Mortgage Rate Update

By
Mortgage and Lending
Mortgage Backed Securities...
What the Fed's Purchases Mean to You

You've probably heard that the Fed is buying up billions of dollars worth of Mortgage-Backed Securities. But how does this really impact home loan rates and your mortgage?

Basically, the Fed's actions provide a demand for Mortgage-Backed Securities, which should help keep the ceiling on home loan rates from moving much higher in the foreseeable future. That's good news for home buyers who are looking to purchase a home at a bargain price, as well as those who can benefit from a refinance.

However...the Fed's actions do not necessarily mean home loan rates will move significantly lower.

It all depends on which Bond coupons the Fed purchases. If they purchase higher rate coupons-as they have been doing-their continued purchasing will likely keep a lid on rates, but won't necessarily push them significantly lower.

The fact is, rates are within inches of all-time historic lows, so don't wait to miss a great opportunity to purchase the home of your dreams, or get more money back in your budget by a smart refinance.

With a short conversation we can talk over the options, so you can rest assured that you're making smart decisions on your home financing.

Mortgage Interest Rates*
Rates as of Friday, 29th May, 2009:
  Conforming APR Payment per
$1,000
Jumbo APR Payment per
$1,000
30-Yr. fixed 5.250% 5.383% $5.52 5.750% 5.842% $5.84
15-Yr. fixed 4.875% 5.101% $7.84 4.875% 5.026% $7.84
7-Yr. fixed ARM 5.000% 5.131% $5.37 5.125% 5.213% $5.44
5-Yr. fixed ARM 4.500% 4.627% $5.07 5.000% 5.088% $5.37
3-Yr. fixed ARM 4.500% 4.627% $5.07 4.115% 4.198% $4.84
5-Yr. Interest Only 4.750% 4.879% $3.96 5.250% 5.339% $4.38
*Rates are subject to change due to market fluctuations and borrower's eligibility.
Superior Home Mortgage Corp. licensed in DE, FL, GA: Georgia Residential Mortgage Licensee #14511, MD, MI, NY: Licensed Mortgage Banker - NY State Banking Department, NC, PA, SC, VA: Virginia State Corporation Commission License # MLB-566, & DC. Superior Mortgage Corp. licensed in CT, MA: Mortgage Lender License # MC3208, NJ: Licensed Mortgage Banker - NJ Department of Banking, RI: Rhode Island Licensed Lender & Broker, & TN. SHM Mortgage Licensed by the New Hampshire Banking Department




Karl Peidl
Superior Mortgage Corp
Augusta Professional Center 854 S White Horse Pike
Hammonton, NJ 08037

800-706-6671 ext 4349

kpeidl@supmort.com

www.karlpeidlsmc.com



© Copyright 2009. All About News, Inc.

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