Mortgage News

Mortgage News from Quicken Loans

Mortgage rates are still very low and offer lots of opportunity for home buyers and anyone interested in refinancing! Many specific factors are taken into account to determine which mortgage rate you’ll qualify for, but here are some general rates for Tuesday, February 24, 2009 (as of 6 pm EST). Find our rates below - each with their respective loan programs. Don't forget to check out the assumptions we make for these rates. The assumptions may not apply to everyone, but are a way for us to offer rates based on some specifics.

Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.

Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Tuesday, February 24, 2009 (as of 6 pm EST) are as follows:

• 30-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,528
  • Mortgage Rate - 4.875%
  • APR - 5.044%
  • Points - 1.5
• 30-Year VA Loan
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,563
  • Mortgage Rate - 5.00%
  • APR - 5.215%
  • Points - 2
• FHA Express
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,668
  • Mortgage Rate - 5.00%
  • APR - 5.181%
  • Points - 1.625
• 15-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $2,064
  • Mortgage Rate - 4.25%
  • APR - 4.595%
  • Points - 1.875

Rates will vary based on your specific situation. For these rates, we do make a few assumptions, including: Mortgage rates could change daily. Actual payments will vary based on your individual situation and current rates. Some products may not be available in all states. Lending services may not be available in all areas. Some restrictions may apply. Based on the purchase/refinance of a primary residence.

We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 720. The lock period for your rate is 45 days. If your LTV is above 80%, PMI will be added to your monthly mortgage payment. Please remember that we don't have all your information that we might need to give you an actual mortgage rate that you can qualify for and lock. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Quicken Loans offers over a hundred loan products. You may still qualify for a loan even if your situation doesn't match our assumptions.

While these are today's rates based on the above assumptions, you can get more accurate results -- customized with your specific information -- by talking with a Quicken Loans mortgage banker directly.

Just give us a call at {PHONE}, and we can give you the exact rate and payment based on your info. This could be the best time for your to purchase a home or refinance based on these rates. Call us to find out if the time is right for you!

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

Mortgage rates are still very low and offer lots of opportunity for home buyers and anyone interested in refinancing! Many specific factors are taken into account to determine which mortgage rate you’ll qualify for, but here are some general rates for Monday, February 23, 2009 (as of 1 pm). Find our rates below - each with their respective loan programs. Don't forget to check out the assumptions we make for these rates. The assumptions may not apply to everyone, but are a way for us to offer rates based on some specifics.

Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.

Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Monday, February 23, 2009 (as of 1 pm) are as follows:

• 30-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,528
  • Mortgage Rate - 4.875%
  • APR - 5.055%
  • Points - 1.625
• 30-Year VA Loan
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,638
  • Mortgage Rate - 5.50%
  • APR - 5.652%
  • Points - 1.25
• FHA Express
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,668
  • Mortgage Rate - 5.00%
  • APR - 5.192%
  • Points - 1.75
• 15-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $2,064
  • Mortgage Rate - 4.25%
  • APR - 4.595%
  • Points - 1.875

Rates will vary based on your specific situation. For these rates, we do make a few assumptions, including: Mortgage rates could change daily. Actual payments will vary based on your individual situation and current rates. Some products may not be available in all states. Lending services may not be available in all areas. Some restrictions may apply. Based on the purchase/refinance of a primary residence.

We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 720. The lock period for your rate is 45 days. If your LTV is above 80%, PMI will be added to your monthly mortgage payment. Please remember that we don't have all your information that we might need to give you an actual mortgage rate that you can qualify for and lock. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Quicken Loans offers over a hundred loan products. You may still qualify for a loan even if your situation doesn't match our assumptions.

While these are today's rates based on the above assumptions, you can get more accurate results -- customized with your specific information -- by talking with a Quicken Loans mortgage banker directly.

Just give us a call at {PHONE}, and we can give you the exact rate and payment based on your info. This could be the best time for your to purchase a home or refinance based on these rates. The only way you'll know for sure is to call.

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

What do we know about the $8,000 Tax Credit for this year's first time home buyers -- Part of the new $787 Billion Stimulus Plan? Here, we'll shed some light on the bill that has house hunters talking.

What's different about this year's first-time home buyer's tax credit?

Well, let's talk about the obvious difference. Last year's tax credit for first-time home buyers was for $7,500, so this year's $8,000 credit will give you an additional $500 or up to 10% of the purchase price of your home (whichever is less). But the biggest difference between the two in the eyes of a home buyer is probably this: Last year's tax credit had to be paid back over the following 15 years. In essence, it was an interest-free loan. But this year's tax credit is exactly that, a credit. The $8,000 does not have to be paid back at any time.

Who can qualify for the $8,000 first-time home buyer's tax credit?

At this point in time, those who purchased their first home in 2008 under the provisions of the former $7,500 credit won't qualify for the upgraded plan. House hunters who buy their homes between Jan. 1 and Dec. 1 of 2009 could qualify for the $8,000 (true) credit. There are, of course, particular criterion for qualifying:

• To qualify as a "first-time home buyer" you must have not owned or co-owned a home within the three years prior to this year's closing date.

• Household income is a factor as well. To be eligible, adjusted gross income for single taxpayers can be up to $75,000, and $150,000 for dual-income families filing jointly.

• The new $8,000 tax program also allows purchases financed with state and local tax-exempt mortgage-revenue-bond programs -- different from last year's tax incentive.

• As a first-time home buyer, you should know that your new home must be used as you principal residence (not a second home or investment property).

How will the $8,000 first-time home buyers tax credit help?

Good question. There's no telling for sure, but the National Association of Realtors projects that 300,000 more houses will sell during 2009 as a direct result of the new $8,000 credit. If you're considering buying a home, there's no better time. So get your real estate agent and your pre-approval and hop to home shopping. If you've owned a home previously, be sure to time your new purchase appropriately (3 years out) so that the closing date allows for you to take advantage of this new credit.

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

Mortgage rates continue to remain very low and offer great opportunity for home buyers and anyone interested in refinancing! Many specific factors are taken into account to determine which mortgage rate you’ll qualify for, but here are some general rates for Friday, February 20, 2009 (as of 5 pm). Find our rates below - each with their respective loan programs, and read below that our assumptions we make for these rates. The assumptions may not apply to everyone, but are a way for us to offer rates based on some specifics.

Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.

Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Friday, February 20, 2009 (as of 5 pm) are as follows:

• 30-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,528
  • Mortgage Rate - 4.875%
  • APR - 5.067%
  • Points - 1.75
• 30-Year VA Loan
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,563
  • Mortgage Rate - 5.00%
  • APR - 5.204%
  • Points - 1.875
• FHA Express
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,668
  • Mortgage Rate - 5.00%
  • APR - 5.17%
  • Points - 1.5
• 15-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $2,079
  • Mortgage Rate - 4.375%
  • APR - 4.683%
  • Points - 1.625

Rates will vary based on your specific situation. For these rates, we do make a few assumptions, including: Mortgage rates could change daily. Actual payments will vary based on your individual situation and current rates. Some products may not be available in all states. Lending services may not be available in all areas. Some restrictions may apply. Based on the purchase/refinance of a primary residence.

We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 720. The lock period for your rate is 45 days. If your LTV is above 80%, PMI will be added to your monthly mortgage payment. Please remember that we don't have all your information that we might need to give you an actual mortgage rate that you can qualify for and lock. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Quicken Loans offers over a hundred loan products. You may still qualify for a loan even if your situation doesn't match our assumptions.

While these are today's rates based on the above assumptions, you can get more accurate results -- customized with your specific information -- by talking with a Quicken Loans mortgage banker directly. Just give us a call at {PHONE}, and we can give you the exact rate and payment based on your info. Why wait? You never know when rate will go up again!

Have a great weekend and check back Monday when the market reopens for updated mortgage rates from Quicken Loans.

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

Mortgage rates continue to remain very low and offer great opportunity for home buyers and anyone interested in refinancing! Many specific factors are taken into account to determine which mortgage rate you’ll qualify for, but here are some general rates for Thursday, February 19, 2009 (as of 6 pm). Find our rates below - each with their respective loan programs, and read below that our assumptions we make for these rates. The assumptions may not apply to everyone, but are a way for us to offer rates based on some specifics.

Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.

Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Thursday, February 19, 2009 (as of 6 pm) are as follows:

• 30-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,528
  • Mortgage Rate - 4.875%
  • APR - 5.067%
  • Points - 1.75
• 30-Year VA Loan
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,563
  • Mortgage Rate - 5.00%
  • APR - 5.204%
  • Points - 1.875
• FHA Express
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,668
  • Mortgage Rate - 5.00%
  • APR - 5.17%
  • Points - 1.5
• 15-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $2,079
  • Mortgage Rate - 4.375%
  • APR - 4.683%
  • Points - 1.625

Rates will vary based on your specific situation. For these rates, we do make a few assumptions, including: Mortgage rates could change daily. Actual payments will vary based on your individual situation and current rates. Some products may not be available in all states. Lending services may not be available in all areas. Some restrictions may apply. Based on the purchase/refinance of a primary residence.

We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 720. The lock period for your rate is 45 days. If your LTV is above 80%, PMI will be added to your monthly mortgage payment. Please remember that we don't have all your information that we might need to give you an actual mortgage rate that you can qualify for and lock. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Quicken Loans offers over a hundred loan products. You may still qualify for a loan even if your situation doesn't match our assumptions.

While these are today's rates based on the above assumptions, you can get more accurate results -- customized with your specific information -- by talking with a Quicken Loans mortgage banker directly. Just give us a call at {PHONE}, and we can give you the exact rate and payment based on your info. Why wait? You never know when rate will go up again!

Check back tomorrow and we'll have new mortgage rates from Quicken Loans. Until then, have a great evening!

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

Last week, the number of Americans applying for mortgages increased from the previous week, according to a report released today by the Mortgage Bankers Association (MBA).

The Index, which measures and compares mortgage loan application volume from week to week, showed that for the week ending February 13, mortgage activity increased 45.7% from the previous week’s numbers. The number of refinance mortgage applications surged 64.3%, while applications from those seeking to purchase a home rose 9.1%.

“Mortgage applications rebounded nicely after last week’s 25% drop in activity. This is likely due to mortgage interest rates that have stabilized in a very attractive range after seeing some increases the week prior,” said Bob Walters, Chief Economist, Quicken Loans.

“But the real reason for the strong activity is simple – housing and financing have become affordable. This is what is driving mortgage activity, and should continue to do so as long as rates remain at these levels.”

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

President Barack Obama just introduced a $75 billion foreclosure-fix plan that his administration claims will aid up to nine million homeowners. Here is an overview of the plan through Q&A from the White House Blog. It can also be found in the Treasury's FAQ. Questions are in bold.

Treasury Department's Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan

Borrowers Who Are Current on Their Mortgage Are Asking:

What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

How do I know if I am eligible?

Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.

Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

What are the interest rate and other terms of this refinance offer?

The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?

To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

When can I apply?

Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:

• information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
• your most recent income tax return
• information about any second mortgage on the house
• payments on each of your credit cards if you are carrying balances from month to month, and
• payments on other loans such as student loans and car loans.

Borrowers Who Are at Risk of Foreclosure Are Asking:

What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and © your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification.

I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.

I heard the government was providing a financial incentive to borrowers. Is that true?

Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?

Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes

• information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources
• your most recent income tax return
• information about any second mortgage on the house
• payments on each of your credit cards if you are carrying balances from month to month, and
• payments on other loans such as student loans and car loans.

My loan is scheduled for foreclosure soon. What should I do?

Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort.

That's what we know for now. Quicken Loans Mortgage News will keep you updated as more information comes in on this groundbreaking plan.

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

Today is Tuesday, February 17, 2009, and today's the day President Obama signs the Stimulus Bill.

Mortgage rates are still very low and offer lots of opportunity for home buyers and anyone interested in refinancing! Many specific factors are taken into account to determine which mortgage rate you’ll qualify for, but here are some general rates for Tuesday, February 17, 2009 (as of 2 pm). Find our rates below - each with their respective loan programs, and read below that our assumptions we make for these rates. The assumptions may not apply to everyone, but are a way for us to offer rates based on some specifics.

Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.

Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Tuesday, February 17, 2009 (as of 2 pm) are as follows:

• 30-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,510
  • Mortgage Rate - 4.75%
  • APR - 4.962%
  • Points - 2
• 30-Year VA Loan
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,563
  • Mortgage Rate - 5.00%
  • APR - 5.204%
  • Points - 1.875
• FHA Express
  • Monthly Mortgage Payment (includes taxes and insurance) - $1,668
  • Mortgage Rate - 5.00%
  • APR - 5.17%
  • Points - 1.5
• 15-Year Fixed
  • Monthly Mortgage Payment (includes taxes and insurance) - $2,064
  • Mortgage Rate - 4.25%
  • APR - 4.595%
  • Points - 1.875

Rates will vary based on your specific situation. For these rates, we do make a few assumptions, including: Mortgage rates could change daily. Actual payments will vary based on your individual situation and current rates. Some products may not be available in all states. Lending services may not be available in all areas. Some restrictions may apply. Based on the purchase/refinance of a primary residence.

We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 720. The lock period for your rate is 45 days. If your LTV is above 80%, PMI will be added to your monthly mortgage payment. Please remember that we don't have all your information that we might need to give you an actual mortgage rate that you can qualify for and lock. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Quicken Loans offers over a hundred loan products. You may still qualify for a loan even if your situation doesn't match our assumptions.

While these are today's rates based on the above assumptions, you can get more accurate results -- customized with your specific information -- by talking with a Quicken Loans mortgage banker directly. Just give us a call at {PHONE}, and we can give you the exact rate and payment based on your info. Why wait? You never know when rate will go up again!

By the time you read this, the Stimulus Bill should have been signed. We'll have to see how the economy reacts! As always, tomorrow we'll have new mortgage rates! We'll see you then.

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

We've been writing a lot about the American Recovery and Reinvestment Act and today it's official.

That's right. President Obama signed the Act, commonly known as the Stimulus Bill, into law today and the effects hopefully will be felt soon.

It wasn't an easy ride for the President in his first few months in office. In fact, the legislation was split almost completely down partisan lines. And many experts consider the hard part of all this is yet to come. According to cnn.com there is nothing easy or simple about the Stimulus plan and implementing it will be challenging:

"Far more difficult will be gauging whether the legislation's trademark initiatives - which include improving physical infrastructure, investing in energy projects and providing financial relief for families by way of tax cuts and increased government benefits -- are really doing the trick.

The first step is to stem the recession in the near term. In the longer term it will be to put the economy on a path to sustained growth and greater efficiencies in energy production, health care and other areas.

So how will we know if it's working? What will be the signs? The president and economists say the biggest marker will be an improvement in the jobs picture.

"That's bottom-line number one, because if people are working, then they've got enough confidence to make purchases, to make investments," Obama said last week before the bill's passage. "Businesses start seeing that consumers are out there with a little more confidence, and they start making investments, which means they start hiring workers. So step number one, job creation."

The official benchmark estimates from the White House: 3.5 million jobs will be created or saved over the next two years, and over 90% of them will be in the private sector."

To review, the main parts of the plan that affect homeowners or mortgage customers are:

• An $8,000 tax credit for first-time home buyers that will not have to be paid back. That’s right. It’s non-refundable! This is an big change and improvement over the current $7,500 tax credit approved last year, which had to be paid back gradually over a period of 15 years and was set to expire in July 2009. Here’s how the $8000 tax credit works : First-time home buyers: (defined as anyone who hasn’t owned a home for at least three years) who purchase a home between January 1 and December 1, 2009 will receive a refundable tax credit of up to $8000. The tax credit amount is based on 10% of the purchase price of your home, up to $8,000. In other words, homes valued over $80,000 will only get the max $8,000 tax credit. The credit doesn't have to be repaid, but homeowners much keep their homes for at least 3 years to qualify.
• Limits on reverse mortgage HECM loans will rise to $625,500 until the end of 2009 - at which time the new limit will be reviewed and possibly extended (but it's not guaranteed). The current limit (until tomorrow) is $417,000, so this opens up reverse mortgage options for many seniors.
• Rising conforming loan limits (that sounds like a tongue twister) to $729,750 in high-cost areas for FHA loans. That means that homes in areas with more expensive real estate can continue enjoying the benefits (low mortgage rates with easy qualifying) of FHA loans.
• Financing for states for construction and rehabilitation of low-income housing.
• Funding for rural housing loan programs, with up to 100% financing.
• Grants for energy efficient housing retrofits, and tax credits for energy efficient upgrades expanded through 2010.

That's all there is as of now. The world is watching. Let's hope they enjoy what they see!

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.

Mortgage News from Quicken Loans

Unless something completely unexpected happens, President Obama is expected to sign the American Recovery and Reinvestment Act of 2009 (better known as the Stimulus Bill) tomorrow, February 16, 2009. It’s a huge and mind-boggling piece of legislation, but the good news is that the part most affecting mortgages and real estate can be summed up by the following points:

• The best news - an $8,000 tax credit for first-time home buyers that will not have to be paid back. That’s right. It’s non-refundable! This is an big change and improvement over the current $7,500 tax credit approved last year, which had to be paid back gradually over a period of 15 years and was set to expire in July 2009. Here’s how the $8000 tax credit works : First-time home buyers: (defined as anyone who hasn’t owned a home for at least three years) who purchase a home between January 1 and December 1, 2009 will receive a refundable tax credit of up to $8000. The tax credit amount is based on 10% of the purchase price of your home, up to $8,000. In other words, homes valued over $80,000 will only get the max $8,000 tax credit. The credit doesn't have to be repaid, but homeowners much keep their homes for at least 3 years to qualify.
• Great news for seniors - limits on reverse mortgage HECM loans will rise to $625,500 until the end of 2009 - at which time the new limit will be reviewed and possibly extended (but it's not guaranteed). The current limit (until tomorrow) is $417,000, so this opens up reverse mortgage options for many seniors.
• Pretty good news - confirming conforming loan limits (that sounds like a tongue twister) to $729,750 in high-cost areas for FHA loans. That means that homes in areas with more expensive real estate can continue enjoying the benefits (low mortgage rates with easy qualifying) of FHA loans.
• Uplifting news - financing for states for construction and rehabilitation of low-income housing.
• Spreading the wealth news - Funding for rural housing loan programs, with up to 100% financing.
• Innovative news - Grants for energy efficient housing retrofits, and tax credits for energy efficient upgrades expanded through 2010.

Again, it would take something very unexpected to stop the stimulus bill from being approved. From all signs, it’s full steam ahead. The White House blog reports today that the President is very excited about the bill.

Now we all just have to hope it works as intended and hope it helps the real estate market rebound from its current slump.

This article is reprinted by permission from Quicken Loans © 2009 Quicken Loans Inc. All rights reserved.