Best 15-Year Mortgage Rates for June, 15 year mortgage rates.#15 #year #mortgage #rates


Best 15-year mortgage rates for June charge 2.50%

In our roundup of June’s best 15-year mortgage rates, you’ll find several banks offering cut-rate deals on home loans in areas throughout the country.

All of the banks on our list are charging borrowers between 2.50% and 2.625% with no points.

That means you can find a deal that’s at least a quarter of a percentage point below the national average of 15-year home loans — 2.97%, according to our latest survey of major lenders.

These rates are also more than a full percentage point below the average 30-year fixed-rate mortgage cost — 3.73%.

Here are some of the best 15-year mortgage rates banks are offering:

Banks: Top 15-year mortgage rates

About the lenders

AimLoan: Headquartered in San Diego, it enjoys an A+ rating from the Better Business Bureau. AimLoan is a direct lender, meaning that your fees may be lower than if you use a mortgage broker.

RockBottom Mortgage: Gets an A rating from the Better Business Bureau and is headquartered in Des Plaines, Illinois. It charges borrowers a flat fee per loan and doesn’t pay commissions to its loan officers, which keeps your interest rate down.

Sebonic Financial: Headquartered in Charlotte, North Carolina, it has an A– rating from the Better Business Bureau. This online lender makes it convenient to apply for a mortgage by letting you upload the documents required to process your loan through a secure website.

United Mutual Funding Corp.: Gets an A+ Better Business Bureau rating and is based in Brandon, Florida. This direct lender says it will pay you $1,000 cash if you find a better interest rate and fees from another lender.

Credit union deals

While several larger banks are offering great 15-year mortgage rates, it’s worth checking at credit unions and local institutions as well. You may find a better deal.

For example, Teachers Federal Credit Union is offering mortgages at 2.5% with $853.50 in fees to borrowers who live, work (or regularly conduct business), worship or attend school in Nassau County, New York, and some parts of Suffolk County, New York. You can apply in person or online.

And Langley Federal Credit Union is offering mortgages at 2.50% with $495 in fees to borrowers who work or attend school in Virginia or who join a qualifying local organization. It has an A+ Better Business Bureau rating and is headquartered in Newport News, Virginia.

Finding the best mortgage rates

Even if you don’t live in the areas served by these banks and credit unions, their low rates and fees provide a great blueprint to follow. Find a deal like these in your neck of the woods, and you’ll know you’ve found a great one.

Get started by searching Bankrate’s database for the best mortgage rates from scores of other lenders in your area.

What you’ll pay

The biggest drawback to short-term loans like these is that the monthly payments are higher. For a 15-year loan at 2.50%, the principal and interest payment would be $667 a month for every $100,000 borrowed, or $1,334 on a $200,000 loan. With a rate of 2.625%, your principal and interest payment would be $673 a month for every $100,000 borrowed, or $1,345 on a $200,000 loan.

You can use our mortgage calculator to determine the monthly payments for the amount you want to borrow with this or any home loan.

It will also provide a month-by-month amortization schedule that shows how much you’ve reduced your debt and how much you still owe if you want to pay off the loan.

Shorter-term loans are particularly popular with borrowers who want to save tens of thousands of dollars in interest by paying off their loans more quickly.

Qualification

Borrowing requirements vary by lender, but to qualify for these low rates, you’ll typically need to:

  • Be borrowing $417,000 or less.
  • Have a credit score of 740 or better.
  • Be buying a home or refinancing no more than the outstanding balance of your current home loan.
  • Make a down payment of at least 20% if you’re buying.
  • Hold 20% or more of the equity in your home if you’re refinancing.

In addition, some lenders may require you to maintain an escrow account for property taxes and homeowners insurance to get the best interest rate.

I am licensed Loan Officer in all 50 states and i can help you with all your refinancing needs, feel free to contact me at (248)-825-1768


15-Year VA Fixed Conforming Mortgage, Home and Mortgage Center, 15 year fixed mortgage rates.#15 #year


15-Year VA Fixed Rate Mortgages

Take rising rates out of the equation with this predictable, monthly payment plan.

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

OUR GREAT RATES

This payment example assumes a loan with pointsthat is intended to be used to purchase a property with a loan amount of $ and an estimated property value of . The property is located in Alexandria, VA and is within Fairfax county. The property is an existing single family home and will be used as a primary residence. The rate lock period is 60 days and the assumed credit score is .

At a interest rate, the APR for this loan type is . The monthly payment schedule would be:

  • payments of $ at an interest rate of
  • payment of $ at an interest rate of

If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner’s insurance premiums.

FEATURES BENEFITS

  • Predictable payments
  • Faster payoff
  • Free 60 day rate lock
  • Low down payment

• For home purchases or refinancing

• VA’s 2017 Loan Limits are the same as the Federal Housing Finance Agency’s limits – 2017 Loan Limits (Effective January 1, 2017). Learn More

• Offers not available on investment properties

Applicant is responsible for VA funding fee.

VA Mortgages: The maximum loan amount for a VA loan is the VA County Loan Limits. Can exceed VA County Limits to finance the funding fee on purchases only. Amount of loan will also be determined on available entitlement.

Funds must be used to purchase or refinance a property that will be the primary residence. Refinances of existing VA-guaranteed for purposes of lower interest rate also allowed (is not required to be primary residence).

For purchase applications, please submit a copy of your fully signed ratified purchase agreement to [email protected] in a timely manner to ensure PenFed can meet your closing date.

The applicant is responsible for the following fees and costs at the time of closing: Origination fee, appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment, other cost may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

Escrows may be waived if LTV is 80% or less in all states.

If you withdraw an application that was locked and reapply within 30 days, the new application is subject to worst case pricing.

All rates and offers are in effect as of , offered for a limited time and subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

ARM vs Fixed Rate Mortgages: Which One Should You Choose?

15 year fixed mortgage rates

With mortgage interest rates at an all-time low you’re probably thinking about finally taking the big leap and becoming a homeowner or refinancing your existing home to a lower interest rate. However, the age-old question looms in front of you…which mortgage should I choose, an ARM or a fixed-rate mortgage?

The answer: it depends on your needs. While there are pros and cons to both mortgages, the real question is not which mortgage is better, but which mortgage will suit my needs.

Let’s take a look at both an ARM and fixed-rate mortgage and then you can decide which option is going to afford you your dream home or that tantalizing interest rate that will have you running to refinance your home.

Adjustable-Rate Mortgages

Adjustable-rate mortgages or ARMs have interest rates that adjust over a period of time. ARMs have had a notoriously bad reputation because of the mortgage meltdown and subsequent recession.

While this reputation was justified in the past, most of those exotic ARMs no longer exist. Today, financial institutions offer hybrid ARMs—like PenFed’s 5/5 ARM, which has a fixed-rate for five years and then the rate adjusts once every five years. This is a unique mortgage product as most ARMs adjust annually after the initial fixed terms.

The thought of an adjustable interest rate probably has you fearing skyrocketing monthly mortgage payments. Fear not, all ARMs have caps—a limit on the amount the interest rate can adjust—and ceilings—the highest the interest rate is allowed to become during the life of the loan. Using PenFed’s 5/5 ARM as an example, the initial interest rate will change every five years by no more than two percentage points up or down (the cap). This rate will never exceed five percentage points above the initial rate (the ceiling).

Fixed-Rate Mortgages

A fixed-rate mortgage provides a reliable and fixed monthly payment for the life of the loan. Because your total mortgage payment remains stable from month to month, homeowners can easily budget their monthly expenses.

Financial institutions offer various fixed-rate mortgages including the more common fixed-rate mortgages: 15, 20, and 30-year. Out of the three the 30-year fixed is the most popular mortgage because it usually offers the lowest monthly payment. However, the lower monthly payment comes at a cost of paying more in interest over the life of the loan.

Some Considerations

So, now that you know a little more about ARMs and fixed-rate mortgages here are a few things you should consider when making a decision about which mortgage will best suit your needs:

  • How long do you plan to stay in your home? If you don’t plan to stay in your home for the long haul, you may want to consider an ARM, which has a lower interest rate than the 30-year fixed and you save big money in interest charges. If you move or refinance within five years before the interest rate adjusts you can avoid a payment hike. Conversely, if you’ve found or are already in the home of your dreams, a fixed-rate mortgage makes more sense and will provide you stable payments for years to come.
  • What can you afford? Knowing how much you can afford to pay month to month in mortgage payments will also help you decide between an ARM or fixed-rate mortgage. If you’re working within a tight budget, the ARM may be a more attractive option since the payments will be lower than a 30-year fixed. But, unless you anticipate a raise or another source of added income, ask yourself if you’ll be able to afford your mortgage payment when the ARM’s interest rate increases. If not, don’t take the risk. Go with the fixed-rate mortgage and get stable monthly payments.

The Takeaway: When it’s all said and done, the goal is to get you into the home of your dreams or refinance your existing home without breaking your pockets. Both the ARM and fixed-rate mortgage are products that will help you reach your goal. However, the path you take to get to your goal depends on which mortgage will suit your needs.

15 year fixed mortgage rates

The credit union is federally insured by the National Credit Union Association.


Best Ontario Mortgage Rates 5-Year Fixed – Compare Today – s Current Ontario 5-Year Fixed


5-Year Fixed Mortgage Rates

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Historical 5-Year Fixed Mortgage Rates From 1973 – Today

5-year fixed mortgage rate defined

The ‘5’ in a 5-year mortgage rate represents the term of the mortgage, not to be confused with the amortization period. The term is the length of time you lock in the current mortgage rate, while the amortization period is the amount of time it will take you to pay off your mortgage. The term acts like a reset button on your mortgage, at which point you must renew the mortgage at a rate available at the end of the term. So, for example, a typical mortgage has a 5-year term and a 25-year amortization period.

When the mortgage rate is ‘fixed’ it means that the rate (%) is set for the duration of the term, whereas with a variable mortgage rate, the rate fluctuates with the market interest rate, known as the ‘prime rate’. So, for example, if the 5-year fixed mortgage rate is 4%, then you will pay 4% interest throughout the term of the mortgage.

An interesting feature of the 5-year fixed mortgage rate is that all borrowers must meet its standards of approval even if they choose a mortgage with a lower interest rate and shorter term. This benchmark is applied not only to reduce risk for the lender, but to give the borrower some breathing room.

Popularity of 5-year fixed mortgage rates

A 5-year mortgage term, at 66% of all mortgages, is by far the most common duration. It sits right in the middle of available mortgage term lengths, between one and 10 years, and, thus, its popularity reflects a risk-neutral average.

A further breakdown of mortgage terms shows that an additional 8% of mortgages have terms exceeding five years, while 26% of mortgages have shorter terms, including 6% with one year or less and 20% with terms from one year to less than four years.

Fixed rates are also most common, representing 66% of total mortgages as well. In terms of age dispersion, fixed rate mortgages are slightly more common for the youngest age groups, and older age groups are more likely to choose variable rate mortgages.


30-Year Mortgage vs, 15 year mortgage.#15 #year #mortgage


30-Year Fixed Mortgage vs. 15-Year Fixed Mortgage

15 year mortgage

It s that time again, where I take a look at a pair of popular mortgage programs to determine which may better suit certain situations.

Today, we ll compare the 30-year fixed mortgage and 15-year fixed mortgage, two of the most commonly utilized mortgage products available.

While it s impossible to universally choose one over the other, we can certainly highlight some of the benefits and drawbacks of each.

30-Year Fixed Mortgages Are Much More Popular

The 30-year fixed mortgage is easily the most popular loan program available today. Around 70% of all mortgages are 30-year fixed products, whereas the percentage of mortgages that are 15-year fixed loans is roughly 15%.

Over time this number can fluctuate, but this should give you a good idea of how many borrowers go with a 30-year vs. 15-year mortgage.

If we drill down further, about 90% of purchase mortgages are 30-year fixed loans, and just about six percent are 15-year fixed loans. But why?

Well, the simplest answer is that the 30-year is cheaper, much cheaper than the 15-year, because you get twice as long to pay it off.

Most mortgages are based on a 30-year amortization, meaning they take 30 full years to pay off (mortgage term).

And the 30-year fixed never adjusts for that entire duration, making it one of the most simple and straightforward loan programs out there.

In short, it s safe and easy to wrap one s head around, not to mention affordable due to that long term, and as such very popular. This is why it s heavily advertised and touted by most housing counselors and mortgage lenders alike.

With the 30-year, you can afford more house, which explains that 90% market share when it s a purchase. The 15-year fixed market share is significantly higher on refinance mortgages because borrowers don t want to restart the clock once they ve already paid down their loan.

Despite the overwhelming popularity, there must be some drawbacks to the 30-yr, right? Of course there are

15-Year Mortgage Rates Are Lower

15 year mortgage

First and foremost, you pay a premium for a 30-year fixed vs. a 15-year fixed in the form of a higher interest rate.

Put simply, because you get more time to pay off the mortgage, there is a cost associated. After all, lenders are agreeing to give you a fixed rate for double the amount of time, which is certainly a risk for them, especially if interest rates rise during that period.

For that reason, you ll find that 15-year mortgage rates cost quite a bit less than those on a 30-year product. In fact, at the time this was written, mortgage rates on the 30-year fixed averaged 4.63% according to Freddie Mac, while the 15-year fixed stood at 3.82%.

That s a difference of 0.81%, which is certainly very significant and should not be overlooked. So in general, you may find that 15-year mortgage rates are about 0.50% 0.75% lower than 30-year fixed mortgage rates.

I charted 15-year fixed mortgage rates since 2000 using Freddie Mac annual averages, as seen above. Since that time, the lowest spread compared to the 30-year was 0.31% in 2007, and the highest spread was 0.88% in 2014.

In the year 2000, the 15-yr mortgage rate averaged 7.72%, while the 30-yr was a slightly higher 8.05%.

In 2016, these rates were 2.93% and 3.65%, respectively. So the 15-year has been enjoying a wider spread lately, though that could narrow over time.

But before you get ahead of yourself, know that the lower rate on the 15-year fixed comes with a higher monthly mortgage payment because you have 15 fewer years to pay it off.

Monthly Payments Are Higher on 15-Year Fixed Mortgages

15 year mortgage

On a $200,000 mortgage, which isn t necessarily that large, the monthly mortgage payment would be $432.52 higher on the 15-year fixed mortgage because it s paid off in half the amount of time.

So despite the lower interest rate on the 15-year fixed, the monthly payment is still significantly higher. Take a look at the numbers below, using those Freddie Mac average mortgage rates:

30-year fixed payment: $ 1,028.88 (for rate of 4.63%)

15-year fixed payment: $ 1,461.40 (for rate of 3.82%)

However, and this is the biggie; you would pay $170,396.80 in interest on the 30-year fixed mortgage over the full term, versus just $63,052.00 on the 15-year fixed mortgage!

That s more than $100,000 in interest saved over the duration of the loan if you went with the 15-year fixed as opposed to the 30-year. Pretty substantial, eh.

You d also build home equity a lot faster, as each monthly payment would allocate much more money to the principal loan balance.

But there s another snag with the 15-year fixed mortgage option. It s harder to qualify for because you ll be making a much larger payment each month, meaning your DTI ratio might be too high as a result. So for some borrowers the 15-year won t even be an option.

Most Homeowners Hold Their Mortgage for Just 5-10 Years

Now obviously nobody wants to pay an additional $100,000 in interest, but who says you will?

Most homeowners don t see their mortgages out to term, either because they refinance, prepay, or sell and move.

So who knows if you ll actually benefit long-term? You may have a well-thought-out plan that falls to pieces in 2-3 years, and those larger monthly mortgage payments could come back to bite you if you don t have adequate savings.

What if you need to move and your home has depreciated? Or what if you take a pay cut or lose your job? Those larger mortgage payments will be more difficult, if not impossible, to meet each month.

And perhaps your money is better served elsewhere, such as in the stock market or tied up in another investment, one that s more liquid, which earns a better return.

Make 15-Year Fixed Sized Payments on a 30-Year Mortgage

Even if you re determined to pay off your mortgage, you could go with a 30-year fixed and make larger payments each month, with the excess going toward the principal balance.

This flexibility would protect you in periods where money was tight, and still knock several years off your mortgage, assuming larger payments were made fairly regularly. And there are always biweekly mortgage payments as well, which you may not even notice leaving your bank account.

In summary, mortgages are, ahem, a big deal, so make sure you compare plenty of scenarios and do lots of research (and math) before making a decision.

Most consumers don t bother to put in much time, but planning now could mean far less headache and a lot more money later.


Current Mortgage Rates Today – View The Best Mortgage Rates, 15 year mortgage rates.#15 #year


Current Mortgage Rates Today

Current Mortgage Rates – Mortgage Rates Today

15 year mortgage rates

Mortgage 101: A Mortgage Resource Guide

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How to Tell if Current Mortgage Interest Rates Will Continue to Rise

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Could a 10 Year Mortgage Rate Be Your Best Mortgage Option?

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Bad Credit Home Loans Are They Possible With Today s Stiffer Regulations?

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The 15 vs, 15 year fixed mortgage rates.#15 #year #fixed #mortgage #rates


The 15 vs. 30 Year Mortgage Debate: Why a 30-Year Loan Is Better

15 year fixed mortgage ratesAccording to Freddie Mac s most recent survey, there is currently a spread of 0.72% between the 15- and 30-year fixed rate mortgage benchmarks.

I think most people naturally assume that, when it comes to choosing between a 15- or 30-year fixed rate mortgage, the 15-year loan is usually the better option anyway. Considering the current spread, I m sure a lot of folks out there think they d be absolutely crazy to take out a 30-year loan.

All things being equal, a 15-year mortgage allows you to pay off your mortgage twice as fast while saving a significant chunk of money on interest. However,I say the 30-year mortgage is a more logical choice because it offers so many more advantages over its shorter-termed cousin.

Here are several big reasons why I think a 30-year fixed rate mortgage is the more pragmatic choice:

Lower payments. Of course, the biggest advantage of the 30-year mortgage is that it comes with lower payments; the money you save can then be invested or used as you see fit.

More budget friendly. Those lower payments not only take the strain off tight budgets but, if need be, they also allow you to stretch your dollar enough to purchase a more expensive home.

Increased flexibility. About eight years ago, with potential layoffs looming, I refinanced from a 15-year to a 30-year mortgage in order to lower my monthly payments by over 40%. Today, the threat of layoffs are still looming but I sleep a lot better knowing that my mortgage payment is only $600 per month instead of $1000.

More control. With a 30-year mortgage you re almost always free to make additional principal payments necessary to pay off your loan in 15 years without penalty. However, you re never obligated to do so, and can always change your mind as life s circumstances dictate. With the 15-year loan, you re hopelessly committed to giving that extra money to your lender each month whether you can really afford to or not.

Reduced financial vulnerability. By paying your lender that additional principal every month, you may be locking up too much money into your house. While it s true that the shorter loan builds home equity faster, you still need a lender s permission to tap into it with a home equity loan. If you lost your job, it s highly unlikely your bank would agree to give you such a loan, making that equity unavailable when you most needed it.

More opportunity for financial balance. Yes, building home equity and getting that house paid off is a noble goal. However, for young people just starting out, there are often other very important financial obligations that need to be addressed too. The higher payment that comes with a 15-year mortgage makes little sense if it leaves you unable to build an emergency savings account, or contribute anything to your 401(k) plan, IRA, and perhaps your kids college funds.

Bigger tax deductions. I can already feel the nasty emails coming my way: Agreeing to pay more interest in exchange for a bigger tax deduction is like spending a dollar to save a dime! I get it; this should never be the only reason for taking a 30-year mortgage over a 15-year mortgage. However, all things being equal, the larger tax deduction for the 30-year loan does temper the interest savings of a 15-year loan if only a little bit.

Effective inflation hedge. Inflation erodes the value of the dollar over time. As a result, payments made during the last 15 years of a 30-year loan are significantly lower in real terms than the day you first get the loan. That s why banks hate sustained periods of high inflation: folks with longer-term fixed-rate loans end up repaying those loans with dollars that are worth far less than the value of the dollars they originally borrowed.

No matter how you look at it, the faster inflation rises, the less sense it makes to pay off the mortgage early. With that in mind, a 30-year loan is definitely your best opportunity to stick it to the bank. For many people, I suspect that s probably reason enough to choose one.


20-Year vs, 15 year mortgage.#15 #year #mortgage


20-Year vs. 30-Year Mortgages

15 year mortgage

It’s time for a new mortgage match-up, and because paying down the mortgage early seems to be so en vogue these days, let’s take a look at “20-year mortgages vs. 30-year mortgages.”

The most common type of mortgage is the 30-year fixed. It amortizes over 30-years, and the mortgage rate never changes during that time.

Each mortgage payment is the same every month, so there isn’t any fear of interest rates resetting higher and pushing a homeowner toward foreclosure. Pretty basic, right?

This relative simplicity and safety explains their popularity, but they aren’t the end all, be all solution for every homeowner out there. There are other options.

30-Year Mortgages Have Drawbacks

When it comes down it, 30-year mortgages have some drawbacks, with the most obvious one being the long amortization period. They also come with the highest interest rates relative to other loan programs.

And since the mortgage takes so very long to be paid off, more interest is paid. Think of it this way. If you borrowed money from a friend and asked to pay it back over 30 years, they would probably say no.

If by chance they agreed, they’d want to charge you a higher rate of interest. And because you’d be paying it back so slowly, you’d pay a lot more interest over that time.

Assuming your loan amount is large, it could be the difference of many thousands of dollars versus a mortgage with a shorter term.

Look to a Shorter-Term Mortgage Like a 20-Year Fixed

So what are homeowners to do? Well, the most common solution to this ”problem” is to look at a shorter-term mortgage instead.

And while the 15-year fixed is the most common alternative, it comes with its own drawback, namely a much higher monthly mortgage payment.

In other words, not every homeowner can just say, I want to pay my mortgage off faster and switch to a 15-year fixed. It gets real expensive.

Fortunately, there are options in between, with the most common being the 20-year fixed mortgage.

A 20-year mortgage sheds 10 years off the typical loan term, and results in much less interest paid throughout its duration. The payments are also relatively manageable.

Let’s look at an example to illustrate the savings:

Loan amount: $200,000

Monthly mortgage payment: $954.83

Total interest paid: $143,738.80

20-year fixed @3.75%

Monthly mortgage payment: $1,185.78

Total interest paid: $84,587.20

20-Year Mortgage Rates Are Cheaper

As you can see, the interest rates aren’t much different, though the 20-year mortgage does price a little bit lower than the 30-year fixed.

Overall, I d say that 20-year mortgage rates price about a .25% below a comparable 30-year fixed. So 3.75% instead of 4%, or 3.5% instead of 3.75%. You get the idea.

They re definitely higher than rates on a 15-year fixed.

Anyway, in our example above the homeowner with the 30-year mortgage pays about $230 less each month, despite the higher mortgage rate.

But the 20-year mortgage results in interest savings of nearly $60,000 over the life of the loan! This borrower would also own their home free and clear an entire decade earlier.

Doesn t 20 years sound a lot more reasonable than 30? You can actually see the light at the end of the tunnel.

This shorter term can be pretty beneficial, especially if you plan to retire soon and anticipate being on a fixed income.

The 20-year fixed is also a good alternative because you won’t break the bank making your mortgage payment each month. It s a nice middle ground between 30 years and 15 years.

But again, the monthly payment will be higher than the 30-year payment, which could stretch you thin or limit what you can afford if you’re buying a home.

Go With a 20-Year Fixed Mortgage to Stay on Course

If you’re currently in a 30-year fixed, and don’t want to reset the mortgage clock when you refinance, consider a move to a 20-year fixed to stay on course without even paying more each month.

Because mortgage rates are so low at the moment, you may be able to refinance from a 30-year to a 20-year fixed mortgage and even lower your monthly payment.

Also keep in mind that there are other alternatives outside the 15, 20, and 30-year options.

And some banks even allow you to choose your own mortgage term, whether it’s a 17-year fixed or a 24-year fixed.

So be sure to look at all available options to determine which makes the most sense financially for your unique situation.

Also ask yourself why you want to pay the mortgage off sooner rather than later. There may be a better place for your money.


15-Year VA Fixed Conforming Mortgage, Home and Mortgage Center, 15 year fixed mortgage rates.#15 #year


15-Year VA Fixed Rate Mortgages

Take rising rates out of the equation with this predictable, monthly payment plan.

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

OUR GREAT RATES

This payment example assumes a loan with pointsthat is intended to be used to purchase a property with a loan amount of $ and an estimated property value of . The property is located in Alexandria, VA and is within Fairfax county. The property is an existing single family home and will be used as a primary residence. The rate lock period is 60 days and the assumed credit score is .

At a interest rate, the APR for this loan type is . The monthly payment schedule would be:

  • payments of $ at an interest rate of
  • payment of $ at an interest rate of

If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner’s insurance premiums.

FEATURES BENEFITS

  • Predictable payments
  • Faster payoff
  • Free 60 day rate lock
  • Low down payment

• For home purchases or refinancing

• VA’s 2017 Loan Limits are the same as the Federal Housing Finance Agency’s limits – 2017 Loan Limits (Effective January 1, 2017). Learn More

• Offers not available on investment properties

Applicant is responsible for VA funding fee.

VA Mortgages: The maximum loan amount for a VA loan is the VA County Loan Limits. Can exceed VA County Limits to finance the funding fee on purchases only. Amount of loan will also be determined on available entitlement.

Funds must be used to purchase or refinance a property that will be the primary residence. Refinances of existing VA-guaranteed for purposes of lower interest rate also allowed (is not required to be primary residence).

For purchase applications, please submit a copy of your fully signed ratified purchase agreement to [email protected] in a timely manner to ensure PenFed can meet your closing date.

The applicant is responsible for the following fees and costs at the time of closing: Origination fee, appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment, other cost may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

Escrows may be waived if LTV is 80% or less in all states.

If you withdraw an application that was locked and reapply within 30 days, the new application is subject to worst case pricing.

All rates and offers are in effect as of , offered for a limited time and subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

ARM vs Fixed Rate Mortgages: Which One Should You Choose?

15 year fixed mortgage rates

With mortgage interest rates at an all-time low you’re probably thinking about finally taking the big leap and becoming a homeowner or refinancing your existing home to a lower interest rate. However, the age-old question looms in front of you…which mortgage should I choose, an ARM or a fixed-rate mortgage?

The answer: it depends on your needs. While there are pros and cons to both mortgages, the real question is not which mortgage is better, but which mortgage will suit my needs.

Let’s take a look at both an ARM and fixed-rate mortgage and then you can decide which option is going to afford you your dream home or that tantalizing interest rate that will have you running to refinance your home.

Adjustable-Rate Mortgages

Adjustable-rate mortgages or ARMs have interest rates that adjust over a period of time. ARMs have had a notoriously bad reputation because of the mortgage meltdown and subsequent recession.

While this reputation was justified in the past, most of those exotic ARMs no longer exist. Today, financial institutions offer hybrid ARMs—like PenFed’s 5/5 ARM, which has a fixed-rate for five years and then the rate adjusts once every five years. This is a unique mortgage product as most ARMs adjust annually after the initial fixed terms.

The thought of an adjustable interest rate probably has you fearing skyrocketing monthly mortgage payments. Fear not, all ARMs have caps—a limit on the amount the interest rate can adjust—and ceilings—the highest the interest rate is allowed to become during the life of the loan. Using PenFed’s 5/5 ARM as an example, the initial interest rate will change every five years by no more than two percentage points up or down (the cap). This rate will never exceed five percentage points above the initial rate (the ceiling).

Fixed-Rate Mortgages

A fixed-rate mortgage provides a reliable and fixed monthly payment for the life of the loan. Because your total mortgage payment remains stable from month to month, homeowners can easily budget their monthly expenses.

Financial institutions offer various fixed-rate mortgages including the more common fixed-rate mortgages: 15, 20, and 30-year. Out of the three the 30-year fixed is the most popular mortgage because it usually offers the lowest monthly payment. However, the lower monthly payment comes at a cost of paying more in interest over the life of the loan.

Some Considerations

So, now that you know a little more about ARMs and fixed-rate mortgages here are a few things you should consider when making a decision about which mortgage will best suit your needs:

  • How long do you plan to stay in your home? If you don’t plan to stay in your home for the long haul, you may want to consider an ARM, which has a lower interest rate than the 30-year fixed and you save big money in interest charges. If you move or refinance within five years before the interest rate adjusts you can avoid a payment hike. Conversely, if you’ve found or are already in the home of your dreams, a fixed-rate mortgage makes more sense and will provide you stable payments for years to come.
  • What can you afford? Knowing how much you can afford to pay month to month in mortgage payments will also help you decide between an ARM or fixed-rate mortgage. If you’re working within a tight budget, the ARM may be a more attractive option since the payments will be lower than a 30-year fixed. But, unless you anticipate a raise or another source of added income, ask yourself if you’ll be able to afford your mortgage payment when the ARM’s interest rate increases. If not, don’t take the risk. Go with the fixed-rate mortgage and get stable monthly payments.

The Takeaway: When it’s all said and done, the goal is to get you into the home of your dreams or refinance your existing home without breaking your pockets. Both the ARM and fixed-rate mortgage are products that will help you reach your goal. However, the path you take to get to your goal depends on which mortgage will suit your needs.

15 year fixed mortgage rates

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30-Year Mortgage vs, 15 year mortgage.#15 #year #mortgage


30-Year Fixed Mortgage vs. 15-Year Fixed Mortgage

15 year mortgage

It s that time again, where I take a look at a pair of popular mortgage programs to determine which may better suit certain situations.

Today, we ll compare the 30-year fixed mortgage and 15-year fixed mortgage, two of the most commonly utilized mortgage products available.

While it s impossible to universally choose one over the other, we can certainly highlight some of the benefits and drawbacks of each.

30-Year Fixed Mortgages Are Much More Popular

The 30-year fixed mortgage is easily the most popular loan program available today. Around 70% of all mortgages are 30-year fixed products, whereas the percentage of mortgages that are 15-year fixed loans is roughly 15%.

Over time this number can fluctuate, but this should give you a good idea of how many borrowers go with a 30-year vs. 15-year mortgage.

If we drill down further, about 90% of purchase mortgages are 30-year fixed loans, and just about six percent are 15-year fixed loans. But why?

Well, the simplest answer is that the 30-year is cheaper, much cheaper than the 15-year, because you get twice as long to pay it off.

Most mortgages are based on a 30-year amortization, meaning they take 30 full years to pay off (mortgage term).

And the 30-year fixed never adjusts for that entire duration, making it one of the most simple and straightforward loan programs out there.

In short, it s safe and easy to wrap one s head around, not to mention affordable due to that long term, and as such very popular. This is why it s heavily advertised and touted by most housing counselors and mortgage lenders alike.

With the 30-year, you can afford more house, which explains that 90% market share when it s a purchase. The 15-year fixed market share is significantly higher on refinance mortgages because borrowers don t want to restart the clock once they ve already paid down their loan.

Despite the overwhelming popularity, there must be some drawbacks to the 30-yr, right? Of course there are

15-Year Mortgage Rates Are Lower

15 year mortgage

First and foremost, you pay a premium for a 30-year fixed vs. a 15-year fixed in the form of a higher interest rate.

Put simply, because you get more time to pay off the mortgage, there is a cost associated. After all, lenders are agreeing to give you a fixed rate for double the amount of time, which is certainly a risk for them, especially if interest rates rise during that period.

For that reason, you ll find that 15-year mortgage rates cost quite a bit less than those on a 30-year product. In fact, at the time this was written, mortgage rates on the 30-year fixed averaged 4.63% according to Freddie Mac, while the 15-year fixed stood at 3.82%.

That s a difference of 0.81%, which is certainly very significant and should not be overlooked. So in general, you may find that 15-year mortgage rates are about 0.50% 0.75% lower than 30-year fixed mortgage rates.

I charted 15-year fixed mortgage rates since 2000 using Freddie Mac annual averages, as seen above. Since that time, the lowest spread compared to the 30-year was 0.31% in 2007, and the highest spread was 0.88% in 2014.

In the year 2000, the 15-yr mortgage rate averaged 7.72%, while the 30-yr was a slightly higher 8.05%.

In 2016, these rates were 2.93% and 3.65%, respectively. So the 15-year has been enjoying a wider spread lately, though that could narrow over time.

But before you get ahead of yourself, know that the lower rate on the 15-year fixed comes with a higher monthly mortgage payment because you have 15 fewer years to pay it off.

Monthly Payments Are Higher on 15-Year Fixed Mortgages

15 year mortgage

On a $200,000 mortgage, which isn t necessarily that large, the monthly mortgage payment would be $432.52 higher on the 15-year fixed mortgage because it s paid off in half the amount of time.

So despite the lower interest rate on the 15-year fixed, the monthly payment is still significantly higher. Take a look at the numbers below, using those Freddie Mac average mortgage rates:

30-year fixed payment: $ 1,028.88 (for rate of 4.63%)

15-year fixed payment: $ 1,461.40 (for rate of 3.82%)

However, and this is the biggie; you would pay $170,396.80 in interest on the 30-year fixed mortgage over the full term, versus just $63,052.00 on the 15-year fixed mortgage!

That s more than $100,000 in interest saved over the duration of the loan if you went with the 15-year fixed as opposed to the 30-year. Pretty substantial, eh.

You d also build home equity a lot faster, as each monthly payment would allocate much more money to the principal loan balance.

But there s another snag with the 15-year fixed mortgage option. It s harder to qualify for because you ll be making a much larger payment each month, meaning your DTI ratio might be too high as a result. So for some borrowers the 15-year won t even be an option.

Most Homeowners Hold Their Mortgage for Just 5-10 Years

Now obviously nobody wants to pay an additional $100,000 in interest, but who says you will?

Most homeowners don t see their mortgages out to term, either because they refinance, prepay, or sell and move.

So who knows if you ll actually benefit long-term? You may have a well-thought-out plan that falls to pieces in 2-3 years, and those larger monthly mortgage payments could come back to bite you if you don t have adequate savings.

What if you need to move and your home has depreciated? Or what if you take a pay cut or lose your job? Those larger mortgage payments will be more difficult, if not impossible, to meet each month.

And perhaps your money is better served elsewhere, such as in the stock market or tied up in another investment, one that s more liquid, which earns a better return.

Make 15-Year Fixed Sized Payments on a 30-Year Mortgage

Even if you re determined to pay off your mortgage, you could go with a 30-year fixed and make larger payments each month, with the excess going toward the principal balance.

This flexibility would protect you in periods where money was tight, and still knock several years off your mortgage, assuming larger payments were made fairly regularly. And there are always biweekly mortgage payments as well, which you may not even notice leaving your bank account.

In summary, mortgages are, ahem, a big deal, so make sure you compare plenty of scenarios and do lots of research (and math) before making a decision.

Most consumers don t bother to put in much time, but planning now could mean far less headache and a lot more money later.


Best 15-Year Mortgage Rates for June, 15 year mortgage rates.#15 #year #mortgage #rates


Best 15-year mortgage rates for June charge 2.50%

In our roundup of June’s best 15-year mortgage rates, you’ll find several banks offering cut-rate deals on home loans in areas throughout the country.

All of the banks on our list are charging borrowers between 2.50% and 2.625% with no points.

That means you can find a deal that’s at least a quarter of a percentage point below the national average of 15-year home loans — 2.97%, according to our latest survey of major lenders.

These rates are also more than a full percentage point below the average 30-year fixed-rate mortgage cost — 3.73%.

Here are some of the best 15-year mortgage rates banks are offering:

Banks: Top 15-year mortgage rates

About the lenders

AimLoan: Headquartered in San Diego, it enjoys an A+ rating from the Better Business Bureau. AimLoan is a direct lender, meaning that your fees may be lower than if you use a mortgage broker.

RockBottom Mortgage: Gets an A rating from the Better Business Bureau and is headquartered in Des Plaines, Illinois. It charges borrowers a flat fee per loan and doesn’t pay commissions to its loan officers, which keeps your interest rate down.

Sebonic Financial: Headquartered in Charlotte, North Carolina, it has an A– rating from the Better Business Bureau. This online lender makes it convenient to apply for a mortgage by letting you upload the documents required to process your loan through a secure website.

United Mutual Funding Corp.: Gets an A+ Better Business Bureau rating and is based in Brandon, Florida. This direct lender says it will pay you $1,000 cash if you find a better interest rate and fees from another lender.

Credit union deals

While several larger banks are offering great 15-year mortgage rates, it’s worth checking at credit unions and local institutions as well. You may find a better deal.

For example, Teachers Federal Credit Union is offering mortgages at 2.5% with $853.50 in fees to borrowers who live, work (or regularly conduct business), worship or attend school in Nassau County, New York, and some parts of Suffolk County, New York. You can apply in person or online.

And Langley Federal Credit Union is offering mortgages at 2.50% with $495 in fees to borrowers who work or attend school in Virginia or who join a qualifying local organization. It has an A+ Better Business Bureau rating and is headquartered in Newport News, Virginia.

Finding the best mortgage rates

Even if you don’t live in the areas served by these banks and credit unions, their low rates and fees provide a great blueprint to follow. Find a deal like these in your neck of the woods, and you’ll know you’ve found a great one.

Get started by searching Bankrate’s database for the best mortgage rates from scores of other lenders in your area.

What you’ll pay

The biggest drawback to short-term loans like these is that the monthly payments are higher. For a 15-year loan at 2.50%, the principal and interest payment would be $667 a month for every $100,000 borrowed, or $1,334 on a $200,000 loan. With a rate of 2.625%, your principal and interest payment would be $673 a month for every $100,000 borrowed, or $1,345 on a $200,000 loan.

You can use our mortgage calculator to determine the monthly payments for the amount you want to borrow with this or any home loan.

It will also provide a month-by-month amortization schedule that shows how much you’ve reduced your debt and how much you still owe if you want to pay off the loan.

Shorter-term loans are particularly popular with borrowers who want to save tens of thousands of dollars in interest by paying off their loans more quickly.

Qualification

Borrowing requirements vary by lender, but to qualify for these low rates, you’ll typically need to:

  • Be borrowing $417,000 or less.
  • Have a credit score of 740 or better.
  • Be buying a home or refinancing no more than the outstanding balance of your current home loan.
  • Make a down payment of at least 20% if you’re buying.
  • Hold 20% or more of the equity in your home if you’re refinancing.

In addition, some lenders may require you to maintain an escrow account for property taxes and homeowners insurance to get the best interest rate.

I am licensed Loan Officer in all 50 states and i can help you with all your refinancing needs, feel free to contact me at (248)-825-1768