2011 Trends for Mortgage Loan

There should be financial experts borrower filed a new mortgage loan or pay off their home loans at the right time for each, rather than trying to time the market. While enthusiastic risk takers can wait until the last minute to lock in low interest rate loan, the homeowner is the best and most home buyers to look at trends in the mortgage market in general and more sharply focus their own money.

Mortgage Rate forecast specifically for a certain period of time is almost impossible for many people, but the real estate market observers have identified several trends that they expect will affect the mortgage market in 2011:

• Mortgage Rate will rise slowly during the year
  The Mortgage Bankers Association (MBA) expects a slight increase in 2011 rates, hovering around 5% and increase to around 6% in 2012. Holden Lewis of Bankrate write this down before the economy has been estimated that the increase in mortgage rates during the third quarter of 2010. At the end of 2010, mortgage rates began to come out of the range is slightly above 4% and 5%. Although no increase in mortgage rates is not pleasant for homeowners who want to refinance or buyer, the mortgage is 5%, interest rates are still low by historic district.

• Would require a reduction in the number of mortgages 
  MBA predicts that total mortgage origination for 2011 dropped to less than 1 trillion U.S. dollars, driven by weak economic growth and lack of trust.

• Mortgage refinancing applications will fall
  Mortgage refinancing has represented the bulk of all mortgage applications in any given week this year, with refinancing applications accounting for about 80% of all mortgages written this year. MBA predicts that refinancing activity dropped below 40% of all mortgages in 2011 and decline further to 26% of all mortgages in 2012. Not only reduce the rate of increase in demand for mortgage refinancing, but the shrinking pool of quality home owner. There are homeowners who could qualify as possible to do this in 2010, and others who have difficulty with the agreement for an equity loan or a credit or challenges of reduced revenues.

• Mortgage applications for purchases will be at home where most of the market
  MBA predicts that prices will stabilize in the home and small increases in home sales increase in the number of mortgage applications for home purchase.

• Jumbo mortgages will be more interesting 
  In 2009 and early 2010, mortgage rates for jumbo loans (loans greater than $ 417,000 in the housing market and higher than $ 729,750 in high cost housing markets) is far higher than the mortgage rate loans for compliance. a higher level to prevent homeowners from refinancing and keep some buyers from the market for more expensive homes. In Q4 of 2010, jumbo mortgage loan interest rates decline, refinancing may be driving the application and request to buy high-end residential market.

• All cash purchases because most of the market
  Lawrence Yun, chief economist of the National Association of Realtors (Nar), says that represents all of the purchase-money under one-fourth of the purchase of an existing home in the last four months of 2010. It is hoped that all cash purchases to continue to represent the bulk of the market in 2011.

• Mortgage loan process will be slow and complex
  Holden Lewis of Bankrate said the number drops even if the loan application, lenders expected that the time between last application and continues to take about 60 days. In fact, many lenders recommend the green 60, 75 or even 90 days to ensure that the loan process to finish in the balance. The issue of a new phase but the documentation and verification needed for loan approval initiative. Other issues that are slowing the application notes that refinancing second mortgage or home equity lines of credit, which must be subordinated to the first loan back when refinancing. Getting a lender agrees to take care of home equity loans at the two positions can be time consuming.

Bottom Line
While the effect of general trends in the overall mortgage on the real estate market, every home owner or buyer considers mortgage lender filed to comply with determining the cost and availability of the loans it needs. There is no problem having bad credit mortgage, because due to economic crisis many people are suffering bad credit.