Indiana Mortgage Rates
Indiana Mortgage Rates: Indiana Mortgage Interest Rates Increasing as Jumbo Mortgage Rates Decreasing
February 2, 2011 (FreeRateUpdate.com) – In addition to a decrease in home construction throughout the state of Indiana, prices on mortgage backed securities fell last week. Fortunately, this week, due to data on manufacturing throughout the United States and Europe, mortgage interest rates increased on some mortgage types and decreased on others, such as Jumbo mortgage loans. Mortgage rates in Indiana are expected to increase slightly because of investor speculation regarding re-pricing. In Indiana, a 30-year fixed rate conforming mortgage has a mortgage rate of 4.750 percent, from last week’s mortgage rates that is an increase of 0.125 percent. 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 interest rates. An Indiana 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. For well-qualified Indiana borrowers with high quality credit the best mortgage rates are available 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 Indiana 30-year fixed rate FHA mortgage loan. The FHA mortgage rate is 4.000 percent for an Indiana 15-year fixed rate FHA mortgage. An FHA 5/1 adjustable rate mortgage loan is currently at 3.125 percent, which is an increase of 0.125 percent over last week’s mortgage rates. Despite recent increases in the Indiana FHA mortgage rates, an FHA mortgage loan remains a popular mortgage lending option amongst Indiana borrowers. FHA loans have more favorable loan terms than conforming mortgage loans. Regardless, it is important to remember that FHA-insured mortgage home loans have higher closing costs and additional fees that are charges to Indiana borrowers. Some of those additional expenses include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Well-qualified Indiana borrowers have a strong credit history with minimum number of missed and/or late payments. To qualify, Indiana borrowers typically have a credit score of at least 580 (sometimes upwards of 620) and reliable income sources, such as reliable employment history with either consistent or increasing salary, and sufficient financial funds to cover a down payment of at least 10 percent, which is usually verified by bank statements provided by prospective Indiana borrowers. The Federal Housing Administration is known to offer more lenient qualification guidelines on FHA-insured home mortgage loans. However, due to recent economic circumstances, the Federal Housing Administration has more restrictive underwriting standards. Hence, to qualify for an FHA home mortgage loan more closely resembles the qualifying standards of conforming mortgage loans.
Jumbo mortgage rates in Indiana have dipped below last week’s jumbo mortgage interest rates. A 30-year Indiana jumbo mortgage has a mortgage rate of 5.250 percent, which is 0.125 percent lower than last week’s jumbo mortgage rate. A 15-year Indiana jumbo mortgage has a mortgage rate of 4.625 percent, which is also a 0.125 percent decrease. For an Indiana 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 Indiana the conforming loan limit is $417,000.
As a result of a decrease in home construction throughout the state of Indiana has decreased recently, the mortgage market experienced an increase in mortgage rates last week. Also, mortgage backed securities and mortgage rates have an inverse relationship, meaning they move in opposing directions. Therefore, if the prices of mortgage backed securities fall, then Indiana mortgage interest rates will rise. So, as MBS prices dipped slightly today due to investor shift from more secure assets to stocks and the release of recent optimistic data on manufacturing in the United States and Europe, Indiana 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