Current Mortgage Rates at Total Mortgage for Wednesday, September 22, 2010

For those who want to play monopoly on a grander scale...

It’s Wednesday, and you are almost halfway home to the weekend.  The finish line is in sight.  Right now would be a fine time to take a look at the low mortgage rates Total Mortgage is offering qualified borrowers.

Yesterday the Federal Reserve Open Market Committee confirmed that it would maintain its zero interest rate policy which has helped to keep mortgage rates low for more than a year.  The Federal Reserve is not the sole determinant of mortgage rates, however.  Market forces have almost as much influence on rates (if not more so) than the Federal Reserve is.  Turmoil in the stock market has caused many investors to seek shelter in the bond market.  This influx of cash has served to drive up the price of bonds and to push bond yields lower.  This, in turn, has caused mortgage rates to stay low.

Despite this, mortgage rates have increased over the last two weeks.  Freddie Mac reports that rates went from 4.32 percent to 4.37 percent over the last two weeks.  It is possible that this is the beginning of a trend, or possibly just an aberration.  If you plan to refinance your mortgage, it is possible that we will not see rates move lower in the future.  Waiting to refinance could cost you considerably if rates were to move higher, which is definitely worth taking into consideration.

An increasingly popular mortgage at Total Mortgage (and nationwide) is the FHA insured mortgage.  These mortgages require only a 3.5 percent down payment while traditional lenders require 20 percent or more.  For this reason FHA mortgages are very popular amongst first time homebuyers.  FHA mortgages actually accounted for 37 percent of all mortgages that were originated in the United States in 2009.  Borrowers should be aware that there are increased fees associated with FHA mortgages due to mortgage insurance premiums.  For qualified borrowers we are offering 30 year fixed FHA mortgages at 4.125 percent with a 5.293 percent APR.

Another popular mortgage is the Fixed rate mortgage.  A lot of borrowers like being able to lock in a low mortgage rate to guard against future cost increases as well as have a consistent monthly payments.  If this sounds like it would appeal to you, a fixed rate mortgage could be ideal.  30 year fixed rate mortgages are available to qualified buyers at 4.0 percent with a 4.201 percent APR. Alternately, you could go with a 15 year fixed rate mortgage, which has higher monthly payments but could save a borrower thousands of dollars in interest payments over the life of loan. A 15 year fixed rate mortgage is available at 3.5 percent with an APR of 3.854 percent. The monthly payments are more expensive, but you will save thousands of dollars in interest payments compared to a longer term mortgage.

If you are going to be in your house for a couple of years, you may be able to save money with an adjustable rate mortgages (ARM). ARMs offers distinct advantages over fixed rate mortgages for some buyers.  Initially, their mortgage rates are much lower than with a fixed rate mortgage.  The caveat is that after a certain period of time, the rate can increase.  For this reason they are not appropriate for all buyers, but can be hugely beneficial to some.  With an ARM (or any mortgage, really) you should always talk to a mortgage professional or financial planner before deciding what type of mortgage best fits your situation.  Among our most popular ARM’s are 5/1 conforming and 5/1 jumbo ARMs. A 5/1 conforming ARM is available with a 2.75 percent mortgage rate and a 2.637 percent APR. A 5/1 jumbo ARM has a slightly higher mortgage rate of 3.625 percent and a 3.657 percent APR.

Mortgage rates are always in flux.  These rates were quoted as of 8:45 am on September 22, 2010.

For a complete list of Total Mortgage’s current mortgage rates and mortgages products call 877-868-2503 immediately, 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.