Illinois Mortgage Rates and News

Over the last months, it seemed like Greece was the center of the financial universe, and not much else really mattered. But over the last week Greece was hardly a factor, with the new deal in place, and though neither side (the Greeks, and the the Germans and other countries holding the Greek debt) was very happy with the deal, it seemed that this was enough to keep the finger in the dyke to keep the flood at bay. It isn’t like anyone thinks that this agreement solves any of the problems with Greek debt, it just extends the horizon as to when Greece will default, so that it doesn’t have to be dealt with now. This view may be a bit premature, as Germany and Finland have to vote to okay the deal, and opposition is now rising in these countries. But for now, Europe is calm and the focus is back to what was going on in the US economy, and as a result, Mortgage rates have risen slightly.

A big part of the focus this past week, was on the stock market. The stock market has been bumping around the 13,000 level in the DOW index, going above it for the first time in 4 years, before closing slightly below the number for the week. This level is looked at as a resistance point for stocks, and if they go a little, higher, this will be taken as a sign that we are in a new bull market, and money will flow into stocks again. Theoretically, at least. The situation in Europe has been a damper, and last week worries about fuel costs going much higher have also curbed the excitement to a degree. But there are legitimate signs of optimism in the economy. The University of Michigan consumer sentiment survey rose to 75.3, beating expectations. This is important because consumer sentiment is a measure of whether consumers are in a buying mood, or not. First-time jobless claims remained in the  351,000 range, and the four week average hit it’s lowest level since March of 2008.  The trend to better employment numbers has been slow but steady. There was also good news on the housing front. Existing home sales improved in January, and new home sales, which have been absolutely dead for the last several years, have started to move higher, too. Part of this improvement has got to be weather related, and though more homes are selling, the prices are down from where they were a year ago. But this is an encouraging trend, and housing needs to get better before the economy can really stand on its own. The big question now will be what happens to housing inventory. The inventory of homes for sale has been moving steadily down over the last months. With strong demand and fading supply, home prices will eventually start to rise. The question is whether the big banks will start adding to the inventory again with their backlog of foreclosed properties.

Mortgage rates rose slightly last week, but are still near all time lows. The FED has been doing everything it can to keep mortgage rates low, and absent some major surprise, most experts expect we will stay in this affordable range. But, good news for the economy, optimism, is bad news for mortgage rates. On the other hand, bad news and fear are what drive rates lower. If the problems in Europe are really on hold (a big if), and if the stock market does make a move higher, though rates will still be in a low, low range, mortgage rates might start to climb a bit higher.

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 I remember my humanities classes correctly, the Greeks invented Drama a long time ago. Over the generations they have gotten very good at it, and Greek drama continues to be the biggest mover in the financial markets today. The stock and bond markets whipsawed last week based on the latest details of whether there would be a Greek debt agreement, or not. At first there was, then it wasn’t really after all, then a few more reverses, then as of Sunday night, the Greek parliament passed the austerity agreements, so that they will be eligible for their next round of funding from the European Union. But don’t expect this to be the curtain closer. The deal has passed, but their is rioting in the streets and Greek elected officials are watching anxiously. The truth is, there are no good options for the Greeks, as going along with the forced austerity program will tank the economy, and withdrawing from the EU will also tank the economy. Either path involves a lot of pain. The equity markets will respond favorably to this though ( bonds and mortgage rates will be pressured higher), as it buys the European Union a little more time to reshuffle and shore up their card walls. If Greece withdrew it was expected to start a chain reaction, but for now optimism is back, until the next act.

On the home front, the news continues to strengthen. Weekly claims for unemployment are now below 375,000, the lowest level since May of 2008, which is more evidence that companies are actually hiring again. Credit availability is also the highest it has been since the start of the credit crunch. If credit really is starting to thaw, that is good news for the economy as there can’t be a sustained recovery if the banks aren’t lending. The Fed’s declaration that they will be keeping rates at all time lows through the next 3 years has to be an incentive for banks to get their money out of their vaults and out earning interest. Consumer confidence ticked slightly lower, but this didn’t have much effect on the markets.

Mortgage bond yields ticked slightly higher last week, and we are now near the top end of the range. Still, mortgage rates have been amazingly stable recently, and even if we kick slightly higher, we are still at all time low rates. Barring a collapse in Europe, it is looking doubtful that rates will fall much lower than where they are now. The Fed is doing it’s best to keep rates low (operation Twist) so we aren’t likely to spike much higher, either. The risk is still on the side of caution. If you are looking to refinance your current mortgage, or buying a new home, it makes take advantage of these low rates 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

Over the past months there have been steady signs that the economy was starting to build steam and improve. The employment report released on Friday is the best evidence of this view yet. The latest report showed an increase of 243,000 new jobs, and a drop in the unemployment rate to 8.3% from 8.5%. This was a solid showing, and more so because it handily beat expectations. Revisions to previous months also came in higher, so this was the most positive report we have seen in a long, long time. This is still just one report and there are still way too many people who are long time unemployed, there are still over 12 million Americans looking for jobs we have and a long way to go to make up for all the contraction in the economy over the last several years. But this is an optimistic sign. Another good sign was the ISM service and manufacturing indexes which showed faster levels of expansion in January. Another sign of improvement came from auto sales which came in with their best month since the cash for clunkers incentive program back in 2008. Anecdotally, from talking with several business owners last week, their orders are up and there is more optimism in the air.

Mortgage rates were mostly flat to just slightly higher for the week, but that was after improving in the early part of the week and getting smashed at the end, after the release of the employment report. In other times, the reaction to this report would have been even more extreme, and sent rates much higher. This hasn’t happened, yet, mainly because there is so much uncertainty globally, and because we need more proof of growth here before seeing this as a true trend and not just an outlier of a report. There were signs of growth last year that only lasted a few months before fading again. The question now is if we will go sideways, or if a real reverse leading to higher rates is on the way. It’s probably no surprise that the answer to this may be based on what happens with Greece. Sunday night talks broke down inside the Greek government on what would be done to restructure their debt. Greek officials are now saying that they will not abide any more moves to austerity, which means a default may finally be at hand. New talks are planned for today, Monday, but if Greece continues down this path, and European officials don’t blink, this could set off fireworks. This may be a volatile week in the markets.

Property taxes came out in Cook county last week. This is good news for anyone who is scheduled to close a purchase or refinance there soon, as this means you won’t need to set up a TI account. A TI or Tax Indemnity account is when the title company, which handles the closing, requires an escrow of usually 1 and 1/2 times the last tax bill to be held back to make sure they are collecting enough taxes to account for any tax increases. Now, with the actual numbers out, this means a lot less cash will be needed at closing. This is the first time in the last several years that the tax bills have actually come out on time.

Here in Chicagoland, the combination of warm weather, low home prices and historically low mortgage rates, means the Spring real estate market has started early this year. Usually not much happens before the Super Bowl, so this is an early start. Home buyers are out in force and looking for bargains. Most of the sales are either distressed transactions, that is short sales or foreclosures, or recently flipped homes where an investor bought a home, did a rehab and put it back up for sale. This activity is probably not going to help the next tier of move up buyers who need to sell their home before buying another, but it will help reduce the inventory which is the crucial first step. There is still way too many distressed homes that are further back in the pipeline, so we still have a ways to go before we can say we are in a normal market again. But the fast start is encouraging and it is good to see home buyers realizing how affordable homes are, and that there is value in buying 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

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

Last month congress passed a bill which restored the temporary high loan limits for FHA mortgages. The news at the time was for the higher cost areas, but last week week HUD made it official and the higher temporary loan limits are now in place across the country and these higher limits  will be set until the end of 2012. This is good news for home buyers who are buying larger homes or smaller apartment buildings (2 to 4 unit buildings), since it allows these buyers to purchase with just a low 3.5% down payment, and it the more lenient qualifying standards FHA offers. It is also good for the housing market in general because more qualified buyers means a stronger and more robust market.

These loan limits were originally put in as part of the economic stimulus bill as a way to increase financing options and help stabilize the housing market. The higher FHA Max loan limits were extended beyond what they were originally called for, but expired earlier this year due in part to concern over the budget deficit. With the housing sector still soft, industry groups pushed hard for this extension.The max FHA loan amount here in the 6 county Chicago metropolitan area (Cook, Dupage, Lake, Kane, Will and Grundy Counties) is now back to $410,000 for a single family home.

Here is the table for the Chicago Metro Area:

The FHA max mortgage is determined on a county wide basis based on the areas median home values. In higher priced areas (mostly California) the max limit extends up to a high of $729,750. The floor in counties where higher limits don’t apply, is $271,050.

This applies not only to all FHA purchase loans, but also FHA 203k rehab loans and FHA refinances.

Here is a link to the HUD search tool which gives the FHA loan limits by County.

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