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Conventional & FHA Mortgage Rates Drop

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Mortgage loans look good as interest rates dropped again this morning, after the stock markets were lower on Friday. We expect mortgage rates to rise slightly on Tuesday as the financial markets continue to recover on Monday.  Mortgage loans continue to be attractive with rates still available at extremely favorable terms right now with A-paper and FHA borrowers people qualifying for 5% or even lower, so if you’ve been waiting to refinance, or waiting to lock your mortgage rate, do it now. When 30-year mortgage rates are lowered this much, you must seize the opportunity and take advantage of the reduced home loan or second mortgage payments that are available only for a limited time. 

If you are negotiating a lower rate with your lender on a loan modification and they come back with a proposal featuring fixed interest rates under 5% on your delinquent mortgage, we strongly recommend considering accepting these loan terms.  Like mortgage loan modification expert, Jeff Morris said in a recent article, “The low rate loan modifications won’t be around forever.”  Morris continued, “With inflation and foreclosure losses, at some point the interest rates will jump significantly.”

The average rates on thirty-year conforming fixed rate mortgages came down to 4.84 % from 4.95 %. FHA mortgage rates dropped to 4.875% from 4.95% the previous week. The FHA home loans remain a popular loan for borrowers looking to purchase or refinance into a lower rate home loan.  While jumbo thirty-year fixed rate mortgage loans were only down 0.05% to 6.12% from 6.17%. Fifteen-year conforming fixed rate mortgages came down to 4.55% from 4.62%. The average rate on fifteen-year jumbo mortgage rates was pretty much unchanged at 6.01% from 6.02%.

Average interest rates on a home equity line of credit went unchanged at 4.74%. The average home equity rate difference between a 10-year and fifteen-year home equity loan is still over 3 %. Average rates on ten-year home equity loans were also unchanged at 4.6%. The average rate on a fifteen-year home equity loan was also unchanged at 7.81%.

A record low of 4.78% for a thirty-year fixed-rate mortgage was first recorded on the week of April 2nd and again on the week of April 30th. Freddie Mac’s mortgage rate survey dates back to 1971.  Mortgage interest rates fell significantly over the winter. The rates declined again after the Federal Reserve said in March that it would buy $1.2 trillion in mortgage-backed securities and $300 billion in debt, which in most cases impacts rates for 30-year home loans significantly whether refinancing or home buying.

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1 Comments

1

HI my name is keisha I put a FHA mortgage application in the other day i was wondering on the status. My credit has been a problem but it looks like you have FHA products for bad credit. I was wondering is this true my score is low.
please help me keisha

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