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Mortgage Rate Update &
Choosing a Fixed Rate Loan
Fixed rate loans generally come with one of two options; the 30-Year Fixed and the 15-Year Fixed. If a borrower is planning on being in the same home for a long period of time, a 30-Year Fixed may be more attractive because it offers stability. The monthly payment will remain consistent over the life of the loan. If interest rates are at historic lows at the time the borrower is seeking to obtain financing, this is a good program to consider.
A 15-Year Fixed loan program offers the same stability, but the accelerated amortization schedule makes the monthly payment substantially higher. While the interest rate may be lower on this type of loan, the borrower must be willing to commit to a higher monthly payment. If the borrower wishes to retire in 15 years and be debt-free at that time, this loan program may be more suitable to the borrower's long-term needs.
It is also possible to make pre-payments on a 30-Year loan and reduce the life of the loan, as well as the overall interest payment, without committing to the higher monthly payment of a 15-Year program. As long as there is no pre-payment penalty associated with the 30-Year mortgage, pre-payment offers the borrower the latitude to make additional payments when it is affordable. If cash flow becomes difficult, this arrangement will not put the borrower in a compromising position.
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Mortgage Interest Rates*
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Rates as of Thursday, 17th September, 2009:
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Conforming
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APR
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Payment per
$1,000
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Jumbo
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APR
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Payment per
$1,000
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30-Yr. fixed
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5.125%
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5.131%
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$5.44
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5.375%
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5.465%
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$5.60
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15-Yr. fixed
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4.500%
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4.723%
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$7.65
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4.875%
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5.026%
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$7.84
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7-Yr. fixed ARM
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4.375%
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4.627%
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$4.99
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6.500%
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6.596%
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$6.32
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5-Yr. fixed ARM
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4.000%
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4.124%
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$4.77
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6.125%
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6.219%
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$6.08
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3-Yr. fixed ARM
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4.000%
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4.124%
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$4.77
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6.125%
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6.219%
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$6.08
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5-Yr. Interest Only
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4.000%
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4.124%
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$3.33
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5.375%
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5.465%
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$4.48
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FHA 30-year fixed
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5.000%
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5.131%
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$5.37
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5.250%
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5.339%
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$5.52
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*Rates are subject to change due to market fluctuations and borrower's eligibility.
Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037
Accredited Loan Consultant
609-878-7013
kpeidl@linc-mort.com
www.karlpeidl.com
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Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.
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