Mortgage rates improved last week as the the Fed announced that interest rates will remain “exceptionally low” through late 2014. The Fed does not control mortgage rates. What they do control is the short term rates, the Fed Funds rate and the Discount Rate, which the big banks can borrow at. The Fed has kept rates at a range of 0 – .25%, but effectively 0%. The Fed has a dual mandate, to keep inflation under control, and to encourage employment. With rates this low, inflation hawks have been screaming that we are bound to have high inflation soon. By their statement this week, the Fed is saying this isn’t the biggest concern now. The Fed is saying that the economy remains weak, and the threat of falling back into a recession is a bigger concern. Part of this is obviously what is happening domestically, and trying to give a shot to the housing market. But a big part of this is also a reaction to what is happening in Europe, and trying to inoculate the economy here from slipping further if Europe deteriorates further. Three years is a long time, and knowing that rates will remain low for this period gives investors and businesses confidence in planning. Again, the Fed doesn’t control mortgage rates, these are set by action in the Mortgage Backed Securities (MBS) markets. But the signal here is that mortgage rates are expected to remain in a low range for quite some time.

As usual, Europe is still a big concern, and Greece is again the focus. The end game for a Greek debt plan is fast approaching, and may occur this week. Germany tried to push through a measure which would allow the ECU to take control of how Greece taxed and spent money, which understandably didn’t go over well with the Greek government or people. Without those controls, there is nothing backing the debt obligations, but it is hard to imagine any sovereign nation giving up that power. The results of the Greek debt talks will either come to an agreement, which in effect will kick the can down the road a little further as no one really expects that they will be able to live up to the terms of the agreement, or will break down, causing new concerns. Regardless of what happens, there are other countries lined up with similar issues which will need to be addressed. The question is whether the problem can be solved at all through forced austerity, or whether they will need to do something to force more growth (which means more inflation).

The reports released here were within the range, but a little less optimistic than what has come out over the last few months. GDP came in a little softer than expected, and inventory build up was a big part of the number. If this inventory isn’t absorbed by the end users, we could see more contraction in the coming months. Unemployment claims also came in a little higher last week, bucking the trend of late. This week could be a blip, but over the last months the trend has been that the economy has steadily improved, though is still too slow to make a real dent in the employment picture. In his State of the Union speech, President Obama talked about a new program that would help any homeowner who is currently paying their mortgage. This is different than the expansion of the HARP refinance program which will kick in im March, and no one knows if this will ever materialize, or what the details will be. If you are in the market to buy a new home, or refinance your current mortgage, mortgage rates are at all time lows. These low rates mean that home buyers can afford more of a home payment than they could when rates were higher, and current home owners have the potential to save a lot.

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 big news from last week came out of – you guessed it – Europe. On Friday, Standard and Poors, the same organization that down graded the US bonds (to no real effect) announced the lowering of credit ratings for the bonds of nine European countries, including the second largest economy, France. This wasn’t a total surprise. S&P had hinted that they would do this a few weeks back, and bond yields throughout the continent have steadily been moving higher. But once they made it official more money poured out of Europe and into the relative safety of US bonds, and as a side benefit, mortgage bonds. The European Union is meeting for more economic discussions in about two weeks, and we are likely to see more fireworks then. Greece, whose problems were the first to show up, is not dealing well with its forced austerity, and there is a split among the economic powers of how to deal with this. If they push too hard they are likely to give Greece (and others) reason to break away, but if they are too accommodating this encourages more problems. There are no easy solutions, and this could take a long time to unravel. If problems heat up, the flight to quality will mean a push toward lower rates here.

Over the last months the economic reports here in the US have been trending better. That wasn’t the case last week. Retail sales figures for the Christmas season were released last week, and they came in weaker than expected. Retail sales for December increased .01% over November, when expectations were for an increase of .04%. The Christmas shopping season is a measure of confidence, and this shows that consumers are still feeling strapped. Weekly unemployment claims moved up by 24,000, but this is a blip in a trendline which has been improving. On the good side, consumer sentiment increased from a reading of 69.9 up to 74.0. This is still a weak reading, but much better than expected.

Mortgage rates are hovering at all time lows, but its hard to see that we will go much lower from here. As part of the congressional agreement to extend unemployment benefits which passed at the end of the year, the cost of the extension is being made up with a surcharge to mortgage costs. This amounts to 25 basis points, which points to slightly higher mortgage costs (which is usually factored into the rate. Some lenders are putting it in all at once, others are gradually adding the cost in by a few basis points per day so it won’t seem so jolting. Refinances at this level are likely to pick up again, and mortgage lenders are likely to contol their pipelines by raising rates if they get more volume than they can handle. This is all a way of saying that rates are great, and they may not get a whole lot better unless something drastic happens in Europe. If you are buying a new home or looking to refinance and qualify under the current guidelines, there isn’t a lot of incentive to wait.

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 monthly Unemployment report was released on Friday, and it came in better than expected with 200,000 jobs added in December, and the unemployment rate dropping from 8.7% to 8.5%. This is good news, and somewhat surprising as the rest of the world is going into a stall. The jobs report is usually the most watched report on the economic calendar, and good news like this would normally cause mortgage rates (and interest rates in general) to start moving higher. The reaction in the bond market Friday when the report was released was an initial increase in yield (which means higher rates), but this didn’t last more than a few minutes before the market turned and came back to the previous range. The stock market, which feeds on optimism, was also down, discounting the value of the jobs report. Though these numbers are the best we’ve seen since 2008, this is still a sign of a weak recovery. Economists say we need to be showing job gains of around 350,000 per month at this point in the recovery in order to regain lost jobs, and it takes about 120-150,000 new jobs each month just to run in place based on population growth and new entrants to the job market. But the bigger reason that the jobs report wasn’t embraced enthusiastically, was because of more problems in Europe.

It is now agreed that the European Union is back in recession, and the friction between the weak and the strong is still as high as ever. Bond yields in Greece, Spain and Italy spiked higher again last week, and there is more concern about the French banking industry. With the European economy a mess, the United States is looking better by comparison. There is no doubt that we are slowly improving here in the United States (besides the jobs report, the ISM index also came in better than expected), but the question now is if we can keep up this recovery if the rest of the world continues to fade?

The FED released a white paper last week calling for more government intervention in the housing market. Even as the economy starts to show signs of life, the housing market is still weak. Though existing home sales are turning up, there is virtually no market for new construction homes. This is normally a big section of the economy, and this means a lot of idle construction workers, as well as all the other support industries. There is still too high of a backlog of foreclosures and the system for disposing them is too slow and unpredictable. The FED, and several FED members, are now pushing for a more aggressive policy as a necessary part of getting the recovery back on track. A few things will be coming out soon which should help the housing market. The new HARP refi will be rolled all the way out in MArch, after they have finished upgrades to the automated software systems we approve the buyers through, and a new program for turning foreclosures into rental units is expected to be released soon.

The bottom line is that mortgage rates this week are holding steady, and just about the same as where they were a week ago. Mortgage rates are at all time lows, and if you are in the market to buy a home or refinance your mortgage, this is the time to act.

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

Happy New Year! As we slip into the new year we can see a lot of changes, yet so much remains similar to where we were at this time last year. At the beginning of the year the Fed had started a new policy of Quantitative easing, and the markets were convinced that they would overshoot, leading to an inflationary spiral. This sent the stock market higher, while Treasury bonds and mortgage rates went up. The projected inflation never took off. The readings now are right inline with what they were at the beginning of the year, though there have been spikes in food and fuel costs, the overall rate remains low. At the start of the year, the big concern was that the United States was losing ground to the rest of the world. Since then Japan’s economy was devastated by the one-two punch of an earthquake and a tsunami, from which it is still recovering. The Europe Union is doing a slow motion disintegration and it is generally agreed that they have now entered another recession. And China, the powerhouse economy throughout this mess, is now having its own problems and their economy is stalling. So with the rest of the world stumbling, the US has been the beneficiary. Even now, after the economic collapse, the United States is still seen as the safest port in the storm, and as the world struggled, money flowed into the US Treasury bonds, bringing interest rates down past the lows of last year. The economy has steadily improved, and the job market is getting better, though we still have a long way to go before we can feel that we are back on track. 

Though we are further along than we were at this time last year, too much remains the same. Here are some areas where we are stuck in time:

Housing – The housing market is still on the ropes, and most of the government programs designed to help have been ineffective. Mortgage servicers are improving with getting distressed properties back on the market, but there are still too many properties in default or foreclosure. This will be a problem as long as unemployment is high, and there is a chicken and the egg situation here, as it will be hard to get back to full employment when so many jobs in our normal economy are based on strength in the housing market. On the good side, with home prices down and mortgage rates low, homes are more affordable than they’ve been in decades. This is bringing new people in to buy their first home, and I expect this to be a big year for home sales. Still, there is too much inventory on the market, and very few new homes being built. We are probably bumping along the bottom, but we are likely to be in this mess for a few more years.

Banking – The biggest banks, those too big to fail, have actually gotten bigger since the financial crisis in 2008. The four biggest banks have increased their market share and now account for over 40% of the overall market. This is in large part due to Fed programs designed to help them build up their reserves so they wouldn’t crash and bring us all down. Smaller regional banks haven’t been able to take advantage of these programs, so many have gone out or are still teetering. The result is that the bigger banks are holding on to cash to rebuild, and many smaller banks don’t have the money to lend, so commercial loans are still hard to get. This is a big problem for the small and midsize businesses that need bank financing to grow, or to get them through the down cycle intact.

Employment – The unemployment rate is now trending down, and there have been new jobs created every month this year. This is a big improvement from where we were before, when massive job cuts were happening every month, but we are still stuck on a treadmill which is going to fast to keep up with. The rate of job creation needs to be much higher to catch up with all the jobs we lost over the last several years, and just to stay even with new people coming into the job market we need to have about 120,000 new jobs each month. If we can stay out of a recession the jobs market should gradually improve, but we are likely to be stuck in this range for a while yet.

The markets – Volatility in all markets is at an all time high. The stock market ended the year close to where it started, but there were some wild swings in between. It is now common for mortgage rates to change during the day, so a rate quoted in the morning, may not be valid by that afternoon. A lot of this volatility is due to uncertainty, and other parts are a result of computerized trading programs which magnify the swings.

Uncertainty still rules and this year promises more of the same. The biggest uncertainty going forward is whether we can keep on a growth track while Europe and the rest of the world are imploding. This being a Presidential election year, we should expect more noise and the stories from each camp will paint an entirely different picture (we are either on the road to recovery or on the brink of doom). On the good side, mortgage rates are phenomenal. If you can take advantage of these low rates, you should jump on it now.

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

After hovering near all time lows for the last month or so, mortgage rates dipped another notch lower and are again at all time lows. The best rates dropped below 4.00% on Friday for the first time since October. When it happened then, the best rates only lasted a couple of days before heading back to their prior range. This dip in rates is of course a reaction to the European situation. Europe now has a plan going forward to prop up the Euro and keep all the weaker economies in line. This week the Union will be meeting to provide extra funding for the region’s troubled economies. The problem is, the markets don’t have a lot of faith that the plan will work in the long run. The rating agencies last week threatened credit rating down grades of France, as well as Belgium, Spain, Italy and several other countries. The question is whether the European Union can stay together, and right now it is being held together by the equivalent of duct tape and chewing gum. The weaker economies have to be considering their options, and deciding which way will be the most painful, sticking with the plan and going with the forced austerity, which will mean job losses and political pressure, or charting their own course which means re-inflating their own currency and trying to make it on their own. Neither option is good, and this pressure will likely keep mortgage rates low.

Meanwhile, the US economy continues to chug along better than expected. Initial weekly unemployment claims were better again, declining to 366,000 initial claims, and the 4-week average is now at the lowest level since July 2008. This means that the job market is gradually picking up. Fed manufacturing surveys for Empire State and Philly regions showed growth. The CPI (Consumer Price Index) increased at an annual basis of 1.1% last month, which is right in line with Fed projections and shows no sign of inflation increasing. Oil prices are also trending lower, which should eventually find its way to the gas pump as lower prices. On the down side, retail sales were lower than expected, and as we hit the last week of Christmas shopping, retailers need bigger numbers. Over all, the economy is soft, but much has strengthened over the year.

Another development that will push the uncertainty and fear level higher, is the news that North Korean dictator Kim Jong-il died of a heart attack Sunday night. Jong-Il who was famous for being erratic and building nuclear weapons while his people starved, will be succeeded by his third son, Kim Jong-Un. The Asian markets fell overnight on concern for how this new untested leader will react. South Korea, one of the largest Asian economies, reacted to the news by placing its troops on alert. No one knows how this will play out in the long term, and it is possible that the son will take a new direction, moving toward engagement with the rest of the world, which will mean a more prosperous future for his people. But markets move up and down based on the shift between fear and optimism. For now fear is ascendant.

We are coming close to Christmas and most people are starting to wind down for the year. But if you are in the market for a new home, or in a position where you can save money by refinancing your current mortgage, it might make sense to gather up your paper work. With mortgage rates as low as they arte this is an opportunity to save money.

 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 European soap opera is still the center of attention for the economic world. Last Monday the European Union announced that they had come to an agreement that would solve the crisis, but by the end of the week it was clear that nothing had really changed. As has been the case all along, the problem is that the EU is a group forced together by their currency, but each country has their own economy and their situations and needs are different. Germany, the strongest of the group, wants the weaker more debt ridden countries to take on the austerity regime, cut their spending drastically and work their way out of this. While the leaders of these countries are going along with this, for now, this causes political crisis’s for them as austerity and high unemployment is never a popular option. The big fly in the ointment last week was that the United Kingdom, Great Britain, has decided to chart their own course. London is a true financial powerhouse and the center of much of the markets and trading activity. Agreeing to the new pact would have meant their giving up this power. It’s hard to see this agreement sticking when one of the main players refuses to go along.

Last week was a slow week for economic reports here, but what was released showed relative strength. The weekly unemployment report dipped again, showing that the job market is gradually strengthening. Some of this could be temporary hiring for the Christmas season, but this is still better than expected news. The consumer confidence index also came in with a nice boost, which means that people are starting to feel better about their own financial prospects. These numbers are moving higher from extremely low levels, so it’s not like anyone thinks we are back where we were before and the economy is booming again, but better than expected is still positive movement. The surprising thing now is that the US is slowly moving up while the rest of the world is starting to stall. Everything is global now, so what happens in Europe and China will affect us here, but for now this is a positive sign.

Mortgage rates were volatile last week, and prices were all over the board. The week ended on a down note, but we are still in the same range we have been in, that is, mortgage rates are at all time lows. This is just about the time that the housing market slows down for the holidays, but for home buyers who are out there, this can also be the time to pick up a bargain. The combination of low home prices and low mortgage rates makes home affordability a real positive. If I can help in any way, let me know.

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

Good, or at least better than expected economic news was the norm for this past week. The stock market had its best return for a week in over two years with a run-up of almost 500 points on the Standard and Poors 500, a broad based index. The main driver for the optimism here was based on actions by leaders in Europe to bring their crisis under control. It is a true soap opera over there, and what happens on today has no relation to what may happen tomorrow, and there are more twists and turns yet to come. So optimism now may be replaced by fear again soon, since no one has a true solution that doesn’t cause more pain for some of the participants. The problem here is that each country has their own set of interests to protect. What is good for Germany may not be good for France, and certainly won’t be good for Italy and Spain. But if they don’t all get on board together, the whole union is at risk. There are rumors of a combined global bailout of the European Union, including US participation, but the idea that the Fed will send over US money is a hard sell politically. At the same time, China showing signs that their economy is slowing down quickly, so they aren’t likely to be riding to the rescue of the global economy. Negotiations in Europe are ongoing, so expect more volatility this week. 

Another reason for optimism domestically, was the release of the monthly jobs report on Friday. This is the most anticipated economic report each month, and the strength, or weakness, of employment is a good measure of the health of the overall economy. The report came in better than expected. 120,000 new jobs were created over the past month, and more dramatically, the unemployment rate (which is determined by a separate survey) dropped from 9.1% all the way to 8.6%. Almost 1.5 million new jobs have been created this year, so we are slowly moving in the right direction. This is great news, but as a reality check, we need to see about 120,000 new jobs each month just to keep up with new additions to the work force, so as good as this report is compared to where we were, we are still just running in place.

The market in mortgage backed securities, which is the base for mortgage interest rates, was extremely volatile this week. Bad news is usually good news for mortgage rates, so the good economic news this week should have spelled trouble for mortgage rates. But the market ended the week with almost no change. So rates are stable, and still near their all time lows.

The new Harp program was supposed to start this week, allowing home owners who have Fannie Mae or Freddie Mac insured mortgages to refinance even if they are deeply under water (negative equity). The key phrase here is – was supposed to. The government has come up with the plan, but the lenders are not yet on board and are still putting together the infrastructure for how this will be done, and have yet to figure out the pricing. These loans will be sold as separate pools of mortgage bonds, and even though these loans will be government backed, it is doubtful whether the pricing will be the same for a mortgage that has a loan to value of 150%, as one with a 20% down payment. Desktop underwriter (DU), Fannie Mae’s automated software system which all these loans will need to be approved through, is being updated for this new program in March. Many lenders may wait for this update before getting on board with the full program.

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

This is beginning to sound like a broken record, but in a short Holiday week the attention is still focused on the situation in Europe. Belgium, one of the stronger economies in the European Union, had its credit rating cut last week, and an auction of German debt, considered nearly as safe as US debt, went badly on Friday. The consensus is that that a default from Greece or Italy is likely, and there is still nothing in place to hold the union together if this happens. The latest date to watch is December 9th, the next scheduled meeting of the European Debt Summit. In the mean time, the markets are still optimistic that a solution will come through. Rumors of a big bailout for Italy were quickly shot down, but hope is still in the air that something will take hold before disaster sets in. If anything happens in Europe this week, this will surely move the markets here.

Domestically the economy is still in the muddle through mode. Most of the economic reports show slow and gradual improvement, though this may not feel this way for most people. Inflation readings this week came in tame, with little risk of upward pressure in prices. The weekly average unemployment numbers are hovering just below 400,000, the best reading since April and a measure that while the job market is still weak, it is better than it was. As expected, the Congressional Super Committee failed to come up with any solution at all, but partisan gridlock will kick in the automatic spending cuts at the beginning of 2013, and with an election in between, the markets treated this as a non-event. The early returns from Black Friday, the start of the Christmas shopping season, were up. The real numbers won’t come back until next week, and it is hard to know if the bargain hunting now is a real indication of how consumers will spend throughout the season.

Mortgage bonds and mortgage rates are still in the same range they were in last week, but with optimism in the stock markets, rates the trend is moving toward slightly higher rates. Volatility is still extremely high, so this could change in either direction very quickly. We are still waiting for more clarification on the new HARP refinance guidelines. The program officially starts later this week, and all the lenders are still holding their cards close, so we still don’t know how they will treat this and what additional requirements they will place on the loans. We also don’t know what the pricing will look like since these loans will be sold into separate pools of mortgage securities.  Time is running low, so I expect we will know more later this week.

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

This promises to be an interesting week coming up, as volatility is increasing, and traders here in the US will have a short week due to Thanksgiving. You won’t be surprised to hear that Europe is still the focus of the markets. First it was Europe, then Spain and Italy took the spotlight, now it may be France’s turn, which is a much bigger problem. French bond yields are exploding and Moodys debt rating service may down grade their debt this week. Whatever happens there will surely be felt over here, and this is still the prime mover of mortgage rates. Mortgage bonds last week were all over the board, but ended the week just slightly off from where they began. Mortgage rates are about the same. from last week.

If you take Europe out of the mix, the economy here in the United States is actually improving. Initial unemployment claims last week were at their lowest point since April, continuing an improving trend. Industrial production came in higher and retail sales also rose .5% over October and up 7.9% compared to this same time last year. If slow and steady wins the race, we are at least moving in the right direction. One stumbling block to be cleared this week will be how the markets react to the Congressional Super Committee debt reduction plan, or rather their lack of a plan. This Super Committee, evenly made up of Republicans and Democrats, was tasked with reducing the debt by at least $1.4 trillion over the next ten years. Because congress itself wasn’t able to make any progress with this, they put a guillotine over the committee’s heads, so that if a plan isn’t agreed to, major cuts will automatically set in, geared toward hurting spending programs favored by both sides. But our system is largely broken, and even with big incentives to make this work, it has been leaked that the results will be no plan at all. The sticking point seems to be taxes. Republicans were against any tax hike of any kind (though they did have some revenue increases they offered) and Democrats were unwilling to make deep slashes in entitlements without corresponding tax increases. So the guillotine will drop, but conveniently, it doesn’t fall until January of 2012, and their is an election in between. Now it comes down to the election. If Obama and the Democrats win, the Bush tax cuts will expire and this will mean a big reduction of the debt on its own. If Republicans win, expect deep slashes in spending once they take over. The question now is whether the markets will wait to see what happens, or if they will react to this failure now.

In one great piece of real estate news, the high cost FHA loan limits were restored. This bill was passed by congress and signed into law on Thursday. This means that more homes on the upper price limits will now be available for low down payment FHA financing. The HUD site hasn’t been updated yet, but this will mean that the single family limit here in the Chicago area will be raised back to $410,000, from where it was at $365,700. This means a big jump in purchasing power for borrowers who needed or preferred FHA financing, and a boost for the housing market.

The new HARP refinance guidelines were released last week, but we are still missing two pieces of the puzzle.  This program is a reboot of an earlier program designed to help homeowners who are still current on their mortgages though their homes have lost value. This new version of the program allows borrowers to refinance, even if they are deep under water, that is, they have considerable negative equity in their homes. The program as written will help a lot of homeowners, but the two things we are still waiting for may make this program less beneficial for some. First, we are still waiting for the lenders interpretation of how to run this program. In the first version the government allowed the refinance for borrowers whose mortgages were up to 125% of their value, or 25% below water level. But most lenders wouldn’t go that high. The new version takes away much of the lender’s risk by waiving the normal warranties that are part of the agreement when the lender sells the mortgage to Fannie Mae or Freddie Mac. Still, their is a big chance that they will water down the program to make sure they don’t take on additional risk with these new loans. The other thing we are waiting for is the pricing. These are a whole new class of mortgage bonds, and as such, they will be priced higher. Until we know how much higher they will be priced, it is impossible to know how many people will actually be able to benefit from this program. The program officially starts on December 1st, so we should have answers to these questions soon.

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

News from Europe continues to drive the market. Greece is old news and Italy has bought some time now that Prime Minister Berlusconi has resigned. But Spanish bond yields are now hitting new highs which means that Spain may be the next point of concern. As one crisis is defused another inevitably pops up. This has been described as the Whack a Mole crisis, based on the arcade game where as you hit one mole with a hammer and another pops up on another part of the board. Just because the spotlight has moved away from Italy and Greece this doesn’t meant that their economies are back on track and their problems are cured. It means that they have taken action to diffuse the immediate problem, while the underlying issues still remain. The big problem is that the European Union is broken into the economies that produced more than they spent (Germany is the prime example) and those that consumed more than they produced (Greece, Italy, Spain and others), and that there is no central bank to make decisions for the entire Union. The strategy which benefits one side would punish the other. So this crisis is likely to continue to simmer until something forces a decision. This matters here in the US because the global economy is completely interlinked. Our big banks have loans outstanding throughout Europe, and our industry exports to Europe. If Europe falls we will feel the ripples.

This was a light week for US economic data, but the news released was mostly positive. First-time jobless claims fell by 10,000 to 390,000. This was the best showing in the last seven months. The U.S. trade balance dropping to $43.1 billion in September from $44.9 billion the previous month, which was much better than expected. The University of Michigan Consumer Confidence survey rose to 64.2 from the last reading of 60.9, its best level in the last five months. The economy here is gradually improving, but the storm clouds from Europe over shadow everything. Another thing the markets are watching is the results of the Congressional Super Committee’s debt report. Because congress was deadlocked and Democrats and Republicans were miles apart on how to bring the budget deficit under control (massive cuts, tax increases or a combination), they handed responsibility off to a bi-partisan committee with the mission to put politics aside and come up with a viable solution. If the committee doesn’t come to an agreement, this will trigger automatic spending cuts and tax increases which will hurt both sides. The idea here is similar to that of MAD (mutually assured destruction) which has kept the world safe from nuclear war as the idea of using your weapon means your automatic destruction. It’s a good thing our political parties don’t have nuclear weapons as they would probably use them against one another. No one expects an agreement to come out, and the this may hurt the economy, and reverberate in the markets.

Mortgage rates continue to ride the roller coaster, and volatility remains at all time highs. The news of the day determines that day’s mortgage pricing, but we are still at all time lows. We are still in the same range as where we ended last week. This is the time to act, whether you are buying a new home or refinancing your current mortgage.

In real estate news, this is the week we are supposed to get the new Harp refinance rules. The Harp program is designed to allow homeowners who are current on their mortgage payment refinance their mortgages ito take advantage of the lower rates, even if their values are under water. The original program helped a lot of home owners, but not nearly as many as was needed, because the initial rules put limits on the values, and lenders then cut these limits even further. The first go around of this program helped only those who were already in the best positions. The new re-do of the program is supposed to cure these problems and open refinancing to all the responsible buyers who have been shut out up until now. This program only applies to loans that are held by Fannie Mae and Freddie Mac (though they are serviced by others, so you make your payments to some other bank or servicing company). We will have details this week and I will post them once I have a chance to read through them. The first applications can be taken as of December 1st. If you want some more information on whether this program will help you and fit your situation, 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