Mortgage Calculator

Mortgage Rates Continue to Inch Upwards

2008-07-10T11:36:00.000-07:00

- 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.

Do you spell "Morgage Calculater"?...

2007-10-15T12:42:00.000-07:00

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.

Fed Rate Lowered, Mortgage Rates Rise!

2007-09-29T16:29:00.000-07:00

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.

Mortgage Rates Inch Lower

2006-07-20T15:22:00.000-07:00

Ben Bernanke's remarks in the senate today created an easy feeling among bond traders and reversed the recent increase in mortgage rates to some extent.

This came about as the Chairman of the Federal Reserve Board suggested that there are signs of easing inflation down the road, giving the impressing that the Fed may very well increase the Fed Funds rate in August but not in September.

It is worth noting that the 30 year mortgage rates are closely reflective of the 10 year bond yield.

Mortgage Rates on the Rise or Decline?

2006-07-19T12:47:00.000-07:00

Mortgage rates have been declining for two weeks now! The average 30 year fixed rate has dropped by two basis points and the average 15 year fixed by almost 7 basis points.

This was a chain reaction triggered by the weaker than expected employment figures that were published last week, signaling a weakening economy an fueling a flight to quality, in the that investors started shifting money into the bond market pushing the price of bonds higher and the rates lower.

The fed has been trying to curb an overheated economy by raising the fed funds rates that have so far had little effect on the mortgage rates; however the housing market did slow down with the rising home values and the uncertainty about the future of the economy.

Home affordability is down not because of the mortgage interest rates but mostly because; despite the low rates buyers can not afford the payments.

Mortgage Calculators offered on this site can help you with all real estate purchase and refinance calculations.

Mortgage Loan Refinancing Continues, Despite Rising Rates.

2006-07-19T12:15:00.000-07:00

Refinancing mortgages is continuing, though at a much lower rate than last year. According to the Mortgage Bankers Association about a third of all mortgage applications are for refinance.

That may be inconsistent with the fact that the mortgage rates are on the rise, however there are still some good reasons to refinance a home mortgage.

Running up debt on credit cards and refinancing to pay it off may be a short term solution to a cash flow problem but not a very wise move if the borrower does not change his/her spending habits.

Another reason for refinancing is to move out of an adjustable rate mortgage loan or one of those 3/1, 5/1, or any other combination loans and fix the rate while there rates are still relatively low. Combining an equity line of credit with the first mortgage also can be helpful, as those lines of credit are normally based on the ever climbing prime rate.

Most borrowers find it difficult to figure out how a consolidation refinance will affect them. A Mortgage Consolidation tool found here can you in determining this with ease.
In fact, there are lots of other mortgage calculators listed on the home page of our site that can help you get in control of your financial future

Federal Reserve Board raises short term rates...

2005-11-01T12:48:00.000-08:00

In a highly anticipated move the Federal Reserve Board raised short term interest rates in what is now a customary .25% in its latest open market meeting.

The Central Bank said today that the 12th straight rate increase was necessary to keep core inflation down, as despite the effects of three major hurricanes the economy is strong.

Ten Year US Treasury Note's yield stayed very much at around 4.55% which is the level it's been at for the past two weeks or so. Which basically means that home mortgage rates stayed at around the same level?

In the past week or so the 30 year conforming fixed has averaged at 6.15%.

Mortgage interest rates vary

2005-10-26T18:15:00.001-07:00

Mortgage interest rates vary depending on the characteristics of your special circumstances. In order to shop for the best deal you can find, you must be in a position to compare what you are offered in a logical manner.

On a Sheet of paper make a table with say 4 columns and write the name of the fist lender that you are calling at the top of the first column, the second one at the top of the second column and so forth.

On another sheet of paper write all the particulars of what you are looking for on separate lines. For example the type, fixed or adjustable and if adjustable what kind, the dollar amount, whether stated income or fully documented, cash out refinance or rate and term refinance or purchase, your credit score and last but not least whether owner occupied or not.

Every factor listed above has an effect on mortgage interest rates, so don't leave anything out.At first glance this may seam like getting carried away, but the reality is that when shopping it is easy to leave one or two factors out that may very well make your comparison of mortgage rates useless.

Mortgage Interest Rates

2005-10-26T18:15:00.000-07:00

Mortgage Interest Rates can obviously impact your payment; but shopping lenders for the best deal is not simply calling up and asking what the lowest mortgage interest rates are.In fact that is exactly the question that an unscrupulous loan officer would like you to ask, because that will give him the chance to quote the lowest rates they offer which may or may not apply to you. See more bellow