We can all breathe I sigh of relief now that the election is finally over. Whether your man won or lost, the good news is that we wont have non-stop political ads for a while yet anyways, and with the uncertainty of the election settled, the markets can move on to other worries. For what it is worth, the short term result of the election is that stocks have gotten weaker, but bonds, including mortgage bonds, have gotten stronger. This means that interest rates are now back to their lowest range. But worry is one of the things that markets do best, and now the big concern is whether we will drive over the fiscal cliff, the expiration of the Bush tax cuts combined with the results of the sequester, which mandates big budget cuts if Congress cant agree on a plan to reduce the deficit. Though Obama won reelection and the Senate increased their Democratic control, the House is still solidly Republican, which means we are still going to have to deal with gridlock and brinksmanship before this issue gets resolved. The difference this time is that the President seems to hold more cards. The big contention is that Obama wants to raise taxes on the top 2% of income earners, while the Republicans dont want any taxes raised. But the way the Bush tax cuts were initially passed, they set an expiration date (which was extended one already), and if no one can come to an agreement, everyone will get an automatic tax increase. The economy is still fragile, and while budget cutting is needed, the best way to get more funds into the government coffers is to grow the economy and broaden the base of those paying taxes. Its likely that we will come to some kind of agreement and avoid falling off the cliff, but it is also likely that this agreement will be something that avoids the worst consequences for now without really solving anything and kicking the can down the road to be dealt with later.
Speaking of kicking the can, the European Union is still dealing with their problems with no end in sight. Greece has another big payment scheduled this week, with no real way to pay it. An outright default is not acceptable, but the European Union is not in position to cover the debt, either. Something will be worked out to give the illusion that Greece is continuing to pay, to keep markets from rebelling. Expect the can to be kicked a little further so that there is more time to come up with at least a short term solution. The problems in Europe will continue to be a concern in the market, and will have an effect on interest rates.
Happy Veterans Day. Most banks as well as the bond market will be closed on Monday in honor of all those who have served in our countrys armed forces.
These 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
|30 year fixed rate||3.375%||3.568% APR|
|15 Year fixed Rate||2.75%||2.849% APR|
|5-1 A.R.M.||2.50%||2.639% APR|
|7-1 ARM||2.625%||2.752% APR|
For Jumbo loans over $417,000
|30 Year Fixed Rate*||4.125%||4.237% APR|
*(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.)
|31 ARM Jumbo||3.00% w/ 0 points||3.178%|
|5-1 ARM Jumbo||3.375% w/ 0 points||3.476%|
|7-1 ARM Jumbo||3.50% w/ 0 points||3.637%|
|5-5 A.R.M. **||2.75% w/ 0 points||2.865%** APR|
** 5-5 ARM is fixed for first 5 years, with 2/6 caps it cant 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 30 year fixed||3.375% with 0Pt||4.036% APR|
|FHA 30 year fixed||3.25% with 1 Pts||4.059% APR|
|FHA 5-1 ARM||2.75% with 0Pt||3.236% APR|
|FHA 5-1 ARM||2.50% with 1 Pts||3.079% 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
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
|VA 30 Year Fixed Rate||3.50% with 0Pt Origination||3.876% APR|
|VA 30 Year Fixed Rate||3.375% with 1.00 Pts||4.064% APR|