HOW LOANRATEUPDATE WORKS
READ OUR DISCLOSURE
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
READY TO SPEAK TO A PROFESSIONAL?
LOANRATEUPDATE IS NOT A LENDER OR A BROKER BUT WE HAVE LOTS OF FRIENDS WHO ARE
Pick the service you desire below
Adjustable Rate Mortgages Become Almost Non-Existent
HOW LOANRATEUPDATE WORKS
READ OUR DISCLOSURE
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
READY TO SPEAK TO A PROFESSIONAL?
LOANRATEUPDATE IS NOT A LENDER OR A BROKER BUT WE HAVE LOTS OF FRIENDS WHO ARE
Pick the service you desire below
Adjustable Rate Mortgages Become Almost Non-Existent
HOW LOANRATEUPDATE WORKS
READ OUR DISCLOSURE
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
LOANRATEUPDATE IS NOT A LENDER OR A BROKER BUT WE HAVE LOTS OF FRIENDS WHO ARE
Pick the service you desire below
Adjustable Rate Mortgages Become Almost Non-Existent

January 19, 2011 (Chris Moore)
mortgage-adjustable-rate-image
Adjustable Rate Mortgages (ARMs) that had become the mortgage of choice during the housing boom has become virtually non-existent as a mortgage option today. In a report released by the Federal Reserve, the once mighty ARM which was the choice of 70 percent of all borrowers in 2004, now only commands seven percent of the mortgage market.

The report, released by the New York Federal Reserve, believes there are two theories for the once mighty loan’s fall.

One, was that when the securitized mortgage market collapsed in 2008, a place where ARMs were predominate, homebuyers had less access to these products.

But the NY Fed’s second theory coincided with what Freddie Mac Chief Economist Frank Nothaft found: Homebuyers were simply more aware of the risk.

“Households have become more risk averse following the publicity given to high default rates on subprime ARMs, and the reports of ‘payment shock’ associated with interest rate resets on ARMs,” the NY Fed said in its report.

And if they didn’t hear it from the news, they heard from their many friends and family members who took out these risky loans only to lose their homes two or three years later when the rates adjusted to market conditions.

And as recently as 2009, ARM’s had fallen to just three percent market share, with government mortgage giant Freddie Mac stating it is doubtful the mortgage product will return to those glory days of 2004 any time soon.

This survey also found the most popular product is the 5/1 ARM, with 96 percent offering it. The 3/1 ARM is offered by 71percent, the 7/1 ARM by 64 percent, and only 9 percent of lenders surveyed offered a 3/3 ARM, which adjusts once every three years. The one-year conforming ARM is offered by only 45% of ARM lenders.

Nothaft added that if fixed-rate loans currently continue to stay at such low levels, that homebuyers do not see the incentive for ARMs, which are only slightly lower. The NY Fed drew a similar conclusion as well, citing historical patterns that showed borrowers preferred fixed-rate loans over ARMs when both were advertising low rates.

However, Nothaft expects ARMs to gradually gain back favor with some borrowers, possibly rising to an average 9% market share by the end of 2011. And if interest rates should start to climb beyond current expectations, you can expect to see them become a more popular alternative to fixed rate loans.

Let’s all hope we learned from the last time…

Tags: adjustable rate mortgages, mortgage, arm, fixed rate loans, mortgage market, housing boom, interest rate, subprime, market share

What's the four square system? How much is your trade-in really worth and why those payments really do seem a little higher than you thought.
There's both advantages and disadvantages to leasing and buying depending on what you're planning to use your car for and how long you plan on keeping it.
Sure that low interest dealer financing sounds really attractive but there's a price to be paid for that. We spill the beans as to why getting your own financing may save you money.
Buying a car at a dealership hasn't changed much through the years but doing your research on the internet can you save you a lot of time and most importantly, a lot of money.
THINKING OF BUYING
A NEW CAR?


WE GIVE YOU THE INSIDE TIPS THAT
COULD SAVE YOU THOUSANDS.
Calculate how much you can afford
BUYING OR SELLING A HOME IS A BIG DECISION
WE MAKE IT EASIER
Buying a home is a big decision. If you are not prepared, the decisions you make, the questions you don’t ask, and the details you miss could cost you thousands – in price, fees, financing, property issues, and home repairs.
Home loans can be confusing. There's a lot of options and we provide the information that makles it simple. Don't sign on that dotted line until you know. It could cost you.
FIND THE CREDIT CARD THAT'S RIGHT FOR YOU
THERE'S A CREDIT CARD FOR VIRTUALLY ANY SITUATION. FIND YOURS.
YOU'VE WORKED HARD TO BUILD YOUR DREAM

LEARN ABOUT THE LOAN OPTIONS AVAILABLE TO EXPAND YOUR BUSINESS

January 19, 2011 (Chris Moore)
mortgage-adjustable-rate-image
Adjustable Rate Mortgages (ARMs) that had become the mortgage of choice during the housing boom has become virtually non-existent as a mortgage option today. In a report released by the Federal Reserve, the once mighty ARM which was the choice of 70 percent of all borrowers in 2004, now only commands seven percent of the mortgage market.

The report, released by the New York Federal Reserve, believes there are two theories for the once mighty loan’s fall.

One, was that when the securitized mortgage market collapsed in 2008, a place where ARMs were predominate, homebuyers had less access to these products.

But the NY Fed’s second theory coincided with what Freddie Mac Chief Economist Frank Nothaft found: Homebuyers were simply more aware of the risk.

“Households have become more risk averse following the publicity given to high default rates on subprime ARMs, and the reports of ‘payment shock’ associated with interest rate resets on ARMs,” the NY Fed said in its report.

And if they didn’t hear it from the news, they heard from their many friends and family members who took out these risky loans only to lose their homes two or three years later when the rates adjusted to market conditions.

And as recently as 2009, ARM’s had fallen to just three percent market share, with government mortgage giant Freddie Mac stating it is doubtful the mortgage product will return to those glory days of 2004 any time soon.

This survey also found the most popular product is the 5/1 ARM, with 96 percent offering it. The 3/1 ARM is offered by 71percent, the 7/1 ARM by 64 percent, and only 9 percent of lenders surveyed offered a 3/3 ARM, which adjusts once every three years. The one-year conforming ARM is offered by only 45% of ARM lenders.

Nothaft added that if fixed-rate loans currently continue to stay at such low levels, that homebuyers do not see the incentive for ARMs, which are only slightly lower. The NY Fed drew a similar conclusion as well, citing historical patterns that showed borrowers preferred fixed-rate loans over ARMs when both were advertising low rates.

However, Nothaft expects ARMs to gradually gain back favor with some borrowers, possibly rising to an average 9% market share by the end of 2011. And if interest rates should start to climb beyond current expectations, you can expect to see them become a more popular alternative to fixed rate loans.

Let’s all hope we learned from the last time…

Tags: adjustable rate mortgages, mortgage, arm, fixed rate loans, mortgage market, housing boom, interest rate, subprime, market share

What's the four square system? How much is your trade-in really worth and why those payments really do seem a little higher than you thought.
There's both advantages and disadvantages to leasing and buying depending on what you're planning to use your car for and how long you plan on keeping it.
Sure that low interest dealer financing sounds really attractive but there's a price to be paid for that. We spill the beans as to why getting your own financing may save you money.
Buying a car at a dealership hasn't changed much through the years but doing your research on the internet can you save you a lot of time and most importantly, a lot of money.
THINKING OF BUYING
A NEW CAR?


WE GIVE YOU THE INSIDE TIPS THAT
COULD SAVE YOU THOUSANDS.
Calculate how much you can afford
BUYING OR SELLING A HOME
IS A BIG DECISION
WE MAKE IT EASIER
Buying a home is a big decision. If you are not prepared, the decisions you make, the questions you don’t ask, and the details you miss could cost you thousands – in price, fees, financing, property issues, and home repairs.
Home loans can be confusing. There's a lot of options and we provide the information that makles it simple. Don't sign on that dotted line until you know. It could cost you.
FIND THE CREDIT CARD THAT'S RIGHT FOR YOU
THERE'S A CREDIT CARD FOR VIRTUALLY ANY SITUATION. FIND YOURS.
YOU'VE WORKED HARD TO BUILD YOUR DREAM

LEARN ABOUT THE LOAN OPTIONS AVAILABLE TO EXPAND YOUR BUSINESS

January 19, 2011 (Chris Moore)
mortgage-adjustable-rate-image
Adjustable Rate Mortgages (ARMs) that had become the mortgage of choice during the housing boom has become virtually non-existent as a mortgage option today. In a report released by the Federal Reserve, the once mighty ARM which was the choice of 70 percent of all borrowers in 2004, now only commands seven percent of the mortgage market.

The report, released by the New York Federal Reserve, believes there are two theories for the once mighty loan’s fall.

One, was that when the securitized mortgage market collapsed in 2008, a place where ARMs were predominate, homebuyers had less access to these products.

But the NY Fed’s second theory coincided with what Freddie Mac Chief Economist Frank Nothaft found: Homebuyers were simply more aware of the risk.

“Households have become more risk averse following the publicity given to high default rates on subprime ARMs, and the reports of ‘payment shock’ associated with interest rate resets on ARMs,” the NY Fed said in its report.

And if they didn’t hear it from the news, they heard from their many friends and family members who took out these risky loans only to lose their homes two or three years later when the rates adjusted to market conditions.

And as recently as 2009, ARM’s had fallen to just three percent market share, with government mortgage giant Freddie Mac stating it is doubtful the mortgage product will return to those glory days of 2004 any time soon.

This survey also found the most popular product is the 5/1 ARM, with 96 percent offering it. The 3/1 ARM is offered by 71percent, the 7/1 ARM by 64 percent, and only 9 percent of lenders surveyed offered a 3/3 ARM, which adjusts once every three years. The one-year conforming ARM is offered by only 45% of ARM lenders.

Nothaft added that if fixed-rate loans currently continue to stay at such low levels, that homebuyers do not see the incentive for ARMs, which are only slightly lower. The NY Fed drew a similar conclusion as well, citing historical patterns that showed borrowers preferred fixed-rate loans over ARMs when both were advertising low rates.

However, Nothaft expects ARMs to gradually gain back favor with some borrowers, possibly rising to an average 9% market share by the end of 2011. And if interest rates should start to climb beyond current expectations, you can expect to see them become a more popular alternative to fixed rate loans.

Let’s all hope we learned from the last time…

Tags: adjustable rate mortgages, mortgage, arm, fixed rate loans, mortgage market, housing boom, interest rate, subprime, market share

THINKING OF BUYING
A NEW CAR?


WE GIVE YOU THE INSIDE TIPS THAT
COULD SAVE YOU THOUSANDS.
What's the four square system? How much is your trade-in really worth and why those payments really do seem a little higher than you thought.
There's both advantages and disadvantages to leasing and buying depending on what you're planning to use your car for and how long you plan on keeping it.
Sure that low interest dealer financing sounds really attractive but there's a price to be paid for that. We spill the beans as to why getting your own financing may save you money.
Buying a car at a dealership hasn't changed much through the years but doing your research on the internet can you save you a lot of time and most importantly, a lot of money.
Calculate how much you can afford
BUYING OR SELLING A HOME IS A BIG DECISION
WE MAKE IT EASIER
Buying a home is a big decision. If you are not prepared, the decisions you make, the questions you don’t ask, and the details you miss could cost you thousands – in price, fees, financing, property issues, and home repairs.
Home loans can be confusing. There's a lot of options and we provide the information that makes it simple. Don't sign on that dotted line until you know. It could cost you.
FIND THE CREDIT CARD THAT'S RIGHT FOR YOU
THERE'S A CREDIT CARD FOR VIRTUALLY ANY SITUATION. FIND YOURS.
YOU'VE WORKED HARD TO BUILD YOUR DREAM

LEARN ABOUT THE LOAN OPTIONS AVAILABLE TO EXPAND YOUR BUSINESS