Welcome to Illinois Mortgage Rates and News week in review for the week ending October 31st, 2009, my take on the week’s financial news and how it affected Chicago Illinois mortgage rates.

This was a scary week in the markets with a good share of both tricks and treats. The week started out with the release of the Gross Domestic Product (GDP). The GDP, the measure of all the goods and services sold in the economy, grew by 3.5% in the third quarter of 2009. This news brought out the expected end of the recession talk, and the stock market surged on the news. But almost all of the increase was due to the cash for clunkers program and other government stimulus. The other reports released this week showed that the economy was still not quite in boom mode. The good news is that inflation is still not a problem. Personal income was flat and spending was down for September. Consumer confidence was down again, dimming the prospects for increases in consumer spending down the road. The /Case-Schiller Home Price Indices show that prices are still down, but the rate of decline improved compared to last month’s reading. This index has improved each month over the last 7 months. In Chicago home prices were up 2.7% over last month, but still over 12% down from where they were last year. By the end of the week, the stock market was falling and money flowing into the safer bonds. This means better mortgage rates for the week.

Some good news came out of congress this week. Congress passed an extension of GSE (Fannie and Freddie) and FHA loan limits through 2010 at the same level they are at now. This isn’t official yet, but assuming President Obama signs the bill, it will mean that conventional loan limits for single family homes will continue at $417,000 for conventional loans and $410,000 for FHA loans in the Chicago area. Last week the conventional wisdom was that the first time home buyers tax credit was likely to expire as concerns of the cost of the credit and the amount of fraud overshadowed the benefits. What a difference a week makes. This week the Senate took up the extension of the first time home buyers tax credit, and though it hasn’t passed yet, the word is that it will be extended and made available to move up buyers, too. So it is likely that the tax credit will be extended and expanded, helping the real estate market and letting more home buyers qualify through the beginning of next year. I’ll post more once the final bill goes through.

If you are in an FHA mortgage at 5.5% or higher, it might make sense to refinance your mortgage. Now. The rules for the FHA Streamlined refinance are about to change, making it harder to qualify. Getting in now gets you in before the deadline. If you are looking to buy a new home, the first step is a Chicago mortgage pre-approval, give me a call and we can get the process started.

Here are the current Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

30 year fixed rate              5.00%         5.168% APR

15 Year fixed Rate             4.375%        4.568% APR

5-1 A.R.M.                         3.875%        4.067% APR

For Jumbo loans over $417,000

***************** SPECIAL JUMBO PRICING ****************

30 Year Fixed Rate*          5.875%        6.093%*

This 30 year fixed Jumbo is special pricing based on a purchase up to 75% LTV or a refinance to 70%, 680 or better Fico scores. Other restrictions may apply.

**************************************************************

7-1 A.R.M.                        4.875%         5.095% APR

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

With 1 point origination fee – 45 day lock

30 year fixed rate              5.00%       5.478% APR

With no origination fee – 45 day lock

30 year fixed rate              5.25%      5.473% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

Call for quotes on FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate            5.25%       5.437%

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

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Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

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Bloomberg News service is reporting that the Senate is close to passing a modified extension of the first time home buyers tax credit, which will extend the dead line from November 30^th on to April 30^th for getting a home under contract, and another 60 days to close the loan, making the credit available for closings up to the end of June. The proposed bill will lower the amount of the credit from $8,000 to $7,290 (or 10% of the sales price, whichever is less) and make the credit available to move up buyers who have owned their home for at least 5 years. Under the proposed agreement, the income caps for first time home buyers would remain at $75,000 for individuals and $150,000 for married couples, but move up buyers would still qualify with incomes of $125,000 for individuals and $250,000 for married couples. This bill will be added to an unemployment benefits extension bill, and Bloomberg is reporting that there are enough votes committed to pass the bill.

All the major home industry trade groups (National Association of Realtors, home builders, mortgage groups) have lobbied for an extension of the tax credit, and the move up feature was on all their wish lists. But the news lately was focused more on how much this credit would cost, and on allegations of fraud, so if this happens as projected it will be a big surprise, and a boost to the real estate market. Some economists have said that the tax credit is inefficient and is keeping prices higher than they would be otherwise. But letting home prices fall further isn’t good politics. The market has already softened in the past few weeks as buyers who thought they were too late for the tax credit, headed toward the sidelines. This extension will bring back some of these buyers and should insure that the real estate market stays busy through the first part of next year.

Bloomberg is reporting that this bill could be passed as early as this Friday. I will have more news and details as they come available.

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

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Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

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Welcome to Illinois Mortgage Rates and News week in review for the week ending October 23rd, 2009, my take on the week’s financial news and how it affected Chicago Illinois mortgage rates.

The stock market is still running on better than expected earnings, but the mood is starting to change. About 3/4s of the major companies reporting their earnings last week came in better than expected. But almost all of this increase was a result of cost cutting and layoffs, not increases in sales. The rally is starting to lose steam, and their may be a correction in the future. Mortgage bond prices were mixed for the week, often getting worse in the morning and recovering by the end of the day. Over the course of the week there was a lot of intra-day volatility, but rates are still in a range, and stayed about the same from the beginning to the end of the week.

Home sales were up sharply this month, up by 9.4% from the prior month, as a result of the last minute surge in first time home buyers trying to get in before the November 30^th deadline. Home prices are still down sharply from where they were a year ago. The biggest worry for many is inflation, but the release of the PPI (Producer Price Index) this week showed that this is still not a problem. The PPI actually decreased by .6% for the month, showing that there are no pressures being built up for prices to increase. Combined with the high unemployment rate, this gives the Fed cover to keep interest rates low for a long time.

There is still a big push from industry groups to extend the first time home buyers tax credit, but some news from Washington made this a little more unlikely. The IRS reported they are investigating 100,000 cases of potential fraud with the tax credit. There are always people looking for angles to exploit, and if some one is giving away money you can be sure that some one will figure out a way to scam some of that money for themselves. But when the mood in congress has shifted from the benefits that the tax credit offers to how much this is costing, these cases of fraud will be another reason to say no to extending the credit. Many of the buyers who took advantage of the credit would have bought either way, so the estimate of the cost per new home buyer is now somewhere around $40,000 per new buyer (I’ve seen some estimates which are much higher). My guess is that the first time tax credit will go away, but if the market gets much worse (like what happened with the Cash for Clunkers program) there will be a renewed push to start it again by the Spring. If you are looking to buy a new home, the first step is a Chicago mortgage pre-approval, give me a call and we can get the process started.

Here are the current Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

30 year fixed rate              5.125%         5.247% APR

15 Year fixed Rate             4.50%        4.568% APR

5-1 A.R.M.                         3.875%        4.067% APR

For Jumbo loans over $417,000

***************** SPECIAL JUMBO PRICING ****************

30 Year Fixed Rate*          5.875%        6.093%*

This 30 year fixed Jumbo is special pricing based on a purchase up to 75% LTV or a refinance to 70%, 680 or better Fico scores. Other restrictions may apply.

**************************************************************

7-1 A.R.M.                        4.875%         5.095% APR

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

With 1 point origination fee – 45 day lock

30 year fixed rate              5.00%       5.478% APR

With no origination fee – 45 day lock

30 year fixed rate              5.25%      5.473% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

Call for quotes on FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate            5.25%       5.437%

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

We Lend in All 50 States

Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

Contact Your illinois mortgage company Today

We Offer illinois home mortgage Loans with best mortgage rates

Get Best Advice from illinois mortgage broker

The new FHA condo approval process is being pushed back another month, until December 7th. The new process will make FHA financing available for a lot more units, but get ready for a long wait for closings until the kinks are worked out.

New FHA Condo Process

Chicago FHA Spot Condo Loans

FHA Approved Condo Search Tool

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

We Lend in All 50 States

Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

Contact Your illinois mortgage company Today

We Offer illinois home mortgage Loans with best mortgage rates

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Welcome to Illinois Mortgage Rates and News week in review for the week ending October 16th, 2009, my take on the week’s financial news and how it affected Chicago Illinois mortgage rates.

Euphoria reigned on Wall Street this week as the Dow topped 10,000 for the first time in the last year. The gain didn’t last long, and the market finished the week just below the mark. This level isn’t technically significant either, it is more psychological. But it is one more sign that investors, if not consumers, are bullish and think that the recession is over and normalcy has returned. When stocks are running higher, money flows out of the bond market, including mortgage bonds. This caused the yield to rise which means that mortgage rates bumped up this week.

This is earnings time again on Wall Street, and the focus was on the big banks and brokerages. The results were mixed, but the banks with the biggest exposure to consumer finance took the biggest hits. Goldman Sacks, which makes its money from trading and institutional work showed big profits. Bank of America lost $1 billion for the quarter as a result of bad consumer loans. The University of Michigan Consumer Confidence Index fell over 4 points for a reading of 69.4, lower than expected. Retail sales fell by 1.5% for September, but this was better than expected. The CPI, a measure of inflation, ticked slightly higher, but there is no sign of inflation. Foreclosure filings hit a new record last month. There is a big disconnect between what is happening in the financial markets and the view of the average person.

Here are links to 2 blog posts you might have missed this week:

Is FHA really in trouble?

Will the First Time Home Buyer Tax Credit be Extended?

Rates are slightly higher, but still in the low range. This is still a great opportunity to refinance your loan, and purchase rates are still great. We are running out of time for the first time home buyers tax credit deadline, but there is still time to close for those who act soon. If you are looking to buy a new home, the first step is a Chicago mortgage pre-approval, give me a call and we can get the process started.

Here are the current Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

30 year fixed rate              5.125%         5.247% APR

15 Year fixed Rate             4.50%        4.568% APR

5-1 A.R.M.                         3.875%        4.067% APR

For Jumbo loans over $417,000

***************** SPECIAL JUMBO PRICING ****************

30 Year Fixed Rate*          5.875%        6.093%*

This 30 year fixed Jumbo is special pricing based on a purchase up to 75% LTV or a refinance to 70%, 680 or better Fico scores. Other restrictions may apply.

**************************************************************

7-1 A.R.M.                        4.875%         5.095% APR

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

With 1 point origination fee – 45 day lock

30 year fixed rate              5.00%       5.478% APR

With no origination fee – 45 day lock

30 year fixed rate              5.25%      5.473% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

Call for quotes on FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate            5.25%       5.437%

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

We Lend in All 50 States

Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

Contact Your illinois mortgage company Today

We Offer illinois home mortgage Loans with best mortgage rates

Get Best Advice from illinois mortgage broker

FHA has been getting a lot of bad press lately. A former Fannie Mae executive recently testified before congress that he expects FHA will need a government bailout within the next 24-36 months. A new bill has been introduced in Congress to raise the FHA minimum down payment from 3.5% to 5%. I have read a whole bunch of articles on why FHA loans are a ticking time bomb, the new version of sub prime, and how the government should stop trying to prop up the housing market and leave financing to the private market. Are these critics right? Is FHA the next disaster in the making? Should FHA clamp down and make it tougher to buy a home?

As a mortgage lender who has worked with FHA home buyers for over 18 years, I admit that I am biased in favor of the program. But it seems to me that these critics aren’t looking at the bigger picture. The fears of an FHA collapse are all based on the idea that FHA loans are inherently risky. To an extent, they are right. FHA was set up to help low and moderate income borrowers get a chance to own a home, and it has always made low down payment loans to borrowers who might not have qualified for privately funded conventional programs. But FHA isn’t now, and never has been a sub prime program. There is no doubt that FHA defaults will rise, but with the unemployment rate high and rising, foreclosures are growing throughout all loan classes and price ranges – including Jumbo mortgages where the borrowers originally put down 20% or more for their down payments. The truth is, FHA has increased its market share because Fannie Mae and Freddie Mac (now owned by the government) have made their financing much tougher and more expensive (especially for first time home buyers) and there are almost no private lenders left. FHA’s defaults will grow, because its market share is growing, and it is now the only game in town.

Here are some things to consider the next time you hear someone ripping on FHA:

• FHA loans are not like sub prime – FHA loans are fully underwritten and the borrowers have to prove their income and assets and show that they have the ability to afford the payments. While FHA doesn’t have minimum credit score standards, all the lenders who make FHA loans now do. For most lenders you will need at least a 620 credit score, the same score that was considered an A loan in conventional financing just 2 years ago.

• A loan made today is safer than older loans – FHA loans have gone from a market share of about 2% two years ago to about 40% now. This means that there were very few FHA loans being done during the bubble years (when 0 down financing was available to anyone who could fog a mirror, good credit or bad). This means that FHA doesn’t have the big inventory of underwater loans that is the norm with conventional portfolios. Which loan has a less risk of default? A mortgage where the borrower bought at the height of the bubble with 20% down with no income verification? Or an FHA loan underwritten in today’s market, bought at current (lower) value, with income and employment fully verified? I’m going with the second scenario. Property values may fall lower, but if we are not at the bottom we are a whole lot closer to it now, which means less risk.

• Many of the FHA borrowers now would have been conventional buyers in the past – Conventional loans, those covered by Fannie Mae and Freddie Mac guidelines, used to be priced the same for all borrowers who qualified for a loan. Over the last 2 years, as loan losses mounted, these organizations not only made it more difficult to qualify for a loan, but they raised the cost of financing for many of those who do qualify. This means price hits not just for lower credit scores, but things like having less than a 25% down payment when buying a condo. Mortgage insurance guidelines are much more restrictive now, too. It now makes sense to compare FHA pricing to conventional for anyone who is putting less than 20% down, and there are a lot of FHA borrowers who could qualify for conventional if they were willing to pay more for the loan.

• FHA loan quality is higher now than at any time in recent years – FHA has tightened its requirements in several ways over the last few years. The minimum down payment has increased from 3% total investment (which used to include a combination of down payment and closing costs) to 3.5% down payment. They did away with the down payment assistance programs which allowed the seller to pay for the borrowers down payment so the borrower was coming in with no money down. The up-front mortgage insurance premium increased, which means more money goes into the reserve fund. These changes have all increased the over all loan quality, but a bigger change has been how the loans are now underwritten. A few years back, underwriting (for all loans) was loose. Now underwriters are scrutinizing files for anything that even hints at a problem. Wholesale lenders are doing the same, and FHA will cut off any company that tries to bend the rules (Taylor Bean, a large FHA lender wholesaler was cut off by FHA due to quality issues, and was out of business shortly after).

• FHA is self funded and NOT financed by the treasury – FHA doesn’t make the loans themselves, they insure loans made by private lenders according to their guidelines. The FHA program is really a mortgage insurance program. FHA gets a funding fee (currently 1.75% of the loan amount) upfront on every loan (this is usually financed into the loan amount for the borrower) as well as a monthly mortgage insurance premium. This insurance fund has worked well in the past. FHA is solvent, and has reserves of about $30 billion dollars, the highest on record. The problem isn’t that FHA is paying out too much now, but that it has grown so quickly and would be in trouble if the loans on its books turn sour. Compare this to Fannie and Freddie and all the big banks, who have already needed bailouts.

• FHA may be saving the real estate market – If FHA made it harder to get a loan, what would this do to the real estate market? I’ve heard commentators say that no one should be able to buy unless they have a 20% down payment. Saving up for a down payment is the biggest obstacle to buying a new home. Raising the cost of entry takes most of the first time home buyers, the biggest group, out of the market. Even an increase to 5% down payment would take a big group of buyers out of the market. Making it harder for first time home buyers to buy means less move up buyers. The law of supply and demand says that if you have less buyers, home prices will go down.

FHA has grown so much over the last 2 years because they are fitting a need in the market. Loan defaults aren’t caused by low down payments. Bad loans usually occur because of other factors like medical problems, divorce and the loss of a job. As long as the economy is still rocky, unemployment will be high and that means there will be more loan defaults and foreclosures coming. But that isn’t an FHA problem, this is happening with all loans. Owning your own home is a big part of the American Dream. There is a societal benefit to home ownership, too. High ownership rates stabilize neighborhoods and give people a vested interest in their community. The typical first time home buyer using FHA is young, usually in their 20s or 30s. Their earning power is still on the upswing, and they are in the early stages of their careers. I have a long list of clients who bought their first home with a low down payment, then moved up to larger more expensive homes as they built up equity (I fit that category myself). This is a different market, and no one knows what the future holds, but my guess is that the people who are buying now, are getting good bargains, and at some point the housing market will stabilize. If we make it so that only the most qualified are able to buy, it hurts everyone.

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

We Lend in All 50 States

Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

Contact Your illinois mortgage company Today

We Offer illinois home mortgage Loans with best mortgage rates

Get Best Advice from illinois mortgage broker

Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

Contact Your illinois mortgage company Today

We Offer illinois home mortgage Loans with best mortgage rates

Get Best Advice from illinois mortgage broker

Welcome to Illinois Mortgage Rates and News week in review for the week ending October 9th, 2009, my take on the week’s financial news and how it affected Chicago Illinois mortgage rates.

Easy come, easy go. Mortgage rates were sitting at all time lows earlier this week, but the direction shifted sharply on Thursday and Friday, sending mortgage rates higher. That’s not to say that rates are awful, they are still near their all time lows. It doesn’t mean that the direction of the market has changed, either. The mortgage rate market is moving up and down based more on traders profit motives and technical factors than because of the economic fundamentals or any change in sentiment. What it does mean is that if you were holding out for even better rates, you missed the boat. Throughout this year, every time that mortgage rates dipped into the 5.0 or below area, hopes rose that rates would keep dropping even lower. But every time rates have hit this area, the response has been a quick up-tick in rates. These are historically low rates, and even if they tick a little lower, the risk of missing the good rates is just as high. The moral here is to lock in your rate when you have the chance, and don’t get greedy.

There weren’t a lot of economic reports released this week. The report with the biggest impact on the markets was the weekly report on unemployment claims. The expectation was for 540,000 new claims, but the actual number was a drop to 521,000, the lowest number since January of this year. This is still a long way from healthy, but a move in the right direction. Mortgage delinquencies are still on the rise. The government programs to stem the foreclosure crisis haven’t made much of an impact so far. There was also new concerns raised this week on the health of the big GSEs, Fannie Mae and Freddie Mac as well as FHA. All three of these entities are now government programs, and together they account for about 80% of the loans originated. They are all under stress because of a combination of low home values and high unemployment. It is likely that this stress will continue until unemployment has stabilized. But stress or not, the government needs to keep financing options available in the housing market, and as they are almost the only game in town, they will continue their role even if it requires more funding.

The real estate market is still hot and purchases to first time home buyers are still driving the market. While the market is hot, we aren’t seeing the big surge of new buyers, trying to get in before the first time home buyers tax credit deadline, that was expected. What I am seeing is a rush for those who have been in the market to find a property and close in time, but not a new wave of buyers who weren’t already out there looking. Some of the new buyers I’m talking with are more interested in getting the best deal on their home (short sale or foreclosure) and they aren’t as concerned with the tax credit. Others are banking on the credit being extended, so they are taking their time and looking for the right house, rather than just trying to get a deal together that they can close before November 30^th. If you are looking to buy a new home, the first step is a Chicago mortgage pre-approval, give me a call and we can get the process started.

Here are the current Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

30 year fixed rate              5.00%         5.149% APR

15 Year fixed Rate             4.375%        4.489% APR

5-1 A.R.M.                         3.875%        4.067% APR

For Jumbo loans over $417,000

***************** SPECIAL JUMBO PRICING ****************

30 Year Fixed Rate*          5.875%        6.093%*

This 30 year fixed Jumbo is special pricing based on a purchase up to 75% LTV or a refinance to 70%, 680 or better Fico scores. Other restrictions may apply.

**************************************************************

7-1 A.R.M.                        4.875%         5.095% APR

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

With 1 point origination fee – 45 day lock

30 year fixed rate              5.00%       5.468% APR

With no origination fee – 45 day lock

30 year fixed rate              5.25%      5.473% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

Call for quotes on FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate            5.00%       5.213%

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

We Lend in All 50 States

Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

Contact Your illinois mortgage company Today

We Offer illinois home mortgage Loans with best mortgage rates

Get Best Advice from illinois mortgage broker

This is one in a series of community profiles and a look at how the real estate market is holding up in the community.

Lombard Illinois is located in Central Dupage County about 20 miles from Chicago, and is known as the Lilac Village. This town of 43,000 people is known for its quaint downtown, its beautiful parks and its great schools and easy access to transportation to and from Chicago and other Chicago suburbs. Lombard is famous for its Lilac Festival in mid May, which is marked by a parade and a festival. Lilacia park, next to the Helen Plum public library, has over 8 acres of gardens with 200 different types of flowering plants including a variety of Lilacs. The Yorktown Shopping Mall is at the border of Lombard and Downers Grove.

Lombard schools include Glenbard East High School (some neighborhoods go to Glenbard South High School in Glen Ellyn) and Glenn Westlake Middle School.

Grammar schools include:

· Butterfield School

· William Hammerschmidt School

· Manor Hill School

· Park View School School

· Pleasant Lane School

· Madison School

· Westmore School

· Westfield School

Along with private schools such as

· St. Pius X School

· Chicagoland Academy

· Christ the King School

· College Preparatory School of America

· Montini Catholic High School

· St. John’s Lutheran School

· Sacred Heart School

· St. Timothy Evangelical Lutheran School

· Trinity Lutheran School

The Lombard real estate market offers real value, with housing from older Victorian homes to newer subdivisions. Lombard is a middle class suburb and homes are available for first time home buyers and move up buyers. The average listing price for an Lombard home was $283,00 in September. The median sale price was at $217,000. Home prices have dropped by about 10% from last year, and the number of homes sold are off by about 6% from last year. Like most areas now,foreclosures and short sales make up a big part of the Lombard real estate market.

Lombard mortgage financing has traditionally been made up of conventional and FHA mortgages. Lombard mortgage rates and Lombard FHA loans are available for both purchases and refinances in every type of Lombard mortgage loan. Lombard home loans are readily available, and as an Lombard area mortgage lender, I can help you find the financing package that is best for you.

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Mortgage rates have dropped again, and we are now back in the all time low range we were at earlier this year. If you didn’t refinance your mortgage earlier this year, it might be time to look at it again and see if lowering your mortgage rate and payment would help you now. A few years back refinancing your mortgage was an automatic any time that mortgage rates dropped. It is more complicated now because mortgage guidelines have gotten tighter, making it harder for some to qualify, and with home prices down it isn’t a slam dunk that your home will appraise out to the value needed. But there are programs which make it easier to refinance even if you don’t have a lot of equity (or none) in your home.

The FHA Sreamline Refinance – This is available only if you already have an FHA mortgage. This (up until it changes in November 2009) is the easiest and most inexpensive mortgage around. If you can lower your rate an payment you can refinance without a new appraisal or credit qualifying, and roll most of your costs into the new loan.

FHA refinance – With this program you will still need to show that you qualify and we will need to order a new appraisal, but for a refinance where you aren’t taking any cash out, you can refinance up to 96.5% of the home’s value.

Fannie Mae and Freddie Mac Home Affordable (Obama Refinance) – These programs are ways to lower your rate even if your home value has gone down. Most lenders will now accept up to 100% of your current value, and mortgage insurance will be based on what it was when you originally took on the loan.

Refinancing can make a lot of sense if you are lowering your rate and payment without incurring a lot of up-front costs. The more you pay up-front to close the loan, the longer it will take for the lower mortgage payments to pay off the higher cost of getting the loan. This can still make sense if you are sure that you will be in the home for a long time, and you want to lock in the lowest rates. But too often the lowest rate isn’t the best value. If you are thinking of refinancing your mortgage, you should always do a break even or pay back calculation. For this you need to know 3 things:

1. How much will you save by refinancing?
2. How much will it cost to refinance?
3. How long do you think you will stay in the home, and with this mortgage?

To find out how long it will take for you to break even, figure out how much your loan will cost you (the bank fees and title charges on your Good Faith Estimate) and divide this by the amount you will save on a monthly basis (the difference between your new mortgage payment and your current payment). This will give you the amount of months that it will take to pay off the closing costs and break even on your new loan. For example, if it costs you $1,600 (this is what I am currently quoting for bank fees and title charges for a no point loan in the Chicago area) and you are saving $50 per month, it will take you 32 months to break even, and every month after that you will be saving money.

On the other hand, if the loan cost more to close, you should be saving a lot more each month. For another example, let’s say you are paying a point (1% of the loan amount) and the cost of the new loan is now $4,600. If your new payment is now $100 better than what you are currently paying, it will take 46 months ($4,600 divided by 100) before you break even. So even though the rate on the second option is lower, and the monthly savings are higher, the first option is going to be better for the near term. You then need to decide how long you think you will be in the loan, and if it makes sense to pay the extra to get the long term benefit. In many cases it will, but in most cases it takes about five years to pay off any up front points. You need to see which option makes the most sense for your own situation. You can also go the other way. Instead of paying points or closing costs, for many borrowers the best option is a no cost refinance. With this program the lender increases the rate slightly and uses the yield spread premium (what we are paid to make the loan) to pay all the closing costs.

I’ve heard all sorts of rules of thumb of when it makes sense to refinance, but each situation is different. It would take a big rate reduction to make sense to refinance a small loan, but with a larger loan a small reduction in rate could pay off quickly. Run the numbers yourself (or give me a call and I can walk you through the options) and you will make the decision that works best for you.

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Illinois Home Loans Provider/ Broker. Most respected mortgage bankers in the area.

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

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We Offer illinois home mortgage Loans with best mortgage rates

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