Mortgage rates are hitting once inconceivable lows as the European debt crisis and the Federal Reserve’s “Operation Twist” drive interest levels into the cellar.

“It’s unbelievable,” John Brodrick of Boston’s Eastern Bank said yesterday after mortgage giant Freddie Mac reported that average 30-year fixed rates fell to a record-low 3.79 percent.

That’s the lowest level seen in the 41 years Freddie Mac has tracked such data.

In fact, Freddie Mac chief economist Frank Nothaft said it’s the best deal as far back as records for modern mortgages go —roughly to the late 1940s or early ’50s.

Read more at Low, low rates boost loans.

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NEW YORK (MainStreet) — Mortgage shoppers who have spurned 15-year loans in favor of 30-year deals should think again: unusually large discounts on 15-year rates make these loans unusually appealing, especially when investment alternatives are taken into account

The 15-year loan always charges less than the 30-year loan, because the lender faces fewer risks over the shorter loan term. But that rate “spread” is often not enough to overcome the shorter loan’s downside — a much larger monthly payment to retire the debt twice as fast.

Now the spread is unusually large. The average 15-year loan charges just 3.2%, compared to 4% for the 30-year loan, according to BankingMyWay data. That spread, 0.8 percentage points, is considerably higher than the typical spread of 0.5 points or less.

Read more at 15-Year Mortgages Are Especially Appealing.

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NEW YORK (CNNMoney) — Buying a home just got even cheaper as interest rates on both 30-year and 15-year-fixed-rate mortgages set record lows for the third week in a row.

The 30-year fixed mortgage, the most popular mortgage product, dipped by 0.04 percentage points to 3.79%, according to a weekly survey by Freddie Mac. Last year, 30-year loans averaged 4.64%. The new low can save borrowers $50 a month for every $100,000 borrowed. Over a 30-year term, that comes to $21,874.

The 15-year fixed mortgage, which is popular among those looking to refinance, inched down 0.01 percentage points to 3.04%, according to Freddie Mac’s survey. That’s down from 3.82% a year ago. The new 15-year rate would lower borrowing costs to $693 a month for every $100,000 borrowed, a $38 savings compared to last year.

Read more at Mortgage rates hit record lows – again.

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Pay more now for a chance to save much more later? That’s the idea behind paying “points” on a mortgage loan. But it doesn’t necessarily make sense for every homeowner.

Mortgage points provide an opportunity for borrowers to lower their monthly mortgage payments by paying a lump sum at a loan’s closing in exchange for a lower mortgage interest rate over the course of a loan.

Mortgage points are a smart option for borrowers who plan to stay in the same mortgage and not refinance for a relatively long period of time. But points are not recommended for borrowers who are likely to relocate or refinance in the not-so-distant future.

Read more at Mortgage Points: When It’s Smart to Pay More Upfront.

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Estimating the value of real property is important to a variety of endeavors, including real estate financing, listing real estate for sale, investment analysis, property insurance and the taxation of real estate. For most people, determining the asking or purchase price of a property is the most useful application of real estate valuation. This article will provide an introduction to the basic concepts and methods of real estate valuation, particularly as it pertains to real estate sales.

Basic Valuation Concepts
Value

A main consideration in appraising is to determine a property’s value: the present worth of future benefits arising from the ownership of real property. Unlike many consumer goods that are quickly used, the benefits of real property are generally realized over a long period of time. Therefore, an estimate of a property’s value must take into consideration economic and social trends, as well as governmental controls or regulations and environmental conditions that may influence the four elements of value:

Read more at What You Should Know About Real Estate Valuation.

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As a home buyer or refinancer, you’d expect to submit recent pay stubs and bank-account statements when applying for a mortgage loan.

But a copy of your divorce decree?

That’s exactly what happened to a recent borrower who was asked to explain a deposit of about $200 to her bank account, says Frank Donnelly, president of the Mortgage Bankers Association of Metropolitan Washington.

The borrower explained that the money was from her ex-husband, with whom she is raising a child, Mr. Donnelly says. The lender, in turn, asked her for a copy of her divorce decree–even though the two had been divorced for 17 years.

Read more at Lenders Want to Know Everything.

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NEW YORK (MainStreet) — Want to move into a new home by Labor Day? Sept 3, the deadline for many who want to be relocated by the start of school, seems like a long way off, but really isn’t given the glacial pace of mortgage approvals.

Many lenders are taking 90 days to approve loans. For the majority of applicants — people who are refinancing — that’s just an inconvenience and minor expense, adding a month or two of payments at the old loan’s higher rate. But for buyers with a deadline like the start of school or a new job, delay can be serious.

It’s a problem for sellers, too.

Read more at Prepare Yourself for a Slow Mortgage Closing.

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Average U.S. home prices — down by a third since 2006 and still falling — will rise almost 4% a year for the next five years, according to a new forecast.

Market watcher Fiserv sees prices stabilizing by summer’s end and then climbing, quickly in some places until gains taper off. The forecast is based on an analysis of leading home price indexes.

Investors will drive much of the momentum, as they are now in cities such as Las Vegas and Phoenix.

First-time and trade-up buyers will eventually follow.

Read more at U.S. home prices could rise 4% a year, forecast says.

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BOSTON (TheStreet) — Today’s record-low mortgage rates are giving consumers the choice of two great options — 30-year mortgages that charge just over 4% interest or 15-year loans with rates nearly down to 3%.

“You really can’t go wrong,” says Greg McBride, senior financial analyst at interest-rate tracker Bankrate.com. “Rates are at record lows on both products.”

Bankrate.com’s latest weekly survey shows that average U.S. rates fell to 4.05% as of this week for 30-year fixed-rate mortgages, and 3.25% for 15-year fixed loans.

Read more at 3 Steps to Deciding a 30- vs. 15-Year Mortgage.

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If you’re thinking of buying a second home in the next five years, this might be your best opportunity.

After being battered during the housing bust, the vacation-home market is showing signs of life. Reports of bidding wars are trickling out of some of the locales that bore the brunt of the housing bust, and brokers in other markets, while not sounding the “all clear,” at least say conditions aren’t getting much worse.

Near-record-low mortgage rates, bargain prices and dwindling home inventories are bringing some once-untouchable markets within reach for the first time in a decade, say housing-market experts.

Read more at Vacation Homes Beckon.

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