Kansas Mortgage Rates: Kansas Mortgage Interest Rates Steady This Week
February 3, 2011 (FreeRateUpdate.com) – In addition to a decrease in home construction throughout the state of Kansas, 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. Overall, mortgage rates in Kansas have remained steady this week.
In Kansas, 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 rates. 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. A Kansas 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. Well-qualified Kansas borrowers with high quality credit are able to obtain the best mortgage rates available at only 0.7 to 1.0 origination points.
The FHA mortgage rates have also remained relatively steady. The FHA mortgage rate is 4.500 percent for a Kansas 30-year fixed rate FHA mortgage loan. The FHA mortgage rate is 4.000 percent for a Kansas 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 Kansas FHA mortgage rates, an FHA mortgage loan remains a popular mortgage lending option amongst Kansas 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 Kansas borrowers. Some of those additional expenses include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Kansas borrowers who are well-qualified have a strong credit history with minimum number of missed and/or late payments. To qualify, Kansas 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 Kansas borrowers. The Federal Housing Administration is known to have easier qualifying 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 Kansas have dipped below last week’s jumbo mortgage interest rates. A 30-year Kansas 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 Kansas jumbo mortgage has a mortgage rate of 4.625 percent, which is also a 0.125 percent decrease. For a Kansas 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 Kansas the conforming loan limit is $417,000.
As a result of a decrease in home construction throughout the state of Kansas, the mortgage market has experienced an increase in mortgage rates last week. Also, mortgage backed securities and mortgage rates have an inverse relationship, meaning they move in different directions. Therefore, if the prices of mortgage backed securities fall, then Kansas mortgage interest rates will increase. As MBS prices dipped slightly today and better than expected economic news is reported, Kansas mortgage rates are not expected to decrease in the near future and have remained stable.
Kansas Mortgage Rates
The FHA mortgage rates have also remained relatively steady. The FHA mortgage rate is 4.500 percent for a Kansas 30-year fixed rate FHA mortgage loan. The FHA mortgage rate is 4.000 percent for a Kansas 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 Kansas FHA mortgage rates, an FHA mortgage loan remains a popular mortgage lending option amongst Kansas 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 Kansas borrowers. Some of those additional expenses include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Kansas borrowers who are well-qualified have a strong credit history with minimum number of missed and/or late payments. To qualify, Kansas 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 Kansas borrowers. The Federal Housing Administration is known to have easier qualifying 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 Kansas have dipped below last week’s jumbo mortgage interest rates. A 30-year Kansas 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 Kansas jumbo mortgage has a mortgage rate of 4.625 percent, which is also a 0.125 percent decrease. For a Kansas 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 Kansas the conforming loan limit is $417,000.
As a result of a decrease in home construction throughout the state of Kansas, the mortgage market has experienced an increase in mortgage rates last week. Also, mortgage backed securities and mortgage rates have an inverse relationship, meaning they move in different directions. Therefore, if the prices of mortgage backed securities fall, then Kansas mortgage interest rates will increase. As MBS prices dipped slightly today and better than expected economic news is reported, Kansas mortgage rates are not expected to decrease in the near future and have remained stable.
Kansas Mortgage Rates