Mortgage Rates That Became Good News

Just recently, two of the possibly biggest mortgage news this quarter hit the public. The first one was when the Federal Housing Administration announced last April 13, 2013 that it is extending its mortgage payment for a year to the homeowners damaged by Hurricane Sandy.

We all know that hurricane Sandy was the deadliest and most destructive cyclone to hit America last 2012. Not only that it shook the entire East Coast, it also rattled the whole country leaving an estimated damage of $75million and a total of 285 people dead. Not to mention the emotional and psychological trauma it left to its unknowing victims.

As some would assume, the government is not giving away free money but instead just stretching the timeline to help the victims cope up. Homeowners under this category are allowed to build up their homes without worrying the expiration of the loan this April 30. This was what U.S. Housing and Urban Development Secretary Shaun Donovan announced.

Donovan said that this was meant to help homeowners who are still struggling to rebuild their homes.

The second one was when the average U.S. 30-year fixed mortgages rates fell lower this week allowing buyers to pick affordable houses. Known as the “vanilla wafer” mortgage loan, fixed-rate mortgage is a type of loan where the interest rate remains the same as stated on the term that both parties agreed.

What the continual decrease of loan mortgages may suggest is that the economy is getting stronger signalling investor's high confidence on the America's home sectors.


Source:
The Associated Press