Rates Remain Intact Despite Flood of Positive …
Today's FHA 30 year fixed mortgage rates are as low as 2.750%, approved generic FHA 15 year fixed mortgage interest rates are as low as 2.250% and FHA 5/1 ARM loan rates are as low as 2.250%. FHA mortgages offers several options and benefits to homeowners.
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Question by dasielady: How will the Fed’s rate cut affect my mortgage rate?
I have been pre-approved for a mortgage through my credit union. The loan is a 5-year ARM for 80% of the value, medical and a 5-year Balloon for 17% of the value, pharm and I am putting 3% down on the house. I am set to close 1 week from today. I have a loan commitment from the lender.
I read in the news today that the FED is considering curring interest rates for the money that banks borrow, (which to my understanding is how they set thier interest rates??) by .25 to .50 %.
If they do cut rates, would that affect a credit union? Should it lower the rate that I am being offered for my home loan? Would I be foolish to ask my lender (credit union) if my rate goes down?
What are your thoughts?
Thanks!
Best answer:
Answer by Adam L
Most likely it won’t. The Fed rate isn’t strongly correlated to mortgage rates.
Mortgages are more strongly correlated to T-bill rates, such as the 1-year T-sec. These go up and down depending upon how much money the govt. lends and how many people want to buy our bonds. It’s determined more by China and Saudi Arabia than the fed. The reason for the strong correlation is that mortgages ‘compete’ with T-bills for money. Both are long-term, relatively safe places to earn some interest income.
–>Adam
Add your own answer in the comments!
It will have no immediate effect and probably no long term affect.
Adjustable rates look real nice…now…(it’s kind of like bait and switch)
probably wont make that much difference but make sure you are ready to refi in 5 years
if the fed funds rate is lowered the mtg industry should see a quick effect but probably not in a weeks time