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  1. Mortgage Rates Will Reach 5.8 Percent By The End of 2011, MBA Predicts

    By on March 4, 2011

    mortgage rates, home loan rates, mortgage refinance, purchase money mortgageMortgage rates will climb to 5.8 percent by the end of 2011, predict analysts at the Mortgage Bankers Association.

    Mortgage rates will then rise above 6 percent in 2012, write MBA’s Michael Fratantoni, vice president of research and economics, and Joel Kan, the trade group’s director of economic forecasting, in their Economic Commentary today.

    Mortgage rates for the 30-year fixed-rate mortgage averaged 4.79 percent in January, down slightly from the previous month, but have increased since then and are currently around 5 percent, they note. Increasing rates will prompt mortgage refinance volume to fall. Overall mortgage lending volumes will decline, despite more purchase money mortgages, the researchers predict.

    Continue Reading…

    Category: Mortgage Rates

  2. Mortgage Rates Expected To Increase In 2011

    By on December 30, 2010

    mortgage rates 2011, mortgage rates outlook, mortgage rates predictionsExperts are predicting that mortgage rates will increase in 2011 as the overall economy and housing markets gradually improve, but they differ on how much mortgage rates will increase next year.

    The Mortgage Bankers Association predicts that mortgage rates for the 30-year fixed-rate mortgage will eventually go over 5 percent by the end of the year. The rate for the commonly used mortgage will increase to 4.8 percent in the second quarter of 2011, and to 5 percent in the third quarter before surpassing the 5 percent mark by the end of the year, said Jay Brinkmann, the MBA’s chief economist. View current mortgage rates.

    Mortgage rates for the 30-year fixed-rate mortgage will continue increasing throughout 2012, rising to 5.7 percent.

    The Federal Reserve plans to purchase $600 billion of Treasury bonds to lower mortgage and interest rates for other loans. By driving down interest rates in its so-called quantitative easing plan, it hopes to decrease unemployment and avoid deflation. But Brinkman believes the Fed’s quantitative easing plan is already priced into mortgage rates. Barring some kind of drastic action, it won’t drive down mortgage rates much, he said.

    30-year Fixed Mortgage Rates May Stay Under 5 Percent

    Frank Nothaft, chief economist for Freddie Mac, is forecasting that mortgage rates for the 30-year fixed will increase over 2011 but still remain below 5 percent. Initial rates on 5/1 adjustable-rate mortgages will probably stay below 4 percent in 2011. Continue Reading…

    Category: Housing Market, Mortgage Rate Trends and Analysis, Mortgage Rates

  3. Mortgage Rates Will Remain Low Into Next Year, Predicts Freddie Mac Economist

    1 By on December 7, 2010

    mortgage rates, 30-year fixed-rate mortgage rates, adjustable-rate mortgage ratesMortgage rates will remain low into next year, predicts Freddie Mac Chief Economist Frank Nothaft. The Federal Reserve will keep the federal funds rate at its current 0 percent to 0.25 percent range for all or most of next year, so relatively low mortgage rates will continue, Nothaft wrote in his blog yesterday.

    The rates for fixed-rate mortgages will increase a bit, but rates for the 30-year fixed-rate mortgage will probably remain under 5 percent through the year, Nothaft predicts. Initial rates for 5/1 adjustable-rates mortgages will probably stay below 4 percent.

    In addition, the housing and mortgage markets will gradual recover in 2011, with more home sales next year. Housing markets with a surplus of houses for sale and bank-owned properties will continue to have trouble, but national housing indexes are close to bottom, he asserts. Most experts expect indexes for single-family homes to bottom out in the first half of 2011.

    The good news is that houses are more affordable than they’ve been in years. In fact, the National Association of Realtors’ Affordability Index for the third quarter reported one of the most affordable housing markets since the 1970s. Those low prices will attract more first-time home buyers to the market, Nothaft predicts.

    While purchase-money mortgages will increase, refinance mortgages will decline, he forecasts. Many homeowners have already refinanced or are now refinancing. Plus, the Home Affordable Refinance Program is set to expire June 30, and mortgage rates will begin gradually increasing during the year. Continue Reading…

    Category: Adjustable Rate Mortgages, Fixed Rate Mortgages, Mortgage Interest Rates, Mortgage Rate Trends and Analysis, Mortgage Rates

  4. First-time Home Buyers Take Over Home Purchases

    By on November 8, 2010

    first-time home buyers, fixed-rate mortgages, home purchases, mortgage ratesHalf of all home purchases involved first-time home buyers this year, the largest portion since the National Association of Realtors started keep records in 1981.

    Last year 47 percent of home purchases were by first-time home buyers, according to NAR’s Profile of Home Buyers and Sellers. The previous largest share of first-time home buyers was 44 percent in 1991. Learn about tips for buying your first home.

    The first-time home buyers’ tax credit, which has now expired, was a major reason for their large share of home purchases. Almost all first-time home buyers, or 93 percent, used the tax credit.

    Almost all of first-time home buyers, or 95 percent, used fixed-rate home loans. Check mortgage rates for fixed-rate terms.

    Most, 74 percent, used savings for their down payment, while 27 percent used a gift from friends or relatives, slightly more than last year. That increases shows that more parents helped their children take advantage of the tax credit and extremely affordable housing, said Paul Bishop, NAR vice president of research.

    Also, 56 percent of first-time home buyers used FHA home loans to finance their home purchase. NAR also reported that 52 percent of the home buyers said obtaining a mortgage was more difficult than they had expected and 9 percent were rejected by a lender. Find tips for getting mortgage approval.

    The median down payment for home buyers was 8 percent, including 4 percent for first-time buyers to 14 percent for repeat buyers. First-time may have used FHA loans, which allow down payments as low as 3.5 percent. How to purchase a house with an FHA mortgage and current FHA mortgage rates.

    NAR’s survey shows that the median age of first-time buyers was 30 and their median income was $59,900. The typical first-time buyer bought a 1,540-square-foot house for $152,000. The typical home sold for 96 percent of the listing price, compared to 95 percent the group’s survey last year.

    Category: First Time Home Buyer, Fixed Rate Mortgages, Purchase

  5. Cash-out Refinancing Is Out – Cash-in Mortgages Are In

    By on November 1, 2010

    Not surprisingly, cash-out refinancing is way down. What is surprising is the huge jump in cash-in refinancing, something practically unheard of during the housing boom earlier in the decade.

    Over a third of borrowers doing mortgage refinancings in the third quarter did cash-in refinancings, according to Freddie Mac. The share of cash-in refinancing jumped to 33 percent in the third quarter from 23 percent in the semortgage refinance, cash-out refinance, mortgage ratescond quarter. It was the second highest cash-in share since Freddie Mac began compiling records on mortgage refinancings in 1985. Learn about refinancing.

    In a cash-in refinancing, something practically unheard of during the housing boom earlier in the decade, the homeowner pays down their mortgage balance at closing.

    Lower home values, stricter lending requirements for home equity, and homeowners’ desire to pay down their mortgages caused the big jump in cash-in refinancing, according to Freddie Mac.

    Many homeowners must pay down their mortgages in order to qualify for today’s low mortgage rates. Values of homes involved in mortgage refinancings dropped by a median of 3 percent, according to Freddie Mac.

    Some homeowners may pay down their mortgage to qualify for a shorter term mortgage that has a lower mortgage rate in what’s called a term refinancing. Check current mortgage rates.

    Low interest rates on savings accounts could also be a reason for more cash-in refinancing. With savings rates for CDs between 1 or 2 percent, some homeowners may opt to use their savings to find lower mortgage rates. Continue Reading…

    Category: Current Mortgage Rates, Mortgage Interest Rates, Mortgage Rates, Refinance

  6. Low Mortgage Rates Will Disappear Next Year, Trade Group Says

    By on October 27, 2010

    Mortgage rates will begin increasing next year, the Mortgage Bankers Association predicts.

    Mortgage rates, recently down to about 4.5 percent for the 30-year fixed-rate mortgage, will rise to 4.8 percent in the second quarter of 2011, then to 5 percent in the third quarter before surpassing the 5 percent mark by the end of next year, according to the MBA’s Mortgage finance forecast released yesterday at a the group’s annual convention in Atlanta. Find current mortgage rates.

    Mortgage rates for the 30-year fixed, probably the most common home loan product, will continue increasing through out 2012, rising to 5.7 percent.

    The Federal Reserve plans another round of quantitative easing, a fancy phrase for pumping more money into to the economy, in at attempt to drive down interest rates and stimulate the economy. The Fed is expected to purchase large amounts of U.S. Treasuries to decrease mortgage rates and other types of interest rates. But the Fed’s actions are already priced into mortgage rates, said Jay Brinkmann, the MBA’s chief economist. The Fed, according to Brinkmann, would have to make an unexpected “blockbuster” announcement to push mortgage rates much lower.

    If the MBA prediction is correct, this year is the best time for homeowners to refinance their mortgages into lower rates.

    Existing-home sales will increase slowly through 2011, rising from 4,026 in the third quarter of 2010 to 5,051 to the fourth quarter of 2011, the MBA predicts.

    The national average for home prices will probably fall slightly next year, but that figure is being weighed down by severely distressed housing markets, such as Florida and some areas of California. Some areas, Brinkmann said, are showing signs of increasing home prices. Learn about mortgage for purchasing a home.

    The median price of existing homes, at $218,900 in the second quarter this year, will increase to $173,500 by the end of next year.

    The MBA predicts that the volume of mortgage refinancings will reach 921 billion this year and 370 billion in 2011. Mortgages for home purchases will amount to 480 billion this year and 626 billion in 2011.

    Yields for the 10-year Treasury, which are typically used to set mortgage rates, will increase to 3.3 percent by the end of 2011.

    Category: Fixed Rate Mortgages, Mortgage Interest Rates, Mortgage Rate Trends and Analysis, Mortgage Rates, Refinance

  7. Compare Mortgage Rates -30-year Fixed and 15-year Fixed

    By on August 31, 2010

    Compare Mortgage RatesAccording to Freddie Mac, a government controlled firm that has been monitoring mortgage rates since 1971, mortgage rates have hit historical lows. If you have been planning long to buy a house, this is a great time to shop for  mortgage rates. We at Total Mortgage offer some of the lowest mortgage rates in the country. If you are a first-time home-buyer or want to refinance your current loan, Total Mortgage is here to help you out with some of our best mortgage rates.

    Currently at Total Mortgage a 30 year fixed conventional mortgage rate is available at 4.125% (4.323% APR). A 20 year fixed mortgage is available at 4.000% (4.273% APR), and a 15 year fixed mortgage is available at 3.625% (3.972% APR).

    Some other popular mortgage products are 30 year fixed FHA available at 4.000% (5.178% APR), 5/1 ARM conforming mortgage available at 2.875% (2.638% APR), and a 5/1 ARM jumbo mortgage available at 3.625% (3.657% APR).

    This is a great time to refinance your mortgage loan. For example, let us assume you have a loan amount of $500,000 with a rate of 5.5% for a 30 year fixed rate, your monthly payment would be $2,838.95. If you decide on our low 4.125% mortgage rate for 30 year fixed for the same loan amount, your monthly payment would be $2,423.25 saving you a total of $415.70 each month. Overall you could be saving $149,650 with the second loan throughout the span of your loan. Call us to discuss on details how this scenario will work for you.

    Likewise, with a 15 year fixed rate for the same loan amount at a rate of 4.5% compared to our rate of 3.625% your monthly payment would come to $3824.97 with the first loan and $3,605.18 with the second  loan, saving you $219.79 per month. You could save $39,506.88 with the second loan over the length of your loan. Call us to discuss details on how this scenario will work for you.

    For more information on our mortgage rates and mortgage products available please call 877-868-2503 to speak with a licensed mortgage professional immediately.

    *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.

    Category: Mortgage Rates

  8. Record Low Mortgage Rates According to Freddie Mac

    By on July 29, 2010

    Freddie Mac Reports Record Low Mortgage RatesMortgage rates fell to record lows last week, according to Freddie Mac. This marks the sixth consecutive week that Freddie Mac has reported record low mortgage rates for fixed rate mortgages.

    Freddie Mac is reporting the average mortgage rate for a 30 year mortgage is 4.54 percent for the week ending July 22. This is down .02 percent from the previous week when the average rate was 4.56. At this point in time last year the average mortgage rate for a 30 year mortgage was 5.25 percent, over .7 percent higher. Continue Reading…

    Category: Mortgage Rates

  9. 30 Year Fixed Mortgage Rates at Total Mortgage

    By on July 21, 2010

    Total Mortgage is posting some of the lowest current mortgage rates in the nation. One of the featured mortgage products at Total Mortgage is a 30 year fixed conventional mortgage. This 30 year fixed rate mortgage is currently being offered with a 4.125% mortgage rate and a 4.323% APR.

    One of the major perks of a 30 year fixed rate mortgage is that you will have low payments every month. Your mortgage rate may be a little higher than if you had a loan with a shorter term, maybe 15 or 20 years, but the length of the loan will allow you to have reduced payments.

    A fixed rate mortgage has 3 main characteristics. The first two, being the term and amount of the loan, will vary depending on your situation. The last is the compounding frequency which can be monthly, yearly, etc. If you know these three things then you can determine exactly what your payments will be each and every month.

    With mortgage rates as low as they are for a 30 year fixed conventional mortgage there is no reason to consider another mortgage product. Adjustable rate mortgages (ARM) may provide lower mortgage rates initially but you may run the risk of having significant rate increases in the future.

    For a free rate quote fill out this form or call 877-868-2503 to speak with a licensed mortgage expert.

    Category: Fixed Rate Mortgages, Mortgage Rates

  10. 30 Year Fixed Rate Mortgages in New Jersey Becoming More Desirable

    By on July 20, 2010

    In the past weeks we have noticed an increase amount of interest in 30 year fixed rate mortgages. Currently at Total Mortgage a 30 year fixed conventional mortgage is available with a 4.125 percent mortgage rate and a 4.323 percent APR. With mortgage rates in New Jersey so low it is currently a great time to consider refinancing a mortgage or purchasing a home in the Garden State.Fill out this form for a free rate quote

    With a 30 year fixed conventional mortgage you can be assured that you are going to have low payments every month. While 15 and 20 year fixed rate mortgages may have lower mortgage rates the length of the loans will most likely make your monthly payments considerably higher than the 30 year fixed conventional mortgage.

    Fixed rate mortgages, especially 30 years, are great for people who are on a fixed income, people who intend to stay in their home for an extended period of time, those who benefit from knowing their pre-determined monthly payment and people looking to take advantage of low current mortgage rate.

    For more information on 30 year fixed rate mortgages in New Jersey call one of our licensed mortgage professionals at 877-868-2503.

    Category: General

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