Mortgage Rate Update
FHA Loans Facilitate Home Ownership
The Federal Housing Administration (FHA) program first began in 1934 in an effort to encourage home ownership despite the difficult economic times of the era. The program enables consumers who may not qualify for a standard loan to obtain the financing they need to purchase a home without income limitations.
FHA loans differ from typical loans in that they are insured by the Federal Housing Administration, which is a part of the Department of Housing and Urban Development (HUD). Because this insurance reduces the lender's risk on the loan, lenders have greater flexibility with regard to approving loans. For example, FHA loans are not credit-score driven, so a client may be able to obtain a loan despite having had credit problems or even a bankruptcy in the past.
FHA loans also provide added flexibility when it comes to closing costs and the down payment. Many of the closing costs can be incorporated into the loan, and a down payment of just 3.5% of the purchase price is required. The down payment may be obtained as a gift from a family member. FHA loans are processed just like any other loan, and they provide a wonderful opportunity for consumers who are seeking to achieve home ownership!
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Mortgage Interest Rates for Fixed Rate Mortgages*
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Rates as of Thursday, 7th January, 2010:
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Term
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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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360
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5.125%
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5.345%
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$5.44
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5.375%
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5.509%
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$5.60
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15-Yr. fixed
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180
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4.625%
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4.998%
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$7.71
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4.875%
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5.101%
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$7.84
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7-Yr. fixed ARM
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360
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4.875%
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5.092%
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$5.29
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5.500%
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5.635%
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$5.68
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5-Yr. fixed ARM
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360
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4.125%
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4.332%
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$4.85
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5.375%
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5.509%
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$5.60
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3-Yr. fixed ARM
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360
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4.875%
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5.092%
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$5.29
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5.375%
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5.509%
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$5.60
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FHA 30-year fixed
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360
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5.000%
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5.218%
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$5.37
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5.125%
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5.257%
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$5.44
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*Rates are subject to change due to market fluctuations and borrower's eligibility.
Karl Peidl Pleasant Valley Home Mortgage Corp. 305 Harper Drive, Suite 3 Moorestown, NJ 08057
856-252-1224
kpeidl@pvhmconline.com
www.karlpeidl.com
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New Jersey: Licensed by the N. J. Department of Banking and Insurance Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.
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