We all know mortgage rates are at an all time low. But as positive data comes out about the US economy they steady a bit instead of bouncing all over the place. As concerns about the European market hold us back a bit, this is still a good sign.
By: Rosemary Rugnetta
Current low mortgage rates remain steady after more positive data for the U.S. economy was released today. At the same time, investor concerns over European banks is weighing down on markets and overriding any optimism brought on by improvements seen in the U.S.
While low conforming mortgage rates are still around, there is still time for borrowers to take advantage of attractively low home prices. Today’s 30 year fixed mortgage interest rates are at 3.500%, 15 year fixed mortgage rates are at 2.875% and 5/1 ARM loan rates are at 2.250%. These low mortgage rates with 0.7 to 1% origination fee can be obtained by borrowers who have maintained good credit and can meet other lender guidelines. Most borrowers who purchase homes for the long term will pick low 30 year fixed conforming mortgage rates which offer the same mortgage payment for the entire term. Existing borrowers who want to take advantage of current low mortgage rates will often choose 15 year fixed mortgage rates which reduces the length of the loan while at the same time saves them money. Short term borrowers, who may need housing for relocation, often pick the 5/1 adjustable rate mortgage since it offers the lowest possible mortgage rate which changes when the loan comes due to readjust. Regardless of which conforming mortgage loan is chosen, all are offering record low mortgage rates.
For borrowers who do not have enough cash or high enough credit scores for conforming mortgages, FHA mortgage rates have been very low and competitive with conforming mortgage rates. Current FHA 30 year fixed mortgage interest rates are at 3.250% and FHA 15 year fixed mortgage rates are at 2.750%. FHA 5/1 ARM loan rates are at 2.750%. FHA continues to be consumer friendly towards borrowers and offers many options for purchasing a home. Popular with first time home buyers, FHA’s down payment requirements can be as low as 3.5% or 10%, depending on credit score. Credit evaluation for FHA mortgages takes into account that difficult situations do occur which can leave a blemish on a borrower’s credit history. Borrowers can combine housing grants and loans, which are offered by local and state housing initiatives, with FHA mortgages to help with the down payment and closing costs. Even though FHA closing costs (APR) are higher because of various FHA fees and the upfront mortgage insurance premium, FHA perks can sometimes make FHA mortgages more affordable.
To sum it up:
30 year fixed= 3.500%
15 year fixed=2.875%
5/1 ARM= 2.250%
FHA 30 year fixed= 3.250%
FHA 15 year fixed= 2.750%
FHA 5/1 ARM= 2.750%
FHA is a great option for first time homebuyers, however in Santa Clarita many of the condos and townhome communities aren’t available for FHS loans.
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