REO Proteams: Las Vegas Real Estate News

Weeks before the end of the huge $1.25 trillion central bank program aimed at buying mortgage backed securities are scheduled to end, mortgage rates on 30 Yr FRM’s dropped below 5 percent. The governments program is scheduled to end on March 31 of this year but the Fed has made it clear that they will be extending the program if the economy remains week.

According to a report released by mortgage company Freddie Mac last Thursday, rates on 30 Yr Fixed Rate Mortgages fell to 4.97 percent this week down from 5.05 the previous week. Rates have been averaging around the 5 percent levels largely attributed to government efforts to keep interest rates down and increase home buying interest.

This seemed to set a trend as rates across all mortgages showed significant drops from last week. Average rates on 15 Yr FRM’s stood at 4.33 percent down from last week’s 4.4 percent. ARM’s also showed improvements over last week’s numbers as 5 Yr ARMs showed 4.11 percent down from 4.16 percent. These rates however do not include fees or points which are equivalent to 1 percent of the loan’s total value.

It has also helped troubled homeowners to lower their monthly mortgage payments by applying for mortgage refinancing. The government’s mortgage refinancing program allows homeowners to lock in lower interest rates hence decreasing the amount of mortgage payments. This however would be rendered useless once the rates climb up to their previous levels.

Economist believe that once the support from the government programs are withdrawn these would have negative repercussions on the housing markets recovery. Other reports show disappointing results as existing home sales posted decreasing numbers mainly due to bad weather and the cold winter months.

Reported by REOProteams

For more information on the latest and hottest deals or how we at REOProteams.com could help you please email us at info@REOproteams.com or visit us at www.reoproteams.com or LVbargainproperties.com

30 year Mortgage rates nationwide stood at 4.98% after hovering above the 5% mark for the previous months. This was the one of the few times that mortgage rates dipped 5% after posting record lows April of this year.

Freddie Mac last Thursday released figures showing the average mortgage rates for 30 yr terms nationwide posting 4.98%. This numbers comes as a welcome as majority of home loans fall under 30 yr plans.  Current low rates and the government’s Tax Credit program has mortgage and banks hopeful that recent uptrends in homesales could be sustained by such moves.

Previous weeks have shown mortgage rates slightly inching up above the 5% ceilings after stabilizing at below 5 figures. With mortgage rates at attractive lows, home sales are starting to pickup with positive numbers being reported by real estate companies.The Real Estate industry has been reeling since the housing markets collapse which is mainly blames for the current economic crisis today.

Positive News

Continued efforts from the government has helped the Real Estate markets recover as home sales slumped and the growing number of foreclosures began to grow. The government has recently released another $1.25 trillion into mortgage backed securities like Fannie Mae and Freddie Mac in an effort to shore up interest in new home sales and help curb the growing number of foreclosures.

These programs has in turn helped push back mortgage rates to the 5% mark and even record levels earlier this year as compared to the 6% figures which were posted a year earlier. The $8,000 Tax Credit program for new home buyers has also spiked home sales as homeowners try to cash in.

With the home markets flooded with bargain properties as a direct result of the growing number of foreclosures, new homeowners have found it easier to look for homes which were previously out of their reach. Sales of previously owned homes still outpace new home sales as homebuyers cash in on this opportunity.

The president last week signed into law the extension of the hugely popular $8,000 tax credit. The program was slated to end December 1 of this year has been credited with the strong rebound in home sales. Along with the programs extension come new provisions for extending credit to homeowners not previously covered.

15 year fixed rates have also dropped by a few percentage points from week to week comparison. Rates across the nation stood at 4.40% down from 4.46% the previous week. Analysts however have described these movements as quakes or minor corrections.

Rates on five-year, adjustable-rate mortgages averaged 4.35 percent, down from last week’s 4.42 percent. Rates on one-year, adjustable-rate mortgages decreased to 4.47 percent from 4.57 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 points for 30-year loans. The fee averaged 0.6 points for 15-year, five-year and one-year loans.

Reported by REOProteams

For more information on the latest and hottest deals or how we at REOProteams.com could help you please email us at info@REOproteams.com or visit us at www.reoproteams.com or LVbargainproperties.com

You’re driving and you happen to pass by one of those suburbs just to avoid traffic. You see a house with a for sale sign on the lawn. Your just dying to own a house and been thinking a lot about leaving your apartment. Numerous financial institutions or your local bank provide opportunities like loans or mortgages.

A credit score is a term not new to you; you’ve probably used it in getting your new car. Rates are mainly based on how good your credit score is and your ability to pay your obligations. The logic is simple a good credit score means a lower rate on your mortgage. Banks or lenders view your scores all the time. Having a good credit score makes sure that you always get the best deals.

FICO or Credit Score

Developed by the Fair Isaac Corporation as a credit model, a FICO score is also known as a credit score in the United States. FICO is computed by determining an individuals credit payment history. A punctual payment gives a better score and is also the most important determining factor. Previous credit limits on credit cards and their use also is one factor. These two factors give a huge chunk chunk of the final credit score (FICO). Credit history length and types of credits used are also factors. Negative factors that pull down your overall credit scores are payment default and bankrupt history.

What makes a credit score (FICO)?

• Payment history (35%)

Credit payments in the past which are delayed or when you have defaulted pulls down your credit score. It is important that you maintain good standings with your creditors.

• Amount of debt (30%)

If you have an existing loan for example that on your car, the amount of debt is countered to your income and properties.

• Length of credit history (15%)

It is not enough that you have no outstanding payments, you should also see to it that you’ve been a credit user for a long time and has good standings with your creditors.

• Recent Credit History (10%)

Credit histories during the prior months also play a role in credit scoring. Bad credit history maybe offset if a person shows that he has significantly made improvements in payment of credit.

• Analysis of borrowers credit (10%)

This comes from a mix of credit that the borrower holds such as leases, mortgage, car loans, installments and credit cards.

To get the best deals it is important that you maintain a good credit score. With this simple breakdown of what makes up a credit score you already have a good idea on where your credit score stands. Opening multiple applications could also pull down you credit score so be sure that before you apply for that mortgage make the best decision on where to apply. Know the banks rates and compare which one gives the best deal.

Quick tip:

Before making any big decisions such as purchasing a car and getting that house you’ve always dreamt of; prioritize which is more important. Both require long term commitments, and affect your credit score.

Having an existing car loan pulls down your credit score because it affects your paying power or debt to income ratio. Inquiries on car dealerships generate credit inquiries and also affect your credit rating. Maintaining a good credit score gives you the option of getting the best deals in the market. But the best thing about maintaining that good credit score is it gives you financial maturity and makes life a little bit easier.

Report by REOProteams

For more information on the latest and hottest deals or how we at REOProteams.com could help you please email us at info@REOproteams.com or visit us at www.reoproteams.com or LVbargainproperties.com