Today’s Mortgage Rates For Wednesday, December 29, 2010

Just a few days before the year is over, but you still have time to check out mortgage rates. Mortgage rates have dropped slightly after increasing over recent months, but remain unpredictable as always and may be increasing again. Before you start planning for your New Year’s resolution, take a minute to check today’s mortgage rates posted at Total Mortgage.

News Roundup:

The Conference Board’s index of consumer confidence dropped to 52.5 in December from 54.3 last month. A good economy is supposed to have a consumer confidence level of 90 or better.

Analysts had predicted that the confidence mark would rise to 55.8, so the results were somewhat disappointing. But the Conference Board, which puts out the consumer confidence figures, said the report was no big deal.

“Despite this month’s modest decline, consumer confidence is no worse off today than it was a year ago,” said Lynn Franco, director of the Consumer Research Center at the Conference Board. “Consumers’ assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious. Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate.”

Plus, consumer spending jumped 5.5 percent to $584 billion from Nov. 5 through Dec. 24 on strong holiday sales, according to MasterCard Advisors’ SpendingPulse. It was the best improvement since 2005.

The S&P Case-Shiller Index reported yesterday that home prices dropped in 18 markets in its 20-city index since last year, leading some to speculate that a housing market double-dip is upon us. But the drop could be temporary, and an improving general economy might begin boosting home prices in more markets next year. Scott Grannis, a former chief economist at Western Asset Management Company, is one of the experts who believe housing prices have fallen far enough to clear the market. You can read about his reasoning on housing  market trends in his article posted on Seeking Alpha today.

Today’s Link:

The New York Times says mortgage rates may have hit bottom in this article.

Our Rates:

Fixed rate mortgages are one of the most popular mortgage product we have to offer. Most borrowers prefer fixed rate mortgages because they allow homeowners to lock in today’s low rates throughout the life of the mortgage and enjoy consistent monthly mortgage payments.  Qualified borrowers can get 30 year fixed rate mortgages at a 4.625% mortgage rate with 4.834% APR. A 15 year fixed rate mortgage is available at a 4.000% interest rate and 4.359% APR.

Adjustable rate mortgages (ARMs) offer very low starting mortgage rates compared to other types of mortgages.  ARMs can be an excellent choice for home buyers who only plan to stay in their home for a short period of time or those rate watchers who feel they have a firm handle on where the markets are going. Currently at Total Mortgage, a 5/1 conforming ARM is available to qualified borrowers at a 2.500% mortgage rate and 3.038% APR.

FHA mortgages are mortgages backed by the Federal Housing Administration. FHA mortgages have gained popularity, especially among first time home buyers, in recent years.  FHA mortgages are popular because of their low down payment of usually 3.5% and flexible mortgage requirements.  A 30 year fixed FHA mortgage can be obtained at a 4.375% interest rate and 5.775% APR.

If you are shopping for luxury homes, you may be required to get a jumbo mortgage. Jumbo mortgages  are home loans which are greater than the conforming loan limits set by Fannie Mae and Freddie Mac. The conforming loan limits are $417,000 to $729,750 for single-family homes depending on the location of the property. Currently, Total Mortgage is offering a 30 year fixed jumbo mortgage at 5.375% and 5.588% APR and a 15 year fixed jumbo mortgage at a 4.125% rate and 4.475% APR.

Mortgage rates are always changing. All rates were quoted at 9:30 A.M., on December 29, 2010.

For more information on our current mortgage rates and mortgages products call 877-868-2503 today, to speak with a licensed mortgage professional.

*All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice.