Trending Market News Friday: Biogen, Mortgage Rates

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Stocks were showing a bit of volatility Friday with the Dow threatening to break into the green several times during the session before turning definitively south as the trading day went on. 

The Nasdaq was less volatile, dropping consistently and declining 1.8% on the day while the S&P 500 fell 0.5%. 

U.S. Household Debt Falls Most in 7 Years

American consumer debt fell for the first time in six years, the Federal Reserve Bank of New York said, falling 0.2% to about $34 billion. 

The decline in the second quarter was the first since 2014 and the drop is the largest since 2013 as credit card balances alone fell by $76 billion in the quarter, the steepest decline in the history of the data. 

Biogen Jumps as FDA Accepts Alzheimer’s Treatment Application

Shares of drugmaker Biogen  (BIIB) – Get Report jumped more than 8% Friday after the Food

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4 must-dos when refinancing into a record-low mortgage rate

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Mortgage rates have fallen to unbelievably low levels, and many borrowers are landing 30-year home loans at under 3%.

If you’re a homeowner with an existing mortgage, you might want to consider refinancing — even if your current loan is only a year old. More than 16 million mortgage holders are ripe for a refi, according to one recent study.

Refinancing at today’s record-low rates could save you a few thousand dollars a year in interest, and tens of thousands of dollars over the course of your loan.

If you think it might be time to replace your mortgage with a new one, here are four tips to make sure you get the most out of your refinance.

1. Be certain a refi is the right move

Before you commit to a refinance, there are a few important things you need to consider. Today’s basement-dwelling mortgage rates may look good

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16.3M homeowners are missing out on mortgage savings, report says

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Mortgage rates have fallen to new all-time lows so many times this year that it’s almost getting routine. “Really? Again?”

But if you’re a homeowner, don’t let me catch you yawning, or shrugging off these milestones. Because a new record low means there are more old mortgages out there that are worth refinancing at lower interest — maybe including your current loan.

Thanks to the latest new floor for mortgage rates, more than 16 million mortgage holders are now good refi candidates and are missing out on hundreds of dollars in savings per month, according to a report released Monday by the mortgage data firm Black Knight.

Find out whether you’re in that group.

As rates slide, opportunities open up

Andrii Yalanskyi / Shutterstock

Rates on 30-year fixed-rate mortgages dropped last week to an all-time-low average of 3.07%, according to mortgage giant Freddie Mac, which has been conducting weekly

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Mortgage rates plunge to new low, but you may need to hurry

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For the fifth time since early March, mortgage interest rates have dropped to a record low in a closely watched survey that’s been tracking rates since 1971.

Mortgage giant Freddie Mac says its weekly survey could show even lower rates later in the year.

But rates could rise in the near term as investors react to the government’s blockbuster jobs report for June. America’s unemployment rate fell from 13.3% to 11.1% last month as employers coming out of coronavirus lockdowns added a record 4.8 million jobs.

Whenever positive economic news pushes stocks higher, interest rates tend to rise, too. So if you’re hoping to score an unbelievably low mortgage rate to buy a home or refinance right now, you may need to move quickly.

Mortgage rates hit another record low

Andrii Yalanskyi / Shutterstock
Low mortgage rates have shattered their record yet again.

Mortgage rates have been in

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Mortgage Lenders ‘Make Hay’ With Loan Spreads Widest Since 2008

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(Bloomberg) — Unemployment is high. Credit is tight. And scientists are warning that a dangerous second wave of the coronavirus is coming. But somehow, U.S. mortgage companies are having one of their best years in history.

Just ask Keith VandenAkker. He’s forgoing weekends to keep up with the work.

In 22 years as a Massachusetts mortgage appraiser, he’s never been this busy. The jump in refinancing was to be expected, with rates near record lows. The surprise, he said, is that the spring property sales season, delayed for a couple months by the health crisis, is demanding most of his time.

“June is kicking my butt,” VandenAkker said, rushing in his silver Subaru, mask in hand, to the next appraisal. “I got 8 or 9 orders yesterday and I’m just a one-man show.”

Lenders are getting bombarded with calls from homeowners looking for cheaper loans. They’re also hearing from potential

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Borrowed time: Climate change threatens U.S. mortgage market

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A National Bureau of Economic Research working paper in February concluded that homes in flood plains are overvalued by $34 billion because homebuyers don’t fully price in the high risk of climate-related disasters.

“There are some systemic risks here which need to be considered and evaluated — and right now,” said former California Insurance Commissioner Dave Jones. “U.S. financial regulators are much further behind in that regard.”

And that risk is growing. Homebuilding and mortgage originations in floodplains have risen steadily over the years even as the number of flood insurance policies has fallen, according to data provided to POLITICO by First Street Foundation, a nonprofit that seeks to determine the probability of flooding for every U.S. home.

Between 2006 and 2018, nearly 600,000 houses were built in 100-year floodplains, bringing the total to 4.1 million homes. In that same time period, 300,000 mortgages were added to homes in floodplains,

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FHA Requirements: Mortgage Insurance for 2020

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Mortgage Insurance (MIP) for FHA Insured Loan

Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.

2020 MIP Rates for FHA Loans Over 15 Years

If you take out a typical 30-year mortgage or anything greater than 15 years, your annual mortgage insurance premium will be as follows:

Base Loan Amount LTV Annual MIP
≤ $625,500 ≤ 95% 80 bps (0.80%)
≤ $625,500 > 95% 85 bps (0.85%)
>$625,500 ≤ 95% 100 bps (1.00%)
> $625,500 > 95% 105 bps (1.05%)

2020 MIP Rates for FHA Loans Up to 15 Years

Homebuyers who can afford to pay off their loans quicker and opt for a shorter term, such as a 15-year mortgage, will benefit from lower mortgage insurance premiums, as follows:

Base Loan Amount
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Mortgage Protection Insurance: When You Might Need It

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Before you accept the responsibilities of taking on a mortgage that spans several decades, there’s an option you might consider to protect the home from foreclosure in case you’re not able to make the monthly mortgage payments.

Mortgage protection insurance (MPI) protects homeowners if a health issue arises and they become disabled, or a job loss is lengthy. In the worst-case scenario, this type of coverage can pay off the balance of the mortgage if the borrower dies.

MPI can be a safety net for some homeowners while others may view it as an unnecessary expense that will drain an already tight budget. Deciding whether to purchase a mortgage insurance policy depends mostly on your health and financial circumstances.

What is mortgage protection insurance?

MPI policies basically function as a type of life or disability insurance. The cost of the monthly premium varies, depending on the amount of the loan

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Finance & Mortgage Brokers | Australian Mortgage Brokers, Training & Courses

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Are you ready to reap the benefits of Membership with
the best finance broker association in Australia?

The FBAA are Australia’s premier finance brokers association, and we have extensive reach into all the major and regional areas of the country – including Perth, Sydney, Melbourne, Gold Coast, Brisbane, Hobart, Darwin, Canberra and Adelaide.

Our unique finance brokers association represents, educates and protects finance and mortgage brokers like you. By joining us, you can access our collective bargaining power, which allows us to monitor legislation and make representations to Regulators, Commonwealth Government Departments, and Members of State and Federal Parliament on matters that directly affect you.

Who should join the Finance Brokers Association of Australia?

• Finance and mortgage brokers, new to the industry established finance and mortgage brokers looking to expand their knowledge • Motor finance broker specialists • Vendor finance mortgage broker specialists • Asset finance broker specialists •

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Compare Our Best Mortgage Rates

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Mortgage term: most people opt for a 25-year term when they take their first mortgage out – but you can choose a longer or shorter period of time. If you opt for a longer term, your repayments will be lower but it will take you longer to pay off the debt. The shorter the term, the sooner you’ll be mortgage free. So the shortest term with the most affordable fee is often a better option.

Deal length: given that most mortgage products have an early repayment charge (ERC) if you end the mortgage deal early, it’s important to think about how long you’re happy to tie yourself in for. For example, if you think you might move in the next few years, you’d be better off going for a two or three year product rather than locking into a five year product. It can cost thousands of pounds to get

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