With this seemingly never-ending heat wave gripping the Houston area, here are some simple ways that homeowners can attempt to stay a little cooler while inside their homes.

• Close your blinds and curtains to keep out the sun and the heat.
• Close the vents and doors to any rooms that aren’t being used.
• If you do not have air conditioning, keep your activities to the lowest level of your home since heat rises.
• Avoid using the stove or the oven (use the microwave) and put-off on running the dishwasher (don’t use the heat cycle for drying) or washing laundry until after the sun goes down.
• Replace manual thermostats with programmable thermostats and set them at around 78 degrees or higher during summer months.  Raise the temperature of the thermostat when you leave, but do not turn the air conditioning off. Your unit will have to work too hard to get your home’s temperature back down later.
• Keep your air conditioner clean. Outdoor units can get clogged from weed pollen and other materials that are floating around in our outside air.  Use a hose to spray your a/c unit down; making sure all plant debris is washed away from the unit.  Ensure the inside filters are cleaned or changed monthly.
• Use ceiling fans (or install some) to allow you to be comfortable at a higher ambient temperature. The air movement can make you feel several degrees cooler and make it much easier on your a/c and utility bill.
• Always have a pitcher of icy water ready in your refrigerator. Letting the water run from the tap until it turns cold is wasteful and inefficient.

Aside from keeping yourself and your family safe from these brutal temperatures, also be sure to check on your neighbors, friends and relatives you think might be at risk in this kind of weather, and keep your pets inside with you.

The lesser of two evils is giving Texas jumbo  homeowners another clear shot at refinancing to a lower rate, a shorter term, or both.

The two evils are: the impending US budget crisis which, if the debt ceiling isn’t increased by August 2^nd, will threaten to cause the government to default on credit obligations; and the rapid deterioration of several fragile European economies including Greece, Spain, Italy, and Ireland.

Fixed-income investors are choosing to favor dollar-based securities over those backed by the Euro.  As demand for (US Treasuries et al) has risen, bond prices have increased, thereby pushing rates back down below rolling 12-month averages.

• Jumbo loans (>$417,000) are also at bargain basement levels with 30-year fixed terms in the low 5%s and 15-year at 4.25% to 4.5%.15-year programs are available at 3.5%
• 30-year fixed mortgages (at par) can be locked in the 4.25% to 4.5% range
• 10-year amortizations as low as 3.25%
• Even more attractive are 3 year ARMs in the mid 2s
• Investors can also reap these benefits with rates that are only .5% to .75% higher than the par rates stated above available on primary residences.

Once an agreement on the US budget is reached, all bets will be off.  If the highly contested debate ends with a compromise that leaves any lingering scent of possible inflationary pressure, bond prices will likely fall and rate increases will likely be dramatic and instantaneous.

Average rates for the benchmark 30-year fixed mortgage - as reported by Freddie Mac - stood at 4.50% this week, unchanged from the previous week. The average for the 15-year fixed amortization equaled 3.69%, up .02% on the week.

This week the European Union and the International Monetary Fund announced an agreement to keep the Greek economy from collapsing with a 5-year austerity plan. This has had a calming effect on the mortgage-backed security markets, which are now poised to react to the impending US debt crisis.

Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10-year rates available as low as 3.25%. None of these posted (par) rates have changed over the past week.

According to the Texas Veterans Land Board, current rates on a 30-year fixed rate purchase loan stand at 4.25%. VA loans are particularly appealing to Texas Veterans because they can purchase home at substantial discounts due to the weak housing market and afford even more home due to the low rates available.  Commonly, these loans require no down payment and many closing costs can be funded through seller contributions. Additional information can be found by visiting http://www.mytexasvaloans.com.

Reverse mortgage applicants were stunned this week as Wells Fargo and Bank of America announced plans to discontinue originations of these Home Equity Conversion Mortgages. This leaves MetLife as America’s largest participant in this market. Home Loan Specialists originates HECM products for Texas seniors over 62 years old that hold a minimum of 50% equity in their homes.   Contact Rick at 832-286-1591 or at Rick@HLSTX.com if you have any questions, or if you are interested in a reverse mortgage consultation.

Average rates for the benchmark 30-year fixed mortgage, as reported by Freddie Mac, stood at 4.50% this week. This represents a change of +.01% over last week’s average which reached a new low for 2011.

The average for the 15-year fixed amortization equaled 3.67%, down .01% on the week. The 15-year average represents yet another new low for 2011.

Mortgage-backed security prices remain strong in contrast to the extreme volatility noted in the equity markets this week. This is largely a result of European economic instability particularly with respect to Greece.

Today, Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10-year rates available as low as 3.25%. These rates do not include origination fees.

Now is an especially attractive time for active military and Veterans to take advantage of VA-guaranteed home loans and Texas Vet Home Loans. According to the Texas Veterans Land Board, current rates on a 30-year fixed rate purchase loan stand at 4.26%. These loans are particularly attractive for Texas Veterans because in most cases they require no down payment and many closing costs can be funded through seller contributions. Vets can purchase home at substantial discounts due to the weak housing market and afford even more home due to the low rates available. Additional information can be found by visiting http://www.mytexasvaloans.com.

Mortgage rates continued their gradual decline this week with the benchmark 30-year fixed rate mortgage falling to 4.49% and the 15-year fixed rate mortgage falling to 3.68% according to Freddie Mac’s Primary Mortgage Market Index Survey of 125 credit unions, commercial banks, and mortgage companies. Rates continued to fall as a result of a weak job report, continued uncertainty regarding the strength of the U.S. economic recovery, and concerns over a possible double-dip recession.

Weakness in the U.S. stock market drove rates lower as well as investors migrated to the safety of bonds. Though government financial support of the mortgage markets as a buyer of mortgage-backed securities is scheduled to expire soon, mortgage rates may not rise as expected due to economic weakness.

Particular beneficiaries of the rate decline are existing homeowners who have yet to refinance their current mortgages. Many borrowers can benefit significantly from just a 1% decline in rates over the long-term depending upon their present rate and mortgage balance. These borrowers are encouraged to give us a call to have a Refinance Analysis completed on their loan that will indicate the break-even point at which interest savings exceed the costs of refinancing.

Other beneficiaries include home buyers who see their buying power increase with each drop in mortgage rates, home sellers whose home becomes more marketable with this increased buying power, and retirees who may be looking to tap into the equity built up in their home through a government-backed reverse mortgage.

We encourage all participants in the housing market to give us a call to review their options.

Average rates for the benchmark 30-year fixed mortgage asreported by Freddie Mac stood at 4.55% this week.  This represents a change of -.05% over last week’s average.The average for the 15-year fixed amortization equaled 3.74%, down .04% on theweek.  Both averages continue torepresent 2011 year lows.

Mortgage-backed securities continue to be pricedhigher in contrast to the equity markets which have been challenged this weekafter bearish employment statistics were reported by the government.  However, recent market volatility hasindicated there is some resistance at the current levels, making it unlikely rateswill move much lower over the short term. Longer term expectations continue tofavor higher interest rates.

Currently, Home Loan Specialists is posting par rates (rates exclusive of origination fees) of 4.25% on 30-year fixed conventional andFHA loan programs for well qualified borrowers.

15-year conventional rates are listed at 3.5%.  These rates present an attractiveopportunity for first-time buyers to advance to home ownership with monthlyobligations that meet or beat their rental leases. Current low rates andattractive rental revenues also make the purchase of residential investmentproperties very attractive. Refinance activity is also experiencing  renewed interest by buyers who closedwithin the past 5 years at 30 year rates above 5.5%.

Have you ever tried to visit a home for sale on the market only to be told by a real estate agent that they won’t show you the property until you are pre-qualified for a mortgage? You might see this as a time-consuming obstacle or an unnecessary intrusion into your finances; however, there are a number of good reasons to support this requirement.

First, many sellers do not want their house being shown to someone who is not serious about buying it. Look at it from the current homeowner’s perspective. The seller has to clean the house and clear their family out and on a Sunday for someone who might be “just looking”. Furthermore, there is a potential security risk in showing a home to someone whom the seller and, in reality, the buyer’s agent know little about. Many sellers are uncomfortable with this.

Even if someone does like the home and is ready to make an offer, a seller will not seriously consider any offer from a buyer who has not been pre-qualified. They simply cannot accept the risk of taking their home off the market while a buyer figures out if they can even qualify for a loan to buy that house.

Another good reason to get pre-qualified is to see how much of a home a buyer can qualify for and on what terms. The pre-qualification process involves taking some basic information, running a credit report, as well as determining the potential borrower’s debt ratios. Typically, a buyer can be pre-qualified within a couple of hours from the beginning of the process. This procedure will often uncover unknown credit report items that can be addressed in advance to enable the buyer to obtain a better rate and thus, more of a loan. It will also allow the buyer to shop around for a lender so that valuable time is not wasted while they are under contract. Lenders can also advise on what types of programs might be available in certain areas.

Lastly, there is the question of etiquette. Believe it or not, there are people out there who look at houses as a hobby, with no true intention of buying. It is important to remember that a real estate agent’s time is extremely valuable. Realtors work on straight commission and often give up many hours of personal family time on the weekends to show property; many times to people who will never buy a home. Very simply, it is disrespectful to monopolize an agent’s time if a buyer is not serious enough to answer a few questions for a lender a couple of hours before going to look at property.

Ultimately, getting pre-qualified benefits all parties involved and represents a small time investment given the magnitude of a home purchase. The pre-qualification indicates to the seller a serious intent to buy; the buyer and buyer’s agent know the buyer’s financial background and purchase limitations; and the buyer will already have “one foot in the door” with their home purchase. It is a win-win for everyone!

The average rate for the benchmark 30-year fixed mortgage as reported by Freddie Mac’s Primary Mortgage Market Index (PMMI) stood at 4.60% this week. This represents a change of -.01% over last week’s average. The average for the 15-year fixed amortization equaled 3.78%, down .02% on the week. Both averages represent 2011 year lows reflecting the overall upward trend bias in the trading of mortgage-backed securities.

Rates quoted by Home Loan Specialists were lower than the overall market.

An article in today’s Houston Chronicle highlighted the risks of mortgage rate increases in the future, citing the dangers of inflation and continued economic recovery to low mortgage rates. Nevertheless, rates today are very attractive for the remaining homeowners who have not yet refinanced, or are facing a balloon or adjustable rate mortgage adjustment in the near future.

As we enter the peak home buying season of the summer, current rates should provide more buying power for consumers than just a couple of months ago. The challenge at this stage is not to get too greedy in thinking rates will continue to fall.

For our current rates, please visit Houston Mortgage Rates.