Mortgage Rates in California with Bank of the West
Bank of the West is the second largest bank based in California ranked by assets. Bank of the West offers a plethora of consumer deposit and loan products in the state including mortgage loans in California with competitive mortgage rates.
Bank of the West provides a number of home loan products to choose form including fixed rate loans, adjustable rate loans and FHA loans.
Fixed rate mortgages through Bank of the West come with a variety of repayment terms.
The fixed rate loans have fixed principal and interest payments for the life of the loans and come with a reduced rate option with the bank’s Relationship Pricing which is available to qualifying Bank of the West customers.
The Bank of the West adjustable rate mortgages have an initial interest rate that is often lower compared to fixed rate mortgages but may change due to current market conditions or interest rates. These mortgage loans are also available with the bank’s Relationship Pricing which is available to qualifying Bank of the West customers.
The mortgage interest rate on the adjustable rate loans will have rate changes on the loans that are capped depending on loan program and the loans do not have negative amortization provisions so the principal balance cannot increase. The adjustable rate mortgages come with a variety of loan options and rates.
Bank of the West continues to offer competitive rates on FHA Loans. These loans have a several different loan terms and interest rates. FHA loans also have flexible credit and qualifying standards.
Current mortgage rates in California offered by Bank of the West include the following:
A 30 year fixed rate home loan with a mortgage rate of 5.00% and no points and an APR of 5.082%.
The 30 year loan with 1.0 point has a mortgage rate of 4.875% and an APR of 5.001%.
A 15 year fixed rate loan in California offered by the bank has a mortgage rate of 4.75% and no points with a 4.891% APR.
A 3/1 adjustable rate mortgage has a mortgage rate in California of 4.125% with no points and a 3.422% APR.
The 5/1 ARM which has a fixed rate period of five years as opposed to 3 years that is on the 3/1 ARM, also has a mortgage rate of 4.125% with no points and a 3.553% APR.
The California mortgage rates and fees listed are available to borrowers with an excellent credit history on owner occupied single family properties with a 20% or greater down payment. The actual mortgage interest rate and fees available to a borrower will be based on their credit history and other qualifying conditions.
The California mortgage interest rates, annual percentage rates (APRs), and points listed are subject to change without notice and assume the Bank of the West Relationship Pricing. The bank Relationship Pricing requires applicants to maintain a Bank of the West personal checking account with a debit card and automatic electronic mortgage payments.
All home loans in California are subject to bank approval and underwriting. For current mortgage rates and additional loan information on Bank of the West Products, the main customers service number is 800-488- 2265 or a new loan request can be called into the bank at 800-563-1852.
Bank of the West has 700 retail bank branch locations in 19 states including California.
Top Five Bank Mortgage Rates March 8, 2010
The top five banks ranked by assets include Chase Bank, Bank of America, Citibank, Wells Fargo Bank and US Bank. All five of these banks offer mortgage loans and mortgage rates in the majority of the states. Mortgage rates offered by these financial institutions provide a good barometer of prevailing mortgage rates and mortgage activity in the lending arena.
The following rates can help borrowers easily compare mortgage interest rates and product information to help find the right mortgage quickly and efficiently.
The rates are for mortgage loans based in California with a 20% or greater down payment for a single family, owner occupied home. If the down payment on a new home purchase is less than 20%, mortgage insurance may be required on the loan. The added cost of mortgage insurance could increase the APR as well as the monthly mortgage payment.
All loans would be subject to bank approval including a credit, income and assets. The mortgage rates were run on sample loan amounts of $175,000.00. Additional mortgage rates, point options and loan amounts are available from the mortgage lenders listed.
Chase Mortgage is currently offering a 30 year fixed rate home loan with mortgage rate of 5.25% and 0.125 points for an APR of 5.343%.
The 15 year fixed rate loan offered by Chase has a mortgage rate of 4.625% and 0.125 points for an APR of 4.782%.
Bank of America Home Loans promotes a 30 year loan with a mortgage rate of 4.875% with 1.0 point and an APR of 5.098%.
A 15 year term loan from Bank of America has a mortgage rate of 4.250% with 0.625 points and a 4.576% APR.
Citibank markets a 30 year home loan with a mortgage rate of 5.125% and 0.125 points for a 5.317% APR.
Citibank has a 15 year mortgage loan with an interest rate of 4.375% and 0.375 points with an APR of 4.773%.
Wells Fargo Home Mortgage markets their 30 year fixed with a mortgage rate of 4.875% and 1.0 point yielding an APR of 5.065%.
The 15 year fixed rate loan from Wells Fargo has a mortgage rate of 4.250% and 1.0 point with a 4.573% APR.
US Bank’s 30 year fixed rate mortgage has a mortgage rate of 5.125% and no pints with a 5.192% APR.
The 15 year fixed rate home loan at US Bank has a mortgage rate of 4.375% and no points and a 4.487% APR.
All rates are believed to be accurate and were verified on the date of this publication but interest rates are not guaranteed. For current mortgage rates and loan terms contact the mortgage lenders directly.
NJ Mortgage Rates with Atlantic Stewardship Bank
Good service combined with competitive mortgage rates with a local bank in New Jersey is not always easy to come across. Of the over 1000 state banks in New Jersey, Atlantic Stewardship Bank is one that offers good service and very competitive rates on mortgages in the state.
Atlantic Stewardship Bank is a New Jersey based bank that operates its main office in Midland Park, New Jersey, and has an additional twelve bank branch offices in the area.
Atlantic Stewardship Bank provides commercial and retail banking services to small and medium sized business and individuals in Bergen, Morris, and Passaic counties of New Jersey.
Atlantic Stewardship Bank offers a wide range of mortgage loan products and mortgage rates in NJ for home purchases or an existing mortgage refinance of a primary residence as well as for second homes and investment properties.
Residential mortgage loan products available in New Jersey from Atlantic Stewardship Bank include: conventional mortgages, jumbo mortgages on both fixed and adjustable rate mortgages as well as first time homebuyer’s program.
A sample of the current mortgage rates in New Jersey and mortgage loans offered by Atlantic Stewardship Bank include:
A 30 year fixed rate conforming loan on a loan amount of $100,000 to $417,000 has a mortgage rate in New Jersey of 5.000% with $450.00 in points and fees and an APR of 5.194%.
A 15 year fixed rate conforming loan on a loan amount of $100,000 to $417,000 has a mortgage rate of 4.375% with $450.00 in points and fees and an APR of 4.870%.
The rate on a 30 year jumbo mortgage with a loan amount of $750,000 to $1,500,000 has a mortgage rate in New Jersey of 5.750% with $0.00 in points and fees and an APR of 5.812%.
The bank offers a variety of adjustable rate mortgages including a 5/1 ARM that has mortgage rate in NJ of 4.375% with no points and an APR of 3.691%.
This is a sample of current mortgage rates in NJ by Atlantic Stewardship Bank, other rates, options and terms are available on some of the listed home loan products.
The NJ mortgage rates and annual percentage rates (APR) listed are based on a loan amount of $100,000 with a 20% or larger down payment on a single family owner occupied home with excellent credit. Mortgage rates are current as of this publication, rates are not guaranteed, all mortgage rates and mortgage loans in NJ offered by Atlantic Stewardship Bank are subject to change and bank approval.
For more information on mortgage programs and current mortgage rates offered by the bank call the Atlantic Stewardship Bank mortgage department for details at 1-877-844-2265.
Jumbo Mortgage Loans
Mortgage loans that are considered jumbo loans are those that exceed the limits that have been set by the government sponsored agencies, Fannie Mae and Freddie Mac. The Housing and Economic Recovery Act of 2008 changed Fannie Mae’s charter to expand the definition of a conforming mortgage loan. According to provisions of the Housing and Economic Recovery Act of 2008 (HERA), the national loan limit for mortgage loans to be securitized or purchased by the government agencies of FNMA and FHLMC is set based on changes in average home prices over the previous year, but cannot decline from year to year.
Fannie Mae and Freddie Mac each year set the limit on what constitutes a conforming loan, based on the October-to-October changes in mean home price following the terms set by The Federal Housing Finance Agency (FHFA). The Federal Housing Finance Agency (FHFA) has announced that the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009. The high cost areas are determined by the Federal Housing Finance Agency.
Every year the limit is reset to a new number in the month of January, while the numbers are constantly changing on a yearly basis, one of the most recent updates disclosed that the maximum loan amount is $417,000 for condominiums and single-family homes. Once your loan has exceeded this pre-set limit, you are no longer applying for a standard loan or conforming loan, but rather, you have moved into the jumbo loan category. The 2009 general conforming mortgage loan limits are identical to the 2006, 2007, and 2008 conforming mortgage loan limits.
The reason why some people need a larger home loan does not always mean they are seeking out the biggest and most expensive houses to live in. There are some parts of the country where starter homes can cost more than $500,000. The person who would choose to purchase these more expensive homes may find that a standard, conforming loan will not be sufficient. The mortgage loan often needed to buy these higher priced homes is called a jumbo loan. Jumbo loan applications have risen measurable in recent years due to the rapid increase in housing prices.
Typically there is a slightly higher mortgage rate associated with jumbo loans. Sometimes the definition of higher mortgage rate can be staggering; anywhere from a mortgage rate that is ¼% higher to 1% higher than conforming sized home loans. This is because both Fannie Mae and Freddie Mac only buy mortgage loans that are conforming loan size, to repackage into the secondary market, making the demand for a non-conforming loans or jumbo loans much less. Since these mortgage loans are not securitized by Fannie Mae or Freddie Mac, the less liquid market for jumbo loans leads to a somewhat less uniform set of standards.
Jumbo mortgage loans have many of the same options and attributes that are available on conforming loans. They will however, all have some restrictions. The variety of home loan types is not usually as vast with jumbo mortgage loans but you will certainly find 30 year fixed rate jumbo loans, 15 year fixed rate jumbo loans, adjustable rate jumbo mortgages, and a host of hybrid mortgage loan types. All of these jumbo loan programs will feature slightly higher mortgage rates than if they were compared to national averages. The higher mortgage rates apply to both purchase transactions as well as refinances.
The qualifying requirements for jumbo home loans will also be more stringent. Required credit scores will be higher. Down payment requirements will more restrictive leading to larger down payments and lower loan to values. Financial reserves or funds that are available after the mortgage loan closing costs and down payment will need to be more substantial.
This not to say that jumbo home loans will have extremely high interest rates or a thicket of qualification requirements. It is simply that jumbo home loans have discernibly higher requirements and theta a jumbo home loan borrower should be prepared that in order to borrow much more than the standard mortgage loan borrower they will have a somewhat higher burden during the mortgage underwriting process.
When shopping and comparing jumbo loans, a prospective borrower will want to research and compare as many mortgage lenders as possible and be sure to ask about the jumbo loan mortgage rates to avoid obtaining inaccurate information. There is no point in searching for the mortgage rate and qualifying requirements on a 30 year fixed rate loan only to find out that the information you receive is for a conforming loan amount.
While these mortgage rates on jumbo loans are higher than others, once you look at all of the payment options and how this interest is distributed throughout the life of the loan, you will be able to find the home loan that fits your financial situation best. Just because you have to use a jumbo loan doesn’t mean that you have to pay a jumbo monthly mortgage payment.
Draw on the mortgage calculator to help calculate the monthly payments differences between the varying jumbo loan terms as well as the rate difference between a conforming loan and a jumbo loan to thoroughly evaluate all options. A good source for mortgage calculators can be found at www.selectcalculators.com.
Risky Home Mortgages
Mortgages with risky terms or ones based on dicey credit standards are mortgages that can cause you problems. High risks mortgages may have an appropriate use in the mortgage marketplace for those borrowers who do not meet conforming guidelines. Borrowers who exhibit the needs of a high risk loan commonly needed a mortgage loan due to slow credit, extremely high loan amounts relative the homes value, or loans to speculate on real estate. In an earlier period, high risk loans were introduced to serve just this market segment. High risk loans were designed to relax the requirements for credit standards, little to no down payments and excessive debt ratios. Sub prime loans are the typical loan type we think of regarding high risk lending. As of recent, these loans have morphed and have now been used for a variety of purposes and sold to borrowers who don’t fall into a category of needing a home loan used for high risk transactions.
A mortgage is a loan that provides you with the resources to buy a home. If you aren’t educated about the types of loans that are available, some lenders may attempt to sell you a mortgage with lots of features and variations that don’t apply to your particular needs. There are many different products out there and some of them are dangerous. Make sure you know about high risk mortgages that can potentially get you in trouble. With slightly higher rates or conditions that are pushed onto the borrower, many lenders find offering these products more attractive for their overall rate of return.
Option ARM (adjustable rate mortgage) loans are probably the most dangerous type of mortgage. These loans give you a lot of flexibility when your monthly payment is due: pay a little or pay a lot. However, you can get in trouble very easily. Option ARM loans are mortgages that give a borrower a choice on how much a given payment is. This seems like a valuable feature inasmuch as you have the flexibility to respond to month to month circumstances. You can make a minimum payment, a full payment, or an interest only payment. These loans are filled with pitfalls.
First, you don’t build equity unless you make the full payments that you would make with a conventional mortgage. Given a choice between a large payment and a small payment, which one will you choose? With the smaller payments, you’ll actually owe more on your house at the end of the month than you did at the beginning, a situation of negative amortization.
Another peril of an Option ARM is that small payments will not last forever. Sooner or later the bank will want to put you back on schedule to pay the loan off, and will “recast” your loan at given intervals, or when you owe too much on the home (110% or 120%, for example) due to negative amortization. When they recast, they set the loan on track to fully amortize over its remaining life, and your minimum payment can increase sharply. If your budget can’t afford this increase, you’re in trouble.
An option ARM is almost always a bad idea. The mortgage rates on option ARM’s are initially a very low teaser mortgage rate. As soon as the introductory rate period or teaser rate is over the fully adjusted rate on this loan is as high as a 30 year fixed rate loan. Sometimes, the fully adjusted rate is distinctly higher than a 30 year fixed rate. If the introductory rate lasted a reasonable length of time, the low initial rate may have some value. The problem with the option ARM is that this teaser rate expires anywhere from one month to six months. The option ARM is clearly one of the worst loan products that were sold on a wide scale and in the category of Arms has the least favorable terms.
Interest only loans give you the ability to pay less each month because you’re not repaying principal. You can set up your own amortization schedule, that is, a schedule for paying back principal. However, you can also end up without any equity in your home – and possibly have to write a check if your home loses value and you want to sell it. Interest only loans should be used by the most disciplined of borrowers. The interest only option allows for a lower payment but, the principal has to be paid back at sometime. Delaying the repayment based on estimates of future home appreciation or the ability to refinance at a later date under more favorable terms may be a gamble that can cost you your home.
The home loan programs that have yielded some of the biggest problems this year are the no income verification loans and the various permutations of them. Alt-A, no income, no doc, and stated income are all terms to describe similar loan programs. These loan types don’t require the borrower to document their income. For the self-employed borrower who would employ aggressive techniques for write offs against their revenue stream or income, these loans filled a need. Recently, the use of low document income loans or no document income loans were used for wage earners and borrowers who had income that would have been easily verified. These mortgage loans may allow a borrower to qualify for a loan that under normal underwriting guidelines would have been impossible. The risk and cost for the borrower is now trying to figure out how to make the monthly payment on a loan based on income that they did not actually earn. Foreclosure figures on this loan type are certainly proving that not verifying income is not a free ride to homeownership.
Many of these loans have in fact opened the door for increased number of borrowers to become homeowners. Some of these home loan products may be appropriate for you. If you’re thinking of using one of these loans make sure you understand the risks. Don’t be tempted by the reassurances of a mortgage lender that profits at your risk. It may make more sense to buy a less expensive house with a fixed rate mortgage or repair your damaged credit first. Do your research and comparison shop before making the leap.