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  1. 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

  2. Today’s FHA Interest Rates for March 15, 2011

    By on March 15, 2011

    Today’s FHA Interest Rates for March 15, 2011Getting a mortgage can be confusing business.  There are a multitude of mortgage products available, and trying to determine which one best suits your needs can be daunting.  Gathering as much information as possible is crucial in deciding which type of mortgage to get.  Buying a house is one of the biggest financial decisions in a person’s lifetime, and it requires careful planning.

    Among the most common types of mortgages are fixed rate mortgages, FHA mortgages, adjustable rate mortgages and jumbo mortgages. Total Mortgage specializes in these products, and has some of the most competitive mortgage rates in the industry.

    FHA mortgages are insured against default by the Federal Housing Administration. FHA mortgages were developed to help borrowers who may have trouble obtaining financing through conventional sources.

    Continue Reading…

    Category: Mortgage Rates

  3. Mortgage Refinance Program For Underwater Homeowners Extended Into 2012

    1 By on March 14, 2011

    mortgage refinance, harp extended, underwater homeownersFannie Mae and Freddie Mac have extended the Home Affordable Refinance Program (HARP) for underwater homeowners through to June 30, 2012. The program was set to expire on June 30 of this year.

    Actually, their regulator, the Federal Housing Finance Agency (FHFA) extended program that helps homeowners with mortgage balances exceeding their home values refinance into current mortgage rates.

    If their current home loan is owned or guaranteed by Fannie Mae or Freddie Mac, homeowners can refinance their mortgage even if their outstanding mortgage balance is 125 percent of their home value. Continue Reading…

    Category: Refinance

  4. More Americans Are Optimistic About A Housing Market Recovery

    1 By on March 10, 2011

    home price trends, housing market recovery, first-time home buyersMore Americans are confident that home values will recover in the next year or two, indicates a survey by Prudential Real Estate and Relocation Services Inc.

    The survey reports that 68 percent of potential home buyers think home prices will recover in a year or two. Last year, 47 percent predicted home values would increase. Also, 86 percent believe real estate is a good investment despite recent housing market troubles. Potential home buyers, the survey points out, realize that this a good time to buy a home, but if they are current homeowner they are worried about selling their existing home for a decent price.

    Given home price trends and current mortgage rates, first-time home buyers are in a better position, provided they can qualify for a mortgage and have enough for a down payment.

    A recent Fannie Mae survey fewer people believe a home is a safe investment, 64 percent compared to 70 percent last year. The difference could be due to potential home buyers feeling more optimistic and sellers feeling disillusioned. Continue Reading…

    Category: Housing Market, Purchase

  5. Jumbo Mortgage Rates, Stock Values Boost Sales Of Luxury Homes

    By on March 7, 2011

    At least one housing market saw a huge jump in home sales last year: high-end homes.

    For instances, sales of California homes over $1 million increased from 18,621 in 2009 to 22,529 in 2010, a 21 percent, reported DataQuick Information Systems, a San Diego-based data provider. In fact, sales of homes and condominiums for over $1 million increased in all 20 major metro areas lastjumbo mortgage rates, luxury house year, reported DataQuick. Those metro areas saw an 18.6 percent increase in high-end home sales on average.

    Low mortgage rates helped boost the increase in luxury home sales, but a rebounding stock market and lower home prices were major factors. Buying a million dollar home calls for a jumbo mortgage, which entails a higher mortgage rate and stricter lending guidelines like a higher down payment. Although many luxury home buyers use cash, lower mortgage rates helped motivate them to purchase homes. The difference, or spread, between jumbo mortgage rates and rates for smaller conforming mortgages has narrowed considerable since the height of the financial crises.

    But the wealthy worry less about mortgage rates than other home buyers, said DataQuick President John Walsh. Continue Reading…

    Category: Jumbo Mortgage

  6. Including Rents On Credit Reports Can Help First-Time Home Buyers Qualify For Lower Mortgage Rates

    By on March 7, 2011

    first-time home buyer, credit score, mortgage qualificationsSome first-time home buyers could find qualifying for a home loan and getting lower mortgage rates easier now that Experian, a major credit bureau, has started collecting rent payment histories.

    Building good credit is one of the biggest obstacles to qualifying for a home loan and finding the best mortgage rates available. Yet rent payments, usually a renter’s largest financial obligation, are typically not included in credit scores. Neither is phone, Internet, electric bills or other utilities, for that matter.

    Credit scores, including the FICO score used by most mortgage lenders, are based on credit cards and personal loans like car loans and student loans. Borrowers with little use for loans or credit cards have what lenders call “thin files” that can prevent them from qualifying for a mortgage.

    So, in the odd world of credit scoring, you can get a mortgage if you have $10,000 of debt but not if you have $10,000. This credit scoring quirk is especially troublesome for younger borrowers, who tend to lack credit histories, and immigrants who lack a tradition of using credit cards and debt. Continue Reading…

    Category: First Time Home Buyer

  7. 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

  8. Oil Prices and Mideast Turmoil May Impact Mortgage Rates

    By on March 2, 2011

    mortgage rates and oil prices, interest ratesTurmoil in Libya and Middle East countries may send oil prices up and affect mortgage rates.

    If investors fear that rising oil prices will derail an emerging recovery, they will remove their money from stocks and put it into safer bonds, especially government Treasuries. That will help lower mortgage rates. More bond purchases will push bond prices up and their yields, or their interest rates paid to bond owners, down. Mortgage rates would also decline, since they cannot be lower than government bond rates.

    That’s exactly what’s been happening this week. Oil prices went over $100 a barrel, its highest price since September 2008.  Mortgage rates have declined for three consecutive weeks, with the average rate for the 30-year fixed-rate mortgage declining from 5 percent to 4.84 percent last week.

    Continue Reading…

    Category: Mortgage Interest Rates

  9. Fed Ponders Ending QE2 Interest Rate Easing Effort

    By on March 2, 2011
    mortgage rates, interest rates, Federal Reserve

    US Federal Reserve

    Will the Federal Reserve end its effort to lower interest rates, know as QE2, early or continue it through June as first planned?

    The Fed is about half way through its second round of quantitative easing, or QE2, plan to lower current mortgage rates and other long-term interest rates by purchasing enormous amounts of U.S Treasury bonds. Since the Fed started, QE2 last November the stock market has rebounded and unemployment has fallen from about 10 percent to 9 percent, although the housing market is still struggling.

    “It’s been a success,” Bill Gross, manager of Pimco Fund, told CNBC. After all the stock market is up 25 percent, said Gross, who had criticized QEC earlier. Ending it could be tough. “At the end of June, the biggest bond buyer steps away,” he said. “The markets could have a shock in store.”

    St. Louis Federal Reserve President James Bullard told CNBC should ease off its interest-rate easing plan to see how the economy would fare without it. The Fed could stop slightly short of completing the program and pause while gathering information on how the economy is doing. Continue Reading…

    Category: Mortgage Interest Rates

  10. 5/1 ARM Conforming Mortgage Available at 3.375% Interest Rate

    By on February 18, 2011

    5/1 ARM Conforming Mortgage Available at 3.375% Interest RateAdjustable rate mortgages (ARMs) are mortgage loans with a  fixed rate for an initial predefined period followed by rates that fluctuate depending on the marketing conditions. Mortgage rates for the initial term are significantly lower compared to fixed rate mortgages. However, rates may increase after the initial fixed period has elapsed.

    Many borrowers are attracted to adjustable rate mortgages for their low initial rates that can help borrowers save thousands in interest payments compared to fixed rate mortgages. Adjustable rate mortgages are considered riskier than fixed rate mortgages because of the potential for rates and mortgage payments increasing. ARMs may not be suitable mortgage loans for all types of borrowers. Borrowers who plan to move from their homes within the first 10 years of purchasing the property or those who would think their future income will increase so that they can handle any increase in their payments may benefit from ARMs.

    Total Mortgage offers conforming and jumbo adjustable rate mortgages at some of the most competitive mortgage rates available. Qualified borrowers can currently get 5/1 ARM conforming mortgage at a 3.375% interest rate and 3.261% APR. A 5/1 ARM jumbo mortgage is available at a 3.500% mortgage rate with 3.315% APR.

    For more information on adjustable rate mortgages and our current mortgage rates, please call 877-868-2503 to speak with a mortgage expert today.

    Mortgage rates are always changing. All rates were quoted at 2:15 P.M., on February 18, 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

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