Susan Tompor: Mortgage rates could stay low for weeks, months — but there's a catch
Super-low mortgage rates, which took hold back in early April, are now amazingly stretching into summer, giving many who didn’t refinance yet a second chance.“The average 30-year fixed mortgage rate is 3.56%, close to the record low of 3.50%,” said Greg McBride, chief financial analyst at Bankrate.com.Essentially, mortgage rates have hovered below 3.6% ever since the U.S. economy was rocked by widespread shutdowns to stem the spread of COVID-19, particularly in major metros such as Detroit and New York.The average 30-year rate was 3.9% back in December and 4.54% back in late February 2019.What...
Detroit Free Press
Susan Tompor: How to hit pause button on mortgage payments during the coronavirus crisis
Disheartening levels of jobless claims will likely drive more homeowners to seek mortgage relief in the weeks ahead.Already almost 4 million homeowners were on forbearance plans as of May 3, according to the Mortgage Bankers Association.The Coronavirus Aid, Relief and Economic Security Act — or CARES Act — provides borrowers with home loans the right to request a temporary suspension of payments on federally backed mortgages.Forbearance is a temporary fix but it may be worth exploring in order to avoid a foreclosure down the road.In March, lenders might have initially offered to let homeowners...
Detroit Free Press
Guaranteed Rate to pay $15 million to settle allegations it made false claims to get federal mortgage loan backing
CHICAGO — Chicago-based lender Guaranteed Rate has agreed to pay the government $15 million to settle a federal whistleblower lawsuit alleging it knowingly made false claims to get government insurance for home loan mortgages.Guaranteed Rate and other lenders participating in insurance programs with the Federal Housing Administration and Department of Veterans Affairs can underwrite mortgage loans without first getting government approval. If the borrower of an FHA- or VA-backed loan defaults, the government is on the hook for the losses.The 2017 lawsuit filed in a New York federal court by a ...
Most homeowners can skip mortgage payments for up to a year, regardless of what their banks say
Here’s some coronavirus relief your bank or home loan servicer might not be telling you:New federal coronavirus relief measures enable most homeowners with mortgage loans to put off making their mortgage payments for a full year.And once we get back to normal, those borrowers will have the option to tack those missed payments to the end of their loan terms.Your credit won’t suffer.Yet, on social media pages of some of the nation’s largest banks, consumers say customer service representatives are offering them the opportunity to skip only three months of payments, and they’re saying those payme...