Today’s Mortgage Rates For Monday, September 20, 2010

It’s Monday and you’re back at work, hope you did alright with your picks this weekend.  Today we are posting some of the best mortgage rates in the industry today.  So before you answer all those emails that came in over the weekend, take a few minutes to see how Total Mortgage may be able to save you money today.

According to both Freddie Mac and Zillow, mortgage rates are increased slightly over the past two weeks.  Freddie Mac shows rates moving from 4.32 percent to 4.37 percent over the last two weeks.  I am not sure whether this is a blip on the radar or the beginning of a trend, but if you are looking to refinance your mortgage, it is better safe than sorry.  If you are considering refinancing, you need to take into consideration the possibility that rates may move higher, but don’t have a lot of room for movement lower. There is limited upside but a lot of downside in waiting to refinance.  By refinancing you may be able to save hundreds of dollars per month and thousands of dollars over the course of your loan.

Fixed rate mortgages are one of the best selling mortgage products in the United States.  Many borrowers like the stability and surety they offer.  Setting your monthly budget can be a lot easier when you know exactly what your mortgage payment is going to be every month.  Another good thing about a fixed rate mortgage is that a borrower is able to shift a lot of the inherent interest rate risk in a mortgage to the lender.  If you are going to be in your house long term, or if you want to lock in a consistently low monthly mortgage payment, a fixed rate mortgage is probably the best mortgage for you.  30 year fixed rate mortgages are available to qualified buyers at 4.0 percent with a 4.201 percent APR.  Another option is the 15 year fixed rate mortgage, which has higher monthly payments but will 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.

In the past, credit restrictions on jumbo mortgages made them difficult to attain, but if you are buying a house that costs more than the Fannie Mae’s conforming limits ($417,000 to $729,750 depending upon where you live), you will have to get a jumbo mortgage. Credit standards on jumbo mortgages have loosened somewhat, and a 30 year fixed jumbo mortgage is available at Total Mortgage with a mortgage rate of 4.875 percent and an APR of 5.098 percent.

A you looking to make a foray into homeownership? An FHA mortgage can be very good for first time homeowners. One of the best features of an FHA mortgage is that it only requires a down payment of 3.5 percent, far less than most conventional mortgages. It is important to realize that FHA mortgages require the borrower to take out mortgage insurance, which can increase your costs in the long run. For qualified borrowers we are offering 30 year fixed FHA mortgages at 4.125 percent with a 5.293 percent APR.

Are you only planning on living in your home for the short term?  You might consider an adjustable rate mortgages (ARM). ARMs offers some advantages over fixed rate mortgages for the type of borrower. They feature low initial mortgage rates that are unmatched by any other type of mortgage.  One must note that there is some inherent risk with an ARM, as the interest rate can escalate after a certain number of years. They are not appropriate for all buyers. It is important to be counseled by an experienced mortgage professional before making any decisions about what kind of mortgage loan is appropriate for you.

Some of 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 change all the time. These mortgage rates were quoted at 9:00 a.m. on September 17, 2010.

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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.