Chicago, IL (PRWEB) September 22, 2013
The Federal Savings Bank informs readers how refinance activity has declined due to climbing interest rates. While this decline is directly related to interest rates, the bank looks at the positive aspect of rising rates which is raising home values.
In a recent September 16th report from housingviews.com, data shows that the “volume of refinancing homes is down 64% from May 17th to September 6th while the volume for purchase is down 11% over the same period.”
However, for homeowners who missed the opportunity to refinance at a lower rate, they may take comfort in the fact that housing prices are rising. Higher property values give the opportunity to homeowners to cash. Many houses are rising out of negative equity which is where a large number of homeowners are waiting to sell their homes once the value turns positive. According to CoreLogic’s second quarter Equity Report, a consumer information, analytics, and business intelligence corporation, negative equity fell from -19.7% in the first quarter to just 14.5% in the second quarter. With prices trending higher, it may not be long before homeowners who are looking to move, sell their home, and pay off their mortgage rather than refinance.
While unable to avert lower interest rates, veterans are offered a zero down payment option through a va home loan. The Federal Savings Bank, a veteran owned bank, specializes in va home loans and encourages all prospective VA’s to obtain this loan when they purchase a home. “The best way to make sure our prospective veteran clients have money to pay our mortgage is to make sure they do not use it as a down payment for the home,” says Nick a banker at The Federal Savings Bank. “This way if the lien holder decides they want to settle their mortgage debt earlier then he or she may do so by simply paying larger installments with the money saved from no down payment.”
Please contact a Federal Savings Bank loan officer if interest in obtaining a competitive rate mortgage.