Delaware Mortgage Rates
Delaware Mortgage Rates: After Recent Increase Mortgage Rates in Delaware Are Finally Steady
January 27, 2011 (FreeRateUpdate.com) – Delaware mortgage rates had spiked up last week because of negative outlook in home construction and drops in mortgage backed securities prices. Fortunately, mortgage rates in Delaware have remained stable since. Nevertheless, speculation of investor re-pricing could cause another increase in mortgage rates in Delaware. A 30-year fixed rate conforming mortgage in Delaware has a mortgage rate of 4.625 percent. A 15-year fixed rate conforming mortgage has a rate of 3.875 percent. A Delaware 5/1 adjustable rate mortgage has a mortgage rate of 3.125 percent. Well-qualified Delaware borrowers are able to obtain a mortgage loan at these favorable mortgage rates with only 0.7 to 1.0 origination points.
The FHA home mortgage rates also had increased slightly but are currently remaining steady. The FHA mortgage rate is 4.500 percent for a Delaware 30-year fixed rate FHA mortgage loan. The FHA mortgage rate is 4.000 percent for a Delaware 15-year fixed rate FHA mortgage. An FHA 5/1 adjustable rate mortgage loan is currently at 3.125 percent, which increased 0.125 percent over last week’s mortgage rate. Despite recent increases in the Delaware FHA mortgage rates, an FHA mortgage loan is a popular lending option amongst Delaware borrowers. FHA loans have more favorable loan terms than conforming mortgage rates. However, it is important to keep in mind that FHA-insured mortgage loans have higher closing costs and additional expenses. Additional fees that the Federal Housing Administration charges to Delaware borrowers include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Well-qualified borrowers in Delaware have a strong credit history with minimal missed and/or late payments. Typical credit score requirements of at least 580 (sometimes upwards of 620) and very reliable income sources, such as steady job with either consistent salary or increasing, and enough financial reserves to cover a down payment of a minimum of 10 percent, which is usually verified by bank statements provided by prospective Delaware borrowers. The Federal Housing Administration is historically known to have less stringent standards. However, due to recent economic circumstances, the Federal Housing Administration has restricted underwriting standards and to qualify for an FHA mortgage more closely resembles the standards of conforming mortgage loans.
Delaware jumbo mortgage rates have likewise remained unchanged compared to last week’s mortgage rates. A 30-year Delaware jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year Delaware jumbo mortgage has a mortgage rate of 4.750 percent. For a Delaware 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a majority of the nation, the limit is $417,000 for average areas and $729,750 for higher cost areas, such as New York City and Chicago. The state of Delaware is not considered a higher cost area. Delaware consists of three counties: New Castle, Sussex, and Kent. The conforming loan limit for the state of Delaware is $417,000, save for the county of New Castle, which is $420,000. Mortgage loans that exceed the conforming loan limit are jumbo mortgages. With the average home price at nearly $310,000, many of the mortgages in Delaware meet the conforming loan limit. Jumbo mortgage generally have higher mortgage rates and stricter underwriting guidelines.
Home construction has declined throughout the state of Delaware. As such, last week the mortgage market experienced an increase in mortgage rates. Homebuilders, as a result, have a pessimistic view of the recent future of home construction. Also, mortgage backed securities and mortgage rates have an inverse relationship, they move in opposite directions. So, when prices of mortgage backed securities decrease, then Delaware mortgage rates increase. Hence, as MBS prices dipped a bit today due to investors speculation regarding the Fed’s meeting, Connecticut mortgage rates are not expected to follow suit and not decrease the near future.
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FHA Mortgage 101
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference