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  1. Adjustable Rate Mortgages Can Offer Significant Savings to the Right Borrowers

    By on January 23, 2012

    Mortgage rates hit record lows last week according to Freddie Mac’s Primary Mortgage Market Survey.  While rates dropped to record lows in each of the previous three weeks, early indications are that this is not a trend that will continue this week.  Mortgage backed securities and treasury bonds are selling off this morning, which will set the stage for an increase in rates.

    Despite this, rates are still extremely affordable, and rates on adjustable mortgages are no exception.  Although they are not good for every type of borrower, certain people can benefit tremendously from their benefits.

    The most attractive feature of an ARM is that it has a set rate for a fixed period of time (usually 1, 3, 5, 7, or 10 years).  After this period of time, the rates adjusts based upon market conditions.  While the amount that the ARM can adjust is typically capped, those who have an ARM could potentially see significantly higher home payments after the fixed period is over.

    For this reason, ARMs are good for people who know that they will only be in their home for a set amount of time, those who keep careful watch on the markets and have a strong handle on where rates will go, or those who can quickly pay off their entire mortgage.  Compared with a fixed rate mortgage, ARMs feature substantially lower rates and monthly payments in the beginning of the mortgage.  If you know that you will need to move for your job, or will need to move into a larger home to accommodate a growing family, an ARM could be for you.

    Last week Freddie Mac found the average rate on a 5/1 ARM to be 2.82%.  Today Total Mortgage is able to offer a to qualified borrowers a 5/1 ARM starting at a rate of 2.375% with an APR of 2.384% and  5/1 Jumbo ARMs at a rate of 2.625% with an APR of 2.830%*.  

    If you are interested in one of our adjustable rate products, give us a call today at 877-868-2503.  One of our licensed loan officers can help you decide if an ARM is the right mortgage to help you secure your financial future.

    Mortgage rates change often.  The above rates were quoted at 10:40 A.M., on January 23, 2012.

    *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

  2. Adjustable Rate Mortgages Dip to 2.750%

    By on November 21, 2011

    Despite stronger than expected U.S. economic data of late, mortgage rates are falling. Negative news out of Europe and the failure of the U.S. Congressional “Supercommittee” on debt are roiling the markets, and borrowing rates are coming down as treasuries and mortgage backed securities rally.

    The silver lining to this troublesome news is that if you are looking for a mortgage, rates are just above their all-time lows, and you may be able to save a lot on your monthly home payments.

    Although fixed rate mortgages comprise the vast majority of new home loans these days, there are some people who may be able to benefit from the low rates on adjustable rate mortgages (ARMs).  The rate on an ARM is fixed for a pre-determined period of time (usually 1, 3, 5, 7, or 10 years). After this period of time, the rate can rise or fall depending upon market conditions.  If you only intend to be in your home for a short period of time, you could see significant savings with an ARM, which generally have lower rates than comparable fixed rate mortgages.

    If you have a growing family, and know you will need to upgrade to a home with more space in a couple of years, an ARM may be for you.  Similarly, if you know that you will have to relocate due to work, or if you work on a bonus structure that would quickly allow you to pay off your home, you may want to consider an adjustable rate mortgage.

    Today we are able to offer qualified borrowers: 5/1 ARMs at 2.750% with an APR of 2.711% and  5/1 Jumbo ARMs at 2.875% with an APR of 2.695%*.  We also offer 10, 7, and 1 year ARMs.  For complete information on all our rates or products, speak with one of our loan officers today at 877-868-2503.

    Mortgage rates change frequently.  The above rates were quoted at 11:37 A.M., on November 21, 2011.

    *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

  3. Adjustable Rate Mortgages Starting Under 3.000%

    By on October 14, 2011

    Despite rising rates, the interest rates on adjustable rate mortgages remain close to their all-time lows. ARMs are not for everybody, but certain types of borrowers could save a lot of money with an ARM.

    While long term (15 and 30 year) fixed rate mortgages are the most popular types of mortgages in the United States, there are many people who opt for the comparatively lower rates that accompany adjustable rate mortgages.  The rates on ARMs are actually fixed for a set period of time (typically 1, 3, 5, 7, or 10 years).  After this time, the rate adjusts based upon market conditions.  The amount that the rate can rise in any one year is capped, but the borrower could end up paying a substantially increased rate over time.

    If you know that you are only going to be in a home for a brief duration (shorter than the fixed period of an ARM), you can save a lot of money with an ARM.  Perhaps you know that you will have to relocate for work.  Maybe you have a growing family and know that you will need to upgrade your house.  Maybe you work on a bonus structure that will allow you to quickly pay off your home in the near future.  If any of these situations describe you, you might want to look into getting an ARM.

    As of this morning, we are offering the following rates on ARMs to qualified borrowers:

    Today we are able to offer qualified borrowers: 5/1 ARMs at 2.500% with an APR of 2.951% and  5/1 Jumbo ARMs at 2.750% with an APR of 3.038%*.  We also offer 10, 7, and 1 year ARMs.  For complete information on all our rates or products, speak with one of our loan officers today at 877-868-2503.

    Mortgage rates are always changing. All rates were quoted at 10:24 A.M., on October 14, 2011.

    *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

  4. 5/1 Adjustable Rate Mortgages From 2.500%

    By on October 7, 2011

    For the fifth consecutive week, mortgage rates set record lows last week.  Since that time, the stock market rallied significantly, and Treasury bonds and mortgage backed securities have given back most of their gains.  Mortgage rates are up, and we are unlikely to see a new record next week.

    Despite this, mortgages are shockingly affordable right now.  The rates on adjustable rate mortgages are especially competitive, and could provide tremendous savings to the right kind of homeowner.

    While 30-year fixed rate mortgages remain the most popular kind of mortgage in the United States, there are definitely borrowers who could benefit from an adjustable rate mortgage.  ARMs are fixed for a period of time (generally 1, 3, 5, 7, or 10 years), after which the rate adjusts based upon market conditions.  While fixed rate mortgages have consistent principal and interest payments over the life of the loan, they generally have higher interest rates than ARMs.  ARMs are inherently more risky than fixed-rate mortgages, but that doesn’t mean they are a bad choice of mortgage.

    If you only intend to stay in your home for a limited period of time, you could save a lot of money with an ARM.  Perhaps you know that your job will require you to move in a few years.  Maybe you have a growing family, and will inevitably move to a larger house in a few years.  These are just a few examples of people who can save money with an ARM.

    Today we are able to offer qualified borrowers 5/1 ARMs at 2.500% with an APR of 2.951%.  The current rate on a 5/1 Jumbo ARM is 2.750% with an APR of 3.038%*.  We also offer 10, 7, and 1 year ARMs.  For complete information on all our rates or products, speak with one of our loan officers today.

    Mortgage rates are always changing. All rates were quoted at 10:35 A.M., on October 7, 2011.

    *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

  5. Adjustable Rate Mortgages Fall Below 3.000%

    By on September 7, 2011

     

    Interest rates plunged yesterday as bonds rallied on renewed fears of a spreading European debt crisis and a stalling U.S. economy.  As a result of the market action, mortgage rates dropped considerably, and are sitting right around record lows.

    If you’re only planning on staying in your current/next home for the short term, you may benefit from our low adjustable rate mortgage rates. If you know that your job will require you to move in a few years, or that your family is due to increase in size and you will soon need more room, you may be able to save a lot of money in monthly mortgage payments through an adjustable rate mortgage.

    Today we are able to offer qualified borrowers a 5/1 ARM at a rate of 2.750%* with an APR of 3.064%.  We also offer 10, 7, and 1 year ARMs.  For more information on pricing or availability, call us today at 877-868-2503.  

    It is important to understand that an adjustable rate mortgage is not for everyone.  Adjustable rate mortgages have a fixed rate for a period of time, after which the interest rate on them adjusts according to market conditions.  There is some risk inherent in an ARM, and if you know that you are going to stay in your house for a long duration, a fixed rate mortgage may be a better product for you.  Before making a decision about what kind of mortgage is appropriate for you, you may want to consider speaking with a professional.  One of our licensed loan officers would be happy to teach you about the advantages of our different mortgage products.

    Mortgage rates are always changing. All rates were quoted at 12:30 P.M., on September 7, 2011.

    *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

  6. Save Money With a Low Adjustable Rate Mortgage Today

    By on June 14, 2011

    Adjustable rate mortgages are currently available at extremely low mortgage rates, and the right type of borrower may be able to save a ton of money on their home purchase or mortgage refinancing with an ARM.  If you intend on being in your house for the short term, or if you work on a bonus structure that may allow you to quickly pay off your entire mortgage, an ARM may be the right choice for you.

    ARMs feature much lower monthly mortgage payments than fixed rate mortgages of an adjustable length.  There is some inherent risk in an ARM, as they can adjust to reflect market conditions after a set amount of time.  This is why the ARM is not an appropriate product for all people, especially those who plan to be in their home for the long term and expect that interest rates may rise in the future.

    Today’s rate on a 5/1 ARM is 2.750% with an APR of 2.595%.  The current rate on a 5/1 Jumbo ARM is 2.875% with an APR of 2.797%*.  We also offer 10, 7, and 1 year ARMs.  For complete information on all our rates or products, speak with one of our loan officers today.

    Total Mortgage was founded in 1997, and since that time we have helped thousands of borrowers to make their homeownership dreams come true.  Our dedication to responsible lending, the best mortgage rates, and superior customer service has made us one of the fastest-growing, privately-held mortgage companies in the United States.  It is our commitment to these core values that has allowed us to prosper at a time when other mortgage companies have faltered. For a free consultation with one of our licensed mortgage professionals, call us today at 877-868-2503.  Start your future today!

    Mortgage rates are always changing. All rates were quoted at 10:31 A.M., on June 14, 2011.

    *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

  7. Save Money With an Adjustable Rate Mortgage: Starting at 3.375%

    By on May 6, 2011

    Adjustable rate mortgages unfairly got a bad rap during the bubble years, but for the right kind of borrower, they can be an excellent type of mortgage.

    ARMs can offer significant savings compared to fixed rate mortgages because of their comparatively low rates.  If you only intend to be in your house for the short term, a 5, 7, or 10 year ARM can save you a huge amount of money.  Maybe you’re looking to start a family in the coming years, and you know that you will have to buy a larger house.  Perhaps you know you’ll be in your current location for just a few years before your job requires you to move again, but you don’t wish to rent.  Possibly you get paid on a bonus structure, and know you will quickly be able to pay off your mortgage in the near future.  If any of these describe you, you should look into one of our adjustable rate mortgages.

    For qualified borrowers, we are offering 5/1 conforming ARMs at a rate* of 3.375% with an APR of 4.875%.  5/1 Jumbo ARMs start at the low rate of 3.500% with an APR of 4.914%.  For a free consultation with one of our licensed mortgage professionals, call us today at 877-868-2503.

    * All rates shown are for 30 day rate locks. Longer locks are available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 1 point, a $495 application fee, $400 appraisal 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, one point, a $495 application fee, $400 appraisal 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, one point, a $495 application fee, $450 appraisal 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 with 740 or higher FICO and 80 LTV and are subject to mortgage approval with full documentation of income. All rates are subject to change without notice. All rates shown are for 30 day rate locks with 1 point unless otherwise noted.
    Category: Mortgage Rates

  8. Today’s Adjustable Rate Mortgages from 3.125%

    By on March 22, 2011

    Total Mortgage is widely known for its low mortgage rates and dedication to responsible lending.  We offer many different types of mortgages and are able to use our expertise to develop lending solutions that will fit the needs of many different types of borrowers.  We understand that everyone’s situation is unique, and that not all types of loans are good for all types of people.  Today I’m going to highlight some of the benefits (and downsides) of adjustable rate mortgages (ARMs), which were often maligned after the housing bubble burst.

    Adjustable rate mortgages comprised about 70% of mortgages originated in 1994.  By 2009, they made up only 3% of all new originations, but their market share appears to be rising again.  Many people who missed out on financing at last October’s record low mortgage rates are refinancing into ARMs to save money on their monthly payments.  It is important to understand that ARMs are not ideal for all people.  They have a fixed mortgage rate for a period of time (usually somewhere between 10 and 1 years), after which the mortgage rate adjusts based upon prevailing market conditions.  ARMs are great for those who only intend to be in their house for a short period of time before moving, or those who intend to quickly pay off their home (such as those that get paid mostly through bonuses).

    Those who intend to stay in their home for the long term may wish to pursue fixed rate mortgages, which offer more stability due to the fact that their interest rate remains the same for the life of the mortgage.  You should always talk with a mortgage professional before deciding what type of mortgage is best for you.  To speak with one of our licensed mortgage professionals, or to discuss current rates and products, call us today at 877-868-2503.

    Presently, we are offering a 5/1 conforming ARM to qualified borrowers at 3.125%* with an APR of 3.180%.  5/1 Jumbo ARMS are available at a rate of 3.125% with a 3.338% APR.  We also offer a variety of other ARMS, including 10/1, 7/1, 3/1, and 1/1 conventional ARMs, as well as a 5/1 FHA ARM.  For more information on our adjustable rate pricing and products, or to speak with one of our licensed mortgage professionals, call us today at 877-868-2503.

    Mortgage rates are always changing. All rates were quoted at 12:30 P.M., on March 23, 2011.

    *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

  9. Authorities Investigating Possible Bank Manipulation Of ARM Index

    By on March 17, 2011

    Regulators are investigating the possibility that major banks manipulated the London Inter-Bank Offered Rate (LIBOR), an index used to set adjustable-rate mortgages and other loans.

    The Department of Justice and Securities and Exchange Commission as well as Japanese and British regulators are investigating if some banks intentionally provided inaccurARMs, adjustable-rate mortgages, LIBOR, ARM ratesate data to the British Bankers Association between 2006 and 2008 in an attempt to manipulate LIBOR. Compiled daily by the BBA from information from 20 large banks, LIBOR is the benchmark index for “trillions of dollars worth of mortgages and others loans in the U.S. and other countries,” explains an article in The Wall Street Journal today.

    While all banks involved in setting LIBOR have been questioned, the U.S. investigation, notes the Journal article, is focusing on Bank of America, Citigroup and UBS AG. Although authorities have questioned banks and sent several subpoenas, that doesn’t mean anyone will be charged with wrongdoing. Continue Reading…

    Category: Adjustable Rate Mortgages

  10. 10/1 Adjustable Rate Mortgages Can Provide Excellent Value for Many Borrowers

    By on March 16, 2011

    Adjustable rate mortgages kind of got a bad rap after the collapse of the subprime bubble and the subsequent deterioration of the housing market, but lately they are making a comeback.  ARMs made up nearly 70% of all mortgages originated during the bubble years, while they made up only 3% of the mortgages issued in 2009.  They have since climbed to 5% of mortgage originations, and Freddie Mac thinks they could make up 10% of all originations by the winter of 2011.

    Part of the reason for the rising popularity of ARMs is that mortgage rates are rising (generally speaking – rates are up substantially since Fall 2010, but have been up and down over the last couple weeks due to geopolitical uncertainty in the middle east and the disaster in Japan).  The 30 year fixed-rate mortgage hit an all time low of 4.17 percent in the fall.  Presently the average rate on the same loan is at 4.95 percent according to Freddie Mac’s Primary Mortgage Market Survey.  Many people that missed out on refinancing last year are now refinancing into ARMs in order to lower their monthly payments.

    It is important to understand that ARMs are not an appropriate product for every borrower.  For those that intend to move in the near future, or those that intend to quickly pay off their entire mortgage, ARMs can save tons of money versus fixed rate mortgages.  People that are going stay in their house for the long term, or those that are on a very fixed budget are usually better off getting a fixed-rate mortgage because they provide more long term stability.  It is important to consult with a mortgage professional before making such decisions.

    Continue Reading…

    Category: Mortgage Rates

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