Mortgage Rate Update

By
Mortgage and Lending

Mortgage Rate Update
How Does Inflation Impact Interest Rates?

If you've seen the news lately, you know that inflation is a very serious issue that will likely be on the rise as the year proceeds.

But What Does This Really Mean to You?

The bottom line is that as inflation increases, mortgage rates will rise too. That's because lenders know that a rise in inflation actually diminishes the value of the money they receive over the life of a loan, as the money they receive for payment simply won't go as far.

So when lenders see changes in inflation or even anticipate a rise, they increase their mortgage rates to make up for the loss in future buying power that will happen as a result of inflation.

What Should You Do?

Work with a home loan professional who pays close attention to what's going on with inflation-not only with the reports that come out, but also with the concerns that legislators and lenders express. After all, lenders may raise rates to protect their money as soon as they feel the tide turning.

More importantly...if you or any of your family, friends, neighbors or co-workers have been considering a purchase or refinance, this is a great time to act as home loan rates could be on the rise.

Mortgage Interest Rates*

Rates as of Thursday, 13th August, 2009:

 

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

5.500%

5.635%

$5.68

5.875%

5.977%

$5.92

15-Yr. fixed

5.000%

5.227%

$7.91

5.375%

5.543%

$8.10

7-Yr. fixed ARM

4.875%

5.005%

$5.29

6.875%

6.983%

$6.57

5-Yr. fixed ARM

4.250%

4.375%

$4.92

6.500%

6.606%

$6.32

3-Yr. fixed ARM

4.250%

4.375%

$4.92

6.500%

6.606%

$6.32

5-Yr. Interest Only

4.375%

4.501%

$3.65

6.750%

6.857%

$5.63

FHA 30-year fixed

5.500%

5.635%

$5.68

5.750%

5.851%

$5.84

*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

609-878-7013

kpeidl@linc-mort.com

www.facebook.com/newjerseymortgages

http://karltalksmortgages.com

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 





© Copyright 2009. All About News, Inc.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Christine McInerney 08/18/2009 04:39 PM
Topic:
Mortgage / Finance
Location:
New Jersey Atlantic County Hammonton
Groups:
Realtors®
South Jersey
New Jersey & Pennsylvania -- Realtors/Loan Officers/Title Clerks/Real Estate Lawyers
New Jersey Real Estate Experts
FREEDOM Office: Professionals Working from Home
Tags:
interest rates
rates
inflation
mortgage rates
mortgage tips
new jersey mortgage rates
mortgage rate update

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Rainmaker
637,251
Rick Cordisco
Pocono Mountain Lakes Realty - Lake Harmony, PA
Pocono Real Estate Professional

Karl, nice in depth look into what makes thew rates tick. Thanks for sharing. Mortgage stuff usually bores the hell out of me but insight into particulars I like.

Aug 13, 2009 01:00 AM #1
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Thanks Rick.  I appreciate the feedback. 

Aug 13, 2009 01:12 AM #2
Rainmaker
173,650
Christine McInerney
Great Life RE - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

Great chart.  There area a lot of buyer saying they are not in a hurry and will wait till they get the price they want- what they often do not understand is that a lower price but higher interest rate could actually be more expensive.

Aug 18, 2009 04:39 PM #3
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Christine & Jennifer - You are absolutely right.  A lower sales price does not always mean the house will cost less. 

Aug 19, 2009 03:49 AM #4
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Rainer
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Karl Peidl

Accredited Loan Consultant
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