Alaska Mortgage Rates: Mortgage Rates Finally Stable After Recent Increase
January 24, 2011 (FreeRateUpdate.com) – At the beginning of the week, mortgage rates in Alaska were slightly higher by 0.125 percent over last week. A 30-year fixed rate conforming mortgage in Alaska has a mortgage rate of 4.625 percent and 4.000 percent for a 15-year fixed rate conforming mortgage loan. For an Alaska 5/1 adjustable rate mortgage, the mortgage rate is 3.125 percent. Well qualified Alaska borrowers are able to obtain a mortgage with these low mortgage rates at only 0.7 to 1.0 origination points.
For an FHA home mortgage in Alaska, the FHA mortgage rate also increased at the beginning of this week. The FHA mortgage rate is 4.500 percent for an Alaska 30-year fixed FHA mortgage loan, which increased 0.125 percent over last week’s mortgage rate. The FHA mortgage rate is 4.000 percent for an Alaska 15-year fixed FHA mortgage, which increased 0.250 percent over last week’s mortgage rate. An FHA 5/1 adjustable rate mortgage loan is currently at 3.000 percent, which is unchanged over last week’s mortgage rate. The Alaska FHA mortgage remains the most popular amongst Alaska borrowers due to its favorable loan terms. FHA mortgage rates are higher, however, than conforming mortgage rates. This is primarily because of the higher closing costs associated with an FHA loan. Additional fees that the Federal Housing Administration charges to Alaska borrowers include, but are not limited to, upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Well-qualified borrowers would have a nearly perfect credit history with minimal late payments, a credit score above 580 (sometimes upwards of 620,) reliable income sources, and enough financial reserves to cover a down payment of at least 10 percent, which is verified by bank statements provided by Alaska borrowers. The Federal Housing Administration is known to have less stringent standards. However, due to recent circumstances, the Federal Housing Administration has tightened underwriting standards and now qualifying more closely mimics the guidelines of conforming mortgage loans.
Alaska jumbo mortgage rates are unchanged this week over last week. A 30-year jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year jumbo mortgage has a mortgage rate of 4.750 percent. For a Alaska 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a single family residence, the national conforming jumbo loan range is $417,000 through $729,750 in most of the continental U.S. For a majority of the counties in Alaska the jumbo conforming jumbo mortgage loan range is $625,500 through $1,094,625.
The slight increase in mortgage rates at the beginning of this week is primarily due to the decrease in home construction throughout Alaska. Homebuilders, therefore, have a negative view of the future of construction in years to come. Moreover, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. So, when MBS prices go down, Alaska mortgage rates go up. Therefore, as home construction continues to slowdown and MBS prices declines, Alaska mortgage rates are not expected to decrease in the near future.
Alaska mortgage rates
Well-qualified borrowers would have a nearly perfect credit history with minimal late payments, a credit score above 580 (sometimes upwards of 620,) reliable income sources, and enough financial reserves to cover a down payment of at least 10 percent, which is verified by bank statements provided by Alaska borrowers. The Federal Housing Administration is known to have less stringent standards. However, due to recent circumstances, the Federal Housing Administration has tightened underwriting standards and now qualifying more closely mimics the guidelines of conforming mortgage loans.
Alaska jumbo mortgage rates are unchanged this week over last week. A 30-year jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year jumbo mortgage has a mortgage rate of 4.750 percent. For a Alaska 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a single family residence, the national conforming jumbo loan range is $417,000 through $729,750 in most of the continental U.S. For a majority of the counties in Alaska the jumbo conforming jumbo mortgage loan range is $625,500 through $1,094,625.
The slight increase in mortgage rates at the beginning of this week is primarily due to the decrease in home construction throughout Alaska. Homebuilders, therefore, have a negative view of the future of construction in years to come. Moreover, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. So, when MBS prices go down, Alaska mortgage rates go up. Therefore, as home construction continues to slowdown and MBS prices declines, Alaska mortgage rates are not expected to decrease in the near future.
Alaska mortgage rates