Articles in Category: Fixed Rate Mortgage

June 6, 2016

Mortgage Rate Trends: Lower After Jobs Report

Ever since the Fed began discussing the possibility of another interest rate hike, we’ve seen upward pressure on mortgage loan interest rates. 30-year fixed rate conventional mortgage loan interest rates had fallen as low as 3.5% for some of the most competitive lenders (best execution) prior to that Fed talk, but once the upward movement began it wasn’t long before conventional rates began hitting 3.75% territory. During all this time, FHA mortgage loan rates held steady in a best execution range between 3.25% and 3.5%. As we frequently mention, FHA mortgage loan interest rates can and do vary more among participating lenders, so it pays to shop around. The FHA best execution range of rates mentioned here persisted even when conventional rates were going back and forth between a range | more...

June 3, 2016

FHA Loan Questions and Answers

By Joe Wallace

Tired of renting and looking to purchase a home of your own? There are many questions many first time home buyers or first time FHA loan applicants have. Here is a list of some of the most frequently asked questions about FHA mortgages. Is There An Income Limit For FHA Loans? No. FHA mortgages are not designed specifically for one type of financial situation or another. You cannot “earn too much” with the FHA single family home loan program. All wage earners are encouraged to explore their FHA loan options. Is There A First-Time Home Buyer Advantage Or Preference With FHA Mortgages? While an individual lender may offer certain perks for first-time home buyers, the FHA single family home loan program itself does not have a first time home buyer | more...

June 1, 2016

Mortgage Rate Trends: Holding For Now

By Joe Wallace

The two days before the holiday weekend, mortgage loan rates held steady or changed very little, depending on the lender. On Tuesday, the first business day of the week, we saw rates basically doing the same thing at the end of the day after some ups and downs; at the time of this writing best execution rates are where they have been, more or less, for about a week now. That means 30-year fixed rate conventional mortgages are at or near 3.75% best execution. The actual best execution number may vary depending on the lender, the time of day, etc. FHA mortgages are still in a best execution range between 3.25% and 3.5%. FHA rates tend to take longer to change than their conventional counterparts, but a dramatic move higher | more...

May 26, 2016

Mortgage Rate Trends: Sideways To Slightly Higher

By Joe Wallace

Ever since the release of the Fed minutes earlier this month there has been upward pressure on mortgage loan rates. The Fed is considering another interest rate hike sooner rather than later, and while a Fed rate hike is not a direct adjustment of mortgage loan rates, investor reaction to the hike and market activity can and often does react accordingly when the Fed acts in this way. In the last five business days there was only one day of recovery, while the rest of the time we’ve seen either “sideways” movement where rates didn’t change that much (best execution) overall but may have varied more among certain lenders. Wednesday saw rates moving sideways to slightly higher depending on the lender. 30-year fixed rate conventional mortgages had been operating in | more...

May 23, 2016

Mortgage Rate Trends: Higher After Fed Minutes Released

By Joe Wallace

Mortgage rates closed out the week sharply higher, moving upwards on Wednesday after the release of Fed minutes which indicate that a June or July interest rate hike by the Fed is a possibility. Since Wednesday there was a bit of recovery, but rates have held at the higher numbers and it’s possible we’ll see the rates listed here persist unless there is further recovery–something that may not be as likely if investors are jittery about a possible interest rate increase soon. The Fed raising interest rates doesn’t mean they are directly adjusting mortgage loan interest rates, but investor reaction to the Fed’s actions can and likely will have some kind of reciprocal effect even if it’s just in the short term. At the time of this writing, 30-year fixed | more...

May 18, 2016

Preparing For Your FHA Loan: Important Questions To Ask

By Joe Wallace

Are you in the planning stages for an FHA loan? Considering your refinance loan options? Regardless of which choice you’re making (new purchase or refinance) there are some important questions to ask yourself when preparing to apply. The first of those is one of the most important. “Am I giving myself enough time to prepare?” Some borrowers need more preparation time than others. If you don’t have 12 months of on-time payments on all financial obligations, for example, you should definitely take the time to make sure you bring that to the bargaining table. Lenders will be looking for that 12 months-or-better reliability to establish your creditworthiness. Some borrowers need more time to save up for certain closing costs and, in the case of new purchase FHA loans, the required | more...

May 18, 2016

Mortgage Rate Trends: Higher Ahead of Fed Minutes

By Joe Wallace

Mortgage rates took a turn higher on Tuesday, with some market watchers pointing out that investor behavior ahead of the scheduled release of Fed meeting minutes on Wednesday afternoon could be responsible for some of that upward pressure on mortgage rates. 30-year fixed rate conventional mortgage loans moved out of their previous range and into a single best-execution 3.625%. This best execution rate is still low compared to past numbers but the elimination of the previous range means conventional mortgages are a bit farther away than their FHA counter parts. Previously there was some on-paper overlap between conventional and FHA rates, though FHA mortgage loan rates tend to vary more among participating lenders. FHA mortgage loans are still in a best execution range between 3.25% and 3.5%. It may take | more...

May 16, 2016

Mortgage Rate Trends: Slightly Lower After Late Week Losses

By Joe Wallace

After last week’s move into the best rates of the year (best execution), then losing ground, mortgage rates closed out the week slightly lower. That raised hopes for some that continued improvement could come in the short term. At the time of this writing, 30-year fixed rate conventional mortgage loan rates were in a best execution range between 3.5% and 3.625%. That puts conventional rates closer to the FHA range of rates than is typically seen, though FHA mortgage loan rates do tend to vary more between participating lenders. At the time of this writing, FHA mortgage rates are in a best-execution range between 3.25% and 3.5%. FHA mortgage loan rates tend to take a bit more time to reflect gains and losses in the market as they affect mortgage | more...

May 11, 2016

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Mortgage loan interest rates have improved this week, hitting new lows that put conventional mortgages into a new range of rates (best execution) that are now, on paper at least, overlapping the current best execution FHA mortgage rate range. This development has encouraged some industry professionals to begin speculating as to whether the new lows are the “floor” of the improvements or whether new lows could be reached (however short-term they may be). Time will tell whether that speculation has any merit, but rates could easily be pushed in the opposite direction depending on circumstances. 30-year fixed rate conventional mortgages are at the time of this writing in a best-execution range between 3.5% and 3.625%. That range is close to the FHA mortgage loan best execution range, which at the | more...

May 6, 2016

FHA Loan Tools

By Joe Wallace

If you are in the planning stages of a new home loan, there are plenty of FHA loan tools you can use to help you prepare. The planning stage of your new home loan is just as important as the house hunting, home inspection, and negotiation stages. Do you have the right tools to get started? FHA Loan Limits Knowing how much loan the FHA guarantees in your area is an important part of the process. FHA loan limits are not the absolute maximum you can borrow, but getting a bigger home loan above and beyond those limits may require you to work with a loan officer to determine what you need to do to apply for a “Jumbo Loan”. Learn what the FHA loan guaranty limit for your area | more...