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

That didn’t last long. Last week the consensus out of Europe was that a deal was in place where Greece would accept a new round of austerity, and the rest of Europe would pony up the cash to keep them solvent. This didn’t look like a long term solution, no one really knew where the money was going to come from. But the solution turned out to be much shorter than anyone expected, about one day, when Greece’s Prime Minister threw a curve by calling for a national referendum on the bail out plan. Greece is still trying to figure out how it can best get through this crisis, the problem is that Greece is just the first domino. If the first domino remains standing, they all stay up. If it starts to fall, look out, there is a whole line of countries set up and waiting. The focus now has shifted over to Italy, a much larger economy. This time band aids won’t do, and no one knows how to make the tourniquets work.  The whole global economy is tightly connected and what happens in Europe will be felt throughout the world. 

The other big story in the markets last week was the failure of MF Global, an old line trading group headed by former New Jersey Governor and Senator (and former head of Goldman Sachs) Jon Corzine. MF Global made some big bets on the debt of troubled European Bonds. The position was a bet that these countries would get bailed out, and the bonds would increase in value, and they made the bet with extremely high leverage. It amazes me that this is still possible. The leverage they used, 40 times as much borrowed funds as what they invested, is at the same level as what was going on with the financial melt down in 2008. When their position was made public, investors headed for the exit, and with extreme volatility the company couldn’t stand up to the margin calls. Someone will face criminal charges as a result of this, but it could have been much worse. The company went down without even talk of a bail out, and the market blipped, but didn’t crash. What happened here was similar to what happened   with the company Long term Capital Management (who Corzine also had close ties with) back in 1998, and that sent global markets spiraling down. The question is, how many other firms are out there making out sized bets with excessive leverage? My guess is that there are others in similar situations.

The biggest market mover each month in the bond and mortgage backed securities markets is usually the monthly jobs report. This month it had an affect, but with all eyes on Europe it was comparatively minor. A net of 80,000 jobs were added in October. The private sector added 104,000 new jobs, but cuts of 24,000 government jobs brought the number down. The two previous months were revised higher. The unemployment rate (which is based on a different survey) dropped down a notch to 9.0%. This wasn’t an awful report, but another indication that it will take us a long time to get through this mess. The economy has added 1.256 million total non-farm jobs so far this year, but we are still off over 6 million jobs since the start of the recession. Something needs to be done to encourage growth, but as we come into an election year, don’t expect any kind of political action to get this done. No compromise is possible as both political parties harden their positions.

Mortgage rates dropped sharply lower this week and we are back near all time lows. But for those expecting a drop into an even lower range, it may be a long wait. Every time we have hit these levels the market has reacted by bouncing higher. Volatility is crazy, and the markets are focused on events that are unpredictable. If you are buying a home or refinancing a mortgage and these rates will put you in a better position, it makes sense to take advantage of them 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

Happy Halloween! These is plenty of news to be scared of. After months of turmoil, the European Union has now come to an agreement on how to get their house in order. Greek bonds will be written down by 50% and the Union will raise over 1 Trillion Euros of new debt to recapitalize the economy. Now comes the hard part, implementing the deal and making it work. This agreement takes the worst fears off the table for now, but many analysts don’t think this is the end of the crisis, but more of a pause in the action. The amount authorized may not be enough to cover the problem, and even if it is, we still don’t know how they will raise the money (will China come to the rescue?). There is still a big disconnect between the have and the have not nations, and every time something needs to change. it has to be agreed to by all 17 European Union member countries. This is sure to be an ongoing issue, but the markets will put this on the back burner as all the details get worked out.

The economic reports released over the last week were mostly positive. The Consumer Sentiment index moved up to 60.9 from the prior reading of 59.4, when it was expected to drop. The estimate for the Gross Domestic Product (GDP) was an increase of 2.5% growth in the 3rd quarter, still soft, but much better than the sluggish growth earlier in the year. Home sales were up and higher than expected, too. Stocks also had a good week, and this has been one of the best October’s ever in the stock market.

In housing, the big news was the announcement of a reworking of the HARP plan, also known as the Obama refinance plan, that will allow more under water home owners to be able to refinance to lower rates. If this is done right, it could make a big difference. There are an awful lot of home owners who have lost equity in their homes, but are trying to do the right thing. They continue to pay their mortgages on time. So far they have just released the general scope, but the details come out on November 15th and the first applications can be taken as of December 1st.

Rate trends for the coming week may be less dependent on Europe, with the focus on the Fed meeting results on Wednesday and the unemployment report on Friday. The economic reports have come in slightly better since the last meeting, but there shouldn’t be any major changes in Fed policy. The employment report is expected to be off again, but the markets are sure to position for expectations earlier in the week, and over react once the report comes out. This is sure to be a volatile week, even if there is no news out of Europe. Mortgage rates rose early in the week as the European plan came together, but improved by the end of the week. Even with the extreme volatility, mortgage rates are still near all time lows. Let me know 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

If you listened to news reports last week, you would have heard that mortgage rates just dropped down to their lowest point ever (according to the survey 3.94% with .80 points). Unfortunately, the news reports are based on the Freddie Mac loan survey, and this survey is always a week behind. In the real world, mortgage rates rose sharply higher and ended the week at the highest point in over a month. Mortgage rates are still near all time lows, and chances are good that rates will drop lower again soon, but the volatility now is nothing short of awe inspiring. Mortgage rates are market driven, and mortgage backed securities move up and down based on traders expectations of the strength in the economy and the risk of inflation. Last week the optimists were out in force as the outlook in Europe improved, and economic data came in better than expected. The ISM manufacturing index increased a point to 51.6 in September, better than was expected and while not a robust number, it was positive. Car sales were up and mortgage delinquencies dropped to their lowest level since 2008. But the big news was the monthly unemployment report.

The jobs report is always the most anticipated report for those watching bonds and the direction of interest rates. This report showed an increase of 103,000 jobs in September, a slight revision higher for the two previous months and the unemployment rate (which is based on a different survey) remaining at 9.1%. This isn’t the kind of news to make people break out the Champaign and start singing Happy Days Are Here Again, but, again, it was better than expected. It takes about 150,000 new jobs each month just to run in place and keep up with new entrants in the job market, and the number of people long term unemployed is still way too high. But the big fear is that we are dipping down into a new recession (when most people thought we were still in the last one), so this report is more evidence that we are muddling through.

Europe is still the wild card. Greece is circling the drain, and Italy, Spain, Ireland and others are just behind. This week France and Germany agreed to do what is necessary to recapitalize the banks and bring stability to the European Union. They have given a deadline of the end of October to get the details of the plan together. This is obviously great news, and if they can stabilize the system it will take a big hunk of uncertainty out of the global economy. The problem is that this announcement has a feeling of Deja Vu – we have been here before. Over the last year there have been a number of times where it looked like Germany was going to come in to rescue the continent. And then things fell apart. Some economists doubt that this could work out, even if they all agree to it because the amount of money needed is just too much. But for now optimism prevails. Don’t be surprised if this doesn’t work out as planned, and the problems in Europe hit the front burner before the month is over.

Mortgage rates are off their lows, but still in all time low territory. If you are in the market for a mortgage, either buying a new home or refinancing your current home, you can still get a great rate. The key now is to have realistic expectations and patience. When rates dropped down to their all time lows, they stayed there for just over a day before starting the move higher. Timing the market and getting the best rate is tough to do. When the rates drop down the consensus is that they will continue dropping, but they often spike higher. If the rate works for you and your situation, take advantage of it. Let me know if I can help.

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 fell to all time lows last week as fears of a new recession take hold. With all the problems in Europe, fear has been in the air for a while. This week the Fed amped it up a notch by saying that "there are significant downside risks to the economic outlook, including strains in global financial markets." In other words, if Europe blows up, we are going to feel the pain, too. After the release of the Fed statement, stocks plunged, the dollar strengthened and global money flowed into US treasury bonds (still the safest port in the storm), and mortgage backed securities. US stocks had their worst week since the crisis time in 2008, and mortgage rates dropped down to their lowest rates ever, before bouncing higher on Friday.

Europe is still the big concern, and while finance ministers across the continent are trying to come up with some kind of solution to keep Greece (the first domino) solvent, most analysts see this as a  doomed exercise. They may come up with another band aid to hold back the bleeding, maybe even a tourniquet that will keep it in check longer, But in the end it comes down to how much the stronger countries like Germany are willing to do to prop up the weaker, and though they are all in this together, they are close to the limits. Any news from Europe, whether good or bad, will be sure to spark the markets. The US economy is tied tightly through trade with Europe, and a slow down there will be felt here, too. As added concern, our biggest banks have exposure to European debt and are tangled up with derivatives (such as those that caused so much trouble in the credit collapse in 2008) so any defaults will be magnified.

The fed is doing it’s best to try to stimulate the economy again, but they can no longer do it by adding money to their balance sheet (printing money). Their newest trick is Operation Twist, a re-do of something they first tried back in the early 60s. The plan is for the Treasury to replace some of its longer-term debt with shorter-term obligations, and the Federal Reserve would simultaneously sell some of its shorter-term securities and buy longer-term Treasuries. The idea is that by buying longer term debt, this will lower the cost of credit and spur borrowing, especially mortgage refinancing. The initial reaction is that this policy worked like a charm, and rates are now in a whole new range.

Rates popped higher on Friday (we had 2 rate changes for the worse) but we are still at all time lows. Volatility is at an all time high, and the rate quoted in the morning may not be available in the afternoon. Still, when markets move they don’t move in straight lines. There are ups and downs, and it is impossible to know where the bottom is. Expect volatility. If you are able to refinance, this is the time to get your documentation together and check out your options. If you are in the market to buy a new home, the cost of ownership just went down. If I can help in any way, please 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

Greece and the health of the European Union is still the focus of financial concern, but so far the time bomb is still ticking. Over the last week the stock market improved and mortgage rates ticked slightly higher as optimism that some kind of solution would take hold. There was talk that China was going to come in as a big buyer of Italian debt, but that turned out to be premature. The Fed along with European central banks came up with a plan to add liquidity to the market, but this was a way to keep dollars flowing not a long term structural solution. By the end of the week the situation was almost the same as where it was at the start. Greece is still on the brink and Europe is still the focus.

The economic data released this week was mostly on the weak side. Retail sales came in flat, unemployment claims for the week were slightly higher and inflation ticked higher, though still in the range of Fed expectations. More people are worried about the economy slipping into a new recession, and with the costs of food and fuel taking a bigger bite out of their paychecks every week, they have less to spend. The Fed meets this week for a 2 day meeting, and while some in the Fed are pushing for more stimulus, there is enough dissention that it is doubtful anything big will be released.

Mortgage rates ticked higher for most of the week, but we are still in the same all time low range. If you are in the market for a mortgage, whether buying a new home or refinancing your current home, this is a good time 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

Rates are at all time lows, and it is all about what is happening in Europe. For the past months the news has been that Greece is teetering again, and if Greece falls the other dominos (Spain, Portugal, Ireland and then others) will follow, triggering a collapse of the European Union. Greece has wobbled on the ledge for a while, but it looks like it has now reached the tipping point. A meeting of top European financial ministers broke up this weekend with no clear direction. The big question has been whether the stronger countries – scratch that – if Germany will do what it needs to bail out Greece and keep the union intact. So far they have said they will, but doubts have crept in. France, the second strongest economy in Europe, is now facing a credit down grade of their own and it looks more and more like Germany will have to do all the heavy lifting on their own. This isn’t a popular stance internally, and a hard sell for politicians to support. After the meeting this weekend, the markets are now expecting Greece to default.

Despite all of our economic problems here, the European weakness has shown our comparative strength. As money rushes out of Euros, the dollar has gained ground and US treasury bonds have strengthened, and the yield (which is the opposite of the price) is at an all time low. Mortgage rates are based on mortgage backed securities (MBS) not treasury bonds, but MBS follow the direction and are also at all time lows. Last week there were some signs that the economy was doing better than expected (a relatively strong ISM report and the Fed beige book both showed the economy was expanding). The President also gave a speech calling for nearly half a billion in new spending and tax cuts (stimulus) to jump start the jobs market. This would normally cause the markets to sway with fears of inflation, but the focus is all on Europe now.

Mortgage rates are at all time lows, but they may not go much lower. Volatility is crazy in the MBS markets, and this means higher hedging costs for the lenders. Even when the markets are improving, the lenders need to protect themselves and make sure that they are able to deliver the rate when the mortgage is funded, so rates don’t improve to the same degree. The other factor is that every time rates get close to their best point historically, there is resistance and a likelihood that rates will pull back. We are in uncharted waters now, but most experts think that rates will not go much lower. If you are looking to buy a new home, or thinking about refinancing, this is the time to take advantage of the opportunity.

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

To summarize what happened last week – fear, volatility and the lowest mortgage rates ever. The week started off with the the stock markets diving after the Standard and Poors credit  downgrade of US debt . So as investors sold out of stocks, where did the money go? Right into the now lower rated US debt. The markets have spoken, and as dysfunctional and debt ridden as we are, the United States is still the benchmark, and still considered the safest port in the storm. The European Union is trying to hold itself together as the ground is crumbling. The big news there last week was that France, after Germany the second strongest economy in Europe, was about to get a downgrade of its own. The hope has been that Germany and France will join together to back a new Euro-bond which will bail out the weaker countries, but as the crisis deepens, the stronger countries are looking at what is best for them. The result has been extreme volatility in all markets. The Dow lost 600 points on Monday, rebounded 400 points on Tuesday and was close to where it started by the end of the week. Mortgage bonds, which are the basis for mortgage rates, were off their best rates for the week, but ended close to the lowest ever.

The Fed Open Market Committee met on Tuesday. The battle in the Fed is always between setting conditions to foster growth, and pulling back to keep inflation at bay. This report stated that the economy was growing slower than expected, consumer spending and the housing market were weak and unemployment was too high. Short term interest rates are already near zero, and the Fed is not in a position to start another round of Quantitative Easing, so they don’t have a lot of options left to stimulate the economy. What they do have is the ability to set expectations. In their report they announced that they will leave the fed funds rates at "exceptionally low" levels until the middle of 2013. It is hard to know what is going to happen 2 years from now, but this announcement says that the majority at the Fed (there were 3 dissenters) think that inflation is a non-issue, and the soft economy is the real concern. They have already printed a tremendous amount of new money (through QE1 and QE2) but the money is stuck in the reserves of the big banks, and not circulating throughout the economy. If something happens to loosen this up, inflation could quickly grow. The Fed is saying that they don’t think this will happen, and letting businesses know that they can expect stability in interest rates for the next two years.

Mortgage rates are at extreme lows. It is harder to refinance now than it has been in the past, especially if you don’t have much equity in your home. But with rates this low, this is a great opportunity for those who can refinance to lower their rate and slash their payments. There are special programs and options available which can help even if you don’t have a lot of equity in your home, and for many homeowners, it may make sense to refinance even if you need to bring some cash to closing in order to make it work. If you are in the market to buy a new home, the cost of buying just went down. The question is, though, how long will these low rates last? Volatility is extremely high. While rates will remain low historically for some time, no one knows how long we will stay at these levels. If you can benefit from a lower interest rate, or are looking to buy a new home, give me a call and I will see what we can do to help.

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 last week was a crazy week. It started out with an agreement to patch up on the debt ceiling (one which no one liked or wanted to take credit for), continued with more signs that the European Union was on the brink, the stock market plunging , a ray of hope for the weakening economy with the monthly jobs report, and ended with a bang, after the markets closed, with Standard and Poors (one of 3 private rating agencies) downgrading the credit rating of the United States. This all has the feeling of August 2008. Strap on your belts, this roller coaster is going to be a crazy ride.

Sub-Prime Nation?  Let’s get to the big enchilada, first. Is the United States now a sub-prime nation? Despite all the rhetoric, no one believes that we are unable to pay our bills. The real question here is if we have the political will to get beyond partisan arguments and make decisions that we need to make for the good of the country and our financial health. The United States was given a AAA rating, the highest available, way back in 1914 and held that rating through the Great Depression and World War II, as we have grown to be the richest nation in the history of the world. This downgrade, by one of three rating agencies, doesn’t say we are in default or even close to it. This is more of a symbolic slap to the face than anything. And maybe this is the slap that we need. The reason for the downgrade was that the government hasn’t seriously addressed the debt crisis and with the political process so polarized, S&P doesn’t think it will be able to do the hard work necessary to get us on the right track.

The debt ceiling standoff was one of the low points in our political process in recent years. It was a fight that didn’t have to happen and we came right to the brink of default before coming up with a band aid solution that really doesn’t solve anything, long term. Our debt has exploded in recent years, but there are true solutions available. A bi-partisan commission was put together to find ways to lower the long term deficit, and it suggested a combination of budget cuts and tax increases could put us in much better financial footing. First of all, a good portion of the debt is money we owe ourselves. This includes future payments to Social Security and other entitlements. These are looming expenses, but ones which we control. Tweaking these payments, who gets paid when, is politically risky, but probably necessary in the long run. Small changes can go a long way. Tax increases are another sour political option, but increasing the top tax rates and closing corporate loop holes to bring in more revenue is another necessity. If all parties were rational, we wouldn’t be where we are. The question now is if this slap to our collective face is enough to force the most extreme factions to compromise. My thinking is probably not. But for now, it might not matter.

This is an embarrassment for the United States, and it isn’t likely to be good news for a stock market that is already reeling. But even a lower rated US bond is still more valuable than most of the alternatives. Europe is on the brink again and the markets are worried that the contagion has spread beyond Greece, Ireland and Portugal, and bigger, more influential economies like Italy are at risk. So far, they have plugged the dam with their fingers, but the pressure is building. The fear of a fall out in Europe caused a flight to quality with global money rushing into US bonds (and mortgage backed Securities, lowering interest rates). So, the market has already spoken after seeing what happened with the ugliness of our political process, and they still think we are the safest alternative. The one eyed man is king in the land of the blind. We may be in trouble, but the alternatives are worse.

The economic reports released last weak mostly showed weakness, but the most watched indicator, the monthly jobs report, ended the week with a hint of sunshine. The ISM manufacturing index plunged to 50.9 from 55.3, the worst reading since July of 2009. Personal income and spending fell. The unemployment numbers came in better than expected, though. Employment for the month showed an increase of 117,000 jobs, and the unemployment rate dropped another notch to 9.1%. These aren’t great numbers and we need much stronger growth to gain any traction toward digging ourselves out of our rut. But it was better than expected and showed that we are still muddling through, and not getting worse.

Best rates of the year, but for how long? With the flight to quality last week, mortgage rates dropped to their lowest point of the year on Thursday, before bumping up a little based on the jobs report. With all the uncertainty and volatility in the market, no one knows how long these low rates will last. If you are considering a mortgage refinance, or looking to buy a new home, there couldn’t be a better time. If you want to take advantage of these low rates now, give me a call and I can tell you what we can do based on your personal 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 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