Mortgage Articles

Thursday, July 10, 2008

- 30 year fixed mortgage rates now average 6.45% - their highest point this fiscal year.

Inching up by .03 %, 30 year fixed mortgage rates touched their highest levels this year at 6.45%. 15 year fixed mortgage rates are now at 6.08%, inching up by .02%. The Federal Reserve held key interest rates at 2%.

Adjustable mortgage rates (ARMs) have not been spared either. These, in fact, witnessed larger jumps with the 5 year adjustable mortgage rates nudging almost 6%, to be precise - 5.99%. This is up a whopping 0.10% percent. The 1 year ARM has seem smaller jumps and is now at 5.27%, or up by 0.08%. ARM rates are considered to have risen due to uncertain and choppy markets and indecision about how the fed might respond to these key indicators.

The Most Expensive and the Most Difficult to Obtain are Jumbo Mortgages – Jumbo mortgages in excess of $417,000 have become relatively more costly and more difficult to get for home owners.

Despite government regulations, the subprime meltdown has claimed one more victim. Homeowners now find it more difficult to get a jumbo mortgage approved and even if they are lucky enough to get one, it works out to be more costly for them. Traditionally interest rates have always been higher on such mortgages, even so, it is now 1% more than other loan rates and averages at about 7.36% for a Chicago 30-year fixed jumbo rate. In addition to that, homeowners now require to show better credit scores and lower ratios of debt-to-income to be considered for a jumbo.

Monday, October 15, 2007
In a recent attempt at increasing our number of visitors we decided to do a simple research into the number of times the term mortgage calculator is misspelled by searchers in the search engines.

The results surprised us. The most common misspelling was the phrase "morgage calculator", followed by the phrase "mortgage calculater". It is interesting to note that the fully misspelled phrase "morgage calculater" did not occur as often.

All in all some one thousand searchers type in some combination of the above mentioned incorrect spellings.
As a result we decided to launch a page in our website to target all those visitors who are looking for a mortgage calculator, no matter how they spell it.

In addition we are in the process of a complete overhaul of the website which will include downloads of free mortgage calculator scripts for those who have a real estate or mortgage related website and would like to add useful tools.

We'll have more about that in about two months or so.

Saturday, September 29, 2007
This is a phenomenon that very often confuses just about everyone, including but limited to Loan Officers.

A cut in the Federal Funds Rate hits the news really fast and those who are in the process of obtaining a mortgage loan call their loan officers to see if their rate is going to be better only to be disappointed by the news that in fact mortgage rates have inched up!

The explanation is the fact that a lower Fed Fund Rate will help businesses in general and large publicly traded companies in particular and as such investors rush to invest in the stock market and withdraw funds from the bond market pushing bond prices down and their yields higher.

Home mortgages are financed in by selling bonds and when bonds drop their yields rise pushing mortgage rates higher. The closest number to follow in your favorite news program to gauge what's happening to mortgage rates is the 10 year Treasury Bill. There are of course 2 year, 5 year and 30 year treasury bills and it may seem logical that a 30year mortgage will follow the 30 year T Bill but the reality is that the 10 year yield is the closest one.

As always we strongly recommend that you visit the Free Mortgage Calculator site and carefully work out what the consequences of taking the mortgage that you are offered. A few minutes of careful consideration will save a bundle of hurt later.




 

 

 



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