Qualifying for a Home Mortgage Loan

- 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.

Mortgage Articles

Mortgage Rates Continue to Inch Upwards