Idaho Mortgage Rates
Idaho Mortgage Rates: Idaho Mortgage Interest Rates Increase and Jumbo Rates Decrease
February 3, 2011 (FreeRateUpdate.com) – Last week mortgage backed securities prices decreased as well as home construction across Idaho. This week, due to strong data on manufacturing throughout the United States and Europe, mortgage rates increased for some loans and decreased for others. Mortgage rates in Idaho are expected to increase slightly because of investor speculation regarding re-pricing. In Idaho, a 30-year fixed rate conforming mortgage has a mortgage rate of 4.750 percent, which is an increase of 0.125 percent from last week’s mortgage rate. A 15-year fixed rate conforming mortgage has a rate of 4.000 percent, which is also 0.125 percent higher than last week’s mortgage rates. An Idaho 5/1 adjustable rate mortgage has a mortgage rate of 3.000 percent, which is a decrease of 0.125 percent over last week’s pricing. The best mortgage rates are available to well-qualified Idaho borrowers with very good credit at only 0.7 to 1.0 origination points.
Unlike the conforming mortgage interest rates, the FHA mortgage rates have remained relatively steady. The FHA mortgage rate is 4.500 percent for an Idaho 30-year fixed rate FHA mortgage loan. The FHA mortgage rate is 4.000 percent for an Idaho 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 Idaho FHA mortgage rates, an FHA mortgage loan is still a popular mortgage lending option amongst Idaho borrowers. FHA loans have more favorable loan terms than conforming mortgage loans. Nevertheless, it is important to remember that FHA-insured mortgage loans have higher closing costs and additional expenses. Some additional fees that the Federal Housing Administration charges to Idaho borrowers include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Idaho borrowers that are well-qualified have a strong credit history with minimal missed and/or late payments. To qualify, Idaho borrowers typically have a credit score of at least 580 (sometimes upwards of 620) and very reliable income sources, such as reliable employment with either consistent or increasing salary, and enough financial reserves to pay for a down payment of a minimum of 10 percent, which is usually verified by bank statements provided by prospective Idaho borrowers. The Federal Housing Administration is historically known to have more lenient qualifications. However, due to recent economic circumstances, the Federal Housing Administration has more restrictive underwriting standards and to qualify for an FHA home mortgage loan more closely resembles the qualifying standards of conforming mortgage loans.
Jumbo mortgage rates in Idaho have dropped below last week’s jumbo mortgage interest rates. A 30-year Idaho jumbo mortgage has a mortgage rate of 5.250 percent, which is 0.125 percent lower than last week’s pricing. A 15-year Idaho jumbo mortgage has a mortgage rate of 4.625 percent, which is also a decrease of 0.125 percent. For an Idaho 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.750 percent. For a single family residence, the national conforming loan limit is $417,000 throughout most of the continental U.S and $729,750 for “high-cost” areas, such as Washington D.C. and New York. Therefore, for a majority of the counties in Idaho the conforming loan limit is $417,000.
As previously mentioned, home construction throughout the state of Idaho has decreased recently. Last week the mortgage market experienced an increase in mortgage rates as a result. Also, mortgage backed securities and mortgage rates have an inverse relationship, meaning they move in contrasting directions.
Therefore, if prices of mortgage backed securities fall, then Idaho mortgage rates will rise. Hence, as MBS prices dipped today due to investor shift from more secure assets to stocks and the release of recent positive data on manufacturing in the United States and Europe, Idaho mortgage rates are not expected to decrease in 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