SunTrust Mortgage Rates August 10, 2010
SunTrust Mortgage rates have continued to move lower along with the rates offered by most of the major U.S. bank mortgage lenders. SunTrust mortgage is 100% subsidiary of SunTrust Bank. SunTrust mortgage offers a variety of mortgage programs including fixed rate home loans, adjustable rate mortgages, FHA mortgages and jumbo mortgages in all the 50 states.
The mortgage rates, points and closing costs presented for online mortgage applications by SunTrust Mortgage may vary based on specific loan features such as down payment, loan amount, debt ratios, the geographic location and other terms and conditions.
Current mortgage rates advertised by SunTrust Mortgage for online mortgage applications include:
A 30 year fixed rate mortgage loan is at 4.375% with 1.125 points for a 4.501% APR.
15 year fixed mortgage rate of 3.750% and 1.375 points with an APR at 4.002%.
Jumbo 30 year mortgage rate is at 5.125% and 1.0 point resulting in a 5.239% APR.
The 30 year FHA mortgage rate from SunTrust Mortgage is at 4.375% and 1.0 point and a 4.901% APR.
Two adjustable rate mortgage loans from SunTrust include the 5/1 ARM and 7/1 ARM.
A 5/1 adjustable rate mortgage that has a fixed rate for the initial five years of the loan 3.375% and 1.0 point with an APR at 3.412%
A 7/1 adjustable rate mortgage that has a fixed rate for the initial seven years of the loan has a mortgage rate of 3.625% with 1.125 points and a 3.553% APR.
The listed SunTrust mortgage rates, points and closing costs are subject to change by the bank without notice. The mortgage rates are examples of rates available for a 60 day loan lock on a single family, owner-occupied properties with down payment of 20% or greater, for mortgage loan applications submitted using our the SunTrust Mortgage online loan application.
Large U.S. banks, including SunTrust Bank, have been originating a larger share of residential mortgages since the credit crisis started. Bank lender mortgage rates for both purchase and refinance have reached historic lows. Many interest rate watchers however, believe that mortgage rates may not finished bottoming out for the year.
Mortgage interest rate movements are as hard to predict as just about any investment and no one can be certain whether mortgage interest rates will continue to push lower or turn around and go up. Borrowers seeking to purchase a new home should make sure they are comfortable with the investment and shop for the best mortgage rate and service without paying too much attention to the direction of interest rates, even the experts miss the boat on rate predictions on a regular basis.
To find a SunTrust Mortgage loan officer to help with the mortgage process, the toll free number is 800-634-7928.
FHA Mortgage Rates July 15, 2010
FHA mortgage rates along with conventional mortgage rates remain at historic lows. According to the most recent survey of FHA mortgage rates performed by Findlocalmortgagerates.com, the average 30 year fixed rate FHA home loan remained in neutral. The average FHA mortgage rate from the top five bank mortgage lenders fell by a slim margin but was countered by a small increase in the average pints charged.
The average rate on a 30 year fixed rate FHA home loan dropped down to a rate of 4.625%, down from the prior week’s average rate of 4.65%. The average points charged came in at 0.65 points, an increase from last week’s average points of .625.
FHA loans offer a number of benefits in today’s mortgage market. FHA loans offer fixed rates, lower down payments and more liberal underwriting guidelines compared to conforming mortgage loans. FHA mortgages have also become very competitively priced compared to conforming mortgage loans.
Potential mortgage loan borrowers may benefit firm the loan guidelines and current rate available on FHA Loans whether they are first time home buyers, stepping up to buy another home or seeking a mortgage refinance to lower their mortgage interest rate.
The top five bank mortgage lenders in the FHA mortgage rate survey performed by Findlocalmortgagerates.com include; Bank of America Home Loans, Wells Fargo Home Loans, US Bank, SunTrust Mortgage and HSBC Mortgage.
The results of the survey including the individual bank FHA mortgage rates, points and APR’s are listed below.
The Bank of America 30 year FHA mortgage rate is 4.625% with 1.25 points and an APR of 4.770%.
Wells Fargo FHA mortgage rate on a 30 year loan is 4.625% and 1.0 point and a 5.364% APR.
US Bank 30 year FHA mortgage is 4.750% with zero points and a 5.271% APR.
SunTrust FHA mortgage rate on a 30 year term is 4.375% with 1.375 points and a 4.936% APR.
HSBC Mortgage FHA mortgage rate is 4.750% with no points and an APR of 4.931%.
FHA mortgage rates and points listed are for owner occupied single family properties with a loan amount of $200,000.00. Mortgage loan programs, mortgage rates, terms and conditions are subject to change without notice. All home loans require bank approval, additional conditions and some restrictions may apply.
The bank FHA mortgage lenders listed offer a variety of mortgage loan options and mortgage loan programs. For additional information on the FHA mortgage rates and bank mortgage lenders listed:
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
FHA Mortgage Rates from the Top 5 FHA Bank Mortgage Lenders July 1, 2010
Long term FHA mortgage rates moved lower for the week based on the most recent survey of the top FHA bank mortgage lenders completed by Findlocalmortgagerates.com on July 1, 2010. The rate on the 30 year fixed rate FHA home loan dropped down to 4.675% this week. The average points charged to obtain that rate was also lower at 0.65 points.
The average 30 year FHA mortgage rate from the top 5 FHA bank mortgage lenders came in at 4.675% with 0.65 points and an APR of 5.106%.
FHA mortgage rates continued to drop along with conventional loan rates and the Treasury rates. Mortgage rates closely track the rates of the widely followed ten year Treasury bond and the ten year closed at its lowest level of the year, portending lower rates in the immediate future.
The top five bank mortgage lenders in the FHA mortgage rate survey include; Bank of America Home Loans, Wells Fargo Home Loans, US Bank, SunTrust Mortgage and HSBC Mortgage.
The results of the survey including the individual bank mortgage rates, points and APR’s are listed below.
Bank of America’s 30 year FHA mortgage rate is 4.625% with 1.0 point with an APR of 4.780%.
Wells Fargo Home Loans offers the 30 year FHA mortgage loan with a mortgage rate of 4.625% and 1.0 point with a 5.364% APR.
US Bank markets the 30 year FHA mortgage rate at 4.750% with no points and a 5.271% APR.
SunTrust Bank’s 30 year FHA mortgage has a mortgage rate of 4.625% with 1.25 points and a 5.186% APR.
HSBC Mortgage has an FHA home loan with a mortgage rate of 4.750% with no points and an APR of 4.931%.
Long term FHA mortgages are designed to provide low down payment financing and are one of the few options available for home buyers trying to finance a new home with as little cash as possible. The fixed rate mortgage provides a borrower with the security of a monthly payment that won’t change over the life of the life of the loan.
Mortgage rates listed are for owner occupied single family primary residences for loan amounts of $200,000.00. Mortgage loan programs, mortgage rates, terms and conditions are subject to change without notice. All loans require bank approval, additional conditions and some restrictions may apply.
The bank FHA mortgage lenders listed offer a variety of mortgage loan options and mortgage loan programs. 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
FHA Mortgage Rates Missouri May 26, 2010
FHA mortgages are becoming the largest single segment of the home loan industry in 2010. Shopping and comparing FHA mortgage rates is a critical step for any new home buyer prior to choosing a mortgage lender and submitting a loan application.
Findlocalmortgagerates.com surveys mortgage rates from bank mortgage lenders across the U.S. for a variety of mortgage loan products. Weekly FHA mortgage rates are published in these pages every Wednesday from the top five bank mortgage lenders and every other week we survey and produce the mortgage rates from select bank mortgage lenders for individual states.
Today’s survey data is for 30 year fixed rate FHA mortgage rates in Missouri from two of the largest bank mortgage lenders nationwide, Wells Fargo Mortgage and Bank of America as well as two of the largest Missouri based banks, Commerce Bank and North American Savings Bank.
The current FHA mortgage rates offered by the two of the largest bank mortgage lenders, Wells Fargo and Bank of America, include:
Wells Fargo has a 30 year FHA loan with a mortgage rate of 4.875% with a 1.0 point origination fee and an APR of 5.630%.
Bank of America offers a 30 year FHA mortgage rate of 4.50% and 1.0 point origination fee and a 4.622% APR.
The current FHA mortgage rates offered by the two bank mortgage lenders based in Missouri, Commerce Bank and North American Savings Bank, include:
Commerce Bank’s 30 year FHA mortgage rate is 5.00% with zero points and a 5.443% APR.
North American Savings Bank offers the 30 year fixed rate FHA loan with a mortgage rate of 4.75% and no points with an APR of 5.347%.
Mortgage loan APRs on FHA loans are impacted by the costs of loan including points, mortgage insurance, loans fees and the interim interest which is based on the date of the loan closing. The Federal Truth in Lending law requires that all mortgage lenders disclose the APR when they advertise a mortgage rate. The mortgage loan APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all, closing fees are included in the APR calculation.
Some mortgage lender fees are not included as part of the APR calculation and some mortgage lenders will label their costs and fees differently than other lenders. As an example, an appraisal fee is an appraisal fee but some lenders may charge no origination points yet charge a $400.00 or $500.00 processing fee while another lender will not have a processing fee but an origination fee of $400.00.
Compare fees and costs carefully along with the mortgage rate from the mortgage lender before committing to any specific lender.
Mortgage interest rates are published rates obtained from these lenders but are subject to change without notice and may vary depending on loan amount, loan-to-value (LTV), credit worthiness, type of transaction and property type. All loans and rates are subject to mortgage lender or bank approval.
Additional mortgage loan programs and mortgage rate and point options 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
North American Savings Bank 800-677-6272
Commerce Bank 800-903-3210
Commerce Bank operates in approximately 350 locations in Missouri, Kansas, Illinois, Oklahoma and Colorado.
North American Savings Bank operates nine bank branches, four residential loan origination offices, and one residential construction loan office.
Mortgage Rates and Mortgage Brokers
To understand the function of a mortgage broker, a key component of understanding how they operate is to understand how the mortgage broker sets their mortgage rates.
A mortgage broker is predominantly a credit facilitator. Their job is to obtain the customer, which is the home loan borrower, process the loan request which entails verifying the borrowers employment as well as their assets and credit, submit the loan to a wholesale lender and upon loan approval, coordinate the loan closing.
Mortgage brokers may offer the lowest mortgage rates in the local market or they be the highest or just somewhere in between. Since mortgage broker is technically a facilitator of credit, the mortgage loan is funded by a wholesale mortgage lender or bank. Mortgage wholesale lenders fund the loans for the broker and provide the price at which they will fund the loans.
During the peak boom in mortgage originations, most all of the major banks in the U.S. engaged in wholesale mortgage lending or obtaining mortgage loans from brokers. Citibank, Wells Fargo, Bank of America, US Bank, National City Bank, Chase Bank and HSBC all had wholesale lending divisions which acquired home loans from brokers.
The mortgage rate and any discount points determine the price the wholesale lender will pay for the loan. The mortgage broker makes their money on any extra fees and the increase in rate or points over that paid by the wholesale lender. As an example, if the wholesale lender offers to pay the mortgage broker a mortgage rate of 5.25% and 1 point for a standard $200,000.00 mortgage loan and the broker in turn offers the customer a mortgage rate of 5.25% and 2 points, the mortgage broker makes the 1 point. 1 point represents 1% of the loan amount. The broker could offer the customer 5.75% and 1 point and make their income based on the difference between the 5.25% and 5.75%, as well.
When the amount of money the mortgage broker makes is based upon the difference between the wholesale mortgage rate and the rate to the borrower, this difference is referred to as a yield spread premium.
The mortgage rates established by the mortgage lender will be influenced by the type of loan, the size of the loan and how long the loan is locked for. Different loan types such as adjustable rate mortgages or FHA mortgages have different rates. Since most of the income derived form mortgage originating is based on a percentage of the loan amount, it is not uncommon to see minor difference sin rates base on loan size. And finally, longer loan lock costs more money since the mortgage lender has to honor that rate regardless of what happens to interest rates and mortgage rates in the market during the time of the loan lock and loan closing.
As a real life example of how this functions, the following is a rate from a wholesale mortgage lender in the U.S that funds loans for mortgage brokers and also engages in retail mortgages or loan that are direct to the consumer. The mortgage lender’s name will not be mentioned.
For a 30 year loan, this mortgage lender offers brokers a mortgage rate of 5.00% on a 30 day loan lock at a price of 101.509. This price means the mortgage broker that delivers to the lender on that 30 day lock at 5.00% will be paid 1.509% of the loan amount as a fee or yield spread premium.
That same wholesale lender offers a mortgage rate of 4.625% on 30 day lock at price of 99.253. This means the mortgage lender needs to be paid .747 points to obtain that rate. This can be accomplished if the mortgage broker closed the loan with the borrower at a rate of 4.625% and 2 points. 0.747 points would go the wholesale lender and 1.253 points would be kept by the mortgage broker. This kind of pricing is similar to bond pricing, in which 100 represents the par rate, over 100 is a premium and under 100 is a discount where each point represents 1% of the loan amount.
The longer the loan lock the higher the cost of the home loans. In this example, that same mortgage lender offers the 5.00% rate at 101.022 for a 6o day lock. Since it costs more for a longer lock, the broker makes 1.509% on the 30 day lock and only 1.022% on the 60 day lock. It is a fair assumption that shorter lock makes more money. In this case, the mortgage lender in fact offers a price of 101.696 on a 15 day lock, which is a slightly higher fee for the mortgage broker than the 30 day lock.
Here is what the rate sheet would like to the mortgage broker with the mortgage rate, lock period and price paid:
Rate 15 Day Lock 30 Day Lock 45 Day Lock 60 Day Lock
4.625 99.455 99.253 99.005 98.765
4.750 100.450 100.253 100.000 99.764
4.875 101.188 100.997 100.738 100.509
4.990 101.530 101.343 101.080 100.856
5.000 101.696 101.509 101.246 101.022
5.125 102.122 101.940 101.672 101.453
5.250 103.119 102.943 102.669 102.456
5.375 103.798 103.628 103.348 103.141
Now, to make this fun. Since this example involves a mortgage lender that offers retail services, we can compare the current mortgage rate offered on their website to any old home borrower to those rates they offer mortgage brokers. ( the wholesale rate sheet is not available to consumers and therefore this comparison is available for those in the mortgage business that have access to wholesale mortgage lender rate sheets )
On the mortgage lenders website, this bank is currently offering a 30 year fixed rate loan on a 30 day lock with a mortgage rate of 4.875% and 0.488 points. The same loan can be had at a rate of 4.750% and 1.323 points or 4.990% and 0.142 points per the website on a home loan in Illinois for $200,000.00.
It has been some months since we have reviewed the mortgage broker / retail lender pricing and I must say that the rates to the mortgage brokers look fairly aggressive. If I apply for a mortgage loan with this lender, the 4.99% rate will cost me 0.142 points and whatever other closing costs they have at closing, the mortgage broker can offer a 4.99% rate to me as well and get paid 1.343 points from the lender and make another 0.142 points if they charged the same points that the retail division of that lender charges. That is a total of 1.485 points on the home loan. If the loan amount is $200,000.00 that equates to a payment to the mortgage broker of $2,970.00. Not bad income for originating one loan. Of course, the mortgage broker will have cost for processing the borrowers loan request as well as fixed costs and marketing costs to finds the customers.