» Bruno Mckenzie

FHA Loan Rates Today : Today’s FHA Mortgage Rates Improved

Bruno Mckenzie — Mon, 01 Mar 2010 20:58:54 +0000

Mar. 1, 2010 — (FreeRateUpdate.com) – FHA mortgage rates today are better than last week. Following several improvements in mortgage-backed securities prices, which led to several favorable re-prices by investors, FHA mortgage rates dipped by an 1/8 late last week. The FHA 30 year fixed rate dipped to 4.75 from 4.875. The FHA 5/1 ARM dipped to 3.625 from 3.75. 15 year fixed FHA rates didn’t change and remain at 4.5.

Looking for the lowest FHA mortgage rates? Search local FHA mortgage here.

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ daily to determine the day’s rates. The rates we report are referred to by those in the mortgage industry as “par rates”. Our rates are the rates on any given day that are associated with about 1 point origination. These are the real mortgage rates and are often at least 1/4 below national averages reported by Bankrate.com RATE and Freddie Mac FRE. Consumers often accept rates 1/4 above what they are well qualified for because they are not aware better rates are available.

FHA Mortgage Rates Lower but Fees Higher

It’s important to remember when obtaining and FHA mortgage that you’ll be looking at higher fees. FHA charges it’s own fees that are included in closings costs no matter what bank and or broker you’re working with. One of the fees, MI, is the equivalent of about 2 points. An IRS home buyer tax credit of up to $8,000 good until April is applicable to closing costs. The tax credit is offered on FHA loans only.

Adjustable Mortgage Rates to Spike Eventually

Bruno Mckenzie — Tue, 23 Feb 2010 00:08:55 +0000

SHEEPSHEAD BAY BROOKLYN, NY — Feb. 22, 2010 (FreeRateUpdate.com) – Last Thursday, in a surprise move, the Fed raised the discount point 0.25. Of course, markets overreacted. Anything involving an interest rate hike causes a bit of a scare. Reality is, the discount rate, which applies to emergency overnight lending to banks, has no effect on borrowing rates for consumers. The hike in the discount rate, does re-affirm what we already know. That the Fed is likely to begin raising the Fed Funds rate, which directly effects credit lines, adjustable rate mortgages, credit cards, installment loans, and more, by the end of the year. Contrary to popular belief, the Fed Funds rate does not directly effect 30 year fixed Fannie Mae and Freddie Mac insured conforming mortgages.

Search Local Mortgage Rates Here.

It’s pretty simple without digging into all the technical stuff involved with Fed policies and interest rate changes. If you’re in an adjustable rate mortgage, which will be effected directly by the raising of the Fed Funds rate, you’re safe for now but make your move by years end.

Adjustable rate mortgages, your HELOC for example, is down significantly from where it was when this whole mess started. You’re likely paying at an interest rate at or below 4% on your beloved Home Equity Line of Credit, which also probably was frozen due to a lack of equity in your home. That super low rate you’ve enjoyed for the past 18 months or so will rise with the Fed Funds rate until it reaches a more normal level of between 6 and 8%.

Today’s Mortgage Rates Associated with .07 to 1 Point Origination (at par) – FreeRateUpdate.com

Bruno Mckenzie — Fri, 19 Feb 2010 18:47:34 +0000

SHEEPSHEAD BAY BROOKLYN, NY — Feb. 19 (FreeRateUpdate.com) – FreeRateUpdate.com research of wholesale lenders’ rate sheets shows 30 year fixed mortgage rates associated with .07 to 1 point in origination (at par) rose to 4.875 percent, from 4.75 yesterday. This rate increase applies to conforming 30 year fixed (standard 30 year fixed) products as well as FHA 30 year fixed loans.

The jumbo 30 year fixed rate, associated with .07 to 1 point origination (at par) remains 5.75. It should be noted that with a low enough LTV (about 60%) consumers can get 5.5% with no buy down at places like Wells Fargo or TheGreatLoan.com (http://www.thegreatloan.com) , a specialty jumbo lender.

Why did mortgage rates go up? Following the Fed Minutes Wednesday, where the Fed said it’s possible they begin selling their MBS portfolio sooner than later, mortgage-backed securities prices began to drop and did so through yesterday afternoon. The overall drop in MBS prices was significant enough to push mortgage rates, which move in the opposite direction, up.

Current Mortgage Rates Associated With 0.7 to 1 Point Origination (at Par):

Conforming 30 year fixed rate – 4.875%
Conforming 15 year fixed rate – 4.25%
Conforming 5/1 ARM rate – 3.875%

PMI and FHA fees make FHA loans more costly despite origination being the same.
FHA 30 year fixed rate – 4.875%
FHA 15 year fixed rate – 4.50%
FHA 5/1 ARM rate – 3.875%

Jumbo 30 year Fixed rate – 5.75% With a low enough LTV (about 60%) 5.5 is obtainable
Jumbo Conforming 30 year fixed rate – 5.125%

Source: http://www.freerateupdate.com/

Lock Your Mortgage Rates Today. Current 30 Year Fixed Mortgage Rates on Edge.

Bruno Mckenzie — Thu, 18 Feb 2010 17:30:32 +0000

SHEEPSHEAD BAY BROOKLYN, NY — Feb. 18 (FreeRateUpdate.com) – Lock your rates! After the Fed Minutes report came on yesterday we saw some big time deterioration in the mortgage rate market. MBS prices sank fast and hard pushing 30 year fixed mortgage rates for conforming and FHA loans to the brink. Today while 30 year fixed mortgage rates remain 4.75, any minute that can change. With a slew of economic data out today anything could happen. It’s possible by Saturday we could see mortgage rates at 5%. MBS prices, which drive mortgage rates in the opposite direction, dropped -14/32 yesterday. That’s a pretty big number. I know the gamblers out there will continue to roll the dice. I, the real Bruno Mckenzie, am officially pulling my lock card. I think this was the last we’ll see of 4.75%. Get ready for rates hovering just above 5%.

Looking for the lowest mortgage rates? Search local mortgage rates.

The current 30 year fixed rate for both FHA and conforming mortgages is at 4.75% and rising fast. The current 5/1 ARM rates for FHA and conforming mortgages are at 3.875% and rising.

Jumbo mortgage rates are the only thing down on the week. They’re not directly moved by the same securities effecting conforming and FHA mortgage rates. The jumbo 30 year fixed rate is now at 5.5%.

I’m telling ya’. Get on the phone and call your guy. Lock before it’s too late!

Conforming, FHA, Jumbo Mortgage Interest Rates (30 Year Fixed) Not Budging

Bruno Mckenzie — Tue, 16 Feb 2010 16:30:09 +0000

SHEEPSHEAD BAY, NY — Feb. 16 (FreeRateUpdate.com) – Mortgage rates haven’t been doing a whole lot lately. Despite volatile stock markets, and volatile mortgage-backed securities markets, mortgage rates have been cemented at current levels for weeks. The stock market has done a bit of the same. The Dow, up over 86 points today at 8:13 AM PST, has been up and down and overall relatively unchanged since a decline to around 10,000. The much awaited end of the Fed’s MBS purchase program on March 31st is the x factor for mortgage rates. While many analysts say the the program ending will cause a sudden jump of at least 1/2 a percent in 30 year fixed mortgage rates, others say mortgage interest rates could remain the same for quite some time after. A recent announcement by Fannie Mae and Freddie Mac that they’ll purchase a huge sum of bad loans from MBS pools, freeing up cash for investors to possibly purchase more MBS, supports mortgage rates staying low.

Looking for the lowest mortgage rates? Search local mortgage rates.

Headed into the week here’s where mortgage rates stand.

Current Mortgage Rates at Par: Conforming, FHA, and Jumbo -

The current conforming 30 year fixed rate remains 4.75% for both FHA and conforming mortgages. Costs for an FHA loan are considerably higher due to premiums and fees charged by the FHA. The current conforming 15 year fixed rate remains 4.25%, while the FHA 15 year fixed rate remains 4.5%. The current 5/1 ARM rate for both FHA and conforming mortgages is 3.75%.

The current jumbo 30 year fixed rate is still 5.75%.

What’s a Par Rate? Why are Mortgage Interest Rates at Par Important?

FreeRateUpdate.com researches over two dozen wholesale lender’s rate sheets on daily basis and reports mortgage rates at par to the public. A par rate is what a savvy and qualified consumer should receive with a standard 1 point or less in origination on any given day. Par rates are typically at least 1/4 percent below national averages reported by Bankrate.com and Freddie Mac. Less savvy borrowers, or perhaps those simply unaware of the day’s par rates, often lock in rates 1/4 percent higher than what they are well qualified for. The banks make huge profits on this. Par rates, not national averages, are the rates consumers should shoot for.

To display current mortgage rates on your website or blog use our free mortgage rates widget.

Today’s Mortgage Rates Unchanged from Mortgage Rates Monday Morning

Bruno Mckenzie — Fri, 12 Feb 2010 19:03:34 +0000

SHEEPSHEAD BAY, NY — Feb. 12 (FreeRateUpdate.com – Usually I deliver these updates after midnight. Today let’s call it, “coffee after noon”. Doesn’t have much of a ring to it does it? Mortgage rates are cemented at 4.75%, the same as they were on Monday morning, with no chance of going up today following gains in MBS prices this morning. Mortgage-backed securities, which dictate mortgage rates moving them in the opposite direction, are up + 8/32 as of noon eastern time. The Dow Jones Industrial Average is down about 80 points in what’s been another volatile session. Typically during these significant down days for stocks, MBS markets and mortgage rates are helped by investors seeking safe havens in bonds.

Current Mortgage Rates at Par:

Mortgage rates are the same as they were to start the week. That’s not a bad thing. The current conforming 30 year fixed rate is 4.75%. The current conforming 15 year fixed rate is 4.25%. The current conforming 5/1 ARM rate is 3.75%.

To FHA mortgage rates, which mirror conforming mortgage rates (are the same), except for the 15 year fixed. The current FHA 15 year fixed rate is at 4.5%. Keep in mind fees on FHA loans are much higher than those of conforming mortgages, part to do with premiums and fees charged by FHA.

The current jumbo 30 year fixed is 5.75%.

Yesterday on FreeRate LOCAL

Here’s a few pieces of local mortgage news from FreeRate LOCAL you may find useful. Yesterday, on FreeRate LOCAL – California, Mark Simons did a little mortgage 101 explaining why you might not get the rates you see advertised on billboards and TV. Read the full story here.

On FreeRate LOCAL – Florida – Jim Eggers talked about borrowing landscape is changing in Florida. Read the full story here.

To display today’s mortgage rates on your website or on your blog use our today’s mortgage rates widget which is also available as a Wordpress plugin.

Current Mortgage Rates Rising, Maybe. Fix Your Adjustable Mortgage Rates, Definitely.

Bruno Mckenzie — Thu, 11 Feb 2010 16:25:34 +0000

SHEEPSHEAD BAY, NY — Feb. 11 (FreeRateUpdate.com) – Yesterday on FreeRateUpdate.com we covered the Fed “text”, their broad outline for raising short term interest rates, stopping their purchases of Treasuries and MBS, and tightening credit. Ben Bernanke was unable to answer questions due to a massive snowstorm, meanwhile I was outside fixing a ruptured pipe under our foundation slab in some snowy rain stuff, fightin’ the wind at the same time, but that’s another story. Warm and cozy Bernanke left us with a text with just broad details leaving open endless possibilities but most importantly the markets weren’t spooked. Prices mortgage backed securities, which push mortgage rates in the opposite direction, were up, up enough that we face the possibility of 30 year fixed mortgage rates rising today. Still though 30 year fixed mortgage rates are well under 5%, historically low, and surely not turning off potential buyers.

NEW: Search Local Mortgage Rates

Something the average person can take from the Fed’s announcement they’re planning an exit strategy that includes raising short term interest rates, fix your adjustable rates. You home equity lines of credit, adjustable rate mortgages, anything tied to an adjustable index is going to be rising fast once the Fed starts raising rates. That $100 payment on your HELOC is going to shoot up to $400. If you’ve got an ARM set to adjust, instead of adjusting to a 3.5% rate, try 7, 8% on for size. Payment shock will hit some, some will take the necessary steps, if they’re able, to consolidate into a low fixed rate now.

To display today’s mortgage rates on your website or blog please use our free mortgage rates widget.

Mortgage Rates: Current Mortgage Rates at Par – FHA, Jumbo, 30 Year Fixed

Bruno Mckenzie — Wed, 10 Feb 2010 14:49:17 +0000

Feb. 10 (FreeRateUpdate.com) – Yesterday was another wild one. The Dow shot up over 200 points before finishing up about 150. Current mortgage rates are up on a rallying stock market but not up enough for lenders to adjust their rate sheets for the worse. What do I mean by that and why would mortgage rates be up because the stock market is up? Pricing affecting closing costs is worse but current mortgage rates are still the same. 4.75% for a 30 year fixed will cost you more than it did yesterday, but still about a point. When investors get in the stock market to profit, on days like yesterday, bonds suffer. When bond prices are down, mortgage rates which move the opposite are up. It works like that almost every time. Prices of mortgage backed securities in particular drive mortgage rates in the opposite direction. MBS prices were down -8/32 (FNMA 30-yr 4.5 at 101.03) yesterday. The benchmark 10 year treasury yield, the leading indicator for forecasting 30 year fixed mortgage rates, finished yesterday unchanged.

NEW: Search Local Mortgage Rates

FreeRateUpdate.com researches over 20 wholesale lenders rate sheets and reports on mortgage rates par rates. Why par rates? What benefit do consumers have with par rates in hand?A par rate is what a savvy and qualified consumer will receive on any given day with a standard 1 point in origination. Par rates are typically 1/4% below the ”national averages”. Less savvy borrowers often receive rates 1/4 point above par though they are well qualified. The banks make huge profits on this.

Current Mortgage Rates at Par for Conforming, FHA, and Jumbo Mortgages:

Current conforming mortgage rates at par are as follows. 30 year fixed, 4.75%, 15 year fixed, 4.25%, 5/1 ARM, 3.75%. Conforming mortgage rates are unchanged from yesterday with a slight increase in pricing effecting closing costs for the worse.

Current FHA mortgage rates at par are as follows. 30 year fixed, 4.75 %, 15 year fixed, 4.5%, 5/1 ARM, 3.75%. FHA mortgage rates are also unchanged from yesterday with slightly higher closing fees for the same rate.

The current jumbo 30 year fixed rate is 5.75% at par.

To display current mortgage rates on your website or blog use our free mortgage rates widget.

Wells Fargo Mortgage Rates Versus: Wells Fargo Mortgage Rates Consistently Good but Not the Best

Bruno Mckenzie — Tue, 09 Feb 2010 21:38:51 +0000

Feb. 9 (FreeRateUpdate.com) – Today we’re going to stack Wells Fargo mortgage rates against both national averages and par rates. Why? Well for consumers out there who may be inclined to go to their local bank, which very well might be Wells Fargo, this is a good bit of information. For those who aren’t considering Wells Fargo, there are certain programs you may want do just that.

Let’s start by noting the difference between par rates and national averages. Par rates, as researched and reported on by FreeRateUpdate.com, are the interest rates a well qualified savvy borrower will recieve on any given day with about a point of origination. National averages, are compiled by Freddie Mac and Bankrate.com from banks, and are about 1/4% higher than the mortgage rate most borrowers should aim for.

NEW: Search Local Mortgage Rates

Today’s Wells Fargo conforming 30 year fixed rate is 4.875%, good but not the best at an 1/8 above the reported par rate today. It is below the national average of 5.01% as reported by Freddie Mac. If you’re looking for a conforming 15 year fixed mortgage, Wells Fargo is a great choice. Today’s 15 year fixed Wells Fargo conforming rate is 4.25%, matching the par rate for today which can’t be beat without paying buy down points.

Another program where Wells Fargo may be the place to go is the jumbo 30 year fixed. Wells Fargo’s jumbo 30 year fixed rate today is 5.75%, spot on with today’s par rates and below the national averages. Wells Fargo’s rates come with about a point in origination according to the listed APR’s.

Source: wellsfargo.com/mortgage/rates/

Mortgage Rate Mover? The Fed Exit Strategy and 30 Year Fixed Mortgage Rates (VIDEO)

Bruno Mckenzie — Tue, 09 Feb 2010 19:20:58 +0000

Feb. 9 (FreeRateUpdate.com) WASHINGTON D.C. - The Fed is preparing to layout an exit strategy to the public. Investors have been acting on speculation only lately, with no concrete plan in place, as to what the Fed plans to do as far as raising interest rates and tightening credit. Not only that, but their exit from the MBS market is important as

well, especially to the housing industry which is efffected by mortgage rates. Though they’ll begin preparing to lay out their plan, don’t expect an interest rate hike for several months.

How will the Fed exit strategy, particularly the raising of interest rates effect mortgage rates? Contrary to popular belief the Fed rate does not directly effect conforming fixed mortgage rates for Fannie and Freddie backed products used to buy homes today. It’s your credit lines, and adjustable rate mortgages that are in the adjustable period that are most effected by the Fed’s changing of interest rates. Matter a fact, historically when the Fed lowers interest rates, mortgage rates go up immediately and vice versa. Wierd I know. What’s likely to have the biggest effect on mortgage rates, tied to the Fed’s exit strategy, is the end of their purchasing of mortgage-backed securities in March. Easing concerns that mortgage rates could shoot through the roof after they stop buying MBS was a recent statement saying if rates were to go too high, the Fed simply could consider buying MBS again.

Here’s a video about the Fed preparing to detail an exit strategy, click to play.