Today’s FHA Mortgage Rates September 3, 2010
FHA mortgage rates ticked up modestly by the end of the week. Today’s average 30 year FHA mortgage rate moved up to 4.50% based on the most recent survey FHA mortgage rates performed by Findlocalmortgagerates.com. Earlier in the week the average 30 year FHA mortgage rate from the top bank mortgage lenders had fallen to 4.425%.
The average points charged by the top FHA mortgage lenders to deliver this rate was at 0.625 points. The average points charged has stayed in relatively tight range in the past 30 days with a high of .825 points and a low of .575 points. Today’s FHA mortgage rates survey showed the average points charged falling within a range of zero points on the low end and 1.375 points on the top end. The FHA mortgage interest rates ranged from 4.375% to 4.75%.
The top five bank mortgage lenders in this week’s survey, Wells Mortgage, US Bank Home Mortgage, Bank of America, SunTrust Mortgage and HSBC Mortgage offered the following 30 year FHA mortgage rates, points and APRs:
Wells mortgage 30 year FHA mortgage rate is 4.375% and 1.0 point with a 4.738% APR.
US Bank mortgage 30 year FHA mortgage rate is at 4.50% with zero points and a 5.01% APR.
Bank of America mortgage has a 30 year FHA with an interest rate of 4.75% with 0.75 points and an APR of 4.852%.
SunTrust mortgage rate is 4.375% with 1.375 points and an APR at 4.936% on the FHA 30 year home loan.
HSBC Mortgage offers the 30 year FHA loan with a mortgage rate of 4.50% with no points and an APR of 4.678%.
The FHA mortgage rates, discount points and APRs listed are for owner occupied single family properties in Illinois with a loan amount of approximately $200,000.00. The bank FHA mortgage rates listed are current as of this publication date but are subject to change.
All mortgage loans require bank approval, additional conditions and some restrictions may apply which may also alter the mortgage rates, points and APR offered by the mortgage lender.
Top WV Bank Mortgage Lenders
Find current West Virginia mortgage rates from local West Virginia bank mortgage lenders. Finding the best mortgage involves contacting multiple mortgage lenders to compare the best mortgage rates and terms.
Regardless of the mortgage loan request, whether it is for a new home purchase in West Virginia or to refinance an existing West Virginia mortgage loan, it is important to have the right information about mortgage lenders and mortgage rates before filling out a new home loan application
Shop and compare today’s current West Virginia mortgage interest rates with the top bank mortgage lenders in West Virginia. Bank mortgage lenders listed based on total assets.
West Virginia borrowers that are buying, building, refinancing or looking for a vacation home can use these bank mortgage lenders to help find a competitive fixed rate mortgage, adjustable rate mortgage, FHA loan and more.
The top ten bank mortgage lenders in West Virginia include:
WesBanco Bank is the largest bank based in WV. WesBanco is headquartered in Wheeling, West Virginia and has over 110 bank branches in West Virginia, Ohio and Pennsylvania. WesBanco Bank can be reached at 800-328-3369.
United Bank, based in Parkersburg, WV is the second largest bank. United Bank retail customer service contact number is 800-327-9862.
City National Bank of West Virginia is the third largest bank. City National Bank of West Virginia has bank branch locations in West Virginia, Kentucky and Ohio. City National Bank can be reached at 800-896-0769.
The number four bank in WV is Summit Community Bank which has nine bank branch locations in WV and six bank branches in VA. Summit Community Bank contact number is 877-776-9722.
Centra Bank is the fifth largest bank mortgage lender in WV. Centra Bank can be contacted at 877-901-2368
Putnam County Bank is the sixth largest WV bank mortgage lender. Putnam County Bank has three bank branches and one bank lending center. The loan center can be reached at 304-562-5055.
First Sentry Bank is the seventh largest bank and has four bank branches in the WV. First Sentry Bank is available at 304-522-6400.
Huntington Federal Savings Bank is the eighth biggest bank mortgage lender in WV. Huntington Federal Savings Bank is based in Huntington, WV and has five bank branches in the state. A Huntington Federal Savings Bank loan officer can be reached at 309-528-6230
First Century Bank is the ninth largest bank in WV. First Century Bank is based in downtown Bluefield, West Virginia and has ten bank branch locations in the state. First Century Bank can be reached at 877-214-9426.
Clear Mountain Bank is the number 10 bank. The bank mortgage department can be reached at 304-777-4663.
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
FHA Mortgage Rates Survey April 28, 2010
FHA home loan rates were moderately higher this week, based on the weekly survey of FHA mortgage rates performed by Findlocalmortgagerates.com. The results of the survey were somewhat mixed as the mortgage rate rose moderately while the average points charged by the FHA mortgage lenders in the survey was slightly lower.
The average FHA mortgage rate on a 30 year fixed rate home loan in the survey was 5.075%, up from last week’s average rate of 5.050%. The average points charged to obtain that rate was 0.625 which is down from last week’s average points charged of 0.725.
The largest FHA mortgage lenders in the survey included: Bank of America Home Loans, Wells Fargo Home Loans, US Bank, SunTrust Mortgage and HSBC Mortgage. The interest rate spread between the highest mortgage rate and the lowest remains extremely narrow. The lowest rate was 4.87% while the highest mortgage interest rate came in at 5.25%. Points charged ranged from no origination or discount points to as high as 1.125 points.
The current FHA mortgage rates, points and APRs on a 30 year fixed rate home loan from the top five mortgage lenders included the following:
Bank of America Home Loans offers a 30 year fixed rate FHA loan at 4.875% with 1.125 points and a 5.041% APR.
Wells Fargo Home Loan has a rate of 5.125% with 1.0 point on their 30 year FHA loan with a 5.897% APR.
The US Bank FHA mortgage rate for a 30 year term is at 5.250% and no points with a 5.792% APR.
SunTrust Bank offers a 30 year FHA mortgage rate at 5.000% with 1.0 point with a 5.463% APR.
HSBC Mortgage’s 30 year fixed rate FHA loan is at 5.125% with no points and a 5.310% APR.
The mortgage rates and points listed are current as of this publication date but are not guaranteed and are subject to change. The FHA mortgage rates are based on mortgage 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.
For more information the mortgage lenders listed and current FHA mortgage rates, these mortgage lenders can be reached at the following numbers:
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
FHA Mortgage Rates April 7, 2010
FHA mortgage rates rose just modestly this week. Conforming loan rates appeared to increase more than FHA loan rates this past week, however the discrepancy is more likely attributed to the time at which the mortgage rate surveys are performed. Conforming rates are surveyed by Findlocalmortagerates.com at the end of each week while FHA mortgage rates are surveyed midweek.
The average 30 year fixed rate FHA home loan rate now stands at 5.15% with 0.75 points based on the weekly survey of FHA mortgage lenders performed by Findlocalmortgagerates.com. This is up modestly from last week when the average FHA loan rate was 5.15% with 0.70 points.
FHA loans continue to grow in relative volume for both mortgage refinance transactions and home loan purchases. The primary driver for increased FHA loan originations is lower home equity or down payment requirements and the flexible credit requirements.
The top five FHA mortgage lenders in this week’s survey include Bank of America, Wells Fargo, US Bank, SunTrust Mortgage and HSBC Mortgage.
Here’s a look at the state of the current FHA mortgage rates offered by these bank mortgage lenders:
Bank of America offers a 30 year fixed rate FHA loan with a mortgage rate of 5.125% and 1.25 points and a 5.297% APR.
Wells Fargo Home Loans FHA mortgage rate on the 30 year fixed rate loan is 5.250% with 1.00% and an APR of 5.710%.
US Bank promotes an FHA mortgage rate at 5.250% and no points yielding a 5.792% APR.
SunTrust Bank’s FHA home loan rate is 4.875% with 1.50 points and a 5.472% APR.
HSBC Mortgage is now marketing the 30 year fixed rate FHA loan with a rate of 5.250% with no points and a 5.436% APR.
All of the mortgage rates and points listed are current as of the time of this publication but are subject to change and are not guaranteed. All home loans are subject to bank or mortgage lender approval, additional conditions will apply. Some mortgage loan products may have geographic restrictions and other restrictions may apply.
Additional mortgage rates and point options including conventional loan programs are available from these mortgage lenders.
For current FHA mortgage rates and loan terms, the mortgage lenders listed can be contacted directly. The following list covers the contact information for the listed bank mortgage lenders.
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
FHA Mortgage Rates April 1, 2010
Mortgage rates for FHA loans rose modestly as of March 31, 2010. The average FHA mortgage rate stood at 5.15% and 0.70 points based on sample of the largest US mortgage lenders taken from the weekly survey of FHA mortgage rates performed by Findlocalmortgagerates.com.
The sample of mortgage lenders for this week’s FHA mortgage rate survey includes Bank of America, Wells Fargo, US Bank, SunTrust Mortgage and HSBC Mortgage. The mortgage rates are current as of April 1, 2010 for FHA loans originated by the mortgage lenders.
The current FHA mortgage rates offered by these financial institutions are as follows:
Bank of America 30 year fixed rate FHA loan rate is 5.125% with 1.125 points and a 5.317% APR.
Wells Fargo Home Loans FHA loan rate for a 30 year fixed rate loan is 5.250% with 1.00% and an APR of 5.665%.
US Bank has offers an FHA mortgage with a 5.250% and no points and a 5.792% APR.
SunTrust Bank’s FHA home loan is at 4.875% with 1.375 points and an APR of 5.460%.
HSBC Mortgage promotes a 30 year fixed rate FHA loan at 5.250 with no points and a 5.436% APR.
The APR listed can be utilized by home buyers to compare different mortgages based on the annual cost for each loan. The monthly mortgage payment for a home loan is based on the note rate, the note rate does not take into consideration the cost of obtaining the loan including the points paid and other closing costs that are factored into the APR.
The Annual Percentage Rate (APR) stated is a measurement used to evaluate the actual loan cost over the life of the loan and is generally higher than the stated note rate since it takes into account the following costs along with the mortgage note rate: points, mortgage insurance and closing costs. The APR is a required disclosure required by the Federal Truth-In-Lending Act.
Additional mortgage rates and point options are available from these mortgage lenders. Mortgage rates are believed to be accurate but can change at any time. The accuracy of the home mortgage details is not guaranteed.
All home loans are subject to bank or mortgage lender approval. Some mortgage loan products may have geographic restrictions and other restrictions may apply.
For current FHA mortgage rates and loan terms contact the lenders directly. The following list covers the contact information for the listed bank mortgage lenders.
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
Current FHA Mortgage Rates February 27, 2010
Findlocamortgagerates.com conducts a weekly survey of the top bank mortgage lenders. The results of this survey helps borrowers compare mortgage interest rates and product information from some of the largest U.S banks so consumers looking to purchase a new home or refinance can easily find the right mortgage that fits their needs.
The following list of mortgage loans and rates is a sample form the survey. These rates are for FHA loans or a mortgage that is backed by the Federal Housing Administration (FHA). FHA loans along with VA loans are generally referred to as government loans
The following list displays current interest rates for a sample of various combinations of mortgage rates and fees available on FHA loans from this week’s mortgage rate survey.
US Bank 30 year fixed rate FHA loan has a rate of 4.875% with one point and a 5.495% APR.
The same 30 year FHA loan from US Bank is available with a mortgage rate of 5.25% and no points and an APR of 5.792%.
Bank of America Home Loans offers a 30 year fixed rate FHA loan that has a mortgage rate of 4.875% and 1.375 points with an APR of 5.109%.
Wells Fargo Home Mortgage offers a 30 year fixed rate FHA home loan with a mortgage rate of 5.125% with one points and an APR of 5.85%.
HSBC Mortgage rate on a 30 year FHA is at 5.125% with no points and a 5.310% APR.
SunTrust Mortgage has a 30 year FHA home loans with a mortgage rate of 4.875% and 1 point resulting in a 5.425% APR.
The APR includes the interest rate, fees, points, certain closing costs and mortgage insurance. FHA mortgage rates, points and closing costs are subject to change without notice.
The preceding is a sample of programs and interest rates; other loans and rate options are available from the listed mortgage lenders. Rates listed are for purchases on owner-occupied single family primary residences. The accuracy of the home mortgage details is not guaranteed.
All loans are subject to bank approval. Some mortgage loan products may have geographic restrictions, other restrictions may apply and additional conditions will apply to obtain these home loans.
Regions Mortgage Locations Tennessee
Regions Mortgage is part of Regions Financial Corporation which is a financial holding company that operates throughout the South, Midwest and Texas. Regions mortgage provides traditional commercial, retail and mortgage banking services to its customers. Regions mortgage has over 600 loan originators in 16 states. Regions Bank operates approximately 1,900 banking offices and 2,300 ATMs.
Regions Mortgage has a number of mortgage locations in Tennessee. Regions Mortgage representative can assist prospective home loan borrowers on purchases and refinances. They can provide assistance to help select the best mortgage rate or the best mortgage loan program whether that loan is a fixed rate loan, adjustable rate mortgage, FHA loan or a jumbo home loan.
Regions Mortgage locations:
Regions Mortgage
1206 Murfreesboro Road
Franklin, TN 37064
615-748-2306 - Phone
615-748-2929 - Fax
Regions Mortgage
1600 Division St
Nashville, TN 37203
615-748-2154 - Phone
615-748-2155 - Fax
Regions Mortgage
7744 Poplar Avenue
Germantown, TN 38138
901-756-2646 - Phone
901-756-2644 - Fax
Regions Mortgage
800 25th Street
Cleveland, TN 37311
423-339-4644 - Phone
423-339-4655 - Fax
Regions Mortgage
805 Memorial Boulevard
Murfreesboro, TN 37122
615-758-1604 - Phone
615-758-1621 - Fax
Regions Mortgage
315 Deadrick Street
Nashville, TN 37237
615-748-2983 - Phone
615-736-6761 - Fax
Regions Mortgage
2052 South Main
Milan, TN 38358
731-686-2900 - Phone
731-686-2923 - Fax
Regions Mortgage
40 Burton Hills Blvd
Nashville, TN 37215
615-748-2825 - Phone
615-748-2823 - Fax
Regions Mortgage
11400 Parkside Drive
Farragut, TN 37934
865-540-5507 - Fax
Regions Mortgage
208 Sunset Drive, Suite 204
Johnson City, TN 37601
423-282-7691 - Phone
423-282-7696 - Fax
Regions Mortgage
100 E. Vine Street, #300
Murfreesboro, TN 37130
615-904-2818 - Phone
615-904-2808 - Fax
Regions Mortgage
610 North Garden Street
Columbia, TN 38401
931-380-5070 - Phone
931-380-5005 - Fax
Regions Mortgage
423 North Parkway
Jackson, TN 38305
731-661-6822 - Phone
731-661-6880 - Fax
Regions Mortgage
1100 Ridgeway Loop, Suite 100
Memphis, TN 38120
901-821-8801 - Phone
901-821-8802 - Fax
Regions Mortgage
810 Crescent Centre Drive-Suite 300
Franklin, TN 37067
615-309-7370 – Phone
Regions Mortgage
6200 Poplar Avenue
Memphis, TN 38119
901-580-5492 - Phone
901-580-5390 - Fax
Regions Mortgage
112 Long Hollow Pike
Goodlettsville, TN 37072
615-851-5295 - Phone
615-851-5232 - Fax
Regions Mortgage
10245 Kinston Pike, 2nd Fl
Knoxville, TN 37922
865-521-5220 - Phone
865-521-5227 - Fax
Regions Mortgage
3572 Tom Austin Hwy
Springfield, TN 37172
615-382-4150 - Phone
615-382-7632 - Fax
Regions Mortgage
181 Belle Forrest Circle
Nashville, TN 37221
615-662-1177 - Phone
615-662-1690 - Fax
Regions Mortgage
10 West Broad Street
Cookeville, TN 38501
931-526-2181 - Phone
931-372-6626 - Fax
Regions Mortgage
4934 Columbia Pike
Spring Hill, TN 37174
931-380-5081 - Phone
931-380-5063 - Fax
Regions Mortgage
11 Murray Guard Drive
Jackson, TN 38305
731-984-6150 - Phone
731-668-2479 - Fax
Regions Mortgage
601 Market Street, 4th Floor
Chattanooga, TN 37402
423-752-7800 - Phone
423-752-1617 - Fax
Regions Mortgage
128 North 2nd Street
Clarksville, TN 37040
931-553-5234 - Phone
931-553-5253 - Fax
Regions Mortgage
1415 Union Avenue
Memphis, TN 38104
901-762-5970 - Phone
901-762-5995 - Fax
Regions Mortgage
1604 21st Avenue S
Nashville, TN 37212
615-748-2440 - Phone
615-748-2441 - Fax
Regions Mortgage
840 State Street
Bristol, TN 37620
423-652-8554 - Phone
423-652-8541 - Fax
Regions Mortgage
3191 Lebanon Pike
Nashville, TN 37214
615-748-2593 - Phone
615-748-8418 - Fax
Regions Mortgage
5515 Brainerd Road
Chattanooga, TN 37411
423-894-1058 - Phone
423-899-4899 - Fax
Regions Mortgage
242 Lindell Street
Martin, TN 38237
731-587-3131 - Phone
731-588-2548 - Fax
Regions Mortgage
120 South Forrest Avenue
Camden, TN 38320
731-584-8223 - Phone
731-584-7114 - Fax
Regions Mortgage
3020 Kirby Whitten Rd
Bartlett, TN 38134
901-388-5868 - Phone
901-388-3361 - Fax
Regions Mortgage
3577 Hacks Cross Rd.
Memphis, TN 38125
901-759-5266 - Phone
901-759-5277 - Fax
Regions Mortgage
2 Union Square, #100 Tallan Bldg
Chattanooga, TN 37402
423-757-5807 - Phone
423-757-5815 - Fax
Regions Mortgage
1861 North Highland
Jackson, TN 38305
731-984-6000 – Phone
Regions Mortgage
333 East Broadway
Maryville, TN 37801
865-981-1470 - Phone
865-981-1411 - Fax
Regions Mortgage
6100 Kingston Pike
Knoxville, TN 37919
865-673-5751 - Phone
865-673-5755 - Fax
Regions Mortgage
805 E. Broadway Street
Lenoir City, TN 37771
865-673-5779 - Phone
865-521-5976 - Fax
Regions Mortgage
175 Miller Avenue
Crossville, TN 38555
931-484-6121 - Phone
931-456-9033 - Fax
Regions Mortgage
201 West Morris Blvd
Morristown, TN 37813
423-587-7100 - Phone
423-587-7171 - Fax
Regions Mortgage
2120 Gunbarrel Road
Chattanooga, TN 37421
423-634-4021 - Phone
423-634-4023 - Fax
Regions Mortgage
101 Elm Street
Shelbyville, TN 31760
931-684-9936 - Phone
931-680-0922 - Fax
Regions Mortgage
7540 East Brainerd Road, Suite 111
Chattanooga, TN 37421
423-752-1655 - Phone
423-321-6302 - Fax
Regions Mortgage
4383 Summer Avenue
Memphis, TN 38122
901-684-5400 - Phone
901-766-1668 - Fax
Regions Mortgage
2615 Old Fort Parkway
Murfreesboro, TN 37128
615-849-3014 - Phone
615-849-3018 - Fax
Regions Mortgage
7550 W. Farmington Boulevard
Germantown, TN 38138
901-762-5908 - Phone
901-762-5914 - Fax
Regions Mortgage
2155 Lowes Drive
Clarksville, TN 37040
931-648-2202 - Phone
931-905-0863 - Fax
Regions Mortgage
6231 Stage Road
Bartlett, TN 38134
901-385-5904 - Phone
901-385-5916 - Fax
Regions Mortgage
103 East Pleasant
Covington, TN 38019
901-475-5000 - Phone
901-475-5014 - Fax
Regions Mortgage
285 East Main
Gallatin, TN 37066
615-230-4600 - Phone
615-230-4615 - Fax
Regions Mortgage
4101 Hillsboro Road
Nashville, TN 37215
615-386-9862 - Phone
615-297-4937 - Fax
Regions Mortgage
415 Broad Street, Second Floor
Kingsport, TN 37660
423-229-0140 - Phone
423-229-0235 - Fax
Home Loan Housing Ratios
Mortgage lending institutions use several gauges to measure how much of a mortgage you can afford. Housing ratios is one such gauge that measures your capacity to deal with the monthly mortgage payment. These ratios are used to evaluate mortgage loans for home purchases and existing mortgage refinances.
Housing ratios are generally broken down into two distinct measures or ratios. The first housing ratio often referred to as the front-end ratio, measures the cost of your mortgage payment divided by your gross monthly income. The second ratio, referred to as the back end ratio, measures your mortgage payment with all other contractual monthly payments divided by your gross monthly income. Some banks and mortgage lenders separate the term housing ratio to mean just the house payment and the debt ratio to refer to all payments.
The front end ratio calculates the full PITI mortgage payment. The PITI is the principal and interest payment of the home loan, the monthly real estate taxes and monthly cost of homeowners insurance and/or mortgage insurance. The back end ratio adds to the PITI any other contractual debt. Examples of other debt would be; car loans, credit card payments, department store charge card payments, personal loans, and similar debt payments. Generally utilities bills and day care expenses are not included in the housing ratios. Also excluded are payments on installment loans the have 10 payments or less remaining.
Housing ratios on conventional mortgage loans are usually 32% for the front end ratio and 38% for the back end ratio. FHA loans are generally expected to be 29% for the front end and not to exceed 43% on the back end ratio. As you can tell from the description, ratios are generally set as guidelines not laws that have to be enforced. One can view the housing ratios as guideposts to which your expenses should not exceed. However, with compensating factors is possible to obtain approval for a home loan with excessive housing ratios.
Compensating factors are generally favorable features about your application they would be considered better or more desirable than the standards credit and income requirements. Examples of compensating factors might include; exceptionally good credit, financial assets above and beyond the necessary amount for the loan request, or a low loan to value ratio. If an FHA applicant had debt ratios of 30% and 45% but was putting a 25% down payment, this loan will most likely get approved rather easily.
The biggest problems in housing or debt ratios, other than an applicant having ratios that exceed the requirements, is the accurate calculation of monthly income. Income in the mortgage industry is measured is the gross or before tax income, calculated on a monthly basis. Part time jobs with less than two years are generally considered as income. Overtime income must be verified that it will continue and must be received for the past two years. All income that fluctuates significantly will usually be averaged over the previous two years.
Debt payments play a big factor in qualifications as well. If a mortgage applicant can reduce there monthly debt payments, it may be easier to get approved for a home loan. Obviously, reducing the debt itself is the clearest method. However, it is also most likely the most difficult. Almost any legitimate plan to reduce an applicant’s debt prior to applying for a home loan is acceptable. In some cases, if the primary borrower makes all the income but has an excessive debt load that ends up disqualifying them for a mortgage loan, there is a trick. Debt that can be pushed on to the spouse that is not cosigned by the primary borrower relieves that debt payment from the primary borrower. Since the spouse’s income is not used to qualify for the mortgage purchase or refinance, it is possible to leave the spouse off the home loan and qualify with the primary borrower with debt transferred onto an account of the non-qualifying spouse.
Housing ratios and debt ratios are general rules. Certain factors regarding qualifying for a loan will be hard and fast rules, not these ratios. These numbers should be a guidepost to give you a reasonable idea as to what you can afford. Be sure to check the mortgage rates when evaluating debt ratios since a higher mortgage rate means a higher mortgage payment and a greater debt ratio. The mortgage calculator can be very helpful for measuring debt ratios and the impact of different mortgage terms and mortgage rates.