What is the difference between a pre qualification and mortgage pre approval

When you are buying a home financing can seem complicated. In Kansas City real estate purchase offers must include a pre-approval letter. In some parts of the country sellers require the real estate agent to have a pre-approval letter on file before the agent is allowed to show a property. The first option is a mortgage pre-qualification which helps you to understand how much home you can afford. The second is a mortgage pre-approval letter …

Following Fed Decision, Mortgage Rates Move Lower

Average fixed mortgage rates declined following the Federal Reserve’s decision to defer a hike in the Federal funds rate, says Freddie Mac’s Primary Mortgage Market Survey®. The 30-year fixed-rate mortgage (FRM) averaged 3.86 percent with an average 0.7 point for the week ending September 24, 2015, down from the last week when it averaged 3.91 percent. A year ago at this time, the 30-year FRM averaged 4.20 percent. "Global growth concerns and lackluster inflation convinced …

Applications for Home Purchases Show 4 Percent Dip

The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2015 shows mortgage applications for new home purchases decreased by 4 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns. "Mortgage applications to home builder subsidiaries for new homes declined at a rate in line with the slowdown observed in the overall purchase mortgage market," said Lynn Fisher, MBA’s Vice President of Research and Economics. …

Mortgage Applications Report Little Change

Mortgage applications increased 0.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 17, 2015. The Market Composite Index, a measure of mortgage loan application volume, increased 0.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.4 percent compared with the previous week. The Refinance Index decreased 1 percent from the previous …

Q: Are There Such Things as No-Cost and No-Fee Loans?

A: You see promotions for them all the time.  But banking regulators have gone after lenders who misrepresent these loans.  The reality is that no-cost and no-fee loans may actually cost the borrower more over the long term because costs are often hidden by rolling them into the new loan through higher principal or interest. The rates on no-cost loans are usually about 1/2 or 5/8 of a percentage point higher than the "full cost" …