March 1, 2011 (FreeRateUpdate.com) – In recent news, home construction throughout the state of Louisiana has decreased, which added pressure on mortgage backed securities prices causing them to dip slightly. Positive data on increasing manufacturing throughout the nation, however, has decreased the rate of some types of mortgage interest rates in Louisiana. Overall, Louisiana mortgage interest rates have remained low this week.
A 30-year fixed rate conforming mortgage in Louisiana has a mortgage rate of 4.750 percent. A 15-year fixed rate conforming mortgage has a rate of 4.000 percent. A Louisiana 5/1 adjustable rate mortgage has a mortgage rate of 3.250 percent. For well-qualified Louisiana borrowers with a positive credit track record and reliable source of income the best mortgage rates are available at only 0.7 to 1.0 origination points.
The FHA mortgage rates have also steadily maintained their low rates. The FHA mortgage rate is 4.500 percent for a Louisiana 30-year fixed FHA mortgage loan. The FHA mortgage rate is 4.000 percent for a Louisiana 15-year fixed rate FHA mortgage. An FHA 5/1 adjustable rate mortgage loan is currently at 3.625 percent. Despite recent increases in the Louisiana FHA mortgage rates, an FHA mortgage loan is still a very popular mortgage lending option amongst Louisiana borrowers, especially first-time home buyers. FHA loans have more favorable loan terms than conforming mortgage loans. It is also important to remember that FHA-insured mortgage home loans have higher closing costs and additional fees that Louisiana borrowers are responsible for. Some of those additional expenses include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Well-qualified Louisiana borrowers are able to take advantage of the best mortgage interest rates available. These borrowers will have a strong credit history with minimum number of missed and/or late payments. In order to qualify, Louisiana borrowers typically have a credit score of at least 580. Although, some mortgage lenders require credit scores upwards of 620. Other requirements are reliable income sources, such as stable employment history with an either consistent or increasing salary, and sufficient financial funds to pay for a down payment of at least 10 percent, which is usually verifiable from bank statements provided by Louisiana borrowers. The Federal Housing Administration is also well known to have easier qualifying guidelines on FHA-insured home mortgage loans. Due to recent economic circumstances, however, the Federal Housing Administration has more restrictive underwriting standards. Therefore, in order to qualify for an FHA home mortgage loan closely resembles the qualifying standards of conforming mortgage loans.
Jumbo mortgage rates in Louisiana have also stayed low this week. A 30-year Louisiana jumbo mortgage has a mortgage interest rate of 5.375 percent. A 15-year Louisiana jumbo mortgage has a mortgage interest rate of 5.250 percent. For a Louisiana 5/1 adjustable rate jumbo mortgage, the jumbo mortgage interest rate is 3.875 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. Hence, for a majority of the counties in Louisiana the conforming loan limit is $417,000.
Due to a dip in home construction throughout the state of Louisiana, the mortgage market had experienced an increase in mortgage rates. Also, mortgage backed securities and mortgage interest rates have an inverse relationship, meaning they move in different directions. Therefore, if the prices of mortgage backed securities fall, then Louisiana mortgage interest rates will go up. As MBS prices decreased slightly and due to better than expected economic reports, Louisiana mortgage rates are not expected to decrease in the near future and are relatively stable.
Well-qualified Louisiana borrowers are able to take advantage of the best mortgage interest rates available. These borrowers will have a strong credit history with minimum number of missed and/or late payments. In order to qualify, Louisiana borrowers typically have a credit score of at least 580. Although, some mortgage lenders require credit scores upwards of 620. Other requirements are reliable income sources, such as stable employment history with an either consistent or increasing salary, and sufficient financial funds to pay for a down payment of at least 10 percent, which is usually verifiable from bank statements provided by Louisiana borrowers. The Federal Housing Administration is also well known to have easier qualifying guidelines on FHA-insured home mortgage loans. Due to recent economic circumstances, however, the Federal Housing Administration has more restrictive underwriting standards. Therefore, in order to qualify for an FHA home mortgage loan closely resembles the qualifying standards of conforming mortgage loans.
Jumbo mortgage rates in Louisiana have also stayed low this week. A 30-year Louisiana jumbo mortgage has a mortgage interest rate of 5.375 percent. A 15-year Louisiana jumbo mortgage has a mortgage interest rate of 5.250 percent. For a Louisiana 5/1 adjustable rate jumbo mortgage, the jumbo mortgage interest rate is 3.875 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. Hence, for a majority of the counties in Louisiana the conforming loan limit is $417,000.
Due to a dip in home construction throughout the state of Louisiana, the mortgage market had experienced an increase in mortgage rates. Also, mortgage backed securities and mortgage interest rates have an inverse relationship, meaning they move in different directions. Therefore, if the prices of mortgage backed securities fall, then Louisiana mortgage interest rates will go up. As MBS prices decreased slightly and due to better than expected economic reports, Louisiana mortgage rates are not expected to decrease in the near future and are relatively stable.