30 Year Mortgage Interest Rate Forecast, 5 year mortgage.#5 #year #mortgage


5 year mortgage

The 12 month forecast for the 30 Year Mortgage Interest Rate is in the table at

the top of this page. Forecast-Chart.com is forecasting that 30 Year Mortgage

Interest Rates will be roughly 3.61% in one year. The table shows a HDTFA of

0.39% which suggests that the July, 2017 rate could easily fall between 4.00%

and 3.21%. Forecasts for many other interest rates may be found by clicking

INTEREST RATE FORECAST at the top of this page.

5 YEAR FORECAST

Will the 30 Year Mortgage Interest Rate be higher or lower 5 years from now?

forecasting a probability of 8.3% that the 30 Year Mortgage Interest Rate will be

higher in 5 years. The table shows a probability of 91.4% that the rate will be

lower in 5 years. (June, 2021 rate compared to the June, 2016 rate). 43 YEARS

of historical data were use to calculate probabilities for Forecast-Chart.com’s 5

Year Forecast. Check this page each month for updates to the 5 Year

Forecast for the 30 Year Mortgage Interest Rate. The forecast may change

substantially as a result of movement in the indicators used in the forecasting

5 YEAR FORECAST: Various Rates

In 5 years, how high or how low is the 30 Year Mortgage Interest Rate likely to

Mortgage Interest Rates being ABOVE 3.57% in June, 2021 is 8%. The

probability of 30 Year Mortgage Interest Rates being BELOW 3.57% in June,

2021 is 92%. Probabilities for various other rates are shown as well.

Average (Last 12 Months) 3.80%.

Average (Last 10 Years) 4.73%

High (Last 12 Months) 4.05% (July, 2015)

Low (Last 12 Months) 3.57% (June, 2016)

High (Since January, 1964) 18.45% (October, 1981)

Low (Since January, 1964) 3.35% (December, 2012)

The 30 Year Mortgage Interest Rate for June, 2016 averaged 3.57%. That’s 3

basis points lower than the May, 2016 rate of 3.6%, and 41 basis points lower

than the June, 2015 rate of 3.98%. The minor movement in rates from May to

June indicates that the short term rate trend has been relatively flat. If that

market trend continues, we should see an average daily rate in July, 2016 that

is close to 3.54%.

The average rate over the last 10 years was 4.73%. Lower rates over the last

12 months compared to the average rates over the last 10 years serve as an

indicator that the long term rate trend in 30 Year Mortgage Interest Rates is

3.57%. The high annual rate was attained in July, 2015. The market low was

achieved in June, 2016.

Rate data back to January, 1964. The average annual rate during that period

of history was 8.11%. The highest rate was 18.45%. The lowest rate was

3.35%. The market high was attained in October of 1981. The market low was

achieved in December of 2012. Recent rates experienced in June of 2016 are

low relative to the historical 8.11% average.

Interest Rates. For links to longer term charts, look at the links under the five

year chart (above). One link opens a ten year chart. Another opens our longest

term graph on 30 Year Mortgage Interest Rates. Just one glance at our long

term charts can provide tremendous insight into the historical trends of the

financial markets. The data table above presents the history of the 30 Year

Mortgage Interest Rate in numerical format.


30-Year Fixed vs, 5 year mortgage.#5 #year #mortgage


30-Year Fixed vs. 5/1 ARM

5 year mortgage

Here we go again…it’s that special time where I compare two popular loan programs to see how they stack up against each other. Today’s match-up: “30-year fixed vs. 5/1 ARM.”

Everyone has heard of the 30-year fixed-rate mortgage – it’s far and away the most popular type of loan out there. Why? Because it s the easiest to understand, and presents no risk of adjusting during the entire loan term.

But what about the 5/1 ARM? Do you even know what a 5/1 ARM is? What the heck is that slash doing there!? It looks confusing.

5 year mortgage

Put simply, the 5/1 ARM is an adjustable-rate mortgage with a 30-year term that’s fixed for the first five years and adjustable for the remaining 25 years. That means it s a hybrid ARM. Partially fixed, and partially adjustable.

After the first five years are up, the interest rate can adjust once annually, both up or down. That s the 5/1 broken down for you. Disregard that pesky slash.

It’s a pretty popular ARM product, if not the most popular. And just about all mortgage lenders offer it, including ING, via its Easy Orange Mortgage.

5/1 ARM Rates Are Lower. That s the Draw

5 year mortgage

Well, the biggest advantage to the 5/1 ARM is the fact that you get a lower mortgage rate than you would if you opted for a traditional 30-year fixed.

As you can see from the chart I created above, the 5/1 ARM is always cheaper than the 30-year fixed. That s the trade-off for that lack of mortgage rate stability.

But how much lower are 5/1 ARM rates? Currently, the spread is 0.63%, with the 30-year averaging 3.78 percent and the 5/1 ARM coming in at 3.15 percent, per Freddie Mac data.

Since Freddie began tracking the five-year ARM back in 2005, the spread has been as small as 0.27% and as large as 1.30% in 2011.

If the spread were only 0.25%, it d be hard to rationalize going with the uncertainty of the ARM. Conversely, if the spread were a full percentage point or higher, it d be pretty tempting to choose the ARM and save money for at least 60 months.

Let s look at an example of the potential savings:

Loan amount: $350,000

30-year fixed monthly payment: $1,626.87

5/1 ARM monthly payment: $1,504.08

So you’d be looking at a difference in monthly mortgage payment of roughly $122, or $1,464 annually ($7,320 over 5 years), using our example from above. Not bad, right?

You d also pay down your mortgage faster because more of each payment would go toward principal as opposed to interest. So you actually benefit twice. You pay less and your mortgage balance is smaller after five years.

After five years, the outstanding balance would be $315,427.87 versus $312,017.26 on the five-year ARM. That s roughly another $3,400 in savings for a total benefit of nearly $11,000.

Discussion over, the ARM wins! Right? Well, there’s just one little problem

It might not always be this good. In fact, you might only save money for the first five years of your 30-year loan.

After those initial five years are up, you could face an interest rate hike, meaning your 5/1 ARM could go from 3.25 percent to 4.50 percent or higher, depending on the associated margin and mortgage index.

ARMs Are Cheap But Will Likely Head Higher

Currently, mortgage indexes are super low, but they’re expected to rise in coming years as the economy gets back on track, which it will eventually.

And you should always prepare for a higher interest rate adjustment if you’ve got an ARM. In fact, lenders typically qualify you at a higher rate to ensure you can make more expensive payments in the future should your ARM adjust higher.

So that’s the big risk with the 5/1 ARM. If you don’t plan to sell or refinance before those first five years are up, the 30-year fixed may be the better choice.

Although, if you sell or refinance within say seven or eight years, the 5/1 ARM could still make sense given the savings realized during the first five years. And most people either sell or refinance within 10 years.

Just be sure you can actually handle a larger monthly mortgage payment should your rate adjust higher. And realize that refinancing won t always be an option you may not qualify, or rates may be too expensive to justify a refi. It s never a guarantee.

If you actually plan to pay off your mortgage, an ARM could be a bad idea unless you seriously luck out with rate adjustments. Or you serially refinance and pay extra to shorten the amortization period. Otherwise, there s a good chance you ll pay a lot more than you would have had you gone with the 30-year fixed.

Why? Because each time you refinance to another ARM, you re getting a brand new 30-year term. That means more interest is paid over a longer period of time, even if the rate is lower.

However, if you’re a savvy investor and have a healthy risk-appetite, the 5/1 ARM could mean some serious savings, especially if the extra money is invested somewhere else with a better return for your money.

Five years not enough for you? Check out the 30-year fixed vs. the 7-year ARM, which provides another two years of interest rate stability. The rate may not be as low, but you ll get a little more time before that first rate adjustment.


Swollen Arm – Swelling of the Hand, Forearm, Fingers, 5 year arm.#5 #year #arm


Swollen Arm Swelling of the Hand, Forearm, Fingers

5 year arm

Swelling (edema) of the arm is an indication of inflammation or disturbances of blood or lymph flow causing a swollen appearance of the hand, forearm or fingers. The swelling may be accompanied by other signs and symptoms which may assist with diagnosing the cause of the swollen arm.

It is difficult to identify a causative factor for a swollen arm solely on the swelling itself. The swollen arm should be assessed in conjunction with swelling throughout the body (generalized) or in specific areas (localized). Swelling of the arm due to edema (in most cases) may be pitting (finger pressure leaves an impression on the swelling for a few seconds to minutes) or non-pitting edema. Pitting edema is usually indicative of a circulatory disorder while non-pitting edema may be an indication of a more localized cause.

Causes of a Swollen Arm

A swollen arm may be caused by a number of factors or predisposing conditions.

  • Inflammation due to trauma (blunt force), injury (broken bones), overuse and exertion, toxins (poisonous substances, insect or snake bites), burns, allergies or chronic conditions like rheumatoid arthritis, carpal tunnel syndrome, gout .
  • Lymphedema or lympadenopathy
  • Infection virus, bacteria, protozoa or fungi. Localized infection of the fingers, hand or forearm or a widespread infection of the arm as in cellulitis.
  • Venous insufficiency circulatory disorders either due to chronic conditions (cardiac, peripheral vascular disease), injury or obstructed blood flow through the arm.
  • Fat accumulation due to hypothyroidism, Cushing s syndrome or just general weight gain may cause swollen arms although this fat deposition is gradual and evident throughout the body.

Symptoms Associated with Swelling :

A swollen arm may or may not be accompanied by other signs and symptoms apart from the visible swelling.

  • Swelling causing distortion of the anatomy of the arm and related structures. This can be clearly visible when comparing the swollen arm or hand with the normal arm or hand in unilateral (one sided) swelling.
  • Pain, numbness or tingling of the arm.
  • Itching may also be experienced with or without an evident rash.
  • Redness or paleness of the arm.
  • Excessive warmth (heat) or cold and clammy skin.
  • Muscle weakness reduced muscle strength or difficulty in moving the arm or complete loss of movement of the hand, forearm or fingers.

Diagnosis Treatment :

It is important to take note of causative or aggravating factors in repeated episodes of arm swelling. A swollen arm may or may not be accompanied by other signs and symptoms and these concomitant symptoms should be reported to the attending practitioner when seeking medical attention. Most importantly, it is advisable to take note if your swelling is one sided (unilateral) or of both arms (bilateral) as this may indicate a localized or generalized nature of the condition. If you are unsure of the cause of acute swelling, always immobilize your arm and seek medical attention immediately.

  • Treatment depends on the cause of the inflammation, lymphedema, infection or venous insufficiency that is causing the swelling of the arm. Fat accumulation is usually gradual and gives the appearance of a swollen arm but is not a true swelling of the limb.
  • Swelling of the fingers may likely be due to conditions like arthritis (more commonly rheumatoid arthritis) or gout (less common) and treatment should be directed at the cause of the joint swelling.
  • It is not advisable to use a cold application such as an ice pack or immersing the hand in ice water if a swelling is noticed without identifying the cause. Cold therapy may only be useful in cases of blunt trauma immediately after the injury.
  • Anti-inflammatory drugs may be useful in reducing swelling due to inflammation as well as easing any associated pain.
  • Anti-histamines and corticosteroids may assist with swelling due to allergies or insect bites. In the event of a snake bite, seek immediate medical attention as the arm swelling may be accompanied by necrosis (tissue death). More importantly, snake venom will eventually enter the systemic circulation and can cause death.
  • Certain circulatory disorders may have serious underlying pathologies including cardiovascular disease like congestive cardiac failure, kidney failure, liver failure, aneurysms and thrombosis. These conditions need to be identified and treated accordingly.
  • Fractures (broken bones) within the arm, hand or fingers will cause swelling and severe pain upon movement. Immediate medical attention is required to prevent long term complications.
  • Inform your supervising practitioner of any medication that you may be using. Anabolic steroids (used by athletes and body builders) and certain anti-hypertensive drugs may cause arm swelling.

Management :

While a swollen arm is a non-specific symptom, it should not be ignored especially in repeat cases.

  • If the arm is turning blue or if there is a complete loss of sensation or movement, medical attention is required immediately even if this is episodic.
  • Swelling of the arm after weight training or other weight bearing exercise targeting the area is common. This is not a cause for concern unless the swelling persists or is accompanied by other signs and symptoms.
  • If you are experiencing repeat episodes of swelling and your medical practitioner has not identified any serious pathology, it is not advisable to wear tight bands, wrist watches or finger rings as this will further slow down the flow of blood or lymph.
  • Nail biters do occasionally suffer with swelling of the fingers if infection sets in (paronychia) as the mouth is laden with bacteria that will quickly infect the affected area.
  • Swelling of the arms may be common in pregnant women and are not a cause for concern.
  • Slight swelling may also occur in heat and summer months which are not serious.
  • Deep massage or manual lymph drainage as practiced in some therapeutic massage practices is not advisable for a swollen arm. The causative factor of the swelling should always be identified first and a massage can aggravate the condition.

Related Questions and Answers


News 12 Westchester, 5 year arm.#5 #year #arm


News 12 Westchester

Lawsuits dropped against Indian Point closure

The Westchester County executive has dropped his two lawsuits challenging the closure of the Indian Point Power Plant.

The Westchester County executive has dropped his two lawsuits challenging the closure of the Indian Point Power Plant.

Weather: Mostly sunny Friday with highs around 48

Weather: Mostly sunny Friday with highs around 48

News 12 weather update.

News 12 weather update.

Pearl River family racks up thousands in fines from cashless tolls

Pearl River family racks up thousands in fines from cashless tolls

NYCLU files suit against East Ramapo Central S.D. over voting practices

NYCLU files suit against East Ramapo Central S.D. over voting practices

The NY Civil Liberties Union is suing the East Ramapo Central School District over the way it elects the members of its board of education.

The NY Civil Liberties Union is suing the East Ramapo Central School District over the way it elects the members of its board of education.

House passes sweeping GOP tax overhaul

The Latest: House passes sweeping GOP tax overhaul

Trump presses fellow Republicans at Capitol as House nears vote on tax overhaul.

Trump presses fellow Republicans at Capitol as House nears vote on tax overhaul.

Westchester Crime Crime More

Middletown man sentenced for killing newborn son

Middletown man sentenced for killing newborn son

A jury found Michael Heil guilty of murder and manslaughter after a three-week trial.

A jury found Michael Heil guilty of murder and manslaughter after a three-week trial.

Columbus statue in Yonkers vandalized again

Columbus statue in Yonkers vandalized again

Police say 33-year-old Paul Martin scribbled the phrase The cause of indigenous slavery on the statue while making deliveries in the area.

Police say 33-year-old Paul Martin scribbled the phrase The cause of indigenous slavery on the statue while making deliveries in the area.

Fight erupts in Pleasantville school

Fight erupts in Pleasantville school

Officials from Pleasantville Cottage School say three girls were arrested for fighting Tuesday night at the school.

Officials from Pleasantville Cottage School say three girls were arrested for fighting Tuesday night at the school.

Mount Vernon man guilty of murder

Mount Vernon man guilty of murder

Prosecutors say Jason Myers killed Ashley McDuffie in August 2016.

Prosecutors say Jason Myers killed Ashley McDuffie in August 2016.

Closing arguments wrap up in Spring Valley trustee’s corruption trial

Closing arguments wrap up in Spring Valley trustee’s corruption trial

Closing arguments wrapped up Wednesday in a Spring Valley trustee’s corruption trial. Villair Fonvil is accused of pocketing thousands of dollars that was supposed to go to a summer camp.

Closing arguments wrapped up Wednesday in a Spring Valley trustee’s corruption trial. Villair Fonvil is accused of pocketing thousands of dollars that was supposed to go to a summer camp.

Turn to Tara More

Got a problem? You should Turn to Tara. Here’s how.

Got a problem? You should Turn to Tara. Here’s how.

Do you need to Turn to Tara?

Tara has your back and wants to hear from you. Reach her by email, Twitter or Facebook.

Do you need to Turn to Tara?

Tara has your back and wants to hear from you. Reach her by email, Twitter or Facebook.

Montrose resident fears speeding cars down local road

Montrose resident fears speeding cars down local road

Some Westchester residents say they are afraid to let their kids play outside due to speeding cars.

Some Westchester residents say they are afraid to let their kids play outside due to speeding cars.

Turn To Tara: Valhalla scientist crafts burn cure

Turn To Tara: Valhalla scientist crafts burn cure

A Valhalla scientist is being credited with making a breakthrough discovery one that could reverse the effect of one of the most dangerous weapons on the planet.

A Valhalla scientist is being credited with making a breakthrough discovery one that could reverse the effect of one of the most dangerous weapons on the planet.

Possible TZx bus service change concerns commuters

Possible TZx bus service change concerns commuters

A Tappan Zee Express bus route could be changing, causing concern among commuters.

A Tappan Zee Express bus route could be changing, causing concern among commuters.

Extended interview: Famous North Salem musician discusses TSA travel woes

Extended interview: Famous North Salem musician discusses TSA travel woes

Westchester Travel Food Fun More

Lunch With Lisa: Savannah and Company in Yorktown

Lunch With Lisa: Savannah and Company in Yorktown

Savannah and Company, a family run restaurant, serves up some home-style southern cooking in Yorktown.

Lunch With Lisa: Savannah and Company in Yorktown

Lunch With Lisa: Savannah and Company in Yorktown

National Pickle Day Fun

National Pickle Day Fun

Have some fun with these polls and quizzes on National Pickle Day!

Have some fun with these polls and quizzes on National Pickle Day!

Tasty Tuesday: Café of Love in Mount Kisco

Tasty Tuesday: Café of Love in Mount Kisco

Caf of Love on East Main Street in Mount Kisco is giving customers a farm-to-table experience with a modern twist.

Caf of Love on East Main Street in Mount Kisco is giving customers a farm-to-table experience with a modern twist.

Lunch With Lisa: Mariachi Loco in Scarsdale

Lunch With Lisa: Mariachi Loco in Scarsdale

Mariachi Loco in Scarsdale is serving up some amazing Mexican dishes for lunch specials.

Westchester Transportation Transportation More

Rockland County launches snow school for employees

Rockland County launches snow school for employees

Snow school began Monday for Rockland Highway Department employees.

Snow school began Monday for Rockland Highway Department employees.

Petition seeks name change of Gov. Mario Cuomo Bridge back to Tappan Zee

Petition seeks name change of Gov. Mario Cuomo Bridge back to Tappan Zee

A petition started by a Port Chester man seeks to change the name of the Gov. Mario M. Cuomo Bridge back to Tappan Zee.

A petition started by a Port Chester man seeks to change the name of the Gov. Mario M. Cuomo Bridge back to Tappan Zee.

Tappan Zee Bridge demolition impacts early morning Metro-North service

Tappan Zee Bridge demolition impacts early morning Metro-North service

The Tappan Zee Bridge demolition impacted the Hudson Line train service this morning.

The Tappan Zee Bridge demolition impacted the Hudson Line train service this morning.

County Executive-elect Latimer wants more input on airport bid

County Executive-elect Latimer wants more input on airport bid

Westchester County Executive Rob Astorino as part of his final days in office picked the company that he wants to run the county airport, but the man slated to take over the position says he wants further input.

Westchester County Executive Rob Astorino as part of his final days in office picked the company that he wants to run the county airport, but the man slated to take over the position says he wants further input.

Thruway Authority says its ready for winter with addition of 10 new plows

Thruway Authority says its ready for winter with addition of 10 new plows

The New York State Thruway Authority said it is ready for winter with the announcement of new plows to its fleet.

The New York State Thruway Authority said it is ready for winter with the announcement of new plows to its fleet.


Best Current Fixed 20-Year Mortgage Rates 20YR FRM Refinance Rates: Compary Today s Twenty Year


Today’s Twenty Year Mortgage Rates

The continually changing mortgage market often creates a confusing spectrum of choices for borrowers. By acquiring a general understanding of the types of mortgage products available and the advantages found in each, the consumer gains the ability to choose the best option. The 20 year fixed mortgage is available from a wide variety of financial institutions, though it is not marketed anywhere near as aggressively as 30-year fixed-rate mortgages.. The 20-year loan option provides distinct advantages over other products.

As with other fixed term loans, the interest rates on this plan will remain constant for the life of the loan. Once a payment amount is established and the loan granted, the borrower is assured that each monthly payment is identical for 20 years. On longer term loans such as a 20 year and 30 year fixed, payments during the first few years go primarily toward paying the interest. Very little of the principle is actually paid until later in the term. In many cases, additional payments early in the loan period may be applied to the principle or the entire loan may be prepaid before the end of the loan period.

The normal rule when comparing mortgage plans is that a longer term loan will typically have a higher interest rate than a shorter term. For example, a 30 year fixed loan may be available at 4%, a 20 year at 3.75%, a 15 year at 3.50% and a 10 year at 3.25%. These rates continually fluctuate but they often follow this pattern. The reason for this is that with a longer term loan the lender has the ability to collect more revenue over time, but in guaranteeing the loan for a longer period of time the lender is taking a greater interest rate shift risk. If interest rates fall the homeowner can refinance into a lower cost loan. If inflation picks up and broader financial market rates rise, the lender is stuck with the same rate they got when the loan was originated.

A borrower may save thousands of dollars in the long run by choosing a shorter term loan. The disadvantage to the borrower, however, is that the monthly payments are higher and qualifying may be more difficult. A 20 year fixed mortgage may be a good compromise for borrowers who desire a lower monthly payment than a 15 year loan offers but want the flexibility of completing the payments in a shorter time than the 30 year plans. Equity buildup from a 20 year fixed mortgage rises faster than a 30 year loan.

Fixed vs Adjustable

When interest rates are relatively low most consumers opt for the certainty of fixed-rate mortgages (FRMs). When interest rates are relatively high people are more inclined to opt for adjustable-rate mortgages which have a lower introductory rate.

Other financing options for home or real property loans include adjustable rate loans. In this case, the borrower assumes the risk of a higher payment at some point depending on market conditions. Homebuyers who do not plan to stay in the home for a long period or plan to pay off a loan quickly may decide to take the risk of an adjustable rate mortgage. Most ARM loans are hybrid ARMs, which offer a fixed initial rate for the first 3 to 7 years then after the introductory period the rate regularly adjusts every 6-months to year based upon a reference rate like the London Interbank Offered Rate (LIBOR) or the 11th district Cost of Funds Index (COFI).

Most homeowners across the United States tend to either move or refinance their home about once every 5 to 7 years. Those who are likely to move in a short period of time may want to opt for the lower adjustable-rate, whereas those who are certain of their job stability and want to settle down for life may want to lock in low loan rates on their home. Buyers who need to have a secure certain payment schedule, however, will select a fixed mortgage plan.

Several important features to remember about a 20 year fixed mortgage:

  • Payments are consistent for the entire 20 year term.
  • Interest rates typically lie between a 15 yr. and 30 yr. loan.
  • Payments to the principle increase more rapidly than a longer term loan.

When to Apply

5 year mortgageAlthough rates fluctuate to some degree on a weekly basis, watching general trends and economic conditions allows consumers to make the right choice for financing. Selecting a fixed term loan over a variable interest rate mortgage may depend on forecasting how interest rates are expected to change. For example, during inflationary periods when interest rates jump quickly and may be unpredictable, variable rate loans could create a financial hardship for some borrowers. They may find that the lender increased the mortgage payment because the prime rate jumped. The mortgage payment may continue to rise at the discretion of the financial institution. However, variable loans may be attractive with low starting rates enabling first time homebuyers to get into a starter home. If the loan applicant realizes the risks and has plans to either refinance, move or pay off the loan before an increase they may be a valid choice.

In contrast, those borrowers holding a fixed rate are protected from an increase during economic inflation. When interest rates are at a current low trend and forecasted to increase, securing a fixed mortgage becomes an attractive option. The disadvantage is that it may be more difficult to qualify for a 20 year fixed loan than a longer term such as a 30 year fixed because of higher payments and more stringent requirements. This type of loan is a good fit for borrowers who desire low risk and can comfortably meet the qualifications.

The most ideal time to finance is obviously when the rates are lowest; however other factors such as new home purchases, refinancing due to change of job or other lifestyle upsets may make the decision immediate. Borrowers interested in refinancing hold the best possibilities of ideal timing for a new loan. If the homeowner already has accrued some equity in the property, a refinance could lower the monthly payment significantly if the interest rates have dropped since the initial sale. Although additional fees are involved in refinancing, the advantage of a shorter term loan such as a 20 year fixed over a variable or longer term may offset those costs.

Loan Costs and Fees

5 year mortgageEstimate your payments with this free calculator, or compare loans side by side. 5 year mortgage

Every mortgage includes some upfront closing costs for processing and to pay the expenses of writing the loan policy. When moneys are fluid, for example during an economic upturn where financial institutions have abundant resources, some loans may be advertised as free to the borrower. These loans may seem attractive to the borrower but often come at a higher interest rate than other mortgage plans. One way or another you still end up covering the bank’s costs profit margin. Typically a new loan will include a series of fees including points which are 1% of the loan amount and paid at the time of funding to secure a lower interest rate. Some lenders allow points to be amortized over the life of the loan.

The cost of obtaining a mortgage varies due to differences in financial institutions, unique regions such as states in the U.S., the amount of the loan and several other factors. The borrower’s credit history will often have a significant impact on the cost of the loan and the interest rate being offered. Larger loans such as jumbo loans often carry higher initial fees. A large down payment may reduce the mortgage cost in some cases. Refinancing costs may be slightly less than for an original loan if the same lender is used and agrees to a reduction in their fees, particularly if the borrower has maintained a good credit rating.

Fees to be considered when financing a 20 year fixed mortgage:

  • Credit rating report fees: Loans are only granted after a thorough credit report has been issued and the cost of obtaining these reports is passed on to the borrower.
  • Title search: Most areas require a full title search to be completed before the deed is issued even in a refinancing situation.
  • Loan origination fee: These charges cover the costs of loan processing and administration.
  • Prepaid interest: The borrower often needs to set aside extra cash to pay for the gap between the time the loan is granted and the first payment due date.
  • Property Mortgage Insurance – PMI is an insurance policy which protects the lender in case of default. Home buyers who put less than 20% down on their home are typically required to pay PMI until the loan to value (LTV) falls below 80%.

Fees for financing a new mortgage will vary between lenders and often depend on the current economic conditions. An advantage of securing a 20 year fixed mortgage versus shorter term loans or variable plans is that the costs may be amortized over a longer period making this loan the most practical and affordable option.


5 Reasons to Avoid a Reverse Mortgage #payment #calculator #home


#reverse mortgage wiki

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5 Reasons to Avoid a Reverse Mortgage

One of the retirement planning resources that has gained interest in recent years is the reverse mortgage. For many retirees, it seems like a solid idea. You get access to the equity in your home, and the bank makes a mortgage payment to you. It turns your home into a source of income.

It’s a nice thought, but the truth about reverse mortgages is far from ideal. In fact, there are a few reasons to avoid getting a reverse mortgage as part of your retirement plan. Most of these reasons revolve around the fact that this type of income stream is actually a loan against your home’s equity that has to be paid back.

Here are five reasons to think twice about getting a reverse mortgage:

1. The fees are often high. Since a reverse mortgage is a loan, you are going to have loan-related fees. Origination fees and other fees on a reverse mortgage are typically rather high. A reverse mortgage is a home equity loan that isn’t decided based on your income or your credit score. As a result, there are unique risks to the lender, and some of those risks are offset by charging higher fees at the outset.

2. High interest rate. The interest rate on a reverse mortgage is often higher than the rate for a more traditional home equity loan. Between the up-front fees on the reverse mortgage and the high interest charges, you might be surprised at how little money you actually end up getting. It’s your equity, but the bank gets an awful lot of it.

3. Your heirs might not get the house. When you get a reverse mortgage, you aren’t expected to make payments on the loan. Instead, the loan is paid off when you sell your home. So, if you die, the home is supposed to be sold so that it can cover the loan amount. This means your heirs can’t have the house. It is possible for your heirs to keep the house if they pay off the reverse mortgage after you die. However, this usually means that the money has to come out of the estate, reducing the total that your children and grandchildren end up with. For someone hoping to leave a legacy, this can be a real drawback.

4. You have to repay the loan when you move out. Dying isn’t the only way that repayment on a reverse mortgage is triggered. In order to avoid making payments on the loan, you have to be living most of the time in your primary residence. You are considered “moved out” if you haven’t lived in the home for a year. This includes if you enter a long-term care facility. So, if you are no longer able to stay in your home, but you haven’t died, you have to start repaying your reverse mortgage—at a time when money is likely already tight. This can put a real strain on your budget.

5. You’re still responsible for home costs. Throughout all of this, you are still responsible for your home costs. You have to pay property taxes, keep up with the homeowners insurance, and pay for regular maintenance on the home. If you have enough equity, you can get a reverse mortgage big enough to cover all these expenses, but it can be a difficult situation nonetheless.

Before deciding to get a reverse mortgage, carefully think through the situation. The high costs, combined with the difficulties that can arise if you want to move out of the house or leave property to your heirs, can make a reverse mortgage more trouble than it’s worth. A better solution if you’re strapped for funds is to set your retirement number and then look for creative solutions to help you retire without the negative baggage of a reverse mortgage.

FMF writes at Free Money Finance. a personal finance site that helps readers grow their net worths. He shares practical tips that have helped him accumulate a significant net worth and can do the same for others, including making extra income using the best cash back credit cards and investing wisely in index funds.


Fixed Rate Mortgage – 2, 3, 5 Year Fixed Mortgages – Tesco Bank #mortgage #payment


#fixed mortgage

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From our current account that likes to thank you as you spend, to our travel money delivered wherever it’s most convenient for you, we aim to give you banking the way you want it.

Whether it’s to help manage your spending, spreading the costs of a one-off purchase, or the serious business of buying a house, we’ve got it covered.

Our range of savings accounts can give you competitive rates and easy access, while our ISAs offer tax free saving for you and your children.

Whether you’re protecting your car, your pets, your house, your loved ones, or just want to be safe on your travels, we have a comprehensive range of insurances with options that let you tailor your cover to your lifestyle.

Calculators and comparison tables, jargon busters and top tips – our selection of tools and helpful information can help you get to grips with our products.

If you’re already banking or have insurance with us and you’ve got a question, need some help, or want to know what’s available to you, you’ve come to the right place.

Fixed rate mortgage

Making your mortgage repayments easier to manage

Our 2, 3 and 5 year fixed rate mortgages (sometimes called fixed term mortgages), give you the certainty of knowing that your repayments will stay the same for a set period of time. The rate of interest you pay is fixed for the agreed period, and so are your monthly repayments, whether interest rates go up or down.

  • We could help you make the move with our 95% loan to value (LTV) mortgages, meaning you only need a 5% deposit. There may be a non-refundable booking fee and a product fee, details of any fees payable will be found on your Mortgage Illustration
  • You could pay off your mortgage early. During the initial rate period, you can overpay by up to 20% of the outstanding balance each year with no early repayment charge
  • Get a great deal more. Earn Clubcard points on your monthly repayments and any regular or lump sum overpayments. You won’t collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full
  • Choose between a mortgage with a product fee or one without a product fee

Retrieve a quote

Features of a fixed rate mortgage

WHAT IS A FIXED RATE MORTGAGE?

Fixed rate mortgages explained

A fixed rate mortgage means that your interest rate stays the same for a fixed period, for example, 3 years. This can make it easier to manage your budget because your monthly repayments will stay the same.

Once your fixed rate period has ended, we will move you to our standard variable rate (SVR). If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals.

Our fixed rate mortgage range

Use our quick mortgage calculator to see what mortgage products we could offer you.

Not sure if a Tesco Bank Fixed Rate Mortgage is right for you? Take a look at our full range of mortgage options.

All of our mortgages are repayment, rather than interest-only. This means that you pay back all of the loan (sometimes called the capital), plus interest.

BENEFITS OF OUR FIXED MORTGAGE

Benefits of our fixed rate mortgage

Our range of fixed rate mortgages is flexible, so if your life changes your mortgage could too.

Budget more easily with fixed repayments

Our fixed rate mortgages help you budget more easily with the certainty of knowing your monthly repayments will stay the same for an agreed period, even if interest rates go up or down.

Pay off your mortgage early for more years of mortgage-free living

During the initial period (2, 3 or 5 years) you can overpay by up to 20% of the outstanding balance each year and there’s no early repayment charge.

Take your mortgage with you when you move home

Just give us a call about moving your mortgage and we’ll walk you through what you need to know. Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.

It will all be outlined in your Mortgage Illustration: a document that tells you how much your mortgage will cost, as well as some other important information about the key features of your mortgage.

Have a break with a payment holiday

If you’ve made 6 monthly payments in a row, you can apply to take a payment holiday for 1 month. You can take 2 payment holidays every 12 months, up to a total of 6 payment holidays over the lifetime of your mortgage. But remember, you’ll still be charged interest during a payment holiday, so your monthly payments may go up.

You could increase your borrowing

If you’ve made 6 monthly payments, one after the other, you can apply to borrow more. The minimum amount you can borrow is £5,000 and the rate of interest you’ll pay is our standard variable rate (SVR).

We’re upfront and keep things simple. You’ll find full details of the changes you can make to your mortgage, and our charges, in your personalised Mortgage Illustration.

Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.

Our fees and charges

Clubcard rewards

We’ll automatically give you 1 point for every £4 you pay on your monthly mortgage payments – including overpayments. It’s easy to keep track of your points too as they’ll show up on your Clubcard account within 6 weeks of each payment you make. You must be registered to Clubcard in order to benefit from Clubcard points.

You won’t collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full.

Find out more about Clubcard

FIRST TIME BUYERS AND MOVING HOME

First time buyers and moving home

We know that getting your mortgage sorted is important. That’s why we have a dedicated mortgage team. They provide an excellent service and are here to help you through the home buying process, whether you’re just starting out or are looking to move to a new home.

Our UK-based Mortgage Team is available from 8am to 9pm on weekdays, and 9am to 4pm on Saturdays. Call: 0345 217 2050.

We provide a full advice service by phone, or you can apply online.

Our fees and charges

REMORTGAGE

Secure a better remortgage rate

Everyone has their own reasons for wanting to remortgage. Your current deal could be about to end, you might be looking for a better rate or be worried that interest rates might go up. Maybe your situation has changed and you want a different type of mortgage or perhaps you want to increase your mortgage to make home improvements.

We offer competitive rates on remortgage deals, so there’s nothing stopping you from getting a quote and seeing how much you can borrow. If you’re coming to the end of your deal we can arrange for your home to be revalued and pay for your first standard valuation fee.

You could save by switching

When you remortgage with us, we’ll pay your first standard valuation fee and we’ll also cover your standard legal fees.

Our fees and charges

COMING TO THE END OF YOUR MORTGAGE?

Renew your existing mortgage

If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals. We’ll work it out based on how much you still owe on your mortgage, our current valuation of your home, and the number of years left on your existing mortgage. And because you’re already a customer, we’ve done all the checks we need to, meaning switching to a new deal should be quick and easy.

Contact us – we’re here to help

Need a few questions answered? Want to chat rather than scroll? Our UK-based teams are here to talk to you six days a week. Lines are open Monday to Friday 8am-9pm and Saturday 9am-4pm.

Call 0345 217 2050* to chat about new policies.

* These numbers may be included as part of any inclusive call minutes provided by your phone operator.

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Define: 5 Year ARM #mortgage #rates #ri


#5 year arm

#

5 Year ARM

More On 5 Year ARM

Definition

A 5 Year ARM is a loan with a fixed rate for the first five years. After that, it has an adjustable rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first five years, the monthly payment may also change.

A 5 year ARM, also known as a 5/1 ARM. is a hybrid mortgage. A hybrid mortgage combines features from an adjustable rate mortgage (ARM) and a fixed mortgage. It begins with a fixed rate for a specified number of years, but then changes to an ARM with the rate changing every year for the rest of the term of the loan. With a 5 year ARM, the interest rate is fixed for a period of five years, after which it will be adjusted annually.

5/1 ARM explained

Basically, an ARM is a mortgage loan that has an interest rate that adjusts, or changes, usually once a year. The benefit of an ARM is that it generally gives you a lower interest rate initially. The risk is that the interest rate most likely will go up, which in turn will make your monthly payments rise.

The change in interest rate is tied to an index that determines how much your interest rate will rise or fall at each adjustment period. An index is a published interest rate based on the returns of investments such as U.S. Treasury securities. The rates for these investments change in response to market conditions, so an index tends to track to changes in U.S. or world interest rates.

With a 5/1 ARM, the interest rate does not begin changing based on the index immediately. Instead, the interest rate on a 5 year ARM is fixed for the first five years of the loan. After five years, the interest rate can change annually for the next 25 years until the loan is paid off. The first number in the name 5/1 ARM indicates the number of years of the fixed period while the second number indicates the adjustment interval. An adjustment interval is the period between potential rate changes (in this case, one year).

Benefits and disadvantages

A hybrid mortgage offers a lower interest rate than a fixed loan but a higher interest rate than a standard ARM. It gives you the security of knowing what you payments will be for the fixed period of your loan. With a 5/1 ARM, you know exactly what your interest rate will be for the first 5 years. After that, your interest rate, and therefore your monthly payment, could go up or down.

Choosing a 5/1 ARM could save you money on your monthly mortgage payment. For example, let s say you are purchasing a $200,000 house and putting down 20 percent. After borrowing $160,000 at a 7 percent interest rate, your monthly payment on a 30 year fixed rate mortgage is $1,064.48 each month. A 5/1 ARM can get you into the same house but with lower initial monthly payments. With a 5 year ARM you may be able to start out with a 6.25 percent interest rate, therefore making your monthly payments only $985.15 for the first 5 years of the loan. However, after the 5 year fixed period, the interest rate can change based on the index. Because of this, it is essential that you be sure you can still afford the monthly payments if interest rates go up. Most 5/1 ARM s will have a lifetime payment cap that limits how much the interest rate on your loan can rise.

If you plan to move or refinance prior to the end of the first 5 years of your mortgage, a 5/1 ARM may be right for you. You do need to be aware that some states allow prepayment penalties for hybrid arms. If you refinanced your home or sold it during the first 5 years of your loan, you may have to pay the lender a penalty fee. Find out from your lender the consequences, if any, of paying off the loan during the fixed period.

Who should get one?

Weigh your options carefully when deciding on the mortgage product that is best for you. If want to take advantage of the lower initial interest rate associated with an ARM, but want to have some of the security of a fixed-rate loan, a 5/1 ARM may be an option for you.

Related Terms

A mortgage with an interest rate that can change during the term of the loan. The timing and calculation of.

A 1 year ARM is a loan with a fixed rate for the first year that has a rate that changes yearly for the remaining.

A 2 year ARM is a loan with a fixed rate for the first 2 years that has a rate that changes once each year for the.

A 3 year ARM is a loan with a fixed rate for the first 3 years that has a rate that changes once each year for the.

A 7 year ARM is a loan with a fixed rate for the first 7 years that has a rate that changes once each year for the.

A 10 year ARM is a loan with a fixed rate for the first 10 years that has a rate that changes once each year for the.


Historical 5 Year Fixed Mortgage Rates #seattle #mortgage #rates


#historical mortgage rates

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5 Year Mortgage Rate History

Posted Historical 5-Year Fixed Mortgage Rates (1973 – 2010)

The 5-year fixed mortgage rate is the most popular rate in Canada. View historical values for posted rates as far back as 1973. These rates are sourced from the Bank of Canada which sources its data from posted bank rates.

Historical Posted 5-year Mortgage Rates From 1973 – Today

Discounted Historical 5-Year Fixed Mortgage Rates (2006 – 2012)

While the Bank of Canada has the most comprehensive data set, with the high prevelance of mortgage rate discounting, it is not the most accurate. The Canadian Association of Accredited Mortgage Professionals estimates that the average discount applied to a 5 year mortgage rate in 2010 was 1.42%. To source the discounted rates, we have combined our proprietary data supplemented with discount brokerage data from 2006-2010.

Historical Discounted 5-year Mortgage Rates From 2006 – Today

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