Mortgage rates up compared to last Friday's post due to inflation fears. The market continues to be very volatile; several rate changes during the day is not uncommon.
If you're not planning on retaining your home for 30 years, why not consider an adjustable rate mortgage? The 10/1 ARM is worth checking out considering how low the rate is compared to the 30 year fixed rate. Since it's fixed for 10 years, I'd call it the perfect "10". To determine what mortgage best suits your personal scenario, contact your Mortgage Professional.
Monday, February 18, 2008 is Presidents Day. Mortgage Master will be closed in honor of this holiday and will re-open for business as usual on Tuesday, February 19, 2008.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, "full doc" purchase with minimum credit scores of 680 with an 80% loan to value or lower, a loan amount of $400,000, and with reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.875% (APR 6.019%).
30 Year Fixed with 10 Year Interest Only: 6.125% (APR 6.258%). Check out the 10/1 Interest Only ARM below if you are considering this product.
10/1 ARM Interest Only: 5.375% (APR 6.381%).
15 Year Fixed: 5.125% (APR 5.357%)
7/1 ARM: 5.00% (APR 6.479%).
5/1 ARM: 4.875% (APR 6.746%).
FHA/VA 30 Year Fixed: 6.000% (APR 6.529%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 6.625% (APR 6.774%)
10/1 ARM Interest Only Payments: 5.875% (APR 6.682%)
7/1 ARM: 5.375% (APR 6.659%)
Prime Rate (what HELOCs are based on): 6.00%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool. If you were considering a conforming product that offered a 10 year fixed period with interest only payments and relied solely on APR, you would wind up choosing the mortgage with a higher note rate by 0.75%! This is $250 more per month on a $400,000 mortgage.
This is just a small sample available of rates and products. Rates are as of Friday, February 15, 2008 at 8:30 a.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote or for loan amounts over $650,000, please contact me.
