As mortgage rates continue to drop, cities nation-wide have reported rises in housing prices and increases in home sales from March to April. The trend is indicative of the slowly recovering housing market and shows signs of continued improvement even though few new jobs have been created.
Of the 20 cities that are tracked by the Standard & Poor’s home index, 19 showed gains in home value and prices as well as total number of sales. Detroit was the only city that is tracked that didn’t show an improvement, which showed a 3.6% decrease in overall value.
In addition to housing values and sales rising, the market has been primed for current homeowners to refinance and save money on their current loans. Even owners who owe more than their homes are worth are able to refinance and save thousands on their homes, potentially saving them from foreclosure.
The FHA announced new low rates in addition to the new FHA streamline refinance initiative, which allows FHA loan holders to refinance their home without verifying their credit or employment, and without paying for a home appraisal. The up-front mortgage and PMI fees are also waved, which saves homeowners thousands on their mortgage as well as hundreds each month on their payments. Only those who have FHA mortgage that were issued before June 1, 2009 are eligible to apply, but the program enables more than 3.5 million homeowners to save money on their loan, according to the FHA.
If you are currently considering buying or saving money on your home loan, now is the time to take action. With interest rates going down and the housing market starting to turn and improve, you won’t be able to find better rates and lower prices than right now. If you are currently in a home and want to save money on your mortgage payments, contact your lender and ask about their refinance opportunities and how much you can save on your home loan.