Freerateupdate.com » Bruno Mckenzie

Mortgage Rates: Pricing Improves this Afternoon

Bruno Mckenzie — Mon, 22 Mar 2010 22:58:05 +0000

Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, are up today, +7/32. As a result, pricing on 30 year fixed mortgages has improved this afternoon. In other words, closing costs are down slightly for any given rate from this morning.

30 year fixed mortgages remain available at 4.75 percent to well-qualified consumers paying a standard .07 to 1 point origination.

The current 15 year fixed rate is 4.25, and 5/1 ARM rate 3.625 percent.

Wells Fargo Fixed Jumbo Mortgage Rate at 5.5

Bruno Mckenzie — Thu, 18 Mar 2010 18:48:17 +0000

Wells Fargo updated their mortgage rates at 12:00 PM EST today. Today’s Wells Fargo 30 year fixed mortgage rates are at 4.875% for conventional 30-yr fixed mortgages, with an APR 5.065, for well-qualified consumers.

Other Wells Fargo 30-yr fixed mortgage rates today include their FHA 30 year fixed, at 5% with a 5.717% APR, their jumbo conforming 30 year fixed at 5, with a 5.123 % APR , conforming jumbo FHA 30 year fixed, at 5.125% with a 5.794 APR, and the true jumbo 30 year fixed, at 5.5% with a 5.643 APR.

Perhaps Wells Fargo’s 30 year fixed true jumbo mortgage (exceeds jumbo conforming loan limits) is their strongest program.

I spoke with Jeff Bowman recently, of the jumbo specialty lender TheGreatLoan.com, and he told me 5.5 on a true jumbo loan (Wells Fargo and TheGreatLoan.com offer this rate) is the best rate out there and could only be done for extremely well-qualified borrowers with a very low LTV.

Consumers may want to search local mortgage rates for free, viewing offers from local lenders sorted on a rate table, before choosing a lender. Rates are usually available to well-qualified borrowers at least 1/4 below national averages reported by Freddie Mac.

Source: WellsFargo.com

FHA Loans: Home Buyer Tax Credit Expires in 6 Weeks! (VIDEO)

Bruno Mckenzie — Wed, 17 Mar 2010 19:53:07 +0000

Mar. 17, 2010 (FreeRateUpdate.com) – The IRS home-buyer tax credit of up to $8,000 expires in just 6 weeks. Before the tax credit was extended late last year, we saw a significant increase in home sales. It’s up in the air as to whether we’ll see an increase in purchases as the deadline looms once again.

Investors, who do not plan on occupying a property (usually pay cash anyways), are not eligible for the tax credit. It’s estimated 40-45% off home buyers are investors.

For those financing the purchase of a home with an FHA loan, the tax credit is applicable toward closing costs. That’s a big help because FHA loans are significantly more expensive due to MI and other FHA fees. New FHA guidelines include the boost of MI to 2.25 on April, 05. The tax credit is acknowledged for boosting home sales tremendously and having a positive effect on FHA loan demand.

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

Here’s a video about the home-buyer tax credit deadline looming. Click to play.

Current Mortgage Rates Available Below Freddie Mac FRE National Average

Bruno Mckenzie — Tue, 16 Mar 2010 22:10:09 +0000

Mar. 16, 2010 (FreeRateUpdate.com) – According to Freddie Mac FRE the average 30-year fixed rate last week was 4.95%; however, our research of wholesale lenders’ rate sheets verified 4.75% was available all week to well-qualified consumers paying a standard .07 to 1 point origination. This rate was available for 30 year fixed conforming (Freddie Mac FRE / Fannie Mae FNM insured) and FHA mortgages.

The current 30 year fixed mortgage rate remains at 4.75%.

Looking for mortgage rates below the national averages? Search local mortgage rates here.

Other conforming rates available to well-qualified consumers include the 15 year fixed, at 4.25%, and the 5/1 ARM at 3.625%, both well below national averages.

Another little talked about conforming program is the 30 year fixed jumbo conforming mortgage. The loan limit varies from county to county based on home prices and underwriting guidelines are extremely strict. Today jumbo conforming 30 year fixed mortgages are obtainable at 4.875% with a standard origination fee for well-qualified consumers.

The true jumbo 30 year fixed rate remains 5.625%.

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

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.