Mortgage Rates & Trends: Mortgage Blog

View the lowest rates we have to offer.
Read our RSS Feed Policy

  1. Congress Looks to Restore FHA Loan Limits to $729,750, Freddie, Fannie Limits to Remain Unchanged

    By on November 15, 2011

    Late yesterday, Reuters reported that a bipartisan congressional committee agreed on a measure that would restore FHA loan limits to $729,750 in certain “high cost” areas.  While the measure is not yet law, the article says that “agreement by a bipartisan panel of lawmakers from both chambers indicates a strong likelihood of final approval”.

    The conforming loan limit is the maximum size loan that is eligible for purchase by Fannie Mae, Freddie Mac, or the FHA.  Loans above this amount are considered “jumbo loans” and typically have higher mortgage rates because they are not subsidized. The maximum conforming loan limit was increased in 2008 in order to provide stimulus to the housing market.  The temporary limits were reinstated twice, and were allowed to expire on October 1st, when they fell from $729,750 to $625,500.

    This measure, if it becomes law, will keep the maximum FHA loan size at $729,750 through 2013.  Although the Senate approved measures that would restore high balance loan limits for Fannie Mae and Freddie Mac to $729,750, this measure was rejected by the House, and it is expected that upper-end limits for the GSEs will remain at $625,500.

    Many in Congress (especially those on the right wing) want to reduce government involvement in housing finance.  While this is probably a good idea, generally speaking, it really isn’t practical at this time.  The housing market is pretty much on life support, and there are not a lot of private investors rushing to invest in housing.  Without the government to fill the vacuum, credit would probably contract even further, making it even more difficult to get a mortgage.  This would hurt home sales and home prices, which would further destabilize the housing market.

     

    Category: Mortgage Rates

  2. Senate Votes To Restore Higher FHA, Fannie, Freddie Jumbo Loan Limits

    2 By on October 21, 2011

    Yesterday the Senate voted to approve a measure that would restore the high-balance conforming loan limit to $729,750 in high cost areas.  The limit was temporarily increased in 2008 in response to the housing crisis.  After being extended several times, the temporary limits expired on October 1, 2011.  For now, the largest loan that can be purchased or guaranteed by Fannie Mae, Freddie Mac, or the FHA is $625,500.

    The measure was added to a spending bill by Senator Robert Menendez, a democrat from New Jersey.  The measure approved 60-31.  If the larger spending bill is approved, the bill would move to the House of Representatives.  If enacted, it would then need to be approved by the president.  The extension would last through 2013. The risk of funding these larger loans would be hedged by charging a 15 basis point fee on the principal balance of the mortgage.

    I see this as a common sense measure to help around the margins of the housing market.  This is by no means a panacea for what ails the housing market, but would provide a marginal boost to the housing market in certain areas.

    That said, I bet this is unlikely to pass.  It flies in the face of the sentiment among many republican lawmakers that the government should be curtailing, rather than expanding its role in the housing market.  It seems that our elected officials would have difficulty coming to a consensus on what to order for lunch, let alone issues of spending and housing policy.  I’m not holding my breath on this one.

     

    Category: Mortgage Rates

  3. FHA Refinancing Made Easy, Rates From 3.750%

    By on October 11, 2011

    Did you take out an FHA mortgage over the past couple of years?  Have you refinanced your mortgage?  If you have yet to refinance, there is a good chance that you are paying too much for your mortgage.

    Mortgage rates on FHA loans have dropped significantly over the past few years, and hit record lows over the past couple of weeks.  Although rates have ticked up slightly since that time, they are still very close to all-time lows.

    If you are paying a mortgage rate of 5, 6, 7 percent or more, you could save a significant amount of money refinancing your FHA mortgage.  Some people avoid refinancing because the mortgage process can be long and involved, but the FHA has made it significantly easier to refinance with the FHA streamline refinance program.

    The FHA allows borrowers to do rate and term refinances with no cash-out without a new appraisal, which makes refinancing quicker and easier than ever before.  Depending upon your situation, a credit report and new debt-to-income analysis may not be required.

    Today Total Mortgage is offering qualified borrowers 30 year fixed rate FHA mortgages at a rate of 3.750% with an APR of 5.092%.  If you are paying a higher rate, this program could allow you to save a lot of money on your monthly home payments.

    Call one of our licensed mortgage officers today at 877-868-2503 to find out more about refinancing your FHA loan.  You could be saving a tremendous amount of money with a new home loan.  

    Mortgage rates are always changing. All rates were quoted at 10:20 P.M., on September 29, 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, 1 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, one 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. FHA Mortgages for First Time Homeowners Starting at 3.750%

    By on October 10, 2011

    Home prices have dropped considerably over the past three years, and mortgage rates are at their all-time lows, yet for many people, it is difficult to imagine a home because of the need for a large down payment.  Traditionally, lenders have required down payments equivalent to 20% of the purchase price of the home, and it can take a decade or more for many people to save this much money.

    Thankfully, there is another avenue to homeownership for prospective first time buyers: the FHA mortgage.  One of the things that makes FHA mortgages great for first-time buyers is that they only require a minimum down payment of 3.5% of the purchase price of the home.  If you have a good job and good credit, you may be able to qualify for an FHA insured mortgage.

    Since FHA loans only require a minimal down payment, the borrower is required to pay through mortgage insurance through the FHA which increases the cost of the loan over time (you’ll note the difference between the interest rate and the APR).  This insurance helps protect the FHA and the taxpayers against the risk of default.  Despite this cost, FHA loans can be an excellent deal for many borrowers.

    Today we are offering qualified borrowers FHA loans at a rate of 3.750% with an APR of 5.092*%.  This is a record low rate at Total Mortgage, and you could benefit for years to come by locking it in today.

    If you already have an FHA mortgage at a rate of 5, 6, or 7%, you may be able to save a ton of money by refinancing it with the FHA streamline refinancing program.  This program frequently doesn’t require a new home appraisal, which saves both time and money.

    If you want to find out more about our FHA mortgage products, call one of our licensed loan officers today at 877-868-2503. Our mortgage pre-approval process only takes moments over the phone.  Start down the path to homeownership today.

    Mortgage rates are always changing. All rates were quoted at 10:45 A.M., on October 10, 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, 1 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, one 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. Fixed FHA Loans Starting at 3.750%

    By on October 4, 2011

    Are you a long-time renter who is looking to become a homeowner?  Do you need more room for a growing family?  Do you have a good credit history and a solid income? Don’t let a lack of money for a down payment stop you from owning your own home.  With an FHA-insured mortgage you too can start building equity in a house.

    While many banks require down payments of 20% of the purchase price of a home, the FHA only requires a down payment equal to 3.5% of the price of the home you are looking at.  In exchange for lower payments, an FHA borrower pays for mortgage insurance, which helps protect taxpayers against potential defaults.

    As of this morning, we are offering qualified borrowers FHA mortgage rates starting at 3.750% with an APR of 5.092*%.  This is one of the lowest rates on an FHA loan that we have ever been able to offer thanks to today’s ultra-low rates environment.

    Do you have an existing FHA mortgage?  Are you paying a rate significantly higher than the current rate?  You may be able to refinance easily with the FHA streamline program.  This program enables those who have FHA home loans to refinance, often without needing a new appraisal.

    If you want to find out more about our FHA mortgage products, call one of our licensed loan officers today at 877-868-2503.Our mortgage pre-approval process only takes moments over the phone.  Start down the path to homeownership today.

    Mortgage rates are always changing. All rates were quoted at 10:30 A.M., on October 4, 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, 1 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, one 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. First Time Home Buyers Save With Record Low FHA Mortgage Rates

    By on September 21, 2011

     

    One of the biggest obstacles between many prospective first-time home buyers and homeownership is the need for a down payment.  Even though home prices have declined over the last three years, they are still relatively high from a historical perspective.  Most lenders require down payments of twenty percent of the purchase price of a home, and it can take years to save this much money.

    If you’re a long time renter with a good credit history, there are alternate options that could allow you to become a homeowner.  The FHA offers mortgages to people with strong FICO scores while only requiring a minimum down payment of 3.5%.  Although FHA mortgage insurance premiums can cause FHA mortgages to be more expensive in the long run than traditional mortgages, the FHA provides an avenue to homeownership that might otherwise be closed to many people.

    Mortgage rates have been at record lows for the past two weeks, but there is no telling how long they will stay there.  Today we are offering 30 year fixed FHA mortgages to qualified borrowers at a rate of 3.750% with an APR of 5.092%*.  

    If you already have an FHA mortgage but are paying a higher rate than what is currently offered, you may be able to easily refinance your mortgage through the FHA streamline refinance program.  Often this process does not require a new appraisal, which makes the refinancing process considerably easier.

    If you are interested in a new FHA mortgage or refinancing your current FHA mortgage, call us today at 877-868-2503 to speak with one of our licensed loan officers.  Start your homeowning future today.

    Mortgage rates are always changing. All rates were quoted at 11:56 A.M., on September 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, 1 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, one 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. CBO: Large Scale Refinancing Program Would Not Address Many Problems Facing Housing Market

    By on September 8, 2011

    You might’ve heard rumors a couple weeks ago that the Obama Adminstration was considering proposing some sort of broad refinancing program. Although the rumors contained no specifics as to what the plan might actually be, it would most likely allow those with government backed loans to refinance at today’s record low mortgage rates, possibly even if they were far underwater and wouldn’t meet traditional refinancing underwriting standards.

    The main constraints on refinancing right now are that many who can refinance already did so and have low enough rates that refinancing doesn’t make financial sense and that many homeowners who have rates high enough to justify refinancing are unable to do so because the value of their homes has declined and they no longer meet underwriting guidelines.

    Along these lines the Congressional Budget Office released an analysis of a theoretical large-scale mortgage refinancing program earlier this week. The proposed program would “relax current income and loan-to-value restrictions for borrowers who wish to refinance and whose mortgages are currently insured by Fannie Mae, Freddie Mac, or the Federal Housing Administration”.  From the report:

    “Relative to the status quo, the specific program analyzed here is estimated to cause an additional 2.9 million mortgages to be refinanced, resulting in 111,000 fewer defaults on those loans and estimated savings for the GSEs and FHA of $3.9 billion on their credit guarantee exposure, measured on a fair-value basis. Offsetting those savings, federal investors in MBSs, including the Federal Reserve, the GSEs, and the Treasury, would experience an estimated fair-value loss of $4.5 billion. Therefore, on a fair-value basis, the specific program analyzed here would have an estimated cost to the federal government of $0.6 billion”.

    Continue Reading…

    Category: Mortgage Rates

  8. FHA Mortgage Rates Plummet at Total Mortgage – August 15, 2011

    By on August 15, 2011

     

    Mortgage rates plunged last week as the stock market fluctuated wildly.  While this was bad for investors in the stock market, it was good for borrowers looking to refinance their mortgage or those who are in the market for a new home.

    Rates dropped across the board last week, and FHA mortgage rates were no exception.  FHA rates at Total Mortgage are now close to all-time lows. If you’re a first-time home buyer or don’t have a lot of money for a down payment, an FHA mortgage could be perfect for you.  Those with a good credit history can qualify for a mortgage through the FHA with only a 3.5% down payment.

    If you already have a mortgage with the FHA, you may be able to refinance into today’s low rates with an FHA streamline refinance.  A streamline refinance may allow you to refi without a new appraisal, which makes the process significantly faster and easier.

    Continue Reading…

    Category: Mortgage Rates

  9. FHA Mortgages Make Homes Affordable For First Time Homebuyers

    By on July 27, 2011

    Have you been renting your home or apartment?  Are you looking to start building equity in a home of your own?  Home affordability has increased significantly over the past several years, and mortgage rates are pretty close to historical lows.  Even if you don’t have a lot of money for a down payment, but you have a good credit history, you may be able to qualify for an FHA mortgage.

    There are a lot of benefits to getting a mortgage insured by the FHA.  Probably the most attractive feature to many people is that the FHA only requires a minimum down payment of 3.5% of the purchase price of the home.  Most other sources of financing will require a down payment of 20% or more.  Another benefit of an FHA mortgage is that the credit score requirements are somewhat more lenient than they are from traditional lenders.

    As private capital dried up as a result of the housing crisis, the number of loans originated through the FHA increased significantly.  As this occurred, the number of FHA loans that went into default increased as well.  This has caused the FHA’s capital reserves to fall below the minimum levels mandated by Congress.  As a result, there are some lawmakers who would like to raise FHA minimum down payments to 5 percent or more.  While this move does not appear to be imminent, it is worth being aware of.

    Another potential change to the FHA lending program that borrowers should be aware of is that the maximum FHA loan limit is going to fall from $729,750 to $625,500 at the end of September (unless conforming limits are extended, which is possible).  In some high cost markets (such as parts of New York City, Miami, Boston, California, Boulder, and Washington D.C., among others) , FHA loan limits were temporarily increased in 2008. Now these higher loan limits are set to expire.  If you live in one of these markets, and were thinking about using the FHA for financing, you probably want to make a purchase or refinance prior to October 1.

    Continue Reading…

    Category: Mortgage Rates

  10. Now is the Time to Qualify for an FHA Mortgage With Total Mortgage

    By on June 29, 2011

    Do you have a good credit history, but not a lot of money for a down payment for a house?  You may be able to qualify for an FHA mortgage from Total Mortgage.  If you have a FICO score above 660 and 3.5 percent for a down payment, you might be able to qualify for a mortgage through the FHA.

    One of the missions of the FHA is to make homeownership more accessible to first time and lower-middle income home buyers.  They do this by insuring mortgages against default in order to encourage lenders to offer mortgages to those that might not otherwise qualify.  Currently the FHA insures about 5 million mortgages.  Without FHA insurance, most lenders would require down payments of twenty percent or more, which would exclude many from homeownership.

    If you are looking for an FHA mortgage, it is worth being aware that there are some in Congress who would like to raise the minimum FHA down payment to at least 5 percent in order to increase the FHA’s capital reserves, which have fallen below the legally-required 2 percent minimum.

    Continue Reading…

    Category: Mortgage Rates

LOOKING TO BUY OR REFINANCE?

Or Call us at 877-868-2503