For this week, the direction trend in mortgage rates is all about Greece. The Greek parliament is scheduled to vote on new austerity measures Wednesday, a precondition of any European Union bailout. It is almost guaranteed that this measure will pass, as Greece has no other real options, and Germany and France have made it clear that they will not sign on for any more debt relief if the measure doesn’t pass. The mobs in the street are not likely to appreciate this, and the investors in Greek debt aren’t happy either. Creditors, including all the big European and US banks, will lose about 70% of their initial investments. The Greek default has been like a slow motion train wreck, but as it unwinds, the focus will shift to other European economies, with the question being – Who is next?

Greece is the focus now, but there is another crisis on the backburner which is much closer to home. The deadline for extending the debt ceiling is now set for just over a month. If an agreement isn’t reached before this, the markets are likely to sell of weeks beforehand in anticipation – which may be enough to move the deal forward. The negotiations so far have been a high stakes game of chicken between the Republicans and Democrats. Conventional wisdom says that a new debt ceiling will pass, as has happened regularly over the years. Common sense says that this is all posturing and that all sides will come together when the time is right. If an agreement can’t be reached and the deadline expires without an agreement, the US economy would lose its triple A rating, meaning an estimated $100 billion dollars of losses in the bond market, and the US Treasury would pay billions more to repay the debt (Mortgage rates would also spike higher). This is still not likely to happen, but political pressures are making this shakier than it has been in the past. Republicans are pushing for deep cuts in spending with no new taxes in any form. Democrats are offering new revenue from closing corporate loop holes, but this fits the Republican definition of a tax. Someone is sure to blink, but the longer it takes, the messier it will get. This adds to the potential for volatility in the mortgage bond market.

Oil prices fell sharply last week after the announcement of oil releases from reserves. Gas prices were declining before the announcement, and this should push that down further. This helps push the fear of inflation back at least a bit. Mortgage backed securities (MBS) gained 59 basis points over the last week, pushing the trend lower, but rates over all remained flat as the big banks are cautious about dropping quickly in such a crazy market. Mortgage rates remain near all time lows. If you have been considering a mortgage refinance, or if you are in the market to buy a home, the timing couldn’t be better. Give me a call if I can help in any way. 

Here are the current Chicago 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, best FHA rates assume a 640 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. 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, including credit scores, property type, amount of down payment and a number of other factors. 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 will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a 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.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

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

FHA 203K Rehab Loans – Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

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.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages

Mortgage rates are still very low and holding as the markets wait for a clear direction. Mortgage rates rose in the middle of the week but settled back to flat by the end of the week. Greece, and the state of the European Union is still the biggest worry. Last week there was rioting in the streets in protest to the the austerity forced upon them. There is no easy answer as to what to do with the situation there, and the union is being tested as the needs of the stronger countries don’t align with those of the weak. Germany and France delayed the crisis with news that they will offer additional support, but this is mostly a band aid, not a real solution. At some point this will come to a head, but for now the decision on what to do has been pushed back to July. There will have to be some kind of bailout again, and when there is, other struggling countries are all ready lined up for their renegotiations.

The good news this week was that housing starts were higher than expected, with an increase of 3.7% for single family homes. This is good news, but the increase is from a very low level. Most of the economic news this week was on the bad side. Inflation is still a worry as the Consumer Price Index (CPI) rose 0.2% in May. Inflation is still low by historic standards, but the rate of inflation has increased sharply over the last year. The Fed has said that they expect that this inflation is only temporary, but when money is tight, this means a bigger strain on consumer’s wallets. The New York and Philadelphia Fed manufacturing surveys both came in much lower than expected, with both indexes showing contraction. Consumer confidence was down too, as the index slipped from a reading of 74.3 last month to 71.8.

Expect a lot of volatility this week, as the markets watch for more information on Greece and the European situation, The FED Open Market Committee holds their meeting on Tuesday and Wednesday.

Here are the current Chicago 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, best FHA rates assume a 640 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. 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, including credit scores, property type, amount of down payment and a number of other factors. 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 will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a 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.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

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

FHA 203K Rehab Loans – Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

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.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages

The first step in buying a home in today’s market, is to talk with a good loan officer and find out how much of a mortgage you can qualify for and if there are any obstacles you need to overcome before you will be able to buy. This usually starts out as a short pre-qualification phone call, but before you start looking at homes you need a full pre-approval where you supply all your income and down payment documentation, and have the loan officer run your credit and go through your file with a fine tooth comb to make sure there isn’t anything there that will derail the process down the road. Mortgages are readily available and the mortgage rates are great, but the truth is that each mortgage loan is being scrutinized now like never before. When the housing bubble was heating up, underwriting was too easy. Underwriting is tighter now, and full loan approval means not only meeting the normal guidelines, but also the overlays or additional requirements that each lender now requires. This means that your loan officer needs to keep track of all the changes (and there are lots of changes) to the approval guidelines and know how to fit each borrower to the loan that is best suited for their unique situation. The reality is that this doesn’t always work out the way it is supposed to. A big part of my business now is working with borrowers who thought they were pre-approved to buy a home, but when they got their contract together, they found out they really weren’t approved after all. Now they are under the gun with a tight deadline to buy and having to start over.

In most cases, when you get a mortgage pre-approval, you are strictly dealing with the mortgage loan officer. Approving a mortgage is expensive, and without a property under contract it doesn’t make sense to take support staff away from transactions that are already in process to work on a deal that might never come through. So pre-approvals aren’t fully processed and don’t go through the underwriting process. The process in most mortgage companies is for the loan officer to ask a series of questions, request all the documentation, run your credit report and run all the information through an automated underwriting program to get a conditional or first step approval. When we get an approval with the automated underwriting system (this is either Desktop underwriter or Loan Prospector, Fannie Mae’s and Freddie Mac’s respective systems) the approval is subject to verifying all the information put into the system. In other words, the approval is only as good as the information entered into the system. If your loan officer didn’t ask all the right questions, or put in wrong information into the system, the approval is not going to be valid.

If there are any issues and you know what they are up front, you may have time to fix them and put yourself in a better situation. In today’s lending environment, you want to make sure you are working with someone who has the experience and knowledge to look for the hidden pitfalls, and be able to structure your transaction in a way that will put your situation in the best light. If you are just starting to look for a home and want to see how much you can afford, or if you have already been pre-approved for a mortgage but would like a second opinion, give me a call. I would appreciate the opportunity to help.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages

Mortgage rates mostly moved sideways last week, in a market where there was not a lot of news. Still, rates are at their lowest point since last November, and near the lows for the last forty years. The question now is whether this is a pause before rates drop even lower, or with the end of Quantitative easing almost upon us, and with debt ceiling agreement still up in the air, will rates head back higher? The rate trend over the last two months has been toward lower mortgage rates, but there are still so many competing story lines, that it is hard to see which will hold the most sway in the financial markets. Unemployment claims ticked up again last week, extending the trend. In a major speech Fed Chairman Ben Bernanke said the economy was recovering slower than hoped for. He said what everyone already knows, that unemployment is too high and that the economy is producing at a rate far below its potential. He also said that interest rates should stay “exceptionally low” for an extended period of time. None of this was new news, but as QE 2 winds up, the questions will start popping up of what the FED will do next, and how they will try to stimulate a slowing economy without doing more damage in other ways.

The biggest issue for the markets may not have a thing to do with domestic economic issues, but what is happening in Europe. Greece is about to claim the center stage again, as their problems come to a head. Greece got bailed out last year by the European Union, but at terms that were punishing for their domestic economy. They are now demanding a new deal and threatening a default. If this happens, there are others, Ireland, Portugal for starters,  lined up for a second shot of their own. The whole European Union is an experiment. Unlike the United States, this is a grouping of individual nations each with their own culture, wants and needs. The goals of the strongest economies, like Germany, are not at all aligned with the weaker ones. If Greece defaults, as it is looking more and more likely, this will send more shockwaves throughout the continent. Some kind of deal is sure to come together, but will it be a full restructuring or something that kicks the can further down the road. The issues here don’t stop with Europe. The debt has been hedged with CDOs (collateral debt obligations), a form of financial insurance which caused much of the problems with the financial melt down, and a lot of these were issued by the big US banks. If Greece defaults, it will be felt here, and this may cause another flight to quality, that is, more money running into the safety of bonds. If this happens, mortgage rates could head lower again, at least temporarily.

With mortgage rates this low, this is another opportunity for anyone who missed out on refinancing their mortgage last Fall. There are still an awful lot of home owners who have rates in the 5s and even 6 percent range, who fit all the qualifications for refinancing and saving money, who either don’t realize it or think it is more trouble than it is worth. It is harder to refinance than it was a few years ago, and if you are under water with your equity, you may not have the option. But there are a lot of people who could benefit now. If you would like to discuss how a refinance could benefit you, or run some figures to see what is possible, give me a call.

Here are the current Chicago 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, best FHA rates assume a 640 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. 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, including credit scores, property type, amount of down payment and a number of other factors. 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 will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a 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.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

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

FHA 203K Rehab Loans – Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

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.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages

Did you miss out on refinancing last year when mortgage rates dropped to their lowest point in our life times? Last Fall, right before the Fed announced their last round of the Quantitative easing policy, mortgage rates dropped to as low as 4.00% (for the best qualified conventional loans). The consensus at the time was that the economy needed more juice to keep it growing, and that rates were likely to drop even lower still. If you had considered refinancing at the time and missed the boat back then, you know what happened next. The Fed started the Quantitative easing program which pumped more money into the economy. The financial markets switched on a dime and while the big fear before was that the economy was growing too slowly and unemployment was too high, the new fear was that with all this money washing through the system, inflation was about to be unleashed. Rates spiked higher and ran as high as the mid fives. The program that was supposed to drive mortgage rates lower and act as a boost to the housing market had the exact opposite effect. Most analysts were calling for rates to spike even higher, and some thought we would be in six percent range before the end of the year. But while there have been signs of inflation, especially with gas and food related items, the economy is still very fragile. The latest indicator for this was last week’s monthly jobs report, which came in much weaker than expected. Rates are dropping again and have now broken through a technical barrier, which implies that we may have room to go even further down. If you didn’t pull the trigger fast enough last time to get a lower rate, it looks like you will get a second chance.

Refinancing now isn’t as easy as it was in the past. Home values have slipped and not everyone has the equity they need to refinance, but there are programs available where you can still refinance even if you don’t have much equity. There are still programs available if your loan is held by Fannie Mae or Freddie Mac, and the FHA streamline refinance is always a good option. There are a lot of homeowners who can still qualify and would benefit by refinancing their mortgages, who don’t realize it’s possible, or don’t think it is worth the effort.

Why should you consider refinancing?

• You can lower your interest rate and payments.
• You can shorten your loan term and pay your mortgage off early.
• If you have enough equity you can take cash out for home improvements, college expenses, investments, or whatever your needs may be.
• You can restructure your debts with a refinance to get rid of your high interest credit card balances and save hundreds of dollars per month.
• If you bought with a low down payment, you can often refinance to get rid of mortgage insurance or your higher rate second mortgage.

• You can get rid of an adjustable mortgage and lock in to a fixed rate.

These are just a few reasons you may want to take on a new mortgage. It is important, though, to make sure you know why you are refinancing and that it is really in your best interest. If you would like to compare options, see if it makes sense to refinance your mortgage or get a rate quote for your situation, give me a call.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Refinance           Chicago FHA Mortgages

 The news reported last week confirmed that that the economy is slowing and mortgage rates are continuing to trend down. Factory orders fell 1.2% in April, and the ISM manufacturing index, a sign of strength in the manufacturing sector, came in at 53.5 compared to 60.4 the month before, much lower than expected. But the capper was the release of the monthly unemployment report on Friday. New claims for unemployment benefits had spiked higher earlier in the week, so the expectation was that this would be a soft report. The report came in showing 54,000 new jobs created over the last month, and the unemployment rate rising from 9.0% to 9.1%. This is a big drop off, the previous months, and being that the economy needs to add about 125,000 jobs each month just to stay even, a very distressing sign. The fear now is that the economy has already run out of steam, and what has so far been a very weak job producing recovery, may be slipping into a double dip recession.This is only one month, so it may be too early to tell, but with the Fed stimulus winding down and the government focus on cutting spending, any growth has to come from the public sector.

In housing, the Standard & Poor’s/Case-Shiller 20-city housing price index fell 0.2% in March, hitting a new post bubble low. No one knows when prices will hit the absolute bottom, but many economists think we are close. In a New York Times article, Paul Dales of Capital Economics said we are nearly at the bottom and “There are some amazingly favorable signs. Housing is the most undervalued it’s been in 35 years. At some point, it’s going to do very well.” The reality though, is that people don’t buy averages, they buy individual houses. It is a true buyers market, and this means that the buyer has more control and leverage. With so many of the homes for sale distressed, that is foreclosed or short sale properties, the buyers are driving their own bargains.

Rates fell about 44 basis points for the week and mortgage rates are now at their lowest point for 2011. If you missed out on refinancing at the all time lows of last year, you might want to get your documents in order. It looks like we are going to have another shot at a refinance market. If you would like to go over your situation and see if you can save money by refinancing your mortgage, give me a call and I will put together a custom quote for your unique situation.

Here are the current Chicago 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, best FHA rates assume a 660 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. 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, including credit scores, property type, amount of down payment and a number of other factors. 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 will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a 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.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

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

FHA 203K Rehab Loans – Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

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.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages