|
Rates
Can Change Daily
***Call for Latest Rates***
***What
to Watch for to Lock in
a
Mortgage Rate at the Most Favorable Time
|
PROGRAM
|
INTEREST
RATE*
|
POINTS
|
LOCK
PERIOD
|
|
30 year
fixed FHA/VA
|
6.375
|
01.000
|
30 days
|
|
30 year
fixed Conv.
|
6.250%
|
1.000
|
30 days
|
| 30
year fixed Conv. |
6.000% |
2.000 |
30
days |
|
15 year
fixed FHA/VA
|
6.000%
|
1.000
|
30 days
|
|
15 year
fixed Conv.
|
5.750%
|
2.000
|
30 days
|
|
15 year
fixed Conv.
|
6.000%
|
1.000
|
30 days
|
|
5/1 year
ARM
|
5.750%
|
2.000
|
30 days
|
|
30
year Jumbo
|
6.500%
|
1.000
|
30 days
|
|
"True
No Doc"
30Yr Fixed
|
7.125%
|
0.500
|
30 days
|
|
1 Year Conforming ARM
|
5.750%
|
2.000
|
30 days
|
| Option
Arm |
0.990%
(Minimum) |
.000 |
No
Lock |
Rate News
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Bond Market Report
Detailed
US
Treasury Bond Yield Performance
Why
Not Request a No-Hassle, Quick &
Honest Loan Offer?
You've
seen the ads and heard the sales
pitches: "When banks compete, you
win..." or "Get multiple loan
offers in minutes..." Make a
loan request and you may end up being
called by too many lenders who sound
like a carbon copy of each other.
You may feel like you are just a number
to them and see nothing special in their
rates, programs or services.
What
you may not realize is that loan
inquiries like yours have become a
commodity on the internet. All too
often, your on-line pre-qualification
request is not being made to an actual
lender. Instead, there are
thousands of web-sites and millions of
unsolicited emails seeking to gather
pre-qualification requests, which are be
sold to other lead companies, who then
market them to mortgage companies
looking for clients.
Unfortunately,
most of these unsolicited emails
originate from overseas and are not from
companies that are US-licensed mortgage
brokers or bankers. The people
soliciting your information only seek to
profit by selling it to others, not by
getting you your financing.
Unfortunately, because of the money to
be made, the information is often sold
over and over again...thus, one request
for a pre-approval may generate hundreds
of annoying calls from potential
lenders.
Why
not try something different with Family
Home Lending Corp? Fill
out our pre-qualification form you
will get one-on-one service from one of
OUR OWN mortgage specialists. We
will not sell your confidential
information and we promise to do what it
takes to be your "one-stop mortgage
shop". Because this is
probably not the only, or last,
financing you will ever need, and
because we want to be your "lender
for life", we promise that the
service you receive from us will really
be extra-ordinary.
As
both bankers and brokers Family Home
Lending Corp. has the ability to offer
the best rates for "A"
borrowers as well as the best programs
for almost anyone else, including those
in need of commercial, construction and
other loans. We are able to choose from,
literally, 10's of thousands of mortgage
programs from hundreds of lenders. And,
even if you are among the few borrowers
that we cannot help immediately, we will
offer you free, time-tested advice to
help you put your "financial
house" in order so that you are a
better candidate for a mortgage.
Won't you give
us a try? We honestly believe
that, once you work with Family Home
Lending, you will never feel the need to
shop around for mortgages, or other
lenders, ever again!
TOP
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Some
Notes About Rates & Costs:
***Rates
are for qualified buyers and will vary
with your particular circumstances; Note,
also, rates are very volatile and are
subject to change without notice.
Sometimes rates may change several times
a day. This is most likely to
occur when rates are rising, as lenders
are quicker to raise rates than to lower
them. We have no control over rates and,
thus, this website may not reflect the
latest figures.***
***Call
to confirm the lowest available rates
and for information on closing costs. The
information we give you "live on
the telephone" is always more
up-to-date than shown here.
This rate chart
attempts to reflect the reality imposed by
the reasonable time that it takes
to actually clear conditions and issue a
firm mortgage commitment. We do not
quote rates based on artificially short lock-in periods that
cannot be met in reality.
We have closed loans from start to
finish in as little as 24 hours, but it
is deceptive to state or imply that this is
always possible.
The
listed rates are the actual rate on the
mortgage note. They assume that the
borrower will pay all usual lender-imposed fees,
escrows and pre-paid finance
charges.
Depending upon the amount of those
charges, those fees
will alter the APR (Annual Percentage Rate),
that is shown on a Truth in Lending
form. That variance from the basic
"note" rate may be minimal, or
larger, which is why you need to know
all of the fees the loan requires.
Your loan officer will be happy to
calculate the exact APR for your
situation.
Smaller
loan amounts, "damaged"
credit, higher loan amount compared to
value &/or longer lock-in periods,
lesser documentation and mortgages for investment properties
(vs. owner-occupied) generally increase
the interest rate.
For example purposes,
the listed rates
assume a loan amount of $200,000, 20% equity, credit scores of
680+, loan purpose is for an owner occupied
purchase...although we do not
necessarily insist on these minimums. In
general, with an adjustment because of
reduced loan amount, the smallest
mortgage that we offer is $75,000.
One
point equals one per cent of the
mortgage amount.
The first point is usually
considered an origination fee.
Generally, paying more points
lowers the interest rate; pay fewer
points raises the interest rate. Often,
the first point paid will lower the
national average rate about 1/4% or
more. Generally, however, each
additional point paid lowers the rate by
a smaller and smaller amount.
Within reason, you can determine your
own interest rate by paying more or less
discount points. How many points you pay
is a factor of how much cash you have
for closing costs as well as how long
you will have the mortgage... be sure that you
will have it long enough for
the reduced rate to reimburse you for
the up-front points you pay at closing.
As
hinted at in mentioning the APR, it is
important, when comparing interest
rates, to compare costs, also.
Online mortgage companies are becoming
known for not mentioning all costs when
they give an estimate to potential
borrowers. Don't make a big mistake.
Federal law says you have a right to an
accurate estimate before you agree to a
mortgage. Jumping at the lowest interest
rate may not be the best decision.
You could choose a lender with the
lowest rate (but high hidden charges)
and get a nasty surprise at settlement. Make
sure you get an estimate of ALL the
costs before you sign anything.
You
may wonder, "If
paying points lowers rates, can I raise
the rate and get points back?" The
answer is YES! In
cases where your cash is limited, it is
often possible to accept a higher
interest rate in exchange for having us paying
some of the closing costs that you would
normally be expected to pay, or you can
receive point credits instead of
being charged points.
Also, ask
about our 'No-Doc' and 'Low-Doc' loans
if your credit rating is high...especially
if you have unusual circumstances.
"Dinged credit" may require a
non-conforming, "Portfolio" or
Sub-Prime Loan.
Even if your rate on one of these special
"niche" loan products is
higher than if you had
"perfect" credit, the tax
benefits of ownership still make owning,
at almost any interest
rate, more financially advantageous than
renting. Ask our loan officer to
demonstrate the benefits
"Owning versus Renting" with a
custom financial analysis.
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***What
to Watch for to Lock in a Mortgage Rate at
the Most Favorable Time:
The
Fallacy of Predicting Rate Changes Based
on the Actions of the Federal Reserve
Board: Contrary
to common knowledge, mortgage rates do not
usually rise or fall if
the Federal Reserve (“The Fed”) raises,
or lowers, the one rate that it
controls, the Federal Funds Discount Rate. You will fool yourself by using
an improper rate indicator. This is
because “The Fed” doesn’t
fund home mortgages or directly control
most home mortgage rates. The Federal Reserve
only controls the rate it charges its
member banks (the discount rate). This
rate directly affects the rate banks charge
each other for the overnight loans needed
in the electronic transfer of funds and it
has an immediate effect on the Prime Rate,
on which consumer
credit rates (ie: credit cards) are
based. This affects inflation
because higher consumer interest rates
tend to slow consumer spending which
encourages lower prices and slower
inflation.
Thus,
while a higher Fed. Funds rate may slow
spending and stabilize the economy by raising the
rates on some loans (such as consumer
credit, some home equity loans and commercial loans), it will not,
automatically and immediately, raise the rate on primary
home mortgage loans. Over time,
rates do tend to float up or down in the
direction of the Fed. Funds rate moves,
but this is an effect of changes in the
economic climate which the "Fed"
attempts to control, but not a direct or
immediate result of the Federal Reserve Board's rate
controls.
Strangely, however, you
will probably notice that rates will
fluctuate up or down based upon what the
anticipated "Fed" action will
be. Then, when the action actually occurs,
you may see nothing happen to the rates.
Why? ...Because the rates already floated
up or down beforehand! Anyone who is
involved in stock market investing has
probably noticed that prices change with
the rumor, not the news.
Long
Term Bonds are an Accurate Predictor of
Rate Movements: If
you want to be a “smart borrower”,
watch the long-term (10 year) bond
yields listed in your newspaper.
Mortgage rates fairly accurately track the
movement, up or down, of the yield on these
longer-term US Treasury security
instruments (bonds). You should note that
when the stock market falls, people tend to
take money out of the market and purchase
bonds. This increased bond demand
usually causes bond prices to rise with a
corresponding bond yield drop.
As the
yields drop, so do interest rates. This is
because most mortgages are, ultimately,
funded by bonds that compete, with stocks
and government bonds, for investors. The
companies that sell the bonds that fund most mortgages (FNMA, FHLMAC, GNMA,
etc) must adjust their bond prices, as
federal bond prices change. The
adjustments are needed in order for the
private bonds to be competitive with the
government bonds and still provide the
bond sellers with the funds to pay a yield
on the bonds. Thus, price adjustments
directly affect the yields from the bonds.
A
good expectation would be that a 30 year
fixed conventional mortgage rate, with no
points charged, will average about 1.50 to
2.5% over the yield of the 10 year
treasury instrument. 15 year rates
will be between 1/4 and 1/2% less than the
30 year rate or will cost about 1/2 to 1
full point less for the same rate.
FHA/VA rates will usually range about 1/4%
lower than conventional rates, but 15 year
fixed FHA rates are usually only available in
1/2% increments (6%, 6.5%, etc). Limited documented loans will
have rates
from 1/4% to over one percent higher than
fully documented rates.
In
our general information on interest rates and
points (above, right), you will a find number
of other conditions that could increase
rates. If
you can remember the information on this
page, you should have a
good "handle" on what a
reasonable rate should be at any time.
TOP
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8-26-2006 |
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