Daily Mortgage Interest Rate Observer 01/28/09
We saw some improvement in the mortgage market yesterday. The Fed buying mortgages, the slowing economy, the Obama administrations idea of creating a "bad bank" to pick up toxic assets from commercial banks are having a positive effect on our mortgage securities market. We're seeing spotty rate improvements but not enough of them to change the below mortgage rate averages.
My recommendation is to lock if you are closing within 15 or 30 days.
The average rate for the top 15 national banks with the following terms: Owner occupied homes, 30 year fixed mortgage, RATE LOCKED FOR 30 DAYS, platinum borrower*, zero origination, zero discount points is-
5.75%***. You can buy this rate down to 5.0% with a 1 point fee.
FHA-
6.0%*** with the below fee structure. You can buy this rate down to 5.0% with a 1 point fee.
15 bank closing cost averages (title, escrows and settlement not
included)- appraisal, credit, underwriting, processing, tax service,
flood certification, document drawing, etc.-
$1560***
***The lower the rate the higher the fees. The higher the rate the lower the fees. Like a teeter totter.
See my prior posts for new rate/fee adds introduced by Fannie Mae for conventional loans.
