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  1. Lower Loan Limits Could Cause Some Home Values to Fall

    By on June 27, 2011

    As we’ve discussed a number of times in the past, lower high balance conforming loan limits are coming in September.

    Governmental (FHA, VA, USDA) and quasi-governmental mortgage agencies (Fannie Mae, Freddie Mac) are only allowed to back or purchase mortgages up to a certain amount.  In most places across the country this amount is $417,000.  In some high cost areas where the median home price exceeds the conforming limit (such as Boston, Miami, Boulder, Washington D.C., New York, and Los Angeles), this amount is $729,750.  In these areas loans that fall between $417,000 and $729,750 but are still eligible for government backing are referred to as high-balance conforming loans.

    The limit was initially raised in 2008 in order to stimulate home sales due to the lack of private investors for jumbo loans (mortgages that exceed the conforming limit).  Raising the limit also allowed people in higher-priced areas access to government mortgage funds, which generally come at lower rates than from private funding sources.

    Continue Reading…

    Category: Mortgage Rates

  2. 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

  3. BlackRock Fund Brings Hope For Jumbo Mortgage Borrowers

    By on February 28, 2011

    News that the world’s largest money manager is dedicating $1 billion to purchase jumbo mortgages is encouraging hopes that the private mortgage industry will recover.

    A return of private investors could help hold down jumbo mortgage rates and ease jumbo mortgage terms, making it easier for borrowers to qualify. It would also help fill the mortgage void if the government’s decreases its role in home loan lending.

    BlackRock Inc., the world’s largest asset management firm with $3.3 trillion under its direct control, is creating a $1 billion BlackRock Mortgage Investors Fund to purchase residential mortgages that are too large to meet government guidelines, or nonconforming loans, from lenders, according to Reuters, which first reported about the fund. The mortgages would be prime loans, or to borrowers with good credit and adequate home equity.

    The news implies that BlackRock CEO Larry Fink, who Vanity Fair called “possibly the most important man in finance today,” is confident about recovery of the housing market. His company has a market capitalization of about $40 billion and directly controls or oversees about $12 trillion.

    The fund jumbo home loan rates, qualify for jumbo mortgagealso gives hope to the Obama administration’s proposals to begin shrinking Fannie Mae and Freddie Mac, the giant mortgage investors run by the government. BlackRock hopes to be ready to help take up the slack if the government starts withdrawing from the home loan business. After financial crisis hit, the private mortgage industry practically shut down, and Fannie Mae, Freddie Mac and the FHA have dominated mortgage lending with government-backed or government-owned home loans. The Obama administration has put forth proposals to shrink and eventually close down Fannie Mae and Freddie Mac. Continue Reading…

    Category: Jumbo Mortgage

  4. Higher Mortgage Rates May Result From Obama Plan For Shrinking Fannie Mae and Freddie Mac

    By on February 11, 2011

    Fannie May mortgage rates, Freddie Mac mortgage ratesThe Obama administration’s proposals for winding down Fannie Mae and Freddie Mac might push mortgage rates up.

    The administration released three long-range alternatives for eventually winding down Fannie Mae and Freddie Mac, the government-run mortgage goliaths that support most of the mortgage industry.

    However, its plan revealed today also includes more immediate measures that will probably prompt higher mortgage rates.

    The proposal calls for:

    • Increasing the fees Fannie and Freddie charge lenders for guaranteeing loans. Lenders will be sure to pass those extra costs along to borrowers.
    • Allowing the temporary $729,750 conforming limit to expire on Sept. 30, 2011, and return to $625,000. Fannie and Freddie will not be allowed to purchase or guarantee loans over that size,  and mortgage rates for those loans, known as jumbo mortgages, will probably increase. Continue Reading…
    Category: Mortgage Rate Trends and Analysis

  5. Low Adjustable Rate Mortgages Available at Total Mortgage

    By on January 13, 2011

    Low Adjustable Rate Mortgages Available at Total MortgageRecently we have seen mortgage rates almost on a roller coaster ride with rates climbing up a few weeks back and again climbing down for the past two weeks. Rates are definitely unpredictable and declining rates can go up without any warnings. Total Mortgage is one of the leading mortgage lenders in the U.S. who has continuously offered some of the lowest mortgage rates in the industry. Total Mortgage has a wide variety of mortgage products available to meet every borrower’s individual needs.

    Currently, Total Mortgage has posted some of the most competitive rates for all its mortgage products. Many borrowers opt for adjustable rate mortgages to purchase houses as well as to refinance their existing mortgages. Adjustable rate mortgages (ARMs) are popular due to their low interest rates compared to other mortgage products. However, these low rates are available only for a certain initial time frame and will adjust depending on the current market condition once the initial time frame has elapsed. This means the interest rate and mortgage payments can increase after the initial term has been completed and they are often considered riskier than fixed rate mortgages. Therefore, ARMs may not be suitable for all borrowers. These types of mortgages are often suitable for borrowers who plan to move out of their homes within the first 10 years of purchasing or those homebuyers who believe their income will increase in the future.

    Continue Reading…

    Category: Mortgage Rates

  6. Higher Jumbo Loan Limits Expected To Expire

    By on September 24, 2010

    Higher jumbo mortgage limits are set to expire at the end of this year, which will mean probably higher jumbo interest rates for larger mortgages.

    The government temporarily increased the conforming loan limit in so called “high cost” areas as part of the Economic Stimulus Package of 2008. While the limit was usually $417,000, it can be up to

    Jumbo mortgage interest rates might rise

    Jumbo mortgage interest rates might rise for houses like these.

    $729,750 or 125 percent of the median home value of the metropolitan area under the act. Because Fannie Mae and Freddie Mac cannot purchase or guarantee loans over the conforming limit, larger mortgages, called jumbo loans, carry higher interest rates.

    The temporary conforming loan limit also applies to mortgages insured by the Federal Housing Administration.

    Some Congressmen, saying home prices would collapse without the government guarantee for those jumbo mortgages, are supporting a bill that would make the higher conforming loan limit permanent, but its passage is far from certain. Many experts say the government should ease itself out of jumbo mortgages and let private investors return.

    With Republicans poised to take control of Congress, or at least have more control, extending the conforming loan limit could be difficult. Unless Congress acts, the jumbo loan limit will return to $625,500 in high cost areas.

    That means jumbo mortgage borrowers should act soon to get lower mortgage rates if they’re considering a mortgage refinance or home purchase. Jumbo mortgage interest rates for a 30-year mortgage could be about 0.8 percent higher than a conventional mortgage.

    “Allowing the current loan limits to fall would be disastrous to California,” said Congressman Brad Sherman (D-CA), who has introduced a bill to make the conforming loan limit increases permanent.

    “Passage of this legislation would make mortgage financing more affordable in the San Fernando Valley and in other high cost areas throughout the United States,” Sherman said. “Increasing the availability of such affordable mortgage financing is critical to helping to stabilize the housing market and to returning Fannie, Freddie and the FHA to relevance in California.”

    “While lower priced home sales have increased in recent months, sales in the higher priced ranges have not seen as much movement because of higher interest rates on jumbo loans,” agreed Congressman Gary G. Miller (R-CA) Miller, who introduced the bill with Sherman. “Buyers in high cost areas, such as Southern California, are at an extreme disadvantage simply because of where they choose to work and live.”

    Plenty of pundits disagree about the conforming loan limit. “Government involvement in housing finance is an invitation to disaster,” writes Peter J. Waillison, a scholar at the American Enterprise Institute, in an opinion column for Bloomberg. “As illustrated by the S&Ls and GSEs, no matter how such a system is structured, government support will hide the real risks.”

    If you have jumbo mortgage loan and thinking about refinancing, it may be prudent to do it now before the loan limits rise. Call one of our expert mortgage loan officers today.

    Category: Jumbo Mortgage

  7. Mortgage Rates in Boston, MA

    By on August 6, 2010

    Total Mortgage currently has some of the lowest current mortgage rates in Boston and all of Massachusetts. Some of the most popular mortgage products in Boston include conventional mortgages, jumbo mortgages, and FHA mortgages.

    Total Mortgage is currently posting a low mortgage rate of 4.125 percent for a 30 year fixed conventional mortgage (4.323 percent APR). Other fixed conventional mortgages include 20 and 15 year mortgages, which have a 4.000 percent (4.273 percent APR) and 3.625 percent mortgage rate (3.972 percent APR) respectively.

    FHA mortgages, which are popular because of their lenient lending restrictions, are growing in popularity. A 30 year fixed FHA mortgage is available in Boston with a 4.000 percent mortgage rate and a 5.178 percent APR. Continue Reading…

    Category: Mortgage Rates

  8. Mortgage Rates for August 3rd

    By on August 3, 2010

    Low Mortgage Rates Available at Total MortgageComing off of a huge economic day yesterday, Total Mortgage Services is posting some of the lowest mortgage rates in the nation. Total Mortgage offers an array of mortgage products that will fit all of your needs, regardless of whether you are refinancing a mortgage or buying a new home.

    A 30 year fixed conventional mortgage is currently being offered with a 4.125 percent mortgage rate and a 4.323 percent APR. This is one of the most popular mortgage products Total Mortgage has to offer. Another popular mortgage is a 15 year fixed conventional mortgage, which has a considerably lower mortgage rate of 3.625 percent and a 3.972 percent APR. Continue Reading…

    Category: Mortgage Rates

  9. Mortgage Rates at Total Mortgage Amongst Lowest Around

    By on July 26, 2010

    Apply Now for Low Mortgage RatesMortgage rates available at Total Mortgage Services are currently amongst the lowest interest rates in the country. Total Mortgage offers a wide variety of home loans including jumbo, super jumbo, conventional, conforming and many more,

    A 30 year fixed conventional mortgage currently has a 4.125 percent mortgage rate and a 4.323 percent APR. A 30 year fixed FHA mortgage has a slightly lower mortgage rate of 4.000 percent and a 5.178 percent APR.

    For borrowers who are seeking a larger loan you might want to consider a jumbo mortgage. A 30 year fixed jumbo mortgage is available with a 5.000 percent mortgage rate and a 5.203 percent APR. A 15 year fixed jumbo mortgage has a 4.000 percent mortgage rate and a 4.349 percent APR. Continue Reading…

    Category: Mortgage Rates

  10. Low Mortgage Rates Available in Massachusetts | Time to Refinance Now

    By on July 8, 2010

    Mortgage rates in Massachusetts are near their lowest points in history. Massachusetts is home to some of New England’s premier real estate in areas such as Boston, Nantucket, Cape Cod, and Martha’s Vineyard. Low mortgage rates currently available at Total Mortgage make it a great time for Red Sox fans considering refinancing. If you refinance now you have a great opportunity to lock into to considerably lower monthly payments.

    Total Mortgage currently has some of the lowest rates for fixed conventional mortgages in the Bay State. A 15-Year Fixed Conventional Mortgage is being offered with a 3.625% rate and a 3.972% APR. 20-Year Fixed Conventional Mortgages are available with a 4.000% rate and an APR of 4.273%.

    In addition to fixed rate mortgages Total Mortgage also offers a variety of different adjustable rate mortgages (ARM’s) with extremely competitive rates. A 5/1 ARM Conforming Mortgage is currently available in Massachusetts with a 3.000% rate and a 3.481% APR. A 5/1 ARM Jumbo Mortgage has a 3.625% rate and a 3.657% APR.

    Total Mortgage also has a 30-Year Fixed FHA Mortgage with some of the most competitive rates in the entire state. This mortgage product is currently available with a 4.000% rate and a 5.178% APR.

    Mortgage rates in Massachusetts are constantly changing. All rates were quoted at 3:15 p.m. on July 8, 2010.

    Mortgage Product Mortgage Rates APR
    30-Year Fixed FHA Mortgage 4.000% 5.178%
    20-Year Fixed Conventional Mortgage 4.000% 4.273%
    15-Year Fixed Conventional Mortgage 3.625% 3.972%
    5/1 ARM Conforming Mortgage 3.000% 3.481%
    5/1 ARM Jumbo Mortgage 3.625% 3.657%

    For a complete list of mortgage products available in Massachusetts and additional rates please visit us online or call 877-868-2509 for immediate assistance.

    * 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.

    *All rates are posted with borrowers paying 2 points unless otherwise noted.

    Category: Mortgage Rates

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