FHA Offers Jumbo Loans in Some Areas

Mortgage loans over $417,000 are in the jumbo loan category, which has different qualifying guidelines, and higher mortgage rates.

Did you know that FHA will also insure jumbo loans in some areas? Based on the county or zip code, some areas have maximum loan limits as high as $729,750.

Why is that important? Because unlike a jumbo loan, FHA rates do not increase on higher loan amounts. Also, the credit, income, and loan to value guidelines can be more flexible.

Read More About FHA and Jumbo Loans

Popular Benefits of a Home Refinance

What are the most popular reasons for a home refinance?

Other than the obvious one of reducing your monthly payment, other benefits may include:

1. Consolidate credit card debt or other debt

2. Get cash out for personal expenses

3. Convert adjustable rate to fixed rate

4. Change the term of the mortgage

5. Eliminate mortgage insurance

Continue reading benefits of a home refinance

Credit Scores and Your Mortgage

The FICO formula for credit scores has changed, which can be a benefit or a detriment depending on several factors.

High credit card balances can be a potential credit score detriment to mortgage borrowers.

Some credit card companies are reducing credit limits and closing accounts, which may impact the mortgage industry because of possible credit score changes.

Continue reading about credit scores and your mortgage

Pay Off Your Mortgage with a 15 Year Term

Wen refinancing or buying a home, most people will choose a lower payment over a plan to pay off the mortgage. The concept of owning your home free and clear may be a distant thought, but a 15 year mortgage could make it a reality.

A changing economy is bringing into focus the need for long term financial planning, including a plan to pay off your mortgage.

Continue reading about 15 year mortgage vs. 30 year mortgage

Current Mortgage Rates from National Banks

Because many banks do not publish current mortgage rates online, and those that do may be buried in the search engine results, a new rate survey posts mortgage rates from a selection of national banks on a single page.

The new survey provides an easy way to compare current rates from multiple lending institutions from one location. As this free service continues to expand, it shouldl serve as a useful tool for online mortgage research.

A growing percentage of people are researching mortgages online before making a lending decision. Many of the lending sites found in a search offer to expedite custom mortgage quotes, but first a request must be submitted to have lenders call. The few sites that do post current mortgage rates are mingled online with hundreds of others that don't, which can slow a comparison.

The mortgage rate survey can bridge this information gap to provide potential borrowers and real estate professionals a simple way to check current rates, follow daily rate movements, and find out who offers some of the lowest interest rates.

Mortgage Rate Survey

FHA Loan Pros and Cons

FHA home loans can be advantageous for some borrowers, because of their flexible guidelines for accepting lower credit scores, higher debt ratios, and the amount of cash out allowed. The disadvantage is FHA home loans require a mortgage insurance premium of 1.75%, which is usually deducted from the loan amount on a refinance. There is also a monthly mortgage insurance premium of .5% added onto the monthly payment. This is similar to paying mortgage insurance on conventional home loans over 80% loan to value.