|
Mortgage approvals leap ahead of rate decision
LONDON (SHARECAST) - UK mortgage approvals jumped to their highest in four months in March as homebuyers raced to snap up the best deals before the expected interest rate hike to 5.5% next month. Approvals for new house purchases came in at 75,098 last month, far surpassing Februarys 54,659, according to data from the British Bankers Association out Monday. But the figure was still well below the equivalent month in 2006 when approvals topped 85,000, suggesting the three rate rises since last August are beginning to bite. Meanwhile, gross mortgage lending of 18.634bn beat the previous months 14.949bn and the year ago figure of 17.673bn. "Strong levels of gross mortgage lending reflect homebuyers and homeowners seeking out fixed-rate mortgages as protection against rising interest rates," said BBA director of statistics David Dooks.
Ratebusters has best Line of Credit
Ratebusters has come out on top in a comparison of 100 line of credit loans by Your Mortgage magazine in its May Editor's Choice awards. The company's Rate Buster X LOC product was the best five-year and 10-year loan available. Its combination of low interest rates and fees means it saves $8,115 over five years against the average, and $16,618 over 10 years. The loan has an interest rate of 6.92% and charges fees of $2,170, plus a deferred establishment fee of $2,550 if you exit within five years. Fred Rasheed, business development manager at Ratebusters, said: "You get all the features whether you are going to use them or not; they are at no extra cost". Another good performer was the One Direct Equity Loan, which won the three-year line of credit category.
Ecology say lenders not playing fair
Recent reports have revealed that mortgage application fees have nearly doubled since 2004. Not so at Ecology Building Society, where the application fee for all residential mortgages is a mere 150 and has been for more than five years.
Many lenders exit fees have come in for criticism from the Financial Services Authority for being unnecessarily high, but some resulting reductions have been quietly recouped by more increases in application fees. In contrast, Ecologys exit fees have remained just 75 for nearly 10 years.
The best buy mortgage tables help lenders disguise their mortgage application fees, which are often hundreds and in some cases thousands of pounds. The tables are based on the introductory interest rate only and not on the true cost of the mortgage over its lifetime.
US mortgage rates unchanged on Thursday - BestInfo
NEW YORK, May 3 (Reuters) - The average rate on a 30-year U.S. mortgage with no upfront points was unchanged on Thursday at 6-3/8 percent, according to BestInfo Inc. Rates may rise if the mortgage market on Friday maintains its current direction, BestInfo said. The 30-year mortgage rate with one upfront point was unchanged at 6-1/8 percent. The 30-year mortgage rate with two upfront points was unchanged at 5-7/8 percent. The Mortgage Point Monitor is provided exclusively to Reuters by BestInfo, Inc., a Dover, Vermont-based provider of mortgage market analysis. .
FOX 4 Real Estate: Key Questions to Ask Before You Sign
Before you sign any mortgage paperwork with a lender, FOX 4 Real Estate expert Dave Pleskac recommends that you ask the following questions. If you don't like the answers you receive, continue shopping for a loan until you find a mortgage broker/lender with whom you feel comfortable. Remember, once you sign on the line, it is a binding contract. So, ask questions and if you need help, ask your realtor for assistance.1) Which Type of Home Loan is Best?A reputable lender should listen to your needs and wants but at the same time, ask you financially related questions to better understand your financial capabilities before they give you loan options. Don't be afraid to ask a lender to explain the pros and cons about various loans such as: Fixed-rate, Adjustable, Interest-only, or a Negative amortization loan. If the lender pressures you to choose a particular loan type…walk away.Dave's Advice: Look at the point spread between the interest rates offered on fixed versus adjustable loans that your broker is offering. If the difference is around .5%, you will probably be better off with a fixed-rate mortgage especially if you plan to live in the house longer than 3 years.2) What is the Interest Rate & Annual Percentage Rate (APR)?The annual percentage rate (APR) is derived by a complex calculation that includes the interest rate and all the other related lender fees divided by the loan's term.
| 