I have a confession to make here.  My husband’s job was outsourced to India two years ago and he has yet to find another job. Fortunately my own work life has improved so we have managed to stay in our home. We have, however, because of the displaced worker issue requested to modify our mortgage.  We have been trying to do this for a year and a half.  We fax our papers every two months (or more if they ask) showing paycheck receipts.  We  call Wells Fargo every week.  And still… nothing.

This is why as I read the article about the new task force investigating mortgage fraud, I feel a little sense of relief.

After a year of talks aimed at a settlement with five big banks — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial (formerly GMAC) — attorneys general in all 50 states this week have been are poring over the 100-page draft of a the $25 billion deal requiring bankers to commit to modify problem loans that they have been slow to do until now. Under the proposed terms, the banks would also agree to follow strict foreclosure guidelines and procedures and contribute as much as $5 billion to foreclosure relief programs.

I don’t believe for a minute that it will help my husband and me – Mr. & Mrs. Joe Average – but it does give me a sense of satisfaction that perhaps SOMEONE will be helped.

The only thing I’ve ever managed to pay off is a car or three.  The idea of making the final payment on a home loan is just … heavenly!  To write that very final check on my mortgage payment – well – I admit that I DREAM about the day!  However, it appears that some companies will do whatever it takes to stretch the money owed to them as long as possible.  According to Wakdjunkaga’s Blog (and I hope I spelled that right!),

First, after more than half a decade of handling our payments nearly perfectly — no delays in check-cashing to force late fees, as I had suffered under other institutions — on our penultimate payment, they somehow ignored the amount for which I had made out the check and cashed it for the monthly payment only, without the additional thousand of additional principal. A mistake? The probability of driving up our final payment by a couple of bucks a day made the coincidence of this “error” seem overly convenient to me. So I called the company (with three motives in mind — to complain about their deliberate error and get it corrected; to verify the final payment procedure and, after the “error” correction to determine the appropriate timing of our payoff; and to investigate our acquisition of the funds in our [currently rather hefty] escrow account).

That he spent forever getting through the voicemail barricades is another good reason to get mad! Ouch! Congratulations nevertheless, Mr. Burrow!

The Home Affordable Refinance Program is expanding eligibility requirements, allowing homeowners who are underwater to qualify.  By refinancing, homeowners gain a lower interest rate, therefore save money on their monthly payments.  According to Bargaineering, more people may now be eligible,

Before, in order to be eligible for HARP, missing a mortgage payment was not allowed. Now, as long as you haven’t missed a payment in the past six months, it won’t disqualify you if you missed a mortgage payment in the last 12 months. The program has been extended through December 31, 2013, and gives time for homeowners to work to meet eligibility requirements for an eventual refinance.

The catch? Your mortgage has to be a Fannie Mae or Freddie Mac backed.  That makes it too good to be true for many.

Photo by nikcname.

If you want to refinance your mortgage loan and you can qualify, this is a great time to do it!  Mortgage rates are approaching the lowest rates in history – the 3.94 percent average that was recorded in the 1950′s.

First, lower payments. Second, you’ll get a month “off” making that mortgage payment – at least a month off at the beginning of the loan; you’ll still pay it at the end.   From MSNBC.com,

The average rate on the 30-year fixed mortgage fell back down to 3.94 percent, the record low set earlier in the fall.

Low rates offer a historic opportunity for those who can afford to buy or refinance. Still, few people are able to take advantage of the record-low rates or have already done so.

The rate on the 30-year home loan fell from 3.99 percent the previous week, Freddie Mac said Thursday. The 3.94 percent average is the lowest on records dating to the 1950s.

These really are incredible rates, but have not done much to help the housing market.  Time will heal that gaping wound.

When my husband and I bought our first house, we had to come up with about $8,000 for a down-payment and our interest rate – with great credit – was 8 percent.  We went from renting a duplex for $325 per month to a house payment of about $750 every month.

At today’s rates, the house payment would be about $510 per month (and that includes insurance and taxes)!  Florida agent Marco Giancola also recalls the days of high interest rates when he bought his first home,

It all hit me about a month later as I wrote the check for the first mortgage payment and discovered the interest rate was 18%. This memory popped into my head as I read that Freddie Mac announced on Thursday that the mortgage rates ticked up to 4 percent from 3.99 percent on a 30 year loan. Six weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.

If you can qualify for a home loan, have good job security, a good down payment (and we’ve said this before here at the Shak), NOW is the time to buy!

Given that the Federal government has offered a new program for refinancing, rates are again falling in what has been labeled as “wait and see,”

In the meantime, borrowers in the United States wait to learn if they really will be able to refinance their mortgages now that regulators made changes to a federal refinance program designed to help borrowers who owe more than their houses are worth.

Rates are now at 4.33 percent for a 30-year fixed mortgage.  It will be interesting to see if borrowers line up to take advantage of the program… more interesting to see if the program works!

Depending on your place in life, depending on how you look at the stats, you may be getting a good amount for your mortgage interest deduction.  Or maybe not.  From RealTrends,

For example, if the cutoff for where middle class ends and upper class begins is $100,000, then the group of people making over $100,000 represent 41 percent of people who claim a mortgage interest deduction, and they get 82 percent of the total benefit. Maybe it’s not surprising to anyone, but they also pay about 82 percent of all taxes. So, you would think, OK, the most benefit goes to people who make the most money (and probably have the more expensive homes and mortgages), and pay the most taxes. Fair, I guess.

Click through to the article for the other side of the story.

Buyers from across the nation are enjoying the lowest mortgage interest rates ever.  Unfortunately the 4.09 percent interest for a 30-year loan has done little to boost home sales, according to MSNBC.com.  In fact, this has been the worst year for home sales since 1997.

Many Americans are in no position to buy or refinance. High unemployment, scant wage gains and large debt loads have kept them away.

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Others can’t qualify. Banks are insisting on higher credit scores and 20 percent down payments for first-time buyers. Some homeowners have too little equity invested in their homes to meet loan requirements.

Most people must also pay extra fees to get the low mortgage rates. Those fees are known as points, with one point equaling 1 percent of the total loan amount.

If more people could refinance, it would be an economic boost for America.  However, it seems to be a waiting game for the return of consumer confidence.

For the sixth week in a row, mortgage rates have dropped.  Now at 4.35 percent, this is the lowest rate Bankrate has recorded in the last 26 years.  According to the site,

One year ago, the mortgage index was 4.58 percent; four weeks ago, it was 4.46 percent.  The benchmark 15-year fixed-rate mortgage remained the same, after dropping 15 basis points last week.

While some predict that rates will not go lower, other observers believe the suffering job market may cause them to drop further.

The siren’s call of a sweet, low house payment may be irresistible to some, but refinancing is not always in your best interest.

When is it a good time to refinance?  It’s a great time when you plan to stay in the house for a number of years.  Because typically when you refinance, you start over – whether it’s a 10-year, 20-year, or 30-year loan.  If you fear losing your job, then refinancing at a lower house payment could be a really good option.

Also shop around for the best interest rate. According to Bankrate.com,