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.

Housing Loss - Hurrican Katrina - Interest Rates

As the events continue to unfold in the wake of Hurricane Katrina, Gulf Coast residents look forward to a return to normal life. It will be a long time for rebuilding to take place. Water could be unsafe for years. Homeowners in the region need to take a good look at disaster insurance coverage. Hurricane Katrina magnifies the need to reexamine your insurance policy. find out exactly what it covers and get flood and fire protection.

When policyholders are displaced, the immediate need is additional living expenses to pay for food, housing, and other essentials. Typically, insurers provide such funds up to 20 percent of the amount of the policy. The insurer will pay additional living expenses to a policyholder whose home is now uninhabitable. For example, if homeowner's monthly pre-loss expenses were $2,000 (mortgage, utilities) and are $5,000 post-loss (living in a hotel, eating out), the insurer will pay the $3,000 additional cost.

Freddie Mac has announced a three-month suspension of mortgage collections.
The Federal Deposit Insurance Corp., which regulates banks, is asking financial institutions to be generous toward hurricane victims whose loan and insurance payments are due.

Recent gains in energy prices resulting partially from the hurricane, were thought to stay the Federal Reserve's rate-hike program and erase the need for additional short-term interest rate rises through year's end. But according to fed funds futures, the probability of the Fed raising rates is 90 percent for the Sept. 20 meeting tightening credit by 50 basis point.

Economic instability caused by Hurricane Katrina could steady mortgage rates and sustain the life of the housing boom. Private contractors are rushing to cash in on the unprecedented sums to be spent on Hurricane Katrina relief and reconstruction.

Americans Are Freeing Up Funds With A Home Equity Loan

Sales of new homes jumped to a record high in July, up 6.5 percent from June, the Commerce Department said on Wednesday. Refinancings last week increased as a percentage of all mortgage applications, up to 43.7 percent from 42.4 percent, the MBA said.

Home owners are looking at ways to free up funds by refinancing or opting for home equity loans. For example, a $200,000 home with a $125,000 mortgage has $75,000 in equity.

Home Refinancing AlternativesNow using a mortgage payment calculation tool compare mortgage payments at current rates with he mortgage rates in the chart. Significant savings? If so, you see the value of opting for home loan refinancing.

Cash Out Refinancing Program.This not only frees up funds per month but also puts immediate cash in hand for other purposes such as investing in stocks and bonds or pursuing a business venture or some other income generating pursuit.

Mortgage Market Snapshot
Daily Mortgage Averages Updated: 8/25/2005
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PRODUCT RATE POINTS APR CHANGE
30 Year Fixed 5.46% 0.52 5.57% 0.000%
15 Year Fixed 5.04% 0.56 5.25% 0.000%
30 Year Fixed Jumbo 5.73% 0.63 5.84% 0.000%
15 Year Fixed Jumbo 5.29% 0.61 5.48% 0.000%
5 Year Balloon 5.36% 0.84 5.94% 0.000%
7 Year Balloon 5.55% 0.61 5.94% 0.000%
1/1 ARM 4.45% 0.64 6.25% 0.030%
3/1 ARM 4.78% 0.63 5.91% 0.010%
5/1 ARM 4.98% 0.59 5.79% -0.030%
1/1 Jumbo ARM 4.20% 0.87 6.28% 0.010%
3/1 Jumbo ARM 4.92% 0.75 6.02% 0.000%
5/1 Jumbo ARM 5.12% 0.66 5.98% 0.000%
FHA 30 Year Fixed 5.34% 0.52 5.45% -0.010%
FHA 1 Yr ARM 4.46% 0.60 6.39% 0.000%
VA 30 Year Fixed 5.43% 0.43 5.53% -0.010%

FHLMC 5.56% 5.59%
Fannie Mae 5.67% 5.71%

A Brief History Of Mortgage Rates

Did you know that lenders have been charging interest on loans for over 34 centuries.? A biblical reference reveals when and to whom interest was to be charged according to the Mosaic Law. Still the question is how much interest was charged? Was there a fluctuation in interest levels? Are ancient interest rates comparible to our day?

A mortgage rates shopping resource reports "the Greeks interest rate was sustained between 10 percent to 12 percent." So there were regular periods of fluctuation although they managed to keep their rates fluctuating to far above the 12.00 percentile. The report reveals that the Romans’ carried rates that fluctuated from 4 percent to 50 percent, depending on where in society men lived." These astonishing reports indicate that rates have been fluctuating from ancient times up to the 21st century. And the interest rates of the ancients at one time or another were comparible to todays rates.

So is there a lesson in all of this? Yes. Rates may rise and rates may fall but interest rates will always be.

Home Refinancing A Good Investment Strategy

With a wide selection of high yeild investment strategies now available it may be hard to believe there may be an investment opportunity sitting in your front yard.

Borrowers have yet another chance to lock in low long term rates as 30-year fixed mortgages are once again below 6.00% or convert out of variable rate loans, especially those loans indexed to the Prime Rate which now stands at 6.00%.

The objective is to lower your rates and reduce mortgage payments in order to free up funds to invest in high yield accounts. Once way to do this is consideringlowering your rates on home financing be opting to refinance your home loan.

Rates on 15-year,fixed-rate mortgages, a popular choice for refinancing a mortgage are still holding steady well below the 6 percent threshold. It's easy to see where the savings comes in if your current rates are 6.50% or higher.