The reigning credit crunch has disturbed the financial equilibrium of many people around the globe. Aftermath of subprime mortgage crisis was felt the world over and the housing market is yet to recuperate fully. With such a situation prevailing, there are many who successfully manage to tap the equity in their homes. It has been made possible due to reduction in the mortgage rates.

Refinancing activities increased
Statistical data indicates that the fixed rate mortgage for a 30 year loan term dropped by 1.3 points from 6.46% to 5.14% during the period October 2008. The fixed rate mortgage rates for a 15 years loan term has also registered a sharp decline from 6.19% to 4.91%.

Reports also suggest that mortgage refinance escalated by 60% during the 2nd week of December 2008 (according to Mortgage Bankers Association). The increase in mortgage refinance activity could be traced as there were marked changes in the refinance index of Mortgage Bankers Association which keeps a track of all the refinance loan applications.

Mortgage refinance has gone down well with consumers who think they are being able to save a good deal by making lower mortgage payments. The amount that the consumers are saving is being spent mostly for building up an emergency fund or to save it for the rainy day.

Eligibility criteria for mortgage refinance are still stringent
Even though consumers are trying hard to utilize their property by opting for refinancing, not all are qualifying for the same. There are 2 reasons for this. The first reason is that the norms and requirements for qualifying for refinance have been made more stringent. The second reason is that the housing values have declined drastically.

Creditors are usually giving preference to borrowers having 20% equity in their property. However, a borrower can opt for private mortgage insurance in the event he has less than 20% equity in the property.

Refinance is a good option when there are several debts that need to be settled. It is better to opt for refinancing even if the rate available is 1% less than interest rate, the homeowner is currently paying. With the bursting of the housing bubble, lenders have become very cautious and tend to disqualify any loan application that appears to be a risky deal for them.

Bush Praises Subprime Mortgage Strategy

President Bush says it is “going to take a while to work through this mortgage bubble,” but that his administration does have a strategy for helping subprime borrowers refinance or restructure their mortgages.

Bush said in a speech on the economy that the Treasury Department has worked with mortgage servicers so borrowers don’t “get pinched as their interest rates reset”. He also noted that the Federal Housing Administration is helping to refinance subprime borrowers and could do more if Congress passes an FHA modernization bill. (The Senate just passed such a bill, which now has to be reconciled with the House version).

Former Federal Reserve Board Chairman Alan Greenspan has suggested that the federal government could provide cash assistance for distressed homeowners who can’t afford their mortgage payments.

Mr. Bush stressed in his speech that he is against bailouts for lenders, speculators, and people who bought a house they couldn’t afford. “But we can mitigate some of the issues, and I’m concerned about people who are credit worthy enough to live in their homes not being able to deal with these resets,” he said.

Today’s Current Mortgage Interest Rates December 7 2007. Fixed mortgage rates are DOWN from Thursday December 6 2007, while adjustable mortgage rates are DOWN - Today’s 30 Year, is UP and 15 Year Fixed are DOWN - while as the 5/1 is DOWN the 3/1 ARM Mortgage Interest Rates are UP. The 10 year treasury bond is UP to 4.05%.

“As Director of OFHEO, the regulator of Fannie Mae and Freddie Mac, I believe that the foreclosure prevention initiative announced by President Bush is a major step forward. I thank Secretary Paulson and Jackson and everybody from the private-sector involved. Fannie and Freddie are the largest investors in AAA subprime mortgage backed securities. They hold $160 billion of these securities and they are the major buyers of the refinanced [tag-cat]subprime mortgage[tag-cat]s. This plan is a win-win for homeowners, neighborhoods, investors and the markets.

But more has to be done. Fannie Mae and Freddie Mac have played an extremely important role in supporting the mortgage market as all the problems erupted this summer. Since then, they have been buying and securitizing almost $100 billion a month in mortgages. Their market share of all new mortgages has grown from 38 percent last year to over 60 percent.

We need to make sure that they will continue supporting the mortgage markets. That is why we need now, as President Bush and the Secretaries have just said, GSE reform to strengthen the regulator of Fannie Mae, Freddie Mac and the Federal Home Loan Banks. For the last six years Congress has been considering GSE reform legislation. Given the problems faced by Fannie Mae and Freddie Mac and the current market conditions, it is time to act to ensure that they will be here to support the mortgage market, especially affordable mortgages for lower income families, now and in the future.”

www.Lendingtree.com

Shop for your Purchase or Refinance Mortgage by clicking here

Lending Tree is an online lending and realty service exchange where consumers can choose up to four competitive loan offers from major, national, local or regional lenders across the United States, or choose from a network of Realtors to buy or sell a home.

www.Lendingtree.com is owned by Interactive Corp which also owns sites like hotels.com, expedia.com, citysearch.com, askjeeves.com or ask.com, ticketmaster.com, plus a bunch more.

Lending tree basically sells your information to mortgage brokers, Realtors, and other loan officers that then compete for your business.

Their motto: When lenders compete, you win.

Real Estate Services

www.lendingtree.com offers the following real estate services:

• Find a Realtor
• Home Price Check
• Newly Constructed Homes
• Homes for Sale
• Real Estate Agents
• Join the Program

Loan Services

www.lendingtree.com provides the following loan services:

• Refinance
• Mortgages
• Home Equity Loans
• Auto Refinance
• Auto Loan
• Student Loans
• Commercial Loans
• Personal Loans

Other Services www.lendingtree.com offers

• Free Credit Report
• Free Credit Score
• Free Car Insurance Quote
• Living with Debt Report
• CARFAX Record Check
• Expert Advice
• Money Saving Tips
• Lender Scorecard
• Calculators

Today’s Current Mortgage Interest Rates November 29 2007. Fixed mortgage rates are UNCHANGED from Wednesday November 28 2007, while adjustable mortgage rates are UNCHANGED - Today’s 30 Year, is DOWN and 15 Year Fixed are DOWN - while as the 5/1 is UNCHANGED the 3/1 ARM Mortgage Interest Rates is UNCHANGED as well . The 10 year treasury bond is DOWN 3.96%.

HOUSE PRICES WEAKEN FURTHER IN MOST RECENT QUARTER

First Quarterly Price Decline for U.S. since 1994

Washington , DC – For the first time in nearly thirteen years, U.S. home prices experienced a quarterly decline. The OFHEO House Price Index (HPI), which is based on data from sales and refinance transactions, was 0.4 percent lower in the third quarter than in the second quarter of 2007. This is similar to the quarterly decline of 0.3 percent (seasonally-adjusted) shown in the purchase-only index. The annual price change, comparing the third quarter of 2007 to the same period last year showed an increase of 1.8 percent , the lowest four-quarter increase since 1995. OFHEO’s purchase-only index, which is based solely on purchase price data, indicates the same rate of appreciation over the last year.

The figures were released today by OFHEO Director James B. Lockhart, as part of the quarterly report analyzing housing price appreciation trends.

“While select markets still maintain robust rates of appreciation, our newest data show price weakening in a very significant portion of the country,” said Lockhart. “Indeed, in the third quarter, more than 20 states experienced price declines and, in some cases, those declines are substantial.”

www.Mortgage.com Reviewed and Taken Apart!
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www.mortgage.com is an online home loan website that is owned by Citibank and it was formally owned by ABN AMRO. Citibank bought ABN AMRO in 2007.

Within the www.mortgage.com websites “About” section, Citibank claims to have, “the most up-to-date rates” and offers information “from a variety of objective sources”, from this perspective - we respectively disagree…

Yes they do have some helpful information about mortgage products, however, EVERY mortgage website does as well. It is obvious that information alone is not the most important thing to homeowners. Mortgage rates are the most important. Americans realize the interest rate they receive, equals how much of a mortgage payment they can afford.

Therefore we found the best mortgage rates at ConsumerMortgageReports.com
Mortgage Rates. Consumer Mortgage Reports reported on November 23 2007 that the best 30 year fixed interest rate they located, where the homeowner pays zero points was between .250% and .428% lower than www.Mortgage.com best rates!

By using ConsumerMortgageReports.com Mortgage Rates VS www.mortgage.com, the typical consumer, with a home assessed at $250,000 and they receive a mortgage for $200,000 will save between $11,520 and $22,320 dollars over the term of a 30 Year mortgage.

www.mortgage.com does have good information about mortgage products but does not appear to look out for the homeowners’ best interest. Citibank has taken the stance of ’steering’ interest rates with just the Big 5 lenders. With their inflated mortgage rates they have built in more profit.

It is obvious that the Big FIVE mortgage lenders of Citimortgage, Countrywide, Bank of America, Wells Fargo, Washington Mutual have ’set things up’ where a good deed plays out to be just an act of profitability that takes more from consumers.

Being a industry insider for the last 10 years has really opened our eyes to the continual relationships exhibited by the Big 5 of Citimortgage, Countrywide, Bank of America, Wells Fargo, Washington Mutual.

Why are more competitive banks NOT CONSIDERED? The www.mortgage.com website should offer more true value!

Shop for your Best Mortgage Rates by clicking here - fulfill all your purchase and refinance needs!

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