Tag Archives: info

2011 had lowest mortgage rates on record

You’ve probably been hearing all year long how mortgage interest rates were at record lows.

Now, the final data is in. And it shows that 2011 had the lowest average interest rates in the 41 years that mortgage giant Freddie Mac has been tracking loan rates.

Specifically, the U.S. average was 4.45% on the 30-year fixed-rate mortgage, Freddie Mac reported. That beats the previous low of 4.69% set in 2010.

The past two years are the only ones in Freddie Mac’s records in which the annual average rates were below 5% for a 30-year, fixed-rate loan. In 1981, 30-year mortgage rates averaged nearly 17%. As recently as 2008, rates were averaging above 6%.

Interest rates fell below 4% for the first time in Freddie Mac’s data in October – and stayed at or below 4% for the last nine weeks of the year. Thirty-year rates set six records last year, falling to an all-time low of 3.91% on Dec. 22.

Other types of mortgages were in record territory as well. According to Freddie Mac:

  • Fifteen-year, fixed-rate mortgages set eight records in 2011, falling to an all-time low of 3.21% on Dec. 15.
  • Five-year, adjustable-rate mortgages set nine records in 2011, falling to an all-time low of 2.85% on Dec. 22.
  • One-year, adjustable-rate mortgages set 14 records in 2011, falling to an all-time low of 2.77% on Dec. 22.

The record low mortgage rates failed to spark a revival in the housing market, with fewer buyers able to qualify for a loan or able to afford to purchase a home. Overall, local and U.S. home sales remain well below average levels.

This article is from the Orange County Register; read it here: 2011 had lowest mortgage rates on record.”

Mortgage Modifications are a Mess

You have probably heard about the robo-signing fiasco and the fact that mortgage modifications are grinding to a standstill. We’re also seeing foreclosures occur after a modification has been approved–even occasionally when borrowers have the ability to make the payments. The whole process is a mess, and according to a top federal regulator, major U.S. banks are about to be penalized for “critical deficiencies” and shortcomings in their handlings of foreclosures.

One of the problems is that it is in loan servicers’ best interest to stall a foreclosure or modification.  This is because they can continue to charge fees while they’re servicing the loans. They charge fees for paying taxes, sending payments to the investors after receipt from borrower, maintaining records, etc.–and those “nickels and dimes” add up.

Having gone through the modification process firsthand, I can confirm that the process is daunting at best. The most painful part was when I had to pay 11% interest on my $400,000-first mortgage when the loan was adjusting at one point; only to have the bank tell me (on multiple occasions over a three-year period) that I either made too much money…or not enough. I went to court to stop a threatened foreclosure, but I still had to pay the ridiculous interest until my modification was approved.

While I won the victory of a modification, every situation is different. Like probably many of you, I’m still upside-down on the property, but at least I’ve lowered my payments while I await the market’s recovery.

In the interim, the Controller of the Currency and Federal Deposit Insurance Corp. has put sanctions on the banks, as I mentioned above, but the sanctions barely amount to a slap on the wrist. The reality is that the regulating agencies have a history of negatively impacting borrower’s rights rather than protecting them. So where does this leave you if you are fighting to keep your homes?

My personal experience has inspired me to grow my expertise in this area so that I can help others. No American should be subject to the whims of the system, and no American family should lose their home because of the negligent practices of a third party. If you need help fighting through the process, give me a call. I’ll stand by your side.

John A Silva
www.johnasilva.com
619-890-3648