FHA Mortgage Rates Illinois May 11, 2010
As part of our weekly mortgage survey, Findlocalmortgagerates.com surveys mortgage rates from bank mortgage lenders across the U.S. for a variety of mortgage loan products. One of the key loan products measured are FHA home loans. Weekly FHA mortgage rates are published in these pages every Wednesday from the top five bank mortgage lenders and every other week we produce the rates from select banks for individual states.
Today’s data contains FHA mortgage rates in Illinois from two of the largest bank mortgage lenders, Wells Fargo Mortgage and Bank of America as well as two of the largest Illinois based banks, MB Financial Bank and First American Bank.
Current FHA mortgage rates offered by these bank mortgage lenders include:
Wells Fargo Mortgage offers a 30 year FHA loan with a mortgage rate of 5.000% with 1.0 point and an APR of 5.762%.
Bank of America markets a 30 year FHA with a rate of 4.75% and 1.0 point leading to a 4.892% APR.
MB Financial Bank promotes a 30 year FHA mortgage rate of 5.00% with no points and a 5.636% APR.
First American Bank has a 30 year fixed rate FHA loan rate of 5.00% and no points with an APR of 5.599%.
Mortgage loan APRs will vary due to points charged and other closing costs, FHA loan APRs will also vary due to the cost of monthly mortgage insurance and upfront mortgage insurance costs which are specific to FHA home loans.
An FHA loan can offer significant advantages for prospective home loan borrowers and existing homeowners looking to refinance their current mortgage loan. All of the loan programs listed are based on an FHA loan with a 3.5% down payment. FHA loans require a lower down payment than traditional, conventional loans. FHA loans also offer more flexible credit underwriting than conventional loans with little difference in interest rates and total costs.
The interest rates, annual percentage rates (APRs) and points shown are subject to change without notice. Mortgage rates and programs from these mortgage lenders may be subject to limitations. All loans and rates are subject to mortgage lender or bank approval.
Mortgage interest rates are published rates obtained from these lenders but are subject to variation based on borrower’s credit score, actual closing costs and other variables. Additional mortgage loan programs may be available.
To reach the listed mortgage lenders for current FHA mortgage rates and additional home loan information, representatives can be reached at the following phone numbers:
Wells Fargo Mortgage 877-937-9357
Bank of America 800-586-9780
First American Bank 847-952-3700
MB Financial Bank Mortgage Department 877-878-6262
FHA Mortgage Rate Survey May 5, 2010
Mortgage rates on 30 year FHA home loans were down rather significantly this week. Based on this week’s survey of FHA mortgage rates performed by Findlocalmortgagerates.com, the average FHA mortgage rate this week is 4.95%. This week’s average FHA rate is 12.5 basis points or 12/100 of a percent lower than the previous week’s FHA home loan rate of 5.075%.
The average points charged by the mortgage lenders in the survey to obtain this mortgage rate rose modestly to 0.70 points from the previous week’s average points of 0.625.
Reports on FHA loan volume continue to show an increased share of all loan originations are FHA loans. CNBC reported this morning that the figure is 50% of current home loans originated are FHA loans. FHA loans continue to offer flexible credit and qualifying standards as well as low down payments relative to the conventional mortgage market giving these loans a larger potential market to serve.
An additional significant factor in the rise in FHA loans is also the attractive mortgage interest rates and loan terms. The most recent survey on conventional 30 year fixed rate mortgages indicated an average rate of 5.10% and 0.475 points, modestly higher than the FHA loan rate.
FHA home loans are also not limited to first time home buyers and can be used to refinance an existing mortgage to lower the interest rate and payment, or save interest costs by shortening the term, or an FHA mortgage can even be used as a cash out refinance to help consolidate debt or pay for an education and more.
The largest FHA mortgage lenders in this week survey on 30 year fixed rate FHA mortgage rates included: Bank of America Home Loans, Wells Fargo Home Loans, US Bank, SunTrust Mortgage and HSBC Mortgage. For added comparisons of current FHA mortgage rates, the rates listed below also includes rates from TD Bank, which makes loans only in specific regions, and Bank of the West.
The current 30 year FHA mortgage rate at Bank of America Home Loans is 4.750% with 1.25 points and a 4.897% APR.
The current 30 year FHA mortgage rate at Wells Fargo Home Loan is 5.000% with 1.0 point with a 5.762% APR.
The US Bank FHA 30 year mortgage rate is at 5.00% with no points and an APR of 5.531%.
SunTrust Bank markets the 30 year FHA mortgage with an interest rate of 4.875% and 1.25 points with an APR of 5.449%.
HSBC Mortgage’s current 30 year fixed rate FHA home loan has a rate of 5.125% with no points and a 5.440% APR.
Bank of the West offers the 30 year FHA mortgage at 5.00% with 0.50 points for a 5.618% APR.
TD Bank has a 30 year FHA mortgage rate of 4.75% and no pints with an APR at 5.187%.
The mortgage interest rates, annual percentage rates (APRs) and discount points listed are current as of this publication but are subject to change without notice. The 30 year fixed rate FHA mortgage rates are based on home loan amounts of approximately $200,000.00 for owner occupied, single family homes based in Illinois. All mortgage loans are subject to bank or mortgage lender approval.
There are a variety of repayment terms and loan options available from these mortgage lenders. For more information on the mortgage lenders listed and current FHA mortgage rates, the contact numbers are:
Bank of America 800-586-9861
Wells Fargo Home Loans 877-937-9357
US Bank 888-831-7524
SunTrust Mortgage 800-634-7928
HSBC Mortgage 800-975-4722
TD Bank 800-937-5020
Bank of the West 800-488-2265
Current FHA Mortgage Rates April 22, 2010
The average rate for 30 year fixed rate FHA home loans were modestly lower this week based on the most recent survey of FHA mortgage lenders performed by Findlocalmortgagerates.com. The average FHA mortgage rate from the largest mortgage lenders was down by ten basis points or 10/100 of a percent for the week.
The average FHA mortgage rate this week stands at 5.05% with 0.725 points down from the prior week’s average FHA mortgage rate of 5.15% and 0.525 points.
The largest mortgage lenders in the survey includes: Bank of America Home Loans, Wells Fargo Home Loans, US Bank, SunTrust Mortgage and HSBC Mortgage. Of the largest mortgage lenders, three of the five reduced their mortgage rates while the other two lenders held their rates stable for the week.
The current FHA mortgage rates, points and APRs on a 30 year fixed rate loan from the top five mortgage lenders included the following:
The 30 year FHA mortgage at Bank of America Home Loans is now 4.875% with 1.0 point and a 5.021% APR. The 30 year fixed rate FHA Home loan at Wells Fargo Home Loan has a rate of 5.125% with 1.0 point and an APR of 5.897%. Bank of America reduced their rate from the previous week while Wells Fargo held their rate steady. Bank of America and Wells Fargo are by far the largest bank mortgage lenders by volume as of the close of 2009.
HSBC Mortgage has 30 year fixed rate FHA loan at 5.125% with no points and a 5.310% APR.
US Bank markets an FHA mortgage rate for a 30 year term at 5.250% and no points with a 5.792% APR.
SunTrust Bank’s 30 year FHA mortgage rate is now at 4.875% with 1.625 points resulting in a 5.484% APR.
FHA loans are available for first time buyers as well as other consumers purchasing a new home or seeking to refinance an existing home loan. FHA loans cannot be used for investment properties or second homes nor can a borrower have more than one FHA mortgage except under extraordinary circumstances.
The FHA mortgage rate survey results are based on mortgage loan amounts of approximately $200,000.00 for owner occupied, single family homes based in Illinois. The mortgage rates and points listed are current as of this publication date but are not guaranteed and are subject to change. All home loans are subject to bank or mortgage lender approval, additional conditions will apply.
For current FHA mortgage rates and loan terms from the FHA mortgage lenders listed, the following phone numbers may be used:
Bank of America 800-551-7975
Wells Fargo Home Loans 877-937-9357
US Bank 888-831-7524
SunTrust Mortgage 800-634-7928
HSBC Mortgage 800-975-4722
Mortgage Loans and the role of the Secondary Market
The secondary market is where mortgage loans are sold by mortgage lenders and banks and purchased by investors. The secondary market provides a number of benefits for mortgage originators and mortgage lenders, which in turn provides benefits to home loan borrowers.
In order for the secondary mortgage market to work effectively and efficiently, uniform mortgage lending standards needed to be established. The secondary market promoted standardization and uniformity of credit requirements, loan types and loan documents and required forms. This standardization could be a detriment to those potential home loan borrowers that needed special financing but a standardized market improves mortgage rates and greatly facilitates the home loan borrower’s process of comparing and shopping mortgage rates and terms.
Providing liquidity to the mortgage market so that mortgage lenders and investors can buy and sell home loans is the primary value and function of the secondary market. A market to buy and sells mortgage loans allows the mortgage lenders to offer competitive mortgage rates and keep and continual flow of funds available for mortgage lending.
The secondary mortgage market permits mortgage lenders to obtain cash required to fund new home loans at any time. The liquidity in the secondary market also encourages investors to participate and purchase home loan and mortgage backed securities, as the investors can be confident that the home loans can be readily sold at a later time if necessary. The liquidity in the market provides a constant flow of new money into real estate finance that helps to maintain and orderly and competitive market.
Liquidity that is inherent in the secondary market also allows the mortgage lenders to manage their interest rate risk. Mortgage lenders not only have the ability to sell the mortgage loans they originate but they can buy mortgage loans with different terms and mortgage rates to maintain a diversified mortgage loan portfolio. An investor in mortgage loans or a mortgage lender can buy home loans with different mortgage rates and within different geographic areas.
From the mortgage lenders perspective, risk that is in mortgage lending that can be ameliorated through the secondary mortgage market includes interest rate risk, liquidity of funds risks and potential default risk through loan portfolio diversification.
The major institutions that which invest in the secondary mortgage market include the Federal National Mortgage Association or FNMA, the Federal Home Loan Mortgage Corporation or FHLMC, the Government National Mortgage Association or GNMA and a variety of banks and institutional investors.
FNMA, FHLMC and GNMA are government sponsored enterprises that guarantee mortgage loans, purchase mortgage loans and establish portfolios of loans for sale as mortgage backed securities. FNMA and FHLMC operate with conforming loans while GNMA handles FHA home loans and VA home loans. The majority of home loans that are closed meet the lending criteria that are established by one of these entities. Home loans that are originated that do not meet the guidelines established by these entities are often referred to as portfolio loans since the mortgage lender is not concerned about loan resale and holds the mortgage loan for their own portfolio.