Todays Best Rates

Todays Best Rates

30 Yr Fixed 5.64% 0.65 5.81%
15 Yr Fixed 5.23% 0.65 5.50%
1 Yr ARM 4.18% 0.55 6.59%

Today's Mortgage Rate News
Mortgage lenders slightly hiked rates this morning. New Fed Chairman Ben Bernanke
appointed. The Fed to maintain its plans to raise interest rates at what some suspect
will be every meeting this year.

Todays Tips:Brokers will generally contact several lenders regarding your application, but they are not obligated to find the best deal for you unless they have contracted with you to act
as your agent. Consequently, you should consider contacting more than one broker, just as
you should with banks or thrift institutions.

Guide: Ask each lender and broker for a list of its current mortgage interest rates and
whether the rates being quoted are the lowest for that day or week.

Glossary: Loan origination fees are fees charged by the lender for processing the loan
and are often expressed as a percentage of the loan amount.

Need To reduce your mortgage payments? Need cash? Want to lower your debt? Secure your
financial decisions now while rate are low.Best deals: New home mortgage, long term fixed rate home refinancing and home equity loans. 

Risk of Home Price Declines Rising

In the last eight and a half years, the country has experienced an unprecedented run-up in home prices. Over this time, the rise in home sale prices has been more than 40 percentage points higher than the overall rate of inflation. The increase is said to have begun turning in on itself.

It seems that the risk of price declines over the next two years has increased in the nation's 50 largest housing markets, according to the latest PMI U.S. Market Risk Index, whose median risk index value rose 11.6% in the third quarter.

Homes in Gotham got a little more affordable in the third quarter...or rather,prices dropped, but they still remained in nosebleed territory.

It is likely that the regions experiencing the largest run-up in home prices will see the largest fall during the crash. For this reason the New England region is especially vulnerable to a downturn in the housing market.

How would a drop in home price values impact the economy.
In 2002 a research an economic policy and research firm, cepr.net predicted the following:

The collapse of the housing bubble, implying a drop of between 11 and 22 percent in the average of housing prices , will destroy between $1.3 trillion and $2.6 trillion in housing wealth.

7) In the wake of this collapse, residential construction is likely to fall by between 0.6 and 1.3 percentage points of GDP.

8) The loss of this much housing wealth will reduce consumption by between $80 and $160 billion.

9) The average ratio of homeowner’s equity to value, at 55.2 percent, is near its low for the post-war period. A sharp drop in home prices will send this ratio far below its previous low point.

At the present time there is much wealth in ones home. Were one to attempt to capitalize on it the only way to sustain that wealth would be to turn it over into high yield investments and turn over the returns as well. In other words the equity wealth would be made to make income at a rate that offsets the mortgage payments that far exceeding the home value.

Many homeowners first lowered the mortgage rates in order to free up funds for such an investment. Other then took out home equity loans purely for the purpose of investment and debt resultant debt reduction.

Using ones home as collateral is always a last option when needing funds. Still when there is no option many have used some of the borrowed funds to invest in education, small businesses or purchase precious metals or some other more certain profit generating venture.

Offsetting debt by investing for higher returns in or to pay off debt more quickly is always the wisest course to take. 

Inflation Worries Trigger Rise In Rates

Worries about inflation and rising interest rates continued to plague bond traders on Wednesday. Fed concerns regarding inflation spurred aggressive selling of government debt and reinforced the need for further rate hikes. These factors forced lenders to edge rates up on many products.

Tip of the Day: Whether you are dealing with a lender or a broker may not always be clear. Some financial institutions operate as both lenders and brokers. And most brokers’ advertisements do not use...

Home equity loans are at attractive levels.
Your home's value has grown enormously in recent years, so you're sitting on a lot of equity. If you're looking to start a business, grow a business or invest in your education you may be sitting on a goal mine. Find out how much you can borrow and what to do with it.

Current Mortgage Rates

$30K HELOC 5.88%
$50K HELOC 5.40%
$30K home equity loan 7.37%
$50K home equity loan 7.16%
$75K home equity loan 7.04%

Get free rate quotes for home equity loans at http://www.bcpl.net/~ibcnet


30 Year Fixed 5.65% 0.59 5.76% 0.000%
15 Year Fixed 5.27% 0.53 5.48% 0.000%

30 Year Fixed Jumbo 5.87% 0.52 5.95% -0.010%
15 Year Fixed Jumbo 5.46% 0.54 5.64% -0.020%

5 Year Balloon 5.60% 0.67 6.19% 0.020%
7 Year Balloon 5.62% 0.58 6.12% 0.080%

1/1 ARM 4.29% 0.67 6.43% 0.020%
3/1 ARM 5.07% 0.50 6.10% -0.030%
5/1 ARM 5.19% 0.54 5.94% -0.030%

1/1 Jumbo ARM 4.76% 0.76 6.35% 0.000%
3/1 Jumbo ARM 5.22% 0.56 6.08% -0.020%
5/1 Jumbo ARM 5.39% 0.56 6.02% -0.030%

FHA 30 Year Fixed 5.60% 0.20 5.67% -0.040%
FHA 1 Yr ARM 4.84% 0.51 6.54% 0.120%
VA 30 Year Fixed 5.64% 0.43 5.73% -0.030%


What's the word? "Broker." When getting a loan be sure to ask whether a broker is involved. Brokers are usually paid a fee for their services that may be separate from and in addition to the lender’s origination or other fees. For more helpful tips and access to low rate financing go to http://www.bcpl.net/~ibcnet

Conventional loans: Conventional loans are mortgage loans other than those insured or guaranteed by a government agency such as the FHA (Federal Housing Administration), the VA (Veterans Administration), or the Rural Development Services (formerly know as Farmers Home Administration, or FmHA). 

Mortgage Applications in U.S. Fall to Lowest Since April

Mortgage Applications in U.S. Fall to Lowest Since April, MBA Index Shows as interest rates rise. As mortgage applications fall lenders and brokers rush to make a deal on loans. This can open the way for more competitive offerings to lure in business. Among the common offerings are cash back incentives, lower fees and rates.

The key is to know whats being offered and put it on the table. One way to do this is by making good use of online lending market places

Todays Rates
30 Year Fixed 5.66% 0.51 5.76% 0.010%
15 Year Fixed 5.28% 0.46 5.47% 0.010%
30 Year Fixed Jumbo 5.88% 0.50 5.96% 0.000%
15 Year Fixed Jumbo 5.48% 0.50 5.65% 0.000%
5 Year Balloon 5.59% 0.62 6.20% 0.010%
7 Year Balloon 5.55% 0.63 6.11% 0.010%
1/1 ARM 4.25% 0.67 6.42% -0.020%
3/1 ARM 5.10% 0.50 6.12% 0.000%
5/1 ARM 5.22% 0.51 5.96% 0.000%
1/1 Jumbo ARM 4.76% 0.77 6.34% 0.000%
3/1 Jumbo ARM 5.25% 0.50 6.08% 0.010%
5/1 Jumbo ARM 5.41% 0.50 6.04% -0.010%
FHA 30 Year Fixed 5.64% 0.18 5.71% 0.000%
FHA 1 Yr ARM 4.72% 0.80 6.55% 0.000%
VA 30 Year Fixed 5.67% 0.29 5.75% 0.000%

Why use a lending marketplace over cold calling lenders? Time and competition are the two major factors. With little time to apply for a loan and make cost and rate comparisons over the phone, many users are making use of online rate quote applications and cutting time and costs.

15-YEAR FIXED RATE MORTGAGEThe monthly payment is higher but the interest rate is usually lower and one saves half the total interest cost of the 30-yr mortgage. Terms does not allow for the maximum mortgage interest tax deduction.

The present housing industry is still booming. Homeowners are seeing astronomical gains in home values. It is a given that the housing market will peak at which time home pricing and value is expected to depreciate. How will this impact the market? Should home owners wait for the housing market to level off before taking out a home equity loan or refinancing?

Should home values tumble and reflect the homes' true market value, home owners with mortgage balances that are larger than a home's true value and face hardship that forces them to sell their home will have to come up with the difference.

To offset this problem make sure your appraiser is assessing the true value of your home. Avoid infalting tactics that could leave you high and dry in the end.

Should home owners wait for the housing market to level off before taking out a home equity loan or refinancing? There is no way of knowing when the housing bubble will burst and at what level this will leave the value of homes. So if funds are required in order to raise the qaulity of life or at the very least maintain it, getting a home equity loan or line of credit may be considered a practical investment.

As home values continue to rise many are contemplating how to take advantage of this unique investing phenomenon. There would appear to be two ways to go about it.

1. Get a home equity loan or line of credit and invest the funds into whole products with quick turn around on the retail market.

2. Sell your home. Save a portion, invest a portion in stocks, bonds and mutual funds. Create a second income. Turn over the profits until you're able to live off the proceeds.

Experienced investors believe the safest way to invest is to do so in gold, silver, Platinum or any of the metals. Silver seems set up to surpass even gold in earnings. Other investments include real estate. A secure and steady approach would be investing in bonds and mutual funds.