Current Mortgage Rate
PRODUCT +/- Rate Last week
30 year fixed Graph Icon Arrow 4.09% 4.16%
15 year fixed Graph Icon Arrow 3.25% 3.30%
5/1 ARM Graph Icon Arrow 3.28% 3.36%

 Rate disclaimer

PRODUCT +/- Rate Last week
30 year fixed refi Graph Icon Arrow 4.09% 4.17%
15 year fixed refi Graph Icon Arrow 3.25% 3.34%
10 year fixed refi Graph Icon Arrow 3.15% 3.18%
PRODUCT +/- Rate Last week
60 month used car loan Graph Icon Arrow 3.20% 3.20%
48 month used car loan Graph Icon Arrow 3.18% 3.19%
60 month new car loan Graph Icon Arrow 3.44% 3.44%
PRODUCT +/- Yield Last week
6 Month CD Graph Icon Arrow 0.75% 0.71%
1 Year CD Graph Icon Arrow 1.24% 1.24%
2 Year CD Graph Icon Arrow 1.41% 1.41%
MMA and SAVINGS 0.58%
$10k MMA 0.57%
Interest Checking 0.43%
Compare Mortgage Rates
Type of Loan:
Home Description:
Your Credit Profile:

Mortgage Brokers & Lenders Directory

You can search our directory or Mortage Brokers & Lenders and get a current quote on 30 year fixed mortgage rates as well as current mortgage interest rate for other loan programs.

Mortgage Brokers:

Short Sales Volume Helps Stabilize Market for Mortgage Refinancing

Written By:
March 04, 2013 at 1:40 AM

Short Sale Sign

Last year, mortgage lenders completed more short sales transactions than foreclosures--by a three-to-one margin. Foreclosed homes accounted for about 11% of all home sales in 2012, compared to 13 % in 2011. The volume of short sales increased by 5% and made up 32% of home sales deals.

Many homeowners have been unable to qualify for a mortgage refinance and take advantage of the historic low mortgage interest rates. Some of these people elect to enter short sales transactions to get from under the financial burden of costly underwater mortgages.

Short sales

A short sale means the homeowner sells the home at a price that is less than the amount of the outstanding loan owed to the bank. The mortgage lender must agree to the short sale transaction. To qualify, homeowners must demonstrate a financial hardship. The bank forgives the borrower the amount of the difference between the unpaid loan and the short sale proceeds.

Bank saves money

Mortgage lenders began to approve more short sales after a record number 4.5 million foreclosures. The build-up in home inventory and a huge increase in the number of homeowners 90 days or more delinquent with their mortgage payments also motivated bankers to accept short sale offers..

Many bank figured out that this option cost less than foreclosure. Lenders benefit in two ways: 1) save money on maintenance property damage and foreclosure costs and 2) rid institutions of nonperforming assets on their books.

In addition, the National Mortgage Settlement--the $26 billion agreement reached between the five largest banks and government negotiators in February 2012--required lenders to approve more short sales for homeowners in financial trouble.

Since that time, lenders have directed $19 billion has gone toward forgiving debts for short sale transactions, according to a report released by the Office of Mortgage Settlement Oversight.

Short sales help market recovery

The increase in short sales has played a major role helping to create a floor for home prices, which fell an average of 35%, from 2007 to 2012, across the country. Compared to short sales, foreclosures have more of a negative impact on home values and the housing market.

Case in point, RealtyTrac reports that in the fourth quarter of 2012, foreclosure properties sold at prices an average of 39% below the market value of similar homes. In comparison, short sales, sold for an average of 23% below market prices.

As the inventory of foreclosures, and existing homes for sell have decreased, home prices have appreciated and help the housing market recovery. Based on the latest National Association of Realtors report, existing homes sales remains stable. The median home price increased to $174,100—a 12% increase on a year-over-year basis.

Building home equity and refinancing

One of the biggest obstacles for many people had been the amount of home equity. After the plunge in real estate values, by Q4 of 2011, the amount of home equity held by American homeowners dropped to the lowest point since the indicator has been tracked--$6.45 trillion.

During the first nine months of 2012, homeowners regained $1.3 trillion after home prices increased an average of 20%. As the residential real estate market continues to stabilize, and home prices to climb, more homeowners have regained the home equity and can take advantage of low mortgage interest rates.

More About Mortgage Refinance
Please sign-in with Facebook.

Mortgage Refinance by State
Alabama Mortgage Refinance Illinois Mortgage Refinance Montana Mortgage Refinance Rhode Island Mortgage Refinance
Alaska Mortgage Refinance Indiana Mortgage Refinance Nebraska Mortgage Refinance South Carolina Mortgage Refinance
Arizona Mortgage Refinance Iowa Mortgage Refinance Nevada Mortgage Refinance South Dakota Mortgage Refinance
Arkansas Mortgage Refinance Kansas Mortgage Refinance New Hampshire Mortgage Refinance Tennessee Mortgage Refinance
California Mortgage Refinance Kentucky Mortgage Refinance New Jersey Mortgage Refinance Texas Mortgage Refinance
Colorado Mortgage Refinance Louisiana Mortgage Refinance New Mexico Mortgage Refinance Utah Mortgage Refinance
Connecticut Mortgage Refinance Maine Mortgage Refinance New York Mortgage Refinance Vermont Mortgage Refinance
Delaware Mortgage Refinance Maryland Mortgage Refinance North Carolina Mortgage Refinance Virginia Mortgage Refinance
District of Columbia Mortgage Refinance Massachusetts Mortgage Refinance North Dakota Mortgage Refinance Washington Mortgage Refinance
Florida Mortgage Refinance Michigan Mortgage Refinance Ohio Mortgage Refinance West Virginia Mortgage Refinance
Georgia Mortgage Refinance Minnesota Mortgage Refinance Oklahoma Mortgage Refinance Wisconsin Mortgage Refinance
Hawaii Mortgage Refinance Mississippi Mortgage Refinance Oregon Mortgage Refinance Wyoming Mortgage Refinance
Idaho Mortgage Refinance Missouri Mortgage Refinance Pennsylvania Mortgage Refinance