Adjustable Rate Mortgages (ARM) Will Become Mortgage Of Choice If 30-Year Fixed Rate Mortgages Become Less Competitive

22 03 2011

 

  • 70% of all mortgages issued during the boom were ARMs
  • ARMs totalled just 3% of the market in 2009; currently they make up 5%
  • Freddie Mac predicts 10% by December
  • ARMs are a great bargain right now with the most common ARM loan currently having a rate of 3.5%
  • A $200,000 mortgage would have monthly ARM payment at 3.5% of $898 compared with $1,074 for a 30-year fixed-rate loan at 5%
  • That’s a $10,560 difference after five years, when the ARM would adjust

For more:  http://finance.yahoo.com/news/Adjustable-rate-mortgages-are-cnnm-4055253383.html?x=0&sec=topStories&pos=5&asset=&ccode=


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Categories : Fannie Mae, FHA, First-Time Homebuyer, Freddie Mac, Jumbo Loans, Mortgage Industry, Rates

Jumbo Mortgages In The Future Will Require Higher Down Payments And Credit Scores With Loan Terms Of Five And Seven Years Becoming The Norm

8 03 2011

 

  • Jumbo loans represent about 11% of the housing market (more than $45 billion in the 3rd quarter of 2010)
  • This is up from a low of 7% in 2008
  • They average about 12% all mortgage historically
  • Fannie Mae, Freddie Mac and FHA secure more than 50% of Jumbo Mortgages
  • Homebuyers wanting Jumbo Loans need larger down-payments of 20-40%  and higher credit scores, at or near 740
  • Five- to seven-year mortgages, amortized over 30 years, will become the preferred Jumbo program
  • The Fannie, Freddie and FHA limit will fall to $625,000 in October 2011
  • But expect the limit to fall further to $417,000 in next 2 years for most of the country

For more:  http://www.marketwatch.com/story/fannie-should-leave-jumbo-loans-alone-2011-03-07


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Categories : Fannie Mae, FHA, Financing, Freddie Mac, Jumbo Loans, Mortgage Industry, Purchases


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