Nov 16, 2010

Three reasons to pay off the mortgage.

Reason #1--It Provides Peace of Mind: Peace of mind is worth a lot, and those who know that they would feel a lot better about their futures if they didn't have a monthly mortgage payment.

Reason #2--It Reduces Costs of Living. To obtain financial independence very early in life, we must reduce our cost of living and by paying off the mortgage, we achieve it.

Reason #3--It Diminishes the Fear of Job Loss. Job loss is the biggest fear that torments many families. But once mortgage is paid off then there is less worry in case of a job loss.

Privocorp is a mortgage processing company and we do not originate loans. Origination of loans is done by our clients and other loan officers.

Home loan demand rises due to low interest rates.

U.S. mortgage applications rose last week as there is an increase in demand for new loan purchase and refinance. More and more people are trying to take advantage of the low interest rates and lock in on them before it increases. Mortgage Bankers Association says there is an 5.8 % increase in the mortgage applications, which includes both purchase and refinance loans.

Michael Fratantoni, the MBA's vice president of research and economics, said in a statement that the increases in purchase application coincide with the October's employment report which indicates some improvement in the economic growth.

However this increase in home loans is very little, as the lending standards have become very tight thereby preventing many homeowners from taking advantage of the low interest rates. Cameron Findlay, chief economist at in Charlotte, North Carolina, says "underwater mortgage" -- where the amount owed on the mortgage exceeds the home's value -- "are one of the biggest banes of the homeowners who want to refinance.This negative equity makes many homeowners unqualified for refinancing and prevents some from selling." Despite the slow progress, the very fact that there is an increase in the demand for mortgage application is an indicator of some positive activity in the housing sector and the team at PrivoCorp hope that this trend continues and the economy keeps on improving. To read more on this, check out

Rates fall to record low : Good time to lock in on these low rates.

According to, the bench mark 30 year fixed rate mortgage fell 9 point, from a 4.45 last week to 4.42 this week. Rates haven't been lower since 1953, according to the National Bureau of Economic Research's statistics on FHA-insured loans.

The benchmark 15-year fixed-rate mortgage fell 9 basis points, to 3.81 percent. The benchmark 5/1 adjustable-rate mortgage fell 10 basis points, to 3.57 percent, and the 30-year, fixed-rate jumbo fell 6 basis points, to 5.04 percent. All of those are record lows in Bankrate's weekly survey.

The team at PrivoCorp, suggests to all borrowers to consult with their loan officers and lock in on these low rates. If the rates do dip further down, there is no need to be concerned as you can always refinance.

PrivoCorp is loan processing company and does not originate loans. This activity is performed by our clients - brokers or lenders.