Mortgage Rates Inch Up!! Did You Lock in your Rate??

The 30-year fixed hits 5.23% last week, bounces off lows.

Rob Saves The OC

NEW YORK (CNNMoney.com) -- Home mortgage rates were slightly higher this week, jumping from near record-lows last week, according to a report released Thursday.

The average 30-year fixed mortgage rate jumped to 5.23%, up from 5.18% the previous week, according to Bankrate.com's weekly national survey.

Even with the increase, rates remain at historic lows, the report said. Rates have plunged since late October, when 30-year fixed home mortgage rates averaged 6.77%.

"Mortgage rates have been comparatively tame in recent weeks, but one exception has been the jumbo mortgage market," the report said.

Jumbo loans are considered too large to be purchased or guaranteed by Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), and they carry higher rates than smaller "conforming" loans that do carry guarantees.

"[Mortgage] rates are still higher than they would be in a normal credit environment, but with the slowly thawing credit markets the spread between conforming and jumbo rates has narrowed to levels last seen in Nov. 2008," the report said.

Six months ago, the average 30-year fixed mortgage rate was 6.32%, meaning a $200,000 loan would have carried a monthly payment of $1,240.55. With the average rate now at 5.23%, the monthly payment for the same size loan would be $1,101.93, meaning homeowners who refinance now would save more than $140 per month.

Other rates: The average 15-year fixed rate mortgage ticked up to 4.75% from 4.72% the week prior.

The average jumbo 30-year fixed rate dropped sharply to 6.52% from 6.69% the week prior.

If you have any questions or you or someone you know is facing a hardship and are having trouble paying there mortgage. Please contact me Hope for Homeowners is available.


Robert Vaughan
Vice President
562-673-1136 Direct

Finally!! Obama Launches Mortgage Rescue plan!!

First participants in the Treasury Department's program to help homeowners avoid foreclosure include some of the nation's largest banks.


NEW YORK (CNNMoney.com) -- The Obama administration's loan modification program is finally underway.

The Treasury Department announced Wednesday the first six participants to sign up for President Obama's plan. They include three of the nation's largest banks: JPMorgan Chase (JPM, Fortune 500), which will get up to $3.6 billion in subsidy and incentive payments; Wells Fargo (WFC, Fortune 500), $2.9 billion; and Citigroup (C, Fortune 500), $2 billion. The others are GMAC Mortgage, $633 million; Saxon Mortgage Services, $407 million; and Select Portfolio Servicing, $376 million.

Additional loan servicers will be added to the list over time, a Treasury spokesman said.

Several major servicers, including JPMorgan Chase and Wells Fargo, said they began modifying loans under the government initiative earlier this month. CitiMortgage signed up for the program on Monday and will start processing applications soon.

"We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership," Wells Fargo said in a statement.

Distressed homeowners and housing counselors have been eagerly awaiting the program's launch since Obama first announced it on Feb. 18. However, it took weeks for the government to clarify the terms and for the financial institutions to update their systems and start accepting applications, frustrating many of those in trouble.

Billed as helping up to 9 million borrowers stay in their homes, the two-part plan calls for servicers to reduce monthly payments to no more than 31% of eligible borrowers' pre-tax income or to refinance eligible mortgages even if the homeowner has little or no equity. The government is allocating $75 billion to subsidize part of payment reduction, as well as provide thousands of dollars in incentives for servicers and borrowers to participate.

The Treasury Department said Wednesday it is capping the payments to servicers to allow more companies to participate. It is allocating $50 billion to the program, with Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500) and the Department of Housing and Urban Development providing the rest.

The modification plan calls for the servicer to reduce interest rates so that the monthly obligation is no more than 38% of a borrower's pre-tax income, and then the government would kick in money to bring payments down to 31% of income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.

Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify. Also, Treasury will not provide subsidies to reduce rates to levels below 2%.

It was not immediately clear whether the servicers must pay the incentives to homeowners and investors out of their funding share.

In addition to subsidizing the interest rates, servicers will use the Treasury funding to pay for incentives for themselves, homeowners and investors. The program gives servicers $1,000 for each modification and another $1,000 a year for three years if the borrower stays current. It will also give $500 to servicers and $1,500 to mortgage holders if they modify at-risk loans before the borrower falls behind.

Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.

The Treasury Department set the caps based on public data about the mortgages the servicers handle. Though the program mandates that servicers modify all loans that meet the requirements, the department feels the servicers will have sufficient funds to cover all troubled borrowers' applications.

"We're confident we'll have enough money," said Treasury spokesman Andrew Williams.

Separately, major servicers also recently started accepting applications under the refinance portion of the program.

Thank you for taking the time to check out my Blog. If you or someone you know is facing a hardship THERE IS HOPE call Robert Vaughan at Affinity Lending Group.


Robert Vaughan
Vice President
562-685-8159

Obama Urges Mortgage Refinancing!!

President cites low rates while announcing a loan modification program

WASHINGTON (Reuters) -- President Barack Obama encouraged Americans Thursday to take advantage of historically low mortgage rates and said his administration was rolling out further phases of its plan to address the housing crisis.

Turning his attention to the U.S. economy after finishing his first trip as president to Europe and Iraq, Obama said more people across the United States could save money by refinancing their loans.

"The main message that we want to send today is, there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates," he told reporters during a meeting with advisers and a group of people who had taken advantage of the lower rates.

"We estimate that the average family can get anywhere from $1,600 to $2,000 a year in savings by taking advantage of these various mortgage programs that have been put in place."

Obama said citizens could check a Web site, MakingHomeAffordable.gov, to see if they were eligible for mortgage refinancing.

"We are in the process of rolling out additional phases to the program," he said, referring to the administration's housing measures.

"We are putting in place a loan modification program, working with banks, working with services that will allow other folks who are closer to losing their home (be) in a stronger position in the future.

Interest rates to go lower?
Meanwhile, the top U.S. housing official said interest rates on typical home loans will continue to fall from their current, record lows.

"I think you will see them continue to come down, based on everything that we're doing, but recognize that they've already started to make a big difference," Housing and Urban Development Secretary Shawn Donovan said on CNBC.

Obama, who spent part of his trip to Europe working on solutions to the global economic crisis, emphasized that the U.S. problems stemmed from the housing sector.

"Obviously one of the triggers of the financial crisis and now the economic crisis that we've suffered is that because in some areas ... housing values got way overheated, in some cases you had a lack of regulation that allowed all sorts of complex financial instruments take advantage of home owners," he said.

"We have seen a collapse in the housing market, a precipitous drop in values, and that led to our problems in the financial markets."

Thank you so much for checking my bolg out. If you need help with your mortgage or just need some advice on what to do if your house is upside down and your payments have adjusted Please call me I can help.

New Hope for Homeowners is Available!!

Robert Vaughan
Vice President
562-685-8159

Mortgage Rates Sink Again!!

Two separate reports show rates continue to march lower in the wake of the government's plan to buy $1 trillion worth of debt.

NEW YORK (CNNMoney.com) -- Home mortgage rates continued to march lower, according to two separate reports released on Thursday.

The average 30-year fixed mortgage rate sank to 5.13%, down from 5.19% the week prior, according to Bankrate.com's weekly national survey.

The average 15-year fixed-rate mortgage fell to 4.73% from 4.80% the week prior, according to Bankrate.com.

Bankrate obtains its data by surveying the top 10 banks and thrifts in the top 10 markets every Wednesday.

Meanwhile, a report from Freddie Mac showed that the 30-year fixed-rate mortgage fell to 4.78% in the week ending April 2, down from 4.85% the week prior.

The 4.78% rate is the lowest on record according to the Freddie Mac survey, which dates back to 1971 for that particular mortgage. The 30-year fixed rate averaged 5.88% at this time last year, according to Freddie Mac.

Freddie Mac reports the 15-year fixed rate mortgage fell to 4.52%, down from last week when it stood at 4.58%.

0:00 /3:17Housing on the rebound?
There is a difference in reported rates between Bankrate and Freddie Mac because lending rates are constantly fluctuating and the surveys are conducted at different moments.

The two agencies also report the rates with a different average number of "points," which borrowers can purchase at closing to buy down their lending rates. Therefore, the more points a borrower purchases up front, the lower the lending rate. Bankrate.com's averages have fewer points than Freddie Mac's average.

While rates are already very low, one analyst said that they could potentially dip a little bit more. "They could dip maybe another 20 basis points from where they are, but not a huge amount," said Brian Bethune, chief financial economist at IHS Global Insight.

Bethune also said that he thinks mortgage rates will stay low for a while. "I wouldn't expect them to necessarily jump back up again, but it all depends on the path of the economy."

Mortgage rates follow Treasury rates: No matter which report you look at, the consensus is that mortgage rates are low. The 30-year fixed mortgage rate moves in correlation with the yield on the 10-year Treasury bond. Therefore, lower the yields on government debt weighs on mortgage rates.

"Rates are just coming down as a catch up phenomenon because the 10-year Treasury has come down by 25 to 30 basis points in the past couple weeks," said Bethune. The yield on the benchmark Treasury dropped after the government announced its massive debt-repurchase plan in an effort to encourage lending and spur recovery in the housing market.

The government said two weeks ago that it would be buying more than $1 trillion in debt in an effort to provide liquidity in the credit markets. With the key lending rate already at a range of 0% to 0.25%, the Federal Open Market Committee - the policymaking committee of the Fed that sets interest rates - turned to less traditional means to encourage lending.

"Once we start to see a recovery, the Federal Reserve will start to reverse a lot of its liquidity programs," said Bethune. "We will see rates move up simply reflecting the anticipation that the Fed is going to start to pull liquidity out of the system."

Thank you for checking out my blog. If you have been current with your mortgage but you your lender is telling you they cant help you unless your late PLEASE!! Dont fall behind there is a solution. Call Robert Vaughan at Affinity Lending Group

Robert Vaughan
562-673-1136

Get the best refinancing deal!!

(Gerri Willis) gives tips on how to secure a low rate when renegotiating your existing mortgage.

NEW YORK (CNNMoney.com) -- Mortgage rates are lower than 5% - but how can you get the best refinancing deal?

Everyone has been asking me about how to secure these low, low mortgage rates. And many people are having a hard time even getting through to their lender on the phone. They're pretty frustrated.

I spoke with the chief economist of Fannie Mae yesterday. He told me it will take as much as three months for the mortgage industry to start working at full capacity. His full year outlook for mortgage rates is 4.8 to 5%. The takeaway here: Be patient - there will be lines.

1. Recognize opportunity

Look - there is opportunity here. 30-year fixed mortgage rates are at 4.6%. Historically, that rate is 8%. And that is significant.

Let's take a look. 30-year fixed mortgage rates are at 4.6%. If you took out a 30-year fixed loan of $170, 300 (the average cost of a home) at 5%, your monthly payments would be around $915. And at 8% you would pay $1,250. The savings? $335 dollars a month or $4,000 dollars a year.

2. Be wary

We've told you it might take longer to get a refinance now. And that's something to be aware of. And according to bankrate.com, Fannie Mae and Freddie Mac have increased their fees.

So you could be paying extra fees of 1% or 2% of the loan amount, and sometimes even higher on top of all other closing costs.

3. Get the best rates

Having enough equity is one of the biggest obstacles. These days you'll need at least 20% equity to get the best rates.

Make sure you keep your credit score as high as possible. Get copies of your credit report to make sure there are no errors at annualcreditreport.com.

Shop around to get the best rate. Get all your paperwork together now.

Here's a list of what you'll need to start collecting: Your refinance application, two years of tax returns, one month of paystubs, three months of asset statements (checking, savings, mutual funds), your most recent mortgage statement and a copy of the deed
I hope you find this information helpful.

If you have any questions please call me.
(562) 673-1136


Robert Vaughan
Vice President

Breaking News - The Fed is Buying Down The Rates

Learn How You Can Maximize This "Once in a Lifetime" Opportunity

The Federal Reserve launched a bold $1.2 trillion effort yesterday to lower rates on mortgages and other consumer debt, spur spending and revive the economy. To do so, the Fed will spend up to $300 billion to buy long-term government bonds and an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.

Fed Chairman Ben Bernanke and his colleagues wrapped a two-day meeting by leaving a key short-term bank lending rate at a record low of between zero and 0.25 percent. Economists predict the Fed will hold the rate in that zone for the rest of this year and for most _ if not all _ of next year.

The decision to hold rates near zero was widely expected. But the Fed's plan to buy government bonds and the sheer amount _ $1.2 trillion _ of the extra money to be pumped into the U.S. economy was a surprise.

"The Fed is clearly ready, willing and able to be the ATM for the credit markets," said Terry Connelly, dean of Golden Gate University's Ageno School of Business in San Francisco.

Wall Street was buoyed. The Dow Jones industrial average, which had been down earlier in the day, rose 90.88, or 1.2 percent, to 7,486.58. Broader indicators also gained.

And government bond prices soared. Heralding a coming drop in mortgage rates, the yield on the benchmark 10-year Treasury note dropped to 2.50 percent from 3.01 percent _ the biggest daily drop in percentage points since 1981.

The dollar, meanwhile, fell against other major currencies. In part, that signaled concern that the Fed's intervention might spur inflation over the long run.

If the credit and financial markets can be stabilized, the recession could end this year, setting the stage for a recovery next year, Bernanke has said in recent weeks. The Fed chief and his colleagues again pledged to use all available tools to make that happen, and economists expect further steps in the months ahead.

Robert A Vaughan
Vice President

Would You Walk Away???

With 1 in 5 homeowners underwater, many pundits predict a flood of people walking away from their homes. Five readers talked to us about why they are - and are not - sticking around.


Fewer walking away than you think

Almost 20% of homeowners - or 8.3 million people - are "underwater" on their mortgages, owing more than their properties are worth. Another 2.2 million are near that drowning point, known as "negative amortization."

A basic cost-benefit analysis predicts that these people will abandon their homes and accept foreclosure. But there is little data measuring whether that logic holds true. In fact, Eric Johnson, a business professor at Columbia University, believes it doesn't. After years of studying behavioral economics - essentially the economics of choice - he argues that people will simply not make such rational decisions.

"There are two effects that suggest [walk aways] won't happen so easily," he says. "The first is the endowment effect. People tend to value their own house above its market price. Owners don't want to sell at a loss. They have what we call a loss aversion."

The second is that people weigh the importance of immediate outcomes more heavily than long-term effects. Walking away involves upfront expenditures of time, money and effort, while the benefits of walking away are back-loaded.

"People are impatient and weight present costs and benefits more, so they will walk away less often than we might think.

I want to Thank you for checking this Blog out and if you have any questions or no someone that has suffered a hardship and is having trouble paying there mortgage. Please pass this contact information.

Robert Vaughan
Vice President