Mortgage Payment Relief during Hardship

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Italy has experienced the highest level of outbreak in the world of COVID-19. According to Johns Hopkins University, Italy has over 15,000 cases, and more than 1,000 people have died.

As a result, Italy is, so far, the only government to introduce a plan to suspend mortgage payments and other bills for people affected by the coronavirus pandemic lockdown. Unfortunately, this is not a viable option in America.

America’s mortgage market is around $11 trillion in mortgages compared with Italy’s $423 billion of outstanding home-loan debt. Additionally, most American mortgages are packaged into bonds with legal terms to determine if they can offer forbearance. An agreement to let borrowers either pay at a lower interest rate or suspend payments temporarily because of a hardship is on a very case-by-case basis. Any missed or reduced payments will still need to be paid off during the remaining years of a loan, with interest.

“To meet the needs of borrowers who may be impacted by the coronavirus, last week Fannie Mae and Freddie Mac reminded mortgage servicers that hardship forbearance is an option for borrowers who are unable to make their monthly mortgage payment,” said FHFA Director Mark Calabria. “For borrowers that may be experiencing a hardship, I encourage you to reach out to your servicer.”

If our team at Focus Capital can be of any assistance, please call us. We are dedicated to providing answers to your concerns and coming up with personalized solutions. We are a resource for everyone in the mortgage industry who has questions on difficult situations and on complicated loans. We understand these uncertain times create anxiety. Hopefully it is reassuring to know we are all in this together.
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0% Rates

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The Fed cut rates to 0%

What does this mean exactly and how will this affect mortgage rates?

The Federal Reserve announced it will drop interest rates to zero and buy at least $700 billion in government and mortgage-related bonds. This is part of an emergency action plan in response to the risks COVID-19 poses to the United States economy.

Mortgage rates have already dropped to 50-year lows in response to global concerns regarding the outbreak. The rate the government lends money to banks has now been cut to 0%. By cutting rates to 0%, the Fed is encouraging banks to lend at lower levels in efforts to help stimulate our economy.

Last week, mortgage rates actually increased slightly because the demand for refinancing was so high. Lenders needed to slow down the number of people applying for home loans and give themselves time to work through the backlog of applications that accumulated as rates fell.

The Federal Open Market Committee (FOMC) lowered the federal funds rate in an emergency reduction with a target range between 0-0.25 percent. It is the first time the U.S. central bank has reduced rates at an unscheduled meeting within 13 days of each other. In addition to cutting rates, the Fed also declared it would buy Treasury debt and mortgage-backed securities at a pace of $500 billion and $200 billion respectively.

While Fed officials spoke confidently about the U.S. economy’s ability to remain resilient against the COVID-19 slowdown, many experts have cautioned that a recession could be on the horizon.

Experts say the best way to recession-proof your finances begins by boosting your emergency savings. It is highly recommended to keep between four and six months worth of expenses liquid and accessible. Consider opening a high-yield savings account to get the biggest return on your fund. Prioritize paying off your high-cost debt.

Take advantage of the low interest rates and lower your monthly payments by refinancing your mortgage. It is imperative to save for your future.

Call Focus Capital with any questions or concerns, we are here to help you in these uncertain times: 1-888-758-3004
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Emergency Cut in Interest Rates

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The virus COVID-19 poses serious damage to the economy. Governments around the world are ramping up their response. The Federal Reserve made an emergency cut this week to interest rates in hopes of curbing economic fallout from the coronavirus outbreak. It is the first emergency cut, and biggest one-time cut, the Fed has made since the 2008 financial crisis.

The virus first emerged around Wuhan, China in late 2019 and has now infected more than 95,000 people worldwide, killing more than 3,200. Italy is currently suffering the largest outbreak outside of Asia and the numbers show no sign of slowing down. Schools are closed affecting millions of students. Public gatherings are banned, and officials are even advising people to not huge or kiss when greeting.

In the United States, more than 150 people are infected, mostly in Washington State, and at least 11 people have died. California declared a state of emergency after the state’s first death from the virus.

In response, the Federal Reserve cut interest rates in efforts to push people to spend money in order to boost the economy. Officials around the world are similarly trying to curb the economic fallout with stimulus packages and interest rate cuts.

A question is emerging in the current low rate environment: Will lenders let mortgage rates go lower? The reasoning behind this question is the relationship to having enough staff able to keep up with the increase in volume generated by the millions eligible to take advantage of the current low rates.

We can assure you, at Focus Capital, we are not only equipped to handle a large volume of loans, we exceed every customer’s expectations for outstanding personalized service. Call Focus Capital and speak with one of our trusted Loan Officers about a new loan or to refinance your existing loan at a lower rate:

1-888-758-3004

Info@focuscapitalgroups.com

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Rates Just Dropped Again

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Mortgage rates have been incredibly low and data shows, they just dropped even more.

The average 30-year fixed-rate mortgage clocked in at 3.37% on Friday, according to Nerdwallet. This is down 38 basis points over the month, the lowest 30-year rate on record for the survey.

The dip has made buying a home significantly more affordable for the average buyer. Rates have also opened the door for major savings on refinancing. There are over 11 million high-credit homeowners right now eligible to take advantage of these low rates and save on their mortgage rates by refinancing.

Major California cities like San Francisco, San Jose, San Diego, Los Angeles and Sacramento rank extremely high for refinance savings.

Buyers and homeowners in hopes of even lower rates should act now while the rates are so low. We recommend you lock in and not look back. Our Focus Capital Loan Officers have over 50 years of combined experience in residential loans with a specialty in refinancing. We know you will want to take advantage once you discover how much you can save on your mortgage payment.

Contact us today: 1-888-758-3004

Info@focuscapitalgroups.com
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