The personal finance industry is ever changing. Whether you’re a new homeowner, a seasoned homebuyer or new to understanding the “mortgage world”, staying up to date with industry news – provided to you by USA Mortgage – will help make you a good consumer.


Earlier this year, mortgage rates dropped in the 30-year fixed rate from 3.98 percent to an average of 3.87 percent. In the first half of 2011, rates sat at 4.81 percent. As far as the 15-year fixed rates, they averaged 3.14 percent, down from 3.24 percent at the start of 2012 and from 4.08 percent at this time last year. In addition, fixed residential investments increased for the third consecutive quarter and residential construction spending has been on the rebound, with a rising rate of 0.7 percent.


Also good news for homeowners, lenders have been given the green light to begin processing refinance applications through the new HARP (Home Affordable Refinance Program) – a program of the Departments of the Treasury & Housing and Urban Development. This revamped program allows homeowners to refinance their mortgages regardless of how deep they are under water in paying back their home loan. In due time, it will be determined as to whether or not lenders will embrace the program’s new rules and regulations.


In October of 2011 when the new HARP guidelines were announced, it generated a buzz. In fact, borrowers were given the privilege to “pre-register,” so when the HARP 2.0 became a working program, desperate borrowers had the opportunity to be first in line for when the new program launched.


Since HARP became available in March of this year, it has been reported by The Department of Housing & Urban Development that approximately 50,000 mortgages have been refinanced. However, this number is specific to borrowers who owe less than 125 percent of the value of their homes. Lenders are becoming increasingly swamped with mortgage applications, especially since borrowers have been warned of rising FHA (Federal Housing Administration) costs.


As of April 1st, 2012, FHA loans became more expensive due to the administration increasing mortgage insurance premiums. This rise in cost directly affects monthly mortgage payments and upfront costs on new loans.


As a homeowner, it’s important that you trust the person providing you a loan, which may be the home of your dreams or perhaps just your starter home. At USA Mortgage, it’s our mission to provide homebuyers with quality customer service and guidance from start to finish. Contact us today at 314-546-4844 for more information on how to get started. Stay connected with our blog for more industry-related information.