Mortgage Interest Calculator

Jumbo loan rates may leave many people with more questions than answers. Many people have never heard the term jumbo loan so in that context just remember that any type of mortgage loan that is bigger than what is known as a “conventional conforming loan” is called a jumbo loan.

A conventional conforming loan is one in which the loan amounts are set by Fannie Mae and Freddie Mac and is this case that amount, until just this year, was set at $417,000. In Hawaii and Alaska that amount would be $625,000.

The new economic stimulus package recently passed as upped that limit to $729,750 which is good until Dec. 13, 2008.

The housing bubble, which burst a couple years ago, drove demand up for these types of jumbo loans but now that the market has been in decline so have the borrower’s who once sought them out.

Jumbo loan rates have also declined with the faltering market as well but still remain higher than conventional conforming loan rates.

The difference can vary depending on the type of loan you get but can be as much as .75% higher in some cases.

The ability to obtain a jumbo loan has gotten more difficult as well due to the massive foreclosure debacle that has taken place.

Greater emphasis is now placed on the borrowers credit and financial state of affairs before approval but in general for those even considering such a loan finances are not usually a problem.

In most cases it is always more beneficial to consider a larger down payment to conforming loan levels which will have a greater variety of money saving benefits over jumbo loan rates.

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Adjustable rate mortgage you say? Isn’t that what caused the housing “great depression” you keep seeing in your local papers and TV broadcasts?

Well folks, fankly I am sick to death of all the gloom and doom the irresponsible media has been pouring down on us for nearly 16 straight months. Must be an election year.

Yes, the housing market completely stinks right now. No arguments there. I want to move too and can’t because the buyers off hiding till the sky is no longer falling.

You see, the real facts are that nearly 98% of ALL home owners are making their payments on time. Yes, you read that right. Not quite 3% of all home loans in the U.S. are actually in default yet the media would have you all believing we are heading into the great depression.

The adjustable rate mortgage can be largely to blame but even that in and of itself was not the cause of the so called housing bust. Greedy investors. Greedy and underhanded banks and just plain stupid people who got in way over their heads are largely responsible for what we have seen.

Now they…and a ton of us are paying for it. But it doesn’t have to be that way and I predict that the not to distant future will bear me out.

ARM’s are still around. They haven’t been quite as popular not only because of the bad press and tighter lending requirements but also because they just have been a very good deal.

At the beginning of 2008, the 5/1 are rate was less than a quarter point than that of a 30-year FRM. (A 5/1 ARM is a fixed rate for the first five years and then adjusts every year after that. That difference has nearly doubled as of last week’s mortgage rate survey which can be a great thing concerning your monthly payment.

Go ahead and use our mortgage interest calculators and figure it out! As an example, carrying a mortgage balance of $250000 you would save $5000 on interest in your first 5 years of the loan compared to a fixed 30 rate of 6.6%.

One of the keys here is the 5 year term in which so many lame brains did not consider. Taking out an adjustable rate loan in which you face rates changes within the first couple of years was suicide in this market. Those who took the 5 year options are doing well right now and I wages will make a profit when the markets return.

And they will return. They always do and this is not exception. If you are still sitting on the fence I wouldn’t wait until I got slivers in my butt if I were you while considering to buy a house. You will never find deals out there like what is going on now and I believe the bottom of all is close if not already here.

Depending on your circumstances and you financial portfolio, now may be the perfect time to get on that mortgage interest calculator and figure out if an adjustable mortgage makes dollars and cents to you.

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Your mortgage loan interest rate is something you should never have to guess about. In the new world of buying a house mortgage rates and now playing an integral part of your over finances and whether you will qualify for your new loan or not.

There are some very basic things you should keep in mind about mortgage rates. Although the recent burst in the housing markets have changed things considerably, there are still loan available with varying rates and terms.

Fixed rates are exactly as stated. There are fixed for the life of your loan and cannot change regardless of what the market or your lender is doing.

Adjustable rates on the other hand will come with a rate that is variable, meaning that your lender will adjust those rates as dictated by your loan contract. If the current rates go up…then so will your payment amount. Simple as that.

Of course each type of loan has it’s advantage depending on your circumstances. Adjustables will almost always come with an entry rate that is very loan and then adjust upward at a specified time. The danger here is that your rate can also go up if and when the Federal Reserve raises those rates.

With rates now at all time lows, this could be potentially hazardous for the unprepared borrower.

Fixed rate loans will not come with the lower entry rate but does offer the safety of knowing that no matter what happens in the mortgage interest rate market your payments will always remain the same.

Stay tuned for more mortgage loan rate information and head on over to our financial calculators page where you will find news and tools to help you decide which mortgage rate will fit you financial picture.

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