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HARP 2 : 25 Percent Of All Mortgage Refinance Applications
Rising mortgage rates have spurred a wave of new refinances.
The Mortgage Bankers Association (MBA) reports that refinance application volume increased 12 percent for the week ending January 4, 2013 from the week prior.
According to the MBA, mortgage rates rose 0.09 percentage points during the same one-week period.
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Homeowners Refinance Before Rates Cross 4 Percent
The MBA Weekly Application Survey shows that refinance application rose as conforming mortgage rates climbed last week.
From the week prior, the trade group shows a steep rise in rates :
Week ending December 28, 2012 : The 30-year fixed rate mortgage averaged 3.52% Week ending January 4, 2013 : The 30-year fixed rate mortgage averaged 3.61%
For a mortgage at the standard conforming loan limit of $417,000 , this increase yields a $21 monthly mortgage payment increase.
With a mortgage, you are bound to pay a considerable amount of money each month. And, a home is the biggest asset you own. This two can be turned as a wonderful idea to use your biggest property to get rid from the monthly payments for the mortgage loan. It is the refinance home mortgage rates that provide you with this opportunity. Refinance indicates fetching a second loan to pay off the first loan. In both of the cases, the loan is secured on a same property – as for a home. With the refinance home mortgage, you can use the current equity of your home; get the appropriate value of the home by shutting the previous loan based on the old equity value; and ultimately this results into saving a lot of money altogether.
However, before applying for a refinance mortgage loan, you should know all the constraints of the refinance home mortgage rate. The first and foremost point to consider is whether the total interest payment of the refinance loan saves you money by comparing to the current loan’s interest payment. And also, do not forget to add the expenditure for the refinance loan sanction with some fees and charges. If your first loan was an adjustable rate loan, and the current rate of interest is higher, then refinance home mortgage can come up as most beneficial. And same thing can be said about the fixed rate mortgages.
Refinance home mortgage rates lower the monthly payment, shortens the term period, provides a chance to switch off from adjustable rate loan to fixed rate loan, and sometimes can avail you extra cash to spend.
Refinance home mortgage rates are of two types -
(i)Fixed Rate: Here, the interest rate remains unchanged through out the term period.
(ii)Adjustable Rate: Here, the interest rate changes according to the market condition.
The investors of the second market are the key controllers of the current refinance home mortgage rates. With a flourishing economy, the future capitulates become more prospective than the present capitulates. This leads the investors to wait for the higher capitulates and leaving off the current capitulates. This results into the rising refinance home mortgage rates, because lenders restrain from presenting their loans with lower capitulates.