Mortgage calculator payments declined for the week ending August 5th, 2011. Of course, we could have just said that mortgage rates declined over the week but, this is an article on mortgage calculators and the benefits of their use, not just changing mortgage rates.
Proper use of a mortgage calculator used to determine loan qualifications, mortgage loan payments or loan options requires good data first and foremost. One of the most important data points to input into the mortgage calculator is the current mortgage rate. For the week that ended on August 5th, the average 30 year mortgage rate from the top three bank mortgage lenders moved down by four basis points or 4/100ths of a percent to 4.417 percent. The top three bank mortgage lender rates in the survey are Bank of America mortgage rates, Chase mortgage rates and Wells Fargo mortgage rates.
Using the mortgage payment calculator and the current average 30 year mortgage rate, the monthly mortgage payment for a $225,000.00 loan would be $1,128.97. Using mortgage rate date from the prior week, the mortgage payment calculator results show a monthly mortgage payment of $1,134.43.
The relatively minor mortgage rate change over a period of one week resulted in a monthly payment change of $5.46 for a $225,000.00 loan. It is unlikely that a change of this magnitude will throw a potential home buyers budget into overload but the purpose of the exercise is to show how the mortgage calculators can be used to measure the impact of mortgage rate changes and force borrowers to closely scrutinize their own budgets and financing needs.
Carrying the exercise on to the shorter term, 15 year mortgage rate, with the mortgage payment calculator and the same loan amount gives us a different result. The average 15 year mortgage rate from the top three bank mortgage lenders was unchanged this past week at 3.542 percent. The mortgage payment coming from the mortgage payment calculator is therefore also unchanged at $1,613.13.
The average mortgage rates used as input for the mortgage calculator were based on the 30 year and 15 year mortgage rates as of August 5, 2011. The mortgage rates, points and APRs from the top bank mortgage lenders for the 30 year home loan were as follows:
Chase Mortgage rate for a 30 year term loan is at 4.500% and 0.375 points and a 4.596% APR.
Wells Fargo mortgage rate for 30 year term is 4.375% with 1.0 point and a 4.529% APR.
Bank of America mortgage rate with a 30 year term is 4.375% and 0.75 points with a 4.501% APR.
Additional mortgage calculators that can be used in conjunction with a monthly mortgage payment calculator to help find the best mortgage loan to fit your needs:
Bi weekly mortgage calculator
Mortgage down payment calculator
Monthly mortgage payment calculator
Mortgage payoff calculator
Mortgage rates can move each day as well during the day, the factors that push and pull mortgage interest rates comes from a variety economic triggers. While these forces moving mortgage rates over a short period of time is not a significant concern for most home loan borrowers, the impact that mortgage rate changes have on the cost of a new loan does. Mortgage calculators provide a means for home loan borrowers to assess the impact of mortgage interest rate changes as well as potential mortgage rate changes on a new home loan.
To see on the most recent mortgage rate changes from the nation’s top three bank mortgage lenders would impact an average monthly mortgage payment; Selectcalculators.com has compiled the mortgage rates and processed the payments using the online mortgage payment calculator.
The average rate for a 30 year mortgage from the big three mortgage lenders of Chase Mortgage, Bank of America mortgage and Wells Fargo mortgage ended the week of July 29 at 4.458 percent.
Based on the average mortgage rate of 4.458 percent on a 30 year loan with a loan amount of $225,000.00, the mortgage payment calculator displays a monthly payment of $1,134.43. This monthly payment is a reduction of $16.74 from the previous week, a rather sizeable monthly payment change based on just one week of mortgage rate fluctuations.
The average rate from the top three mortgage lenders for a 15 year mortgage was 3.542 percent.
Using this mortgage rate in the mortgage payment calculator for a $225,000.00 loan leads to a monthly mortgage payment of $1,613.13. This week’s monthly payment results in a reduction of $13.87.
The average mortgage rates used as input for the mortgage calculator were based on the 30 year and 15 year mortgage rates as of July 29, 2011. The mortgage rates, points and APRs from the top bank mortgage lenders for the 30 year home loan were as follows:
The dramatic changes in mortgage rates based on the week over week changes in mortgage rates from the top three bank mortgage lenders shows the impact that seemingly innocuous changes in mortgage rate have on mortgage payments. The mortgage payment calculator as well as other online mortgage calculators can be very useful tools to learn and quantify the costs of a new home loan.
Chase Mortgage 30 year rate is at 4.500% and 0.375 points and a 4.596% APR.
Wells Fargo mortgage rate for 30 year is 4.500% with 1.0 point and a 4.656% APR.
Bank of America 30 year mortgage rate is 4.375% and 1.125 points with a 4.559% APR
Additional mortgage calculator resources include:
Bi weekly mortgage calculator
Mortgage down payment calculator
Monthly mortgage payment calculator
Mortgage payoff calculator
Monthly mortgage payments increased for the average home loan borrower over the past week. With the average rate on a 30 year mortgage increasing fractionally, the monthly mortgage payment derived from the mortgage payment calculator also displayed a monthly mortgage payment increase. The monthly payment increase amounted to $5.51 on a 30 year loan.
The average mortgage rate from the nation’s top three mortgage lenders increased to 4.583 percent this week from 4.542 percent in the previous week. The monthly mortgage payment for a home loan in the amount of $225,000.00 with the current average mortgage rate would be $1,151.17 based on the results of the mortgage payment calculator. This is a change of $5.51 from the previous week’s mortgage rate figures.
The mortgage payment calculator results for the 15 year term mortgage loan were slightly more dramatic. The average payment derived from the mortgage payment calculator for a 15 year home loan in the amount of $225,000.00 and an average rate of 3.667 percent, the prevailing average 15 year mortgage rate, is now $1,627.00. The current monthly payment is an increase of $9.33 from the previous week.
The results of the mortgage payment calculator reversed direction from the previous two weeks when mortgage rates had steadily declined. The mortgage rates used in the mortgage calculator are based on the average rate from the top three bank mortgage lenders: Chase Mortgage, Bank of America and Wells Fargo Mortgage.
The mortgage payment calculator will show home loan borrowers how much their monthly payment will be based on a variety of different mortgage rates and loan term options, the average rates from the top three mortgage lenders are used just as a barometer for mortgage market conditions, individual mortgage rates and terms will vary.
Mortgage loan borrowers can also use other mortgage calculators to assist in their home loan decisions including the mortgage payoff calculator to show the effect of adding extra payments or the bi weekly mortgage calculator which can be used to review the acceleration in equity build up that can be accomplished with bi weekly mortgage payments.
The average mortgage rates used as input for the mortgage calculator were based on the 30 year and 15 year mortgage rates as of July 22, 2011. The mortgage rates, points and APRs from the top bank mortgage lenders on a 30 year mortgage were as follows:
Chase Mortgage 30 year rate is at 4.625% and 0.500 points and a 4.733% APR.
Wells Fargo mortgage rate is 4.625% with 1.0 point and a 4.782% APR.
Bank of America 30 year mortgage rate is 4.500% and 0.875 points with a 4.656% APR
Additional mortgage calculator resources include:
Bi weekly mortgage calculator
Mortgage down payment calculator
Monthly mortgage payment calculator
Mortgage payoff calculator
Mortgage payments generated by the mortgage payment calculator fell for the second consecutive week. As mortgage rates drifted down this past week, the monthly mortgage payment derived from those rates drifted lower as well.
For the week ending July 15, 2011 the average 30 year mortgage rate based on a survey of the top three bank mortgage lenders dropped down to 4.542 percent from 4.625 percent in the previous week. The 30 year rate reduction of just eight basis points, a basis point is 1/100th of a percent, on the week has led to a monthly payment reduction of $11.15 on a $225,000.00 loan amount.
The foundation for this monthly payment change comes from the mortgage payment calculator. Using the mortgage payment calculator with the loan variables of a $225,000.00 loan, a 30 year term and a mortgage rate of 4.542 percent results in a $1,145.66 monthly mortgage payment. Using the online mortgage payment calculator with the average 30 year mortgage rate of the previous week, 4.625 percent, results in a monthly mortgage payment of $1,156.81 or a difference of $11.15 per month.
The average 30 year mortgage rate used in the mortgage calculator is the average rate from the top three bank mortgage lenders in the U.S. As of July 15, 2011 the mortgage rates form these mortgage lenders was as follows:
Chase Mortgage 30 year rate is at 4.625% and 0.375 points and a 4.722% APR.
Wells Fargo mortgage rate is also at 4.625% with 1.0 point and a 4.782% APR.
Bank of America 30 year mortgage rate is 4.375% and 1.125 points leading to a 4.544% APR.
The monthly payment change of $11.15 is a measurable difference based on a weekly change in mortgage rates. The difference in payments reinforces the need for home buyers and mortgage refinance shoppers to use the available mortgage calculators to calculate what their mortgage payment will be and how much they can afford before they decide to apply for a new loan.
Highlighting the average mortgage rate and monthly mortgage payment is important so consumers can review their home loan budgets however; this step is just the beginning of the mortgage loan search and home loan calculations that a potential borrower should make before submitting their new mortgage loan application. Using the mortgage rates and mortgage costs listed by multiple lenders, such as the three top mortgage lenders listed above, can help prospective borrowers compare the best mortgage loan options to match their needs.
The mortgage calculators can be used for more than just monthly payment calculations. The mortgage payment calculators and associated online mortgage calculators are indispensible tools for comparing mortgage loan programs quickly and easily to help find the right loan.
The mortgage calculators available can be used to calculate the payment difference between different mortgage rates and loan options as well as calculate changing amortization schedules by using a mortgage payment calculator with extra payments or by using the mortgage rates calculator to compare mortgage rates from a number of different fixed rate mortgage options and adjustable rate mortgage options.
The mortgage rates listed are current as of July 15, 2011 for loans based in California and are only sample mortgage rates from three mortgage lenders and do not represent the average or best mortgage rate that may be available in your area. Always compare mortgage rates from multiple lenders to find the best mortgage rate with the lowest costs to match your needs.
Mortgage calculator additional resources:
Mortgage rates calculator
Mortgage down payment calculator
Mortgage calculator with taxes and insurance
Monthly mortgage payment calculator
Prospective home loan borrowers using the mortgage payment calculator this week will find monthly mortgage payments lower than they were in the previous week. Mortgage rates from the nation’s top three bank mortgage lenders dropped this past week leading to the monthly mortgage payment reduction for those users of the mortgage payment calculator.
The average rate from the top three bank mortgage lenders on a 30 year home loan dropped down to 4.625 percent for the week ending July 8, 2011. Using the Selectcalcultors.com online mortgage payment calculator for a loan amount of $225,000.00, the monthly mortgage payment for the 30 year fixed rate home loan would be $1,156.81. The dip in mortgage rates brought about a monthly mortgage payment reduction of $11.21 compared to last week’s mortgage rates.
The monthly mortgage payment on a 15 year fixed rate home loan for a loan amount of $225,000.00 would be $1,631.57 which results in a monthly payment reduction of $4.68 from the prior week’s figures. The average rate on a 15 year mortgage loan from the top three bank mortgage lenders ended the week at 3.708 percent.
The three mortgage lenders used each week to determine the average mortgage rate to be input in the mortgage payment calculator include Chase Mortgage, Wells Fargo and Bank of America.
The online mortgage payment calculator can be used to quickly determine the monthly mortgage payment for any loan amount with any mortgage interest rates. A key aspect of using the mortgage payment calculator is using accurate and timely mortgage rates to avoid obtaining flawed results.
The mortgage rate for a 30 year home loan from Chase Mortgage on July 8th is 4.750% with 0.375 points and 4.848% APR.
The 30 year home loan rate from Bank of America is at 4.500% with 1.25 points and an APR of 4.674%.
Wells Fargo mortgage rate is 4.625% and 1.0 point and an APR of 4.782% leading to a mortgage payment of $1,156.81 on a $225,000.00 loan amount.
These mortgage rates listed are, of course, just sample mortgage rates from three lenders and do not represent the average or best mortgage rate that may be available in your area. Compare mortgage rates from multiple lenders to find the best mortgage rate with the lowest costs to match your needs. The mortgage payment calculator as well as the mortgage rates calculator can help compare mortgage loan programs quickly and easily to help find the right loan.
Monthly mortgage payments based on the mortgage rates from the top three bank mortgage lenders stepped up slightly this past week. The average rate from the top three bank mortgage lenders on a 30 year home loan increased to 4.708 percent for the week ending July 1, 2011. Using the Selectcalcultors.com mortgage payment calculator for a loan amount of $225,000.00, the monthly mortgage payment for the 30 year fixed rate home loan would be $1,168.02.
With the assistance of the mortgage payment calculator, the results of this weeks mortgage rates change led to an increase on the average monthly mortgage payment of $9.85 from the previous week.
The average rate on a 15 year mortgage loan from the top three bank mortgage lenders ended the week at 3.750 percent. Using the mortgage payment calculator to find the monthly mortgage payment of a 15 year loan with a balance of $225,000.00, the monthly payment increased slightly to $1,636.25.
The top three bank mortgage lenders that are surveyed each week by selectcalculators.com include Chase Mortgage, Wells Fargo and Bank of America.
The mortgage rates and points charged for each mortgage lender with the corresponding monthly mortgage payment on a $225,000.00 are listed below:
Chase mortgage rate is 4.750% and 0.375 points yielding a monthly mortgage payment of $1,173.71.
Bank of America mortgage rate is 4.625% and 1.375 points with a mortgage payment of $1,156.81.
Wells Fargo mortgage rate is 4.750% and 1.00 points which also leads to a monthly mortgage payment of $1,173.71.
The mortgage calculator will show the user how much the monthly mortgage payment will be based on the loan amount and mortgage rate. The points charged by the mortgage lenders will impact the cost of the loan but will not alter the monthly payment.
The mortgage payment calculator can be used for a variety of different loan terms as well as different loan amounts and mortgage rates. The online mortgage calculators can be used to calculate the payment for the 15 year term loan or even a shorter 10 year term loan or any term that may be available in today’s mortgage market.
Current mortgage payments on a 30 year home loan rose moderately based on current mortgage rates from three of the top bank mortgage lenders in the nation. Using the mortgage payment calculator and current mortgage rates from US Bank, Fifth Third Mortgage and Citibank Mortgage, both 30 year fixed rate mortgage payments and 15 year mortgage payments increased from the previous week.
The average mortgage rate on a 30 year mortgage from US Bank, Fifth Third Mortgage and Citibank Mortgage on November 10th is 4.417 percent. Using this mortgage rate figure in the mortgage payment calculator for a 30 year term produces a monthly mortgage payment of $1,254.41.
The average mortgage rate on the shorter term, 15 year mortgage from US Bank, Fifth Third Mortgage and Citibank Mortgage on November 10th is 3.833 percent. Using the average 15 year mortgage rate figure in the mortgage payment calculator for a 15 year term produces a monthly mortgage payment of $1,828.376.
Due to the shorter term of the 15 year mortgage, the monthly payments produced from the mortgage payment calculator display a monthly payment on the 15 year loan that is just over 40 percent higher than the monthly payment of the 30 year home loan.
With either the mortgage payment calculator or mortgage term calculator, loan comparisons show that the total interest paid on the 30 year term loan is $201,589.04 while the total interest paid in the 15 year term loan is just $79, 106.19. Clearly, the monthly payment for the 15 year is measurably higher; however the total cost over the life of the loan is lower due to the shorter term and the lower fixed mortgage rate.
Mortgage loan comparisons based on the mortgage rate alone does not perform a thorough comparison of loan products, mortgage rates and APRs. Some mortgage loans include higher closing costs in the form of points charged and other fees and closing costs. Before choosing the mortgage loan and mortgage lender to work with, compare the mortgage rate along with the costs of obtaining the home loan with the use of the mortgage payment calculator, mortgage rates calculator or the mortgage comparison calculator.
The mortgage rates calculator and mortgage payment calculator are very helpful devices to compare mortgage rates and costs between bank mortgage lenders and mortgage programs.
The 30 year mortgage rates and 15 year mortgage rates obtained from the mortgage lenders used in the mortgage payment calculator are for owner occupied, single family homes with a minimum 20% down payment. The monthly mortgage payment results returned from the mortgage payment calculator are for principal and interest only and do not include the taxes and insurance portion of the monthly mortgage payment.
To find more information regarding mortgage payment calculators please see Mortgage Rates Calculator.
To find more information regarding mortgage payments on jumbo loans please see Jumbo Mortgage Calculator.
Monthly mortgage payments were moderately higher mid week for conventional mortgage loans and FHA mortgage loans based on the results compiled with the use of the standard mortgage payment calculator and FHA mortgage calculator.
The average mortgage rate on a 30 year mortgage from Chase Mortgage, Wells Mortgage and Bank of America on November 3rd is 4.167 percent. Plugging in a 4.167 percent rate on a 30 year term home loan for a loan amount of $250,000.00 returns a monthly mortgage payment of $1,217.73.
Looking at today’s monthly mortgage payment for a 30 year FHA loan with the assistance of the FHA mortgage calculator, the monthly payment is the same as that of the conventional 30 year fixed rate mortgage at $1,217.73. The FHA loan rate used in the FHA mortgage calculator is the average rate on a 30 year FHA loan from Bank of America Mortgage, Wells Fargo Mortgage and US Bank which is currently at 4.167 percent.
Although the monthly payments on these two loans is now identical, the costs of these two loans will be quite different with FHA loans having slightly higher costs mostly due to the required mortgage insurance premium.
Mortgage loan comparisons based on the mortgage rate alone does not perform a thorough comparison of loan products, mortgage rates and APRs. Some mortgage loans include higher closing costs in the form of points charged and other fees. Before choosing the mortgage loan and mortgage lender to work with, compare the mortgage rate along with the costs of obtaining the home loan. The mortgage payment calculator can be a good tool to help compare the different mortgage rates and costs between mortgage lenders and mortgage programs to see which loan best fits your needs.
The mortgage rates obtained from the mortgage lenders to plug into the mortgage payment calculator are for owner occupied, single family homes with a minimum 20% down payment. The monthly mortgage payment results returned from the mortgage payment calculator and FHA mortgage calculator are for principal and interest only and do not include the taxes and insurance portion of the mortgage payment.
To find more information regarding mortgage payments and mortgage payment calculators please see Mortgage Rates Calculator. To find more information regarding calculations for FHA mortgages please see FHA Mortgage Calculator.
FHA mortgage rates had moved up just slightly based on data released from Findlocalmortgagerates.com. Using the mortgage payment calculator to calculate the monthly mortgage payments on an FHA loan amount of $185,000.00, the change in payment can be quickly evaluated based on the new mortgage rates.
Based on the survey results, the average 30 year FHA mortgage rate is 4.75% which is an increase of five basis points or 5/100 of a percent from the prior week’s average 30 year fixed rate FHA loan rate of 4.70%.
The results of the mortgage payment calculator show that the rate changes yielded only a minor increase on the on monthly mortgage payment for the average loan amount.
For a loan amount of $185,000.00 for a term of 30 years and a mortgage rate of 4.75%, the mortgage calculator results indicate a monthly mortgage payment of $965.05. The monthly payment calculations from the mortgage calculator based on last week’s average FHA mortgage rate of 4.70% indicates a payment of $959.48 or an increase in monthly payments of just $5.57.
If a loan amount of just $145,000.00 was input into the mortgage payment calculator the current monthly payment would be $756.39 or an increase of $4.37 from the previous week.
FHA loans require a minimum down payment of 3.5%. The mortgage qualification calculator can quickly reveal the maximum loan amount a borrower may qualify for based on the current FHA rate, the borrower’s income and debt payments and the amount of money available for the 3.5% down amount. Analyzing the monthly mortgage payment and the maximum loan amount a borrower may qualify for are the most prevalent uses of these online mortgage calculators.
Findlocalmortgagerates.com produces a weekly survey of the average mortgage rate from the largest bank mortgage lenders for FHA mortgages, conforming loans and jumbo loans. These mortgage rates provide a good staring point to be used as input for the mortgage calculators to help prospective borrowers understand qualifying loan amounts and monthly mortgage payments before committing to a mortgage loan.
The Selectcalculators.com mortgage payment analysis survey shows monthly mortgage payments on the 30 year fixed rate mortgage are up marginally for the week ending March 12, 2010.
Selectcalculators.com performs a weekly survey of mortgage rates at the top five largest U.S. banks and uses that data to evaluate monthly mortgage payments with the mortgage payment calculator.
The average rate this week on a 30 year fixed rate home loan from the top five banks is 5.00% with 0.43 points. Using the free mortgage payment calculator and the average mortgage rate produced by the survey, the monthly payment for a $200,000.00 home loan on a 30 year term would be $1,073.64.
The monthly payment is higher this week by $8.54. Last week’s average rate from the top five largest banks was 4.93%, yielding a monthly payment of $1,065.10 based on the results of the mortgage payment calculator.
The average rate for a 15 year mortgage loan, based on the weekly rate survey, stood at 4.38% with 0.38 points. Employing the mortgage payment calculator with this mortgage rate, the monthly payment for a $200,000.00 home loan on a 15 year term would be $1,415.29.
The mortgage rates obtained are for owner occupied, single family homes with a minimum 20% down payment. Mortgage rates were obtained from the top five banks which includes: Chase Bank, Bank of America, Citibank, Wells Fargo and US Bank
Inputting the mortgage rates on the 30 year home loan for each bank into the mortgage payment calculator yields the following results:
Chase Bank Mortgage 30 year rate is 5.125% with 0.250 points and a 5.207% APR. The monthly mortgage payment for a $200,000.00 home loan with this rate according to the mortgage payment calculator would be $1,088.97 per month.
Bank of America offers the 30 fixed rate mortgage at 4.875% with 0.75 points and an APR of 5.001%. The monthly payment based on the results of the online mortgage payment calculator comes in at $1,058.42
Citibank markets the 30 year with a mortgage rate of 5.125% and 0.125 points and a 5.317% APR with a monthly payment of $1,088.97.
Wells Fargo Home Loan is at 4.875% on the 30 year fixed with 1.00 point and a 5.034% APR. $1,361.22 is the monthly payment for this loan.
US Bank promotes a 30 year fixed rate home loan with a mortgage rate of 5.00% and no points with an APR of 5.066% leading to a $1,073.64 monthly mortgage payment.
The following mortgage rates are dated as of March 12, 2101. The monthly mortgage payment results returned from the mortgage calculator are for principal and interest only and do not include taxes and insurance.
Mortgage loan comparisons based on the mortgage rate alone does not perform a thorough comparison of loan products, some mortgage loans include higher closing costs in the form of points charged and other fees. Before choosing the mortgage loan and mortgage lender to work with, compare the mortgage rate along with the costs of obtaining that home loan.
Refinancing an existing home loan mortgage may lower the interest rate and monthly mortgage payment for a number of homeowners. The refinance mortgage calculator is a tool that can be used to compare and contrast different home loan refinance options to quickly compare the best mortgage loan scenario.
There is wide selection of refinancing options that can be used to save money with a lower mortgage rate, a shorter loan term, or even a cash out refinance transaction to help consolidate debt or use funds for another worthwhile purpose.
For those existing home loan borrowers looking to save money on their home loan, information on the various loan options and mortgage rates are needed to make a smart financial decision and provide current rates to enter into either a mortgage refinance calculator or mortgage payment calculator.
Shopping for a home refinance requires knowledge of current mortgage rates and terms. To run sample scenarios in the mortgage refinance calculator the following data includes current mortgage rates for a $250,000.00 mortgage loan in California for a 15 year loan from the three of the largest California based banks ranked by assets.
The three banks that were surveyed and had their current mortgage rates entered into the mortgage refinance calculator are Union Bank, Bank of the West and One West Bank.
The mortgage rates are based on a single family owner occupied home with less than 75% loan to value.
Union Bank 15 year mortgage has a rate of 5.750% with no points and an APR of 5.873%. The monthly payment retrieved from the mortgage refinance calculator for a $250,000.00 loan is $2,076.03.
Bank of the West 15 year mortgage has a rate of 4.750% with no points and a 4.835% APR. Based on the mortgage refinance calculator the monthly mortgage payment would be $1,944.58.
One West Bank offers a 15 year mortgage with a rate of 4.625% and no points and a 4.768% APR which leads to a $1,928.49 according to the results of the mortgage refinance calculator.
In order to thoroughly compare different loan programs, a prospective borrower should compare closing costs along with the mortgage rates and mortgage term in the mortgage calculator to fully evaluate the loan options and make the right home loan choice.
The mortgage rates and terms listed are subject to change without notice; rates are current as of this publication but can not be guaranteed. Not all mortgage applicants will qualify for loan financing based on these terms and rates. Additional rates and terms are may also be available from these mortgage lenders.
Selectcalculators.com starts off each week by reviewing the current mortgage rates from the top five U.S. banks and using these rates to calculate monthly mortgage payments with the online mortgage payment calculator.
The bank mortgage rates used are from the top five largest banks, include: Chase Bank mortgage, Bank of America mortgage, Citibank mortgage, Wells Fargo mortgage and US Bank mortgage. The mortgage rates are for owner occupied, single family homes with a minimum 20% down payment and generally requires very good credit in order to obtain the listed rates.
The following mortgage rates dated as of March 7, 2101 were input into the mortgage calculator to calculate current monthly mortgage payments on a $200,000.00 home loan. The monthly mortgage payment results returned from the mortgage payment calculator are for principal and interest only and do not include taxes and insurance.
Chase Bank Mortgage 30 year rate is 5.000% with 1.375 points and a 5.194% APR. The monthly mortgage payment for a $200,000.00 home loan with this rate according to the mortgage payment calculator would be $1,073.64 per month.
Wells Fargo 30 year rate is 4.875% with 1 point and a 5.065% APR resulting in a $1,058.42 per month payment on the $200,000.00 using the mortgage payment calculator.
US Bank 30 year rate is 4.875% with 1 point and a 5.029% APR which also returns a $1058.42 monthly mortgage payment.
Bank of America 30 year rate is 4.875% with 0.875 points with a 4.987% APR reflecting a $1,058.42 monthly payment based on the mortgage calculator.
Citibank Mortgage 30 year is at 5.00% with 0.50 points and a 5.259% APR, the mortgage payment calculator calculates a $1,073.64 per month payment on this loan.
The average monthly mortgage payment based on this week’s mortgage rates came in at $1,064.51. Down payment requirements have escalated on conventional loans in the past two years making the cost of acquiring home rise, but with mortgage rates continuing to hover near their low point for the past several years, the monthly payment remains low.
Mortgage loan rates are subject to change. Mortgage loans are conditional upon bank approval which requires a review of assets, income, credit and property value.
The free mortgage payment calculator is good start to discovering home affordability and comparing mortgage rates and loan offers from different banks.
Using online mortgage calculators to investigate the mortgage rates and monthly payments on FHA loan has become increasingly common since these home loans are both easier to qualify for and have a low down payment requirement.
At the present time, FHA loans require a low a 3.5% down payment. The credit criteria and has tightened along with all mortgage loans but is still less stringent than other conventional mortgage loans.
When using the mortgage calculator to calculate monthly mortgage payments on these loans it is essential that the current FHA loan rate be entered into the mortgage calculator and not the mortgage rate on standard conventional loans.
Frequently, the mortgage rate on conventional loans is similar or close to the rate found on FHA loans. However, this is not always the case and the mortgage rate difference between the two loan products can be significant. When it comes to investigating mortgage qualifications and mortgage payments with the mortgage calculator, the only means of retrieving accurate results is to input accurate data.
For instance, the mortgage rate offered by Bank of America Home Loans for a conventional fixed rate loan is 4.75% with 1.375 points. The mortgage rate on an FHA loan from Bank of America is 4.87% with 1.375 points. With Wells Fargo Home Mortgage rates today, the FHA loan rate is 5.125% with 1.0 point and an APR of 5.537% while the standard conventional loan rate is at 4.875% and 1.0 point with a 5.052% APR.
Using these numbers in the mortgage payment calculator, the results show that on a $200,000.00 mortgage loan with Wells Fargo the monthly mortgage payment will be $1,058.42 for the conventional loan and a $1,190.82 monthly mortgage payment for the FHA loan.
If Bank of America mortgage rates are entered into the mortgage payment calculator, the monthly mortgage payment for the conventional loan is $1,043.29 while the monthly payment for the FHA loan will be $1,058.42.
The monthly principal and interest payment that is calculated by the mortgage payment calculator above does not include taxes or insurance or the FHA required monthly mortgage insurance payment.
The sample rates used as input for the mortgage calculator were taken directly from the mortgage lenders website, the accuracy is not guaranteed and all loans would be subject to bank approval and conditions. Mortgage rates listed are the current rates for a single-family, primary residence and are subject to change without notice.
The other factor to consider when evaluating the qualification requirement on these loans is that the closing costs are often slightly higher with an FHA home loan. This number is not factored into the mortgage rate and therefore is not evaluated by the mortgage payment calculator. The difference in loan costs can impact the amount funds needed at closing and the costs of both a conventional mortgage loan and FHA mortgage loan can be compared with a mortgage loan comparison calculator to thoroughly measure all of the home loan costs, not just the mortgage rate.
One of the unfortunate benefits of a slowing economy is low levels of interest rates and hence low mortgage rates. Mortgage rates have hovered near record lows for well over a year are still sitting near record lows and have continued for far longer than most economists had expected.
When mortgage rates move substantially lower, mortgage refinance activity generally rises. In the past year, as mortgage rates have drifted lower and remained low, mortgage refinance activity has changed very little.
Certainly, a share of the diminished refinance activity is brought on by a drop in home values and an increase in unemployment. While these factors will surely put a damper on mortgage activity, both purchase and refinances, it appears as though it does not explain away the current low levels of mortgage refinancing.
Additional factors weighing on consumers and their ability to refinance debt may include lower credit scores for many potential home loan borrowers and tighter lending standards. But there still remains a large segment of existing mortgage borrowers that have not taken advantage of the current low rate environment.
A simple procedure to evaluate the possible savings with a mortgage refinance is to utilize the mortgage calculators including the mortgage payment calculator and mortgage refinance calculator. The free mortgage calculators can quickly ascertain the savings with a mortgage refinance based on information about the existing mortgage balance, current mortgage rates and the new mortgage term being evaluated.
With the wide variety of mortgage options and the changing lending environment, the mortgage calculator can be an essential tool to help review all the options and the benefits of a refinance transaction. By changing the mortgage rate entry in the mortgage calculator as well as the mortgage term, the user can compare several mortgage loan alternatives quickly and efficiently.
A mortgage refinance calculator can not only measure the monthly savings that comes with a lower payment but can also measure the long term cost savings over the life of the loan on a number of different loan choices. The mortgage calculators can also factor in savings by using a mortgage refinance to consolidate additional debt into the new mortgage loan.
An added surprising, benefit of lower mortgage volume is the increased level of customer service. With fewer mortgage loans to process and underwrite, mortgage lenders have more time for customer service and assistance with mortgage applications. Use the mortgage calculators to compare the options and savings and then shop for the mortgage lenders that offer the best rates and service to help with the transaction.
Mortgage payments calculators are good tools to evaluate the total monthly costs of a home loan as well as evaluating the qualifications requirements for a new home purchase. Too many consumers, unfortunately, use the mortgage payment calculator without entering the current mortgage rates and therefore often obtain distorted findings on what their monthly mortgage payment will be as well as how much of home loan or how large a house they may qualify to purchase.
Accurate data is the key to using all mortgage calculators. Mortgage payment calculators, specifically, rely on accurate data regarding current mortgage rates. The input parameters for the mortgage payment calculator are the term or length of the home loan, the mount of the mortgage loan and the mortgage rate. The user can choose to change the term and loan amount to see which loans are in their best interest or to determine how to obtain the right payment amount to qualify for a home loan, but the mortgage rate input should be based on current market rates not user discretion.
The five biggest U.S banks with mortgage lending divisions includes Chase Bank mortgage, Bank of America mortgage, Citibank mortgage, Wells Fargo mortgage and US Bank mortgage. The following mortgage rates were obtained from these bank websites to use in the mortgage payment calculator to ascertain current monthly mortgage payments for a $175,000.00 home loan. The rates are for single family homes that are owner occupied and do not require mortgage insurance. The list includes the mortgage rate, points charged, the APR and the monthly mortgage payment result using these numbers in the mortgage payment calculator.
Wells Fargo 30 year rate is 4.875% with 1 point and a 5.065% APR resulting in a $926.12 per month payment using the mortgage payment calculator.
US Bank 30 year rate is 4.875% with 1 point and a 5.029% APR resulting in a $926.12 monthly payment.
Bank of America 30 year rate is 4.875% with 0.625 points with a 5.040% APR reflecting a $926.12 monthly payment based on the mortgage calculator.
Chase Bank Mortgage 30 year rate is 4.875% with 1.5 points and a 5.087%9 APR showing a $926.11 per month payment.
Citibank Mortgage 30 year is at 5.00% with 0.50 points and a 5.259% APR, the mortgage payment calculator calculates a $939.44 per month payment on this loan.
Mortgage rates are subject to change and rate and points may be different depending geographic location as well as the applicant’s credit history, income and assets. In preparing the rates and payment options, selectcalculators.com attempted to obtain mortgage rates and points that were similar to avoid comparing lower mortgage rates with more points or costs with those that have fewer points and costs. Please review the total costs of obtaining the home loan when choosing a mortgage lender and not just the mortgage rate and monthly mortgage payment.
Buying a home is generally a complicated decision for any new home buyer, during the current economic turmoil this decision is becoming more complicated with the constant lending requirement changes and the economic forecasts calling for higher mortgage rates. Even with these changes, a potential home loan borrower can evaluate the entire process on their own with an online mortgage calculator.
The consensus economic forecast since the end of the year has been one calling for higher mortgage rates. Fortunately, the rate increases have not yet materialized and consumers do not have to fret over the increased cost of homeownership due to a raise in interest rates.
Mortgage rates have in fact risen modestly this year. The average 30 year fixed rate mortgage was 5.04% for all of 2009 according to the weekly FHLMC mortgage survey. For January, 2010 the average 30 year rate has increased to just 5.05%, on average, according to the same survey. Using the mortgage payment calculator it is easy to see how a minor rate change like this or an even larger mortgage rate increase that may come, if the economy does expand, will impact the monthly mortgage payment.
Now, housing regulators have announced plans to tighten their lending standards for FHA mortgage loans. The Federal Housing Administration made the changes to protect taxpayers from increased loan losses and support the housing market.
The changes in for FHA loans will initially impact the insurance costs to the homeowner but the Federal Housing Administration is also proposing raising the down payment requirement as well.
The first part of the changes entails increasing the mortgage insurance premium charged to the borrower to 2.25% from the current level of 1.75%. This change is due to take effect this spring. The bigger change is the down payment requirement change which requires new borrowers to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put a 10% down payment to obtain an FHA mortgage.
The mortgage calculator can help determine what price home and what monthly payment a potential home loan borrower can afford based on these changes. The mortgage insurance premium increase can be input into the mortgage calculator under closing costs. The down payment change also be input into a mortgage qualification calculator as we all as the mortgage payment calculator to evaluate both the maximum loan amount a borrower may qualify as well as the change in total funds needed to close on a home loan based on the new changes.
Whether these changes will impact a borrower or not, every new home loan applicant should review their home loan financing position by using the mortgage calculators to investigate mortgage rates and payments, mortgage closing costs and costs over the life of loan as well as an estimate of what your qualification status is.
The current housing crisis and rise in foreclosures is evidence that at least some consumers failed to do adequate research on mortgage payment calculations and the cost of homeownership. Many of these homeowners have now found out they have obtained home loans that put them in a position of duress do to the high cost of their home loan.
For some of these home owners, running through various scenarios and calculations with the mortgage payment calculators may have more clearly shown the potential burden they were undertaking with a high monthly mortgage payment. For others, the mortgage calculators would have displayed the potential trouble when their adjustable rate mortgage experienced a mortgage rate change and drove the costs of their loan higher. And for yet more borrowers, the use of the mortgage calculators would helped to assess the true cost of the mortgage not just the monthly mortgage payment.
Those home owners that are now in distress because of an adjusting mortgage payment or higher monthly housing costs or lack of reserves due to a costly home loan would have been well served to investigate all these number and the ramifications by using one of the many online mortgage calculators.
For those consumers that are having mortgage loan troubles due to a financial hardship such as job losses or medial bills or other unforeseen and hard to protect against financial hardships there is at least some help available. If you have fallen behind on your payments, you should consider discussing some of the following foreclosure prevention options with your mortgage lender or loan servicer.
Mortgage loan reinstatement. In a reinstatement, the borrower will pay the mortgage lender or loan servicer the entire past due amount, plus any late fees or penalties, by a date agree upon by the borrower and the mortgage lender. Generally this option is suitable for present borrowers that have a temporary financial problem impacting their ability to make timely mortgage payments.
Mortgage repayment plans. In a mortgage repayment plan the mortgage lender or servicer allows the borrower a fixed amount of time to repay the amount of the home loan that is past due. The amount that is past due is calculated to be repaid over several months or a few years and is generally added to the existing monthly mortgage payment. This alternative is also most appropriate for borrowers who ran into temporary problems or are not that far past due on their existing mortgage loans.
Forbearance. With mortgage forbearance the existing monthly mortgage payments are reduced or suspended for a period of time. At the end of that time, the regular monthly mortgage payments resume as well as a larger payment or additional amounts are added to the regular monthly payment in order to bring the loan current. Forbearance can be a good opportunity for borrowers that have had a temporary reduction in income.
Home loan modifications. On modifications the mortgage lender or mortgage servicer agrees to permanently change one or more of the terms of the mortgage contract. Loan modifications may include reducing the mortgage rate, extending the term of the home loan, or adding missed payments to the loan balance. A mortgage loan modification may also involve reducing the current loan balance or the amount of money owed on the mortgage loan where the mortgage lender forgives, or cancels a portion of the mortgage debt.
Selling the house. Selling a house is always an option to get out of burdensome mortgage debt. Selling a home to escape the mortgage balance due may very well depend on the real estate market and whether the mortgage lender will accept a loan payoff that is les than the existing balance if selling your home does not provide the funds you need to pay off your current mortgage debt in full.
Bankruptcy protection. If you can not find any other options to alleviate your financial burden brought on by your current mortgage you may want to investigate filing Chapter 13 bankruptcy. For borrowers that have a regular income, a Chapter 13 bankruptcy filing may allow the homeowner to keep their home that you might otherwise lose without bankruptcy protection. In Chapter 13, the court approves a repayment plan that allows the homeowner to use their future income toward payment of their debts during an extended period of time that is generally between three to five years, rather than giving up the property. After you have made all the payments under the plan, you receive a discharge of certain debts. Bankruptcy is generally considered the debt management option of last resort but it is a viable legal procedure that can offer a fresh start for people who can’t satisfy their debts.
This is not an exhaustive list of all the options available when you are experiencing mortgage payment problems. In addition, you may want to seek out a housing counselor for help. A counselor with a housing counseling agency can assess your situation, answer your questions, go over your options, prioritize your debts, and help you prepare for discussions with your loan servicer. Housing counseling services usually are free or low cost. Be careful to use a reputable counselor fro assistance.
Even when you already having mortgage payment problems, it is a good approach to use the mortgage calculators to asses the outcome of the various options available. The mortgage calculators can help review your current position and debt load as well display the budget relief provided by these various payment plans.
Mortgage rates gyrated measurably during the week but the change week over week was modest. The average 30 year fixed rate mortgage, based on our survey, fell four basis points or 4/100 of a percent for the week. The 15 year fixed rate mortgage had and even smaller reduction, falling two basis points for the week.
Selectcalculators.com calculates the monthly mortgage payment on the 30 year and 15 year mortgage based on a survey of the top bank mortgage rates on the close of Wednesday weekly.
Based on the results of the enclosed mortgage payment calculators, the 30 year fixed rate mortgage payment fell for the week ending July 15, 2009. This week the monthly mortgage payment on a $175,000 home loan based on the results from the mortgage payment calculator fell $4.37 to $980.51. The mortgage rate input to the mortgage payment calculator was based on the average 30 year fixed rate mortgage of 5.38% with an average of 0.43 points.
The mortgage calculator payment results based on last week’s figures on a $175,000 home loan was $984.88. This monthly payment is based on last week’s average 30 year fixed rate mortgage of 5.42%.
Due to the modest decline in the 15 year term mortgage rate, the mortgage payment calculator findings for the 15 year fixed rate mortgage with a $175,000 balance indicated a decline of only $1.81 on the monthly mortgage payment. The monthly payment reduction for the 15 year term mortgage loan is based on a mortgage rate of 4.83%. The average mortgage rate on the 15 year fixed rate mortgage ended the week 4.83% with 0.47 points. The 15 year mortgage rate is down from last week’s average 15 year fixed rate mortgage of 4.85%.
Selectcalculators.com mortgage payment calculators indicated that monthly mortgage principal and interest payments rose across all mortgage products for the week ending June 5, 2009. The monthly mortgage payment on a 30 year fixed rate mortgage with a loan amount of $250,000.00 rose from $1,328.34 to $1,386.71. The mortgage calculator results for the 15 year fixed rate mortgage displayed an increase of $33.42 in the monthly payment to $1,949.74 on a $250,000.00 home loan. The mortgage calculator results for the one year adjustable rate mortgage indicated a first year payment increase from $1,295.09 to $1,313.17.
All mortgage rates used for the mortgage calculator payment results were based on the Freddie Mac weekly Primary Mortgage Market Survey. In the survey, the 30 year fixed rate mortgage rose to 5.29%, the 15 year fixed rate mortgage moved up to 4.79% and the one year adjustable rate mortgage increased to 4.81%.
Mortgage rates for the week shot up to their high point for the year and thus the monthly mortgage payments produced via the mortgage calculators are also displaying the highest monthly payments for the year. What may surprise many consumers and potential home buyers is that these rates are still substantially lower than they were one year ago. A year ago the 30 year fixed rate mortgage was at 6.09%, the 15 year fixed rate mortgage was at 5.65% while the one year ARM stood at 5.06%.
The monthly payment on a 30 year mortgage for a $200,000 increased to $1,057.81 based on the results of the mortgage payment calculator and the Freddie Mac’s weekly survey of mortgage rates. The results of the Primary Mortgage Market Survey performed by Freddie Mac indicated that the average 30 year mortgage rate increased slightly to 4.87 percent with an average 0.7 point for the week ending April 9, 2009, up from last week when it averaged 4.78 percent.
The monthly payment on a 15 year mortgage for a $200,000 increased to $1,534.08 based on the Freddie Mac’s weekly survey and the mortgage payment calculator. The 15 year fixed rate mortgage averaged 4.54 percent with an average 0.7 point, up from last week when it averaged 4.52 percent according to the Freddie Mac weekly survey.
The one year Treasury indexed adjustable rate mortgage averaged 4.83 percent this week with an average 0.5 point, up from last week when it averaged 4.75 percent. The monthly mortgage payment on a $200,000 home loan with the one year adjustable rate mortgage would be $1,052.96.
The 30 year fixed rate mortgage is just over 1% lower this year than it was last year at this time. Last year at this time, the 30-year fixed rate mortgage averaged 5.88 percent. The difference in the mortgage rate leads to a monthly mortgage payment drop of just over $125.00 based on a $200,000 home loan. A year ago at this time, the 15 year fixed rate mortgage averaged 5.42 percent. The difference in the mortgage rate from this year to last is .88%. Using the mortgage calculator with a $200,000 home loan, the drop in the 15 year fixed mortgage rate would lead to a reduction in the monthly mortgage payment of $91.61.
The 30 year fixed rate mortgage fell this week to an average of 4.85% with 0.7 point for the week ending March 26, 2009 according to the Freddie Mac’s weekly survey. This is a reduction from the average 30 year fixed rate mortgage on March 19 when the 30 year fixed rate mortgage averaged 4.98%. For a $200,000 home loan this reduction in interest rate yields a $15.81 difference in the monthly mortgage payment per the mortgage payment calculator. Last year at this time, the 30-year fixed rate mortgage average was 1 full percent higher at 5.85%.
The Freddie Mac’s weekly survey for the 15 year fixed rate mortgage showed a drop to 4.58% with an average 0.7 origination points. The 15 year fixed rate mortgage is down 3 basis points from last week when the average was at 4.61%. Using the mortgage calculator with the 15 year mortgage rate for this week compared to last weeks 15 year mortgage rate will yield a drop in a monthly mortgage payment of $3.09 on a $200,000 home loan.
The one year Treasury indexed adjustable rate mortgage averaged 4.85 percent this week with an average 0.6 points. Although adjustable rate mortgages are a significantly smaller number of mortgage origination’s, this rate is still down measurably from last week when it averaged 4.91 percent. The monthly mortgage payment on a $200,000 home loan with the one year ARM would drop by $7.18 compared to last weeks rate, using the mortgage payment calculator.
The average mortgage rates reported by Freddie Mac ticked up slightly for the week ending February 26, 2008. The 30-year fixed-rate mortgage averaged 5.07 percent with an average 0.7 point. This rate is 3 basis points higher than last week but significantly lower than average a year ago when the 30 year fixed rate stood at 6.24 percent. According to the existing homes sales report by the National Association of Realtors, the national median existing home price was $170,300 in January. Using the mortgage calculator with the 30 year mortgage rate and a home price of $170,300 with a 20% down payment produces a mortgage payment of $737.20.
The 15-year fixed-rate mortgage this week averaged 4.68 percent with an average 0.7 point, this is unchanged from last week and down from a year ago when it stood at 5.72 percent. The mortgage payment calculator results for this mortgage rate and the median home price with 20% down payment yields a monthly mortgage payment of $1,054.80.
The one-year Treasury-indexed adjustable rate mortgage rate averaged 4.81 percent this week with an average 0.6 point, up from last week when it averaged 4.80 percent. At this time last year, the 1-year adjustable rate mortgage averaged 5.11 percent. The mortgage payment for this product with the adjustable rate mortgage calculator and the same home purchase assumptions as above would be $715.63.
Here are the average mortgage rates for four key mortgage products to punch in to the mortgage calculator to see just how affordable that new home or existing home loan refinance may be.
Mortgage rates moved down for the week ending February 19, 2008. Freddie Mac released the results of its weekly mortgage survey which indicated the 30-year fixed-rate mortgage average was 5.04 percent with an average 0.7 points charged. This rate is down from last week when it averaged 5.16 percent. Last year at this time, the 30-year fixed-rate mortgage averaged 6.04 percent. The drop in mortgage rates mostly followed the overall movement in bond rates which trended lower. Low inflation expectations and a continued slow economy continue to be primary reasons for the lower mortgage rates.
Freddie Mac also reported that the 15-year fixed-rate mortgage for the week averaged 4.68 percent with an average 0.6 point charged by lenders. This rate is down from last week when the 15-year fixed-rate mortgage averaged 4.81 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 5.64 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.04 percent fro the week, with an average 0.6 point charged by lenders. The rate on the five year adjustable-rate mortgages is down from last week when it averaged 5.23 percent. A year ago, the 5-year ARM averaged 5.37 percent.
And the one-year Treasury-indexed adjustable-rate mortgages averaged 4.80 percent for the week with an average 0.5 point charged for this home loan product. The one year adjustable is down from last week when it averaged 4.94 percent. Last year at this time, the one-year adjustable-rate mortgages averaged 4.98 percent.
Fannie Mae and Freddie Mac have under gone some changes since the government placed the mortgage entities into conservatorship, the most recent change has been a rather dramatic drop in mortgage rates.
Once it became clear that the housing credit crisis was going to impact Fannie and Freddie’s ability to raise more capital and to continue the machine of mortgage guarantees and purchases, the federal government stepped in to guarantee the debts of these companies and place them in government conservatorship. Fannie Mae and Freddie Mac were established to provide liquidity to the mortgage market by setting uniforms standards in which they would provide a guarantee on home loans and by buying mortgages from banks and other lenders to generate more cash for those lenders to make more home loans. Fannie Mae and Freddie Mac together hold or guarantee over $5.0 trillion of mortgages.
The government engaged in this undertaking to avoid further damage in the mortgage and housing markets by assuring there would be some minimal level of capital available and these firms would continue to provide liquidity to the market. It was the actions of the Treasury and the Federal Housing Finance Agency that placed Fannie Mae and Freddie Mac into receivership.
Fannie and Freddie have continued to operate as normal, with the exception of some senior employees that were let go. The entities still buy mortgages from lenders and securitizing them for sale or hold in their own portfolios. They companies have been able to raise money in the marketplace through bond offerings that now have a more stable and lower interest rate due to the government backing. The actions by the Treasury did in fact help stabilize the mortgage market and prevented rates from drifting measurably higher. The housing market has most likely benefited, but with the drop in prices it hard for most individuals to ascertain the value of any benefit in housings. The government injection should eventually benefit the value of housing, other financial institutions that gain by stable prices in mortgage backed securities and the overall U.S. economy.
Along with the purchase of some senior preferred stock combined with some warrants, the Treasury department also created a credit facility for short term lending to the two mortgage entities. The Treasury just started the process of purchasing new mortgage backed securities for additional liquidity and to help push mortgage rates lower.
An unintended consequence of the government actions was the significant loss in value of Fannie and Freddie preferred stock. Some banks had or do hold fairly sizeable amounts of Fannie and Freddie preferred stock. The preferred and common stocks of these companies still trade but they have lost most of their value. The need for the banks to acknowledge the loss in value has caused some small and some midsize banks holding the securities to have compliance problems due to this loss that impacts their regulatory capital requirements. Federal banking regulators have noted the issue and planned to develop a strategy to help those banks impacted by the loss of capital. Assumedly, the considerable extension of TARP funds to the smaller, regional banks was pushed along by the losses incurred in Fannie and Freddie stock, see article listing TARP recipients at www.selectcdrates.com.
Though the process will ultimately have costs for the tax payer, the economy and mortgage market should continue to benefit. Existing mortgages will show little change or impact form the actions regarding servicing or loan payments but new home buyers and existing homeowners who refinance may reap some gain from the additional funding and government backing to the extent that the conditions for obtaining a mortgage loans and the interest rates on these loans would most likely be far harsher if these actions had not been taken.
Freddie Macs mortgage market survey released on December 24, 2008 showed mortgage rates down again. The report revealed that the 30-year fixed-rate mortgage averaged 5.14 percent down from last week when it averaged 5.19 percent. This is the eighth week of declining rates for the 30 year fixed rate mortgage. The rate on the 30 year mortgage is now the lowest since Freddie Mac’s weekly mortgage rate survey began in April 1971. Last year at this time, the 30-year FRM averaged 6.17 percent.
The 15-year fixed rate mortgage was also down fro the week and averaged 4.91 percent. This is down slightly from last week when the 15 year fixed rate mortgage averaged 4.92 percent. A year ago at this time, the rate averaged 5.79 percent. The 15-year fixed rate mortgage has not reached these levels since 2004.
The five-year Treasury indexed hybrid adjustable rate mortgages averaged 5.87 percent for the week. This brings the rate on the 5 year hybrid ARM down measurably from last weeks 5.98 percent. A year ago, the 5-year ARM stood at 5.88 percent.
The One-year Treasury indexed adjustable rate mortgages averaged 5.29 percent for the week down from last weeks 5.33 percent. Last year, the 1-year ARM averaged 5.42 percent.
Rates have dropped significantly since the fed announced they would use federal funds to purchase mortgage backed securities and to add liquidity and bring down mortgage rates. Refinancing activity has surged in the past two weeks due to the lower mortgage rates as well as the media attention these rates are getting.
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