No change in December delinquencies

Lender Processing Services recently reported delinquency rates in December were unchanged from rates seen in November.

The U.S. loan delinquency rate for loans 30 days or more past due but not yet in foreclosure was 8.15 percent, the same as in November. The foreclosure pre-sale inventory rate was 4.11 percent in December, down 1.3 percent from November. There were 4,101,000 properties 30 days or more delinquent on their home loans, and 1,792,000 90 days or more delinquent. The total number of properties in foreclosure pre-sale inventory was 2,066,000 for the month.

To avoid delinquencies and foreclosures, many homeowners are refinancing their home loans and taking advantage of the low mortgage rates. However, if homeowners have a jumbo mortgage, they typically have less options available when they decide to refinance.

Jumbo mortgages are larger, harder to acquire and more expensive than other mortgages. Some mortgage lenders do not offer jumbo loans or are stringent on the borrower requirements. Therefore, consumers looking to acquire or refinance a jumbo loan should also consider a hybrid ARM as they tend to be substantially discounted by lenders.

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