ABBA First Mortgage News

About credit scores

May 14th, 2016

Nearly one in five consumers have a FICO credit score that is 800 or higher. The percentage has slightly risen from 19.9 percent currently from 19.6 percent six months earlier, according to the Fair Isaac Corp. As such, fewer consumers have credit scores below 550, a steady decline that has been appearing since late 2009. Since Fair Isaac Corp. started tracking in October 2005, the national FICO score is at an all-time high at 695. The improvement in credit scores does seem to be showing some signs of leveling off, however. FICO scores are one of three key metrics lenders use to evaluate prospective borrowers and determine rates on home loans. The rates borrowers get between the highest and lowest acceptable FICO scores can vary by more than 2.4 percent. Source: Real Estate Economy Watch

If your credit score is low and you would like to be given advice on how to improve it and become more eligible for a mortgage transaction, please call ABBA First Mortgage and ask for Rich Biagini.

Is it smart to buy a second home?

May 7th, 2016

Can you afford the luxury of having a vacation home?  Purchasing a secondary residence is no longer just for the rich and famous. According to the National Association of Realtors®, vacation home sales topped out at 920,000 in 2015. As the economy improves, incomes are increasing and so are real estate values. Buying a second home is again viewed as a solid investment for the average family. Some buyers pay cash, but others finance their new vacation spot with a new loan; either financing the new home with a mortgage at a very low rate or refinancing and taking cash out of a home they already own. Today’s marketplace offers a number of different loans and strategies to purchase that vacation, weekend, or otherwise part-time home. The good news is — a second home is often within reach for the average homeowner.  Please call me here at ABBA First Mortgage to discuss what mey be the best route for you to take.

Rates down. Home prices rising. Buy now! Refinance now!

May 3rd, 2016

Falling interest rates would have spelled significant mortgage savings for home buyers this year – but rising home prices have cut deeply into those savings, according to a new study.  PLEASE take advantage of these low rates ASAP to be assured of some of the most beneficial opportunities when buying a home or when trfinancing.  As housing prices continue to rise, so may interest rates and the advantages of getting the biggest bang for your buck become less apparent.  The bottom line is that in the future, your dollar may not go nearly as far and the amount that you spend on a home may be have to be less than what you can afford to buy today.

Are rates really stable?

April 27th, 2016

Rates continued to be stable in the past week, hovering near their lowest levels in almost three years. This stability comes after two weeks of deterioration which brought rates up slightly.  Freddie Mac announced that, for the week ending April 21, 30-year fixed rates rose one tick to 3.59% from 3.58% the week before. The average for 15-year loans was slightly lower at 2.85%. A year ago, 30-year fixed rates were at 3.65%, close to today’s levels.

According to Sean Becketti, chief economist of  Freddie Mac — “The release of March’s existing-home sales report, which shows monthly growth at 5.1 percent, suggests homebuyers are taking advantage of low rates as the spring homebuying season gets underway.”

ABBA First Mortgage suggests moving forward with your home buying or refinancing plans at this stage of the game.  Around the beginning of 2015 we saw the lowest rates in quite a number of years.  We touched down to that level 2-3 weeks ago but the market could not sustain that improved pricng and has worsened slightly to where we are today.  They say tomorrow is another day.  I say- set the table and be prepared to lock in your interest rate at a moment’s notice.  Call me toll free at 866-676-3349 and let ABBA First meet your needs and desires.

 

Ok- where do rates go from here?

April 12th, 2016

Rates on home loans fell to their lowest point in over a year in reaction to the Fed announcement in mid-March and subsequent comments by the Fed.  Freddie Mac announced that, for the week ending April 7, 30-year fixed rates fell to 3.59% from 3.71% the week before.  The average for 15-year loans was also lower at 2.88%.  The average for five-year adjustables decreased to 2.82%.   A year ago, 30-year fixed rates were at 3.66%, virtually the same as today’s levels. Attributed to Sean Becketti, chief economist, Freddie Mac — “Rates on home loans this week registered the delayed impact of last week’s sharp drop in Treasury yields, as the 30-year rate fell 12 basis points to 3.59 percent. This rate marks a new low for 2016 and matches last year’s low in February 2015. Low rates and a positive employment outlook should support a strong housing market in the second quarter of 2016.”

This suggests that although we are flirting with the lows of a lifetime, nothing is carved in stone and rates can easily move up and away from us.  Will job growth continue?  Will the global economy improve?  Can we expect to see corporate profits increasing?  If the answer to any of these questions is negative, our low interest rates may be short lived.  Consider taking advantage of the lows while they are still available to you for purchasing and for refinancing.  Call us for our better than market rates for all your needs!

Mortgage rates improving

April 8th, 2016

The mortgage market improved again this week and rates are hovering near their best levels in the past 14 motnhs.   The improvement resulted from something other than reports about the US economic data which shows to be much better than the overall global economy.  It seems that we are on the right track to recovering and the Federal Reserve has suggested that they will raise the bank rate slowly over the remaining portion of this year.

However, rates are low NOW and we suggest that you move forward by making plans to refinance your existing mortgage and/or buying the dream home that you may have felt the mortgage payment was out of range.  It may not be!  Please call us at 910-332-0650 extension 101, to find out how beneficial the next new mortgage that you finance through ABBA First actually is!

Loan Originators Lose 4200 jobs-Not “lol” stuff!

April 4th, 2016

The mortgage industry cut more than 2,000 employees in February, according to new data from the Bureau of Labor Statistics. Nonbank mortgage lenders pink-slipped 2,200 fulltime employees in February, the BLS reported. That follows the layoff of 2,000 employees in January. Total jobs in the nonbank mortgage space fell from January’s 299,000 to 296,800 in February. However, that’s still 4.3% higher than total nonbank mortgage employment in 2015. The decline in mortgage employment could be a response to difficulties faced by the imposition of TRID, according to a National Mortgage News report. It may also be a reaction to the recent stock market slide. But there is reason to be hopeful that the slide may reverse. Pending home sales hit their highest level in seven months in February, according to the National Association of Realtors. And steady job growth and relatively low mortgage rates have prompted an increased demand for single-family homes, National Mortgage News reported. The BLS reported that 215,000 new jobs were created last month.

ABBA First Mortgage has been in business since 2005-in the midst of a terrible time in the mortgage industry.  Thanks to our faith in God and perserverence to bring the best loan programs, prosucts and service to the public, we have endured the trials of this industry.  We continue to seek wisdom in all that we say and do to bring our clients the sense  of comfort and trust that they are being treated well.  Please call us at 910-332-0650 ext. 101 to experience this yourself during the mortgage process that is evolving using TRID (Tila-Respa-Integrated-Disclosure), better known as the Know Before You Owe Act.

Are you ready to refinance and save money?

March 28th, 2016

Rates on home loans have been historically low for several years, but a surprising number of borrowers are still not taking advantage even though rates fell again at the start of this year. How many? Close to 7 million. After the Federal Reserve raised its target interest rate in early December, the common expectation was that rates on home loans would rise. “Global economic shocks then sent investors looking for the safety of U.S. Treasurys, driving down yields on benchmark 10-year bonds. Rates began to fall in defiance of prevailing wisdom, and the refinanceable population grew by 30 percent in the first six weeks of 2016,” said Ben Graboske, Black Knight Data & Analytics senior vice president. By the end of February, 6.7 million borrowers could have saved an average of $3,000 per year, representing a total of $20 billion in potential annual savings, according to an analysis by Black Knight. These borrowers have enough equity in their homes and high enough credit scores to qualify for refinances. “It’s lack of awareness of the opportunity, and how to act on it,” added Graboske. How much does that translate into on a monthly payment? More than 3 million borrowers could save $200 a month or more; nearly 1 million could save $400 a month or more. Though refinance applications have increased in the past two months, millions of borrowers are still sitting on the sidelines, perhaps unaware of the savings.

It is to your advantage to call us today to find out about the savings that you may have available to you and your needs.  If you can save money, ABBA First will show you just how much you can save today rather than wait for rates to drop further, which incidentally, may never happen.  Please take advantage of having an improved lower, mortgage payment today with little to NO CLOSING COSTS required.

Call toll free 866-676-3349 ext. 101.

So far this week…

March 23rd, 2016
  • Rates on home loans inched higher again in the past week.
  • Freddie Mac announced that, for the week ending March 17, 30-year fixed rates rose to 3.73% from 3.68% the week before.
  • The average for 15-year loans was also moderately higher at 2.99%.
  • The average for five-year adjustables increased slightly to 2.93%.
  • A year ago, 30-year fixed rates were at 3.78%, very close to today’s levels.
  • Attributed to Sean Becketti, chief economist, Freddie Mac — “Treasury yields increased heading into this week’s FOMC meeting, partially in response to modestly higher inflation readings. 30-year fixed rates kept pace, rising 5 basis points to 3.73 percent. Nonetheless, at the meeting the Fed confirmed what the market had already concluded and made no change to the Federal funds target. The Fed went further and acknowledged that economic signals have been mixed and that the pace of monetary tightening may be slower than had been assumed at the end of 2015.”

ABBA First would like to walk with you through the process of obtaining your next mortgage.  Please call us and find out why so many borrowers are singing the prises of their mortgage transaction with us.  Call 910-332-0650 M-F 9-6 and even on Saturday 9-12 to speak with a mortgage professional who can answer your questions about which mortgage product is best for you.

Finance your home while rates remain low!

March 21st, 2016

Low borrowing costs should continue to support the housing industry. Federal Reserve policy makers last week held off on raising interest rates and scaled back forecasts for how high they’ll go this year, citing the potential impact on the U.S. economy from weaker global growth and financial-market turmoil. The average rate of a 30-year, fixed-rate mortgage was 3.73 percent in the week ended March 17, according to data from Freddie Mac. That’s little changed from 3.78 percent a year earlier and compares with a 3.31 percent rate reached in late 2012 that was the lowest in records back to 1971.  ABBA First Mortgage leads the way with a rate that saves money for potential borrowers.  Please give us a call to be part of that select group of buyers to finance their mortgages at a  rate better than the lowest advertised elsewhere.