Mortgage Rate – Sznurki http://www.sznurki.net/ Wed, 23 Nov 2022 05:02:50 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.sznurki.net/wp-content/uploads/2021/04/sznurki-icon-150x150.png Mortgage Rate – Sznurki http://www.sznurki.net/ 32 32 Pepper raises some Irish mortgage rates to 6.5% – The Irish Times https://www.sznurki.net/pepper-raises-some-irish-mortgage-rates-to-6-5-the-irish-times/ Wed, 23 Nov 2022 05:02:50 +0000 https://www.sznurki.net/pepper-raises-some-irish-mortgage-rates-to-6-5-the-irish-times/

Pepper Finance, the mortgage service provider used by a number of investment funds for Irish loans acquired after the financial crash, has decided to pass on all of the recent rate hikes by the European Central Bank (ECB) to thousands of standard variable rate customers.

The move will bring standard variable rates (SVR) on certain loans to 6.5%, well above the SVRs offered by companies still actively bringing new loans to market, which range from 2.95% to 5.25 %.

Pepper, which manages around 80,000 Irish mortgages held by investment funds such as Carval, Goldman Sachs and Pimco, announced in September that it was raising that rate on thousands of SVR mortgages by 1.25%, in accordance to the effect of two official ECB rates. hikes.

This would have increased the average SVR of Pepper-managed loans to almost 5.45%.

Pepper decided last week to give thousands of borrowers 30 days’ notice that the ECB’s 0.75 percentage point rate hike at the end of October would now be passed on to them.

Pepper’s spokesperson declined to comment on the number of people affected, but said they had already received a letter.

In addition to the cost of tracker loans which automatically increases with ECB rate hikes, all six mortgage lenders operating in the market have raised rates on some products, mainly affecting new fixed rates.

While AIB added 0.25 percentage points to all new fixed rates in September, Finance Ireland increased its variable and fixed rates by 1.5 to 2 points and suspended the offering of long-term fixed products from 10 years or more. Non-bank lenders have been particularly hard hit by a spike in market interest rates, while Irish banks fund their mortgages mainly from deposits, which continue to yield little or nothing to savers.

Brendan Burgess, consumer advocate and founder of Askaboutmoney.com, said many borrowers affected by Pepper’s latest rate hike, including some former Permanent TSB and Danske Bank clients, cannot refinance at lower rates with traditional lenders, as they are considered higher risk borrowers. .

He said funds that hold loan portfolios are not subject to the same competitive “market forces” as permanent banks to determine rates.

“Many borrowers affected by Pepper’s increases will now find themselves in arrears,” he said.

Pepper’s spokesperson said: “With the cost of living rising and interest rates rising, we are acutely aware that this is a difficult time for many people. We encourage Pepper customers who are concerned about their financial situation or are experiencing financial difficulties to contact us…we will have a wide range of solutions available to help people manage their situation.

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Mortgage rates plunge to 6.61% amid slowing inflation https://www.sznurki.net/mortgage-rates-plunge-to-6-61-amid-slowing-inflation/ Thu, 17 Nov 2022 19:08:00 +0000 https://www.sznurki.net/mortgage-rates-plunge-to-6-61-amid-slowing-inflation/

Editor’s note: Freddie Mac, which has tracked weekly average mortgage rates since 1971 and has periodically made changes to its primary mortgage market survey, changed the source of its data effective November 17, 2022. Instead of surveying lenders, weekly results will be based on applications received from lenders that are submitted to Freddie Mac. Learn more about Freddie Mac’s Change here.

Mortgage rates fell sharply last week following a series of economic reports indicating that inflation may finally come down.

The 30-year fixed-rate mortgage averaged 6.61% in the week ending Nov. 17, down from 7.08% the week before, according to Freddie Mac, the biggest weekly drop since 1981. It a year ago, the 30-year fixed rate was 3.10%.

Mortgage rates have risen for most of 2022, boosted by the Federal Reserve’s unprecedented interest rate hike campaign to rein in soaring inflation.

Last week, two key inflation reports – the consumer price index and the producer price index – showed prices rose at a slower pace than expected in October, suggesting that the inflation is moving in the right direction and may even have peaked.

“While lower mortgage rates are good news, there is still a long way to go for the housing market,” said Sam Khater, chief economist at Freddie Mac. “Inflation remains high, the Federal Reserve is expected to keep interest rates high, and consumers will continue to feel the impact.”

The average mortgage rate is based on the mortgage applications Freddie Mac receives from thousands of lenders across the country. The survey only includes borrowers who have a 20% down payment and have excellent credit. But many buyers who put less money up front or have less than perfect credit will pay more than the average rate.

Investors saw last week’s weaker-than-expected CPI data as an indication that the Federal Reserve could make smaller interest rate hikes in the coming months, said George Ratiu, chief financial officer. economic research at Realtor.com.

Although the Fed does not directly set the interest rates that borrowers pay on mortgages, its actions influence them. Mortgage rates tend to follow the yield of 10-year US Treasury bills. When investors see or anticipate rate hikes, they take action that drives up yields and mortgage rates.

“The 10-year Treasury note rose from 4.15% last Wednesday to 3.68%, as financial markets appeared to applaud slowing inflation as a sign that monetary tightening by the Federal Reserve is producing l intended effect,” Ratiu said.

Even though the inflation data is moving in the right direction, the Fed has said it has no plans to back off on raising rates until inflation nears the desired 2% target.

Still, lower mortgage rates over the past week have given buyers relief, Ratiu said.

A buyer buying the home at the median price with a 20% down payment at last week’s average rate of 7.08% faced a monthly payment of around $2,280, according to Realtor.com. At a rate of 6.61%, the same buyer would see their payment drop to $2,174. While the $100 per month savings may not seem like much, over the term of a 30-year loan, the buyer would save nearly $48,000 in interest.

These savings have prompted some buyers to jump in and lock in a lower mortgage rate.

Mortgage applications increased for the first time in seven weeks, according to the Mortgage Bankers Association, as purchase and refinance applications increased.

“Signs of slowing inflation have pushed mortgage rates below 7% for the first time since mid-October, but with rates still relatively high and affordability reduced as a result, the average loan size is now to its lowest level in nearly two years,” Bob Broeksmit said. , President and CEO of the MBA.

Buying a home remains a challenge for many buyers. Mortgage rates are expected to remain volatile for the rest of the year. And prices remain high in many areas, especially where there is a very limited inventory of homes available for sale.

Meanwhile, inflation and rising interest rates mean that many potential buyers also face tight budgets.

“For consumers, rapidly rising prices have added significant financial pressures, especially as inflation erodes wage gains,” Ratiu said. “The Fed’s rate hikes are directly tied to higher interest rates for credit cards and auto loans, which, along with higher mortgage debt, add additional burdens to household finances.”

According to Realtor.com, more than 20% of listings have seen their prices drop as sellers adjust their strategy to meet buyers in a changing financial landscape.

“On the one hand, sellers have accepted the fact that homes priced in line with the housing market we knew when rates were at 3% leave very few buyers able to manage mortgage payments with the rates at ‘today,” Ratiu said. “On the other hand, buyers may be hesitant to move forward with transactions if they find the erratic nature of current mortgage rates disconcerting.”

Mortgage rate volatility is not expected to subside in the near future, which will cause uncertainty for both buyers and sellers.

“With inflation still north of 7% and the Fed committed to continue raising the funds rate over the next few months, the mortgage market is not out of the woods,” Ratiu said. “We could still see rates rebound above 7% before the end of the year.”

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November 14, 2022—Rate Cut – Forbes Advisor https://www.sznurki.net/november-14-2022-rate-cut-forbes-advisor/ Mon, 14 Nov 2022 13:22:55 +0000 https://www.sznurki.net/november-14-2022-rate-cut-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

The current average rate for a 30-year fixed mortgage is 6.91%, down from 7.33% a week earlier.

For borrowers who want a shorter mortgage, the average 15-year fixed mortgage rate is 6.23%, down 0.27% from the previous week.

Homeowners who want to get a lower rate by refinancing should compare their current mortgage rate to today’s refinance rates.

Related: Compare current mortgage rates

Mortgage rates as of November 14, 2022

30-year fixed mortgage interest rate

Today, the benchmark 30-year fixed average mortgage rate remained at 6.91% from 6.91% yesterday. At this time last week, the 30-year fixed rate was 7.33%. The 52-week high is 7.41%.

The APR on a fixed 30 year is 6.92%. This time last week it was 7.34%. The APR is the overall cost of your loan.

According to the Forbes Advisor Mortgage Calculator, homebuyers with a $100,000 30-year fixed rate mortgage will pay $659 per month in principal and interest (taxes and fees not included) at the current interest rate of 6. 91%. In total interest, you would pay $137,337 over the life of the loan.

15-year mortgage rates

Today’s 15-year fixed rate mortgage is at 6.23%, up 0.27% from the previous week. At this time last week, the 15-year fixed rate mortgage was at 6.50%. Today’s rate is above the 52-week low of 5.23%.

The APR on a 15-year fixed is 6.26%. It was 6.53% a week earlier.

A 15-year fixed rate mortgage with a current interest rate of 6.23% will cost $856 per month in principal and interest on a $100,000 mortgage (taxes and insurance not included). In this scenario, borrowers would pay approximately $54,140 in total interest.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate sits at 6.87%, lower than this time last week. The average rate was 7.33% at the same time last week. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 6.00%.

Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 6.87% will pay $657 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $4,929, and you would pay approximately $1,022,806 in total interest over the life of the loan.

5/1 ARM interest rate

Today’s average interest rate on a 5/1 ARM is 5.60%, up 0.04% from the previous week. In the past 52 weeks, the lowest ARM 5:1 rate was 4.49% and the highest was 5.60%.

Borrowers with the current rate of 5.60% will spend $574 in principal and interest per month on a $100,000 loan.

How many houses can I afford?

The first step in your home buying journey should be to calculate affordability. You’ll want to know how much you can afford based on factors like income, debt, and savings.

Here are some important factors that go into the affordability of a home:

  • Revenue
  • Debt
  • Debt ratio (DTI)
  • Advance payment
  • Credit score

What is an APR and why is it important?

The annual percentage rate, or APR, encompasses the mortgage interest rate and lender fees over the full term of the loan. This is important because it can give buyers a more complete picture of the total costs, not just the interest rate.

Comparing APR between lenders is a better way to see overall costs, as it will show you everything from interest rates to fees.

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Mortgage rates go back above 7% https://www.sznurki.net/mortgage-rates-go-back-above-7/ Thu, 10 Nov 2022 15:57:00 +0000 https://www.sznurki.net/mortgage-rates-go-back-above-7/

Mortgage rates are back above 7%, after falling last week.

The 30-year fixed-rate mortgage averaged 7.08% in the week ending Nov. 10, down from 6.95% the previous week, according to Freddie Mac. A year ago, the 30-year fixed rate was 2.98%.

Mortgage rates have risen for most of 2022, boosted by the Federal Reserve’s unprecedented interest rate hike campaign to rein in soaring inflation.

Last week, the Fed announced it would raise interest rates an additional 75 basis points, the sixth rate hike this year and the fourth consecutive hike of this magnitude. While the Labor Department said Thursday that consumer prices rose 7.7% in October from a year ago, less than expected, the Fed still has some way to go in its efforts to rein in inflation.

“The housing market is the most interest-rate sensitive segment of the economy, and the impact of rates on homebuyers continues to evolve,” said Sam Khater, chief economist at Freddie Mac. “Home sales are down significantly and as we approach the end of the year, they are not expected to improve.”

Although the Fed does not directly set the interest rates that borrowers pay on mortgages, its actions influence them. Mortgage rates tend to follow the yield of 10-year US Treasury bonds. When investors see or anticipate rate hikes, they take action that drives up yields and mortgage rates.

With mortgage rates up four percentage points from a year ago, buyers’ purchasing power has plummeted. This has pushed many buyers out of the market and those who remain may need to consider a lower price or compromise on the location, size or condition of a home in order to find one that is affordable.

“The key to making a good decision in this tough real estate market is to focus on what you need now and in the years to come, so you can stay in your home long enough for buying to be a financial decision. sensible,” Danielle said. Hale, chief economist of Realtor.com.

Based on the September 2021 median home price and 30-year fixed mortgage rate, a typical homebuyer with a 20% down payment would have considered a monthly payment of $1,187 last year, according to Freddie’s calculations. Mac.

This year, due to both higher prices and mortgage rates hovering around 7%, a typical buyer will face a monthly payment of $2,065. That’s $878 more per month.

Due to this drastic change in the cost of financing a home, sales have fallen for eight straight months, according to the National Association of Realtors. A Fannie Mae survey showed that only 16% of people think now is a good time to buy a house, a record high.

But last week’s mortgage applications rose slightly for the first time in six weeks, according to the Mortgage Bankers Association, indicating that some people are still buying homes.

“The desire for homeownership is strong,” said Bob Broeksmit, MBA President and CEO. “Many potential buyers are waiting for mortgage rate volatility to decrease, along with a clearer picture of the economic outlook.”

According to Freddie Mac, the average mortgage rate is based on a survey of conventional home purchase loans for borrowers who have a 20% stake and excellent credit. But many buyers who put less money up front or have less than perfect credit will pay more.

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Rising UK mortgage rates ‘will put 400,000 more people in poverty’ | UK cost of living crisis https://www.sznurki.net/rising-uk-mortgage-rates-will-put-400000-more-people-in-poverty-uk-cost-of-living-crisis/ Fri, 04 Nov 2022 19:26:00 +0000 https://www.sznurki.net/rising-uk-mortgage-rates-will-put-400000-more-people-in-poverty-uk-cost-of-living-crisis/

Rising monthly home loan costs will push an additional 400,000 people into poverty over the coming year as the fallout from higher mortgage rates ripples through the housing market.

The Joseph Rowntree Foundation (JRF) said an additional 120,000 households in the UK, equivalent to 400,000 people, will be pushed into poverty when their current mortgage contract ends.

The analysis assumes that mortgage rates remain high and that homeowners are forced to move to an interest rate of 5.5%. With a current standard of 2%, this change would mean spending 54% of their monthly income on housing costs, up from 38% previously. In cash terms, this equates to an average increase of £250, from £610 per month to £860 per month.

Mortgage rates rose due to the Bank of England’s base rate hike this year, but climbed after the disastrous Kwasi Kwarteng mini-budget and remained high.

The warning comes after the Bank of England raised the cost of borrowing to 3% in the biggest interest rate hike since 1989. However, the impact on the mortgage market has been muted as lenders had already forecast a sharp rise in rates, with some actually cutting rates amid calm financial markets.

On Friday, the cost of an average two-year fix was 6.45%, while an average five-year deal was 6.28%, according to data firm Moneyfacts. Just over a year ago, mortgage borrowers could secure an interest rate of less than 1% for two or five years.

Low-income people with mortgages are already under extreme financial pressure as rising food, fuel and energy costs push household budgets to the limit. JRF says 750,000 households, or 2.4 million people, with a mortgage are already in poverty.

The turmoil in the mortgage market would increase competition for rental properties and could lead to a sharp rise in rents for new rentals, with buy-to-let landlords passing on their higher lending costs, the anti-poverty charity said.

Even if the housing market returns to “normal”, in which mortgage rates fall back below 3% and house prices are stable, lending criteria could be stricter, making it more difficult for first-time buyers to first-time buyers to access the real estate ladder, he said.

JRF senior policy adviser Darren Baxter-Clow said the government should step in to support homeowners and tenants affected by the mortgage crisis, but should not “support a stalled housing market”.

“Exorbitant house prices have kept millions of people out of home ownership for decades and trapped too many in an unaffordable, insecure and shoddy private rental sector,” he said.

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November 2, 2022—Mortgage Rate Advance – Forbes Advisor https://www.sznurki.net/november-2-2022-mortgage-rate-advance-forbes-advisor/ Wed, 02 Nov 2022 13:18:44 +0000 https://www.sznurki.net/november-2-2022-mortgage-rate-advance-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

The average rate for a 30-year fixed mortgage is 7.25% with an APR of 7.26%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 6.48% with an APR of 6.50%. On a 30-year jumbo mortgage, the average rate is 7.27% with an APR of 7.27%. The average rate on a 5/1 ARM is 5.52% with an APR of 7.08%.

Related: Compare current mortgage rates

Mortgage rates for November 2, 2022

30-year fixed mortgage rates

Today, the average rate for a 30-year fixed rate mortgage is 7.25%, down from 7.22% last week. In the past 52 weeks, the lowest rate was 5.68% and the highest rate was 7.38%.

The annual percentage rate (APR) on a 30-year fixed rate mortgage is 7.26%. The APR was 7.23% last week. The APR is the overall cost of your loan.

With the current interest rate of 7.25%, a $100,000 30-year fixed mortgage costs about $682 per month in principal and interest (taxes and fees not included), according to the Forbes Advisor mortgage calculator. Borrowers will pay approximately $145,583 in total interest over the life of the loan.

15-year mortgage interest rate

The average interest rate on the 15-year fixed mortgage is 6.48%. At this time last week, the 15-year fixed rate mortgage was at 6.49%. Today’s rate is above the 52-week low of 4.94%.

The APR on a fixed 15-year term is 6.50%. It was 6.52% this time last week.

With an interest rate of 6.48%, you would pay $870 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $56,601 in total interest.

Giant Mortgage Rates

The current average interest rate on a 30-year fixed-rate jumbo mortgage is 7.27%, up 0.03% from last week. The 30-year jumbo mortgage rate had a 52-week low of 5.70% and a 52-week high of 7.43%.

A giant 30-year mortgage at the current fixed interest rate of 7.27% will cost you $684 per month in principal and interest per $100,000. On a giant $750,000 mortgage, the monthly principal and interest payment would be around $5,127.

5/1 ARM interest rate

Today’s average interest rate on a 5/1 ARM is 5.52%, up 0.01% from the previous week. Over the past 52 weeks, the lowest ARM 5:1 rate was 4.34% and the highest was 5.53%.

Borrowers with the current rate of 5.52% will spend $569 in principal and interest per month on a $100,000 loan.

Where are mortgage rates going this year?

In the first half of 2022, home loan rates soared and currently sit around 7.25% for the popular 30-year fixed rate mortgage. Experts are divided on whether they will continue to climb – some forecasts put the year-end average at nearly 7% – or stay flat from here. If you are looking for a mortgage, you should check rates frequently and always compare lenders.

How to calculate mortgage payments

To get an estimate of your mortgage costs, using a mortgage calculator can help.

Simply enter the following information:

  • house price
  • Deposit amount
  • Interest rate
  • term of the loan
  • Taxes, insurance and all HOA fees

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Hawaii market stabilizes with mortgage rates at 7% https://www.sznurki.net/hawaii-market-stabilizes-with-mortgage-rates-at-7/ Sun, 30 Oct 2022 04:37:09 +0000 https://www.sznurki.net/hawaii-market-stabilizes-with-mortgage-rates-at-7/

HONOLULU (KHON2) — Mortgage rates hit 7% for the first time in two decades, but what does that mean for Hawaii’s housing market?

KHON2 spoke with experts to learn more about what homebuyers need to know.

Download the free KHON2 app to iOS Where android to stay informed of the latest news

Element Mortgage said those looking to buy a home in the islands will have to lower their expectations as mortgage rates are at 7%.

“That means now that they were looking at maybe an $800,000 property, now they’re getting closer to a $600,000 property, and it may not be a single-family house anymore,” said Nicky Cruz, mortgage lender at Element Mortgage.

Locking in a fixed mortgage at 7% means the interest rate will stay the same for the life of the loan, unless the buyer refinances, pays off or sells their home.

“If you do an adjustable rate,” Cruz said, “let’s say it’s a five-year rate, for five years you’ll have a fixed rate, but then it can adjust based on the cap at that time- there in the market.”

Adjustable rates might be better for some, Cruz added.

“Especially if it’s maybe not your forever home, maybe it’s to get your foot in the door, kind of see where things are going for the next two years, that could be a great option. “, she said.

Oahu resident Courtney Reichard recently purchased a home in Wahiawa and said the process wasn’t tedious even though inventory was low.

“I wouldn’t say we really had any problems, it was just that we, you know, wanted a three-bedroom,” Reichard said. “I mean, I think we looked at maybe five or six houses until we found this one.”

Amber Ricci with EXP Realty said Hawaii’s strong seller’s market was starting to stabilize and some thought they were thinking outside the box to buy.

“What I see with some of my clients is that they have their parents or siblings co-sign to help them get a mortgage at a higher price,” Ricci said.

Ricci said some estate agents are even offering concessions on their commission to secure a sale, so now is a good time to buy even if mortgage rates are at their highest level in 20 years.

Check out more Hawaii news

“But the great thing about it is you can always refinance, and I say to my clients who need to buy now, just lock in on that rate, even if it’s high now, you’re still going to see growth in at long term and you will still be able to refinance,” Ricci said.

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October 26, 2022 — Rates Rise – Forbes Advisor https://www.sznurki.net/october-26-2022-rates-rise-forbes-advisor/ Wed, 26 Oct 2022 12:02:08 +0000 https://www.sznurki.net/october-26-2022-rates-rise-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Currently, the average rate for a 30-year fixed mortgage is 7.22%, down from 7.20% a week ago.

For borrowers looking to pay off their homes faster, the average rate on a 15-year fixed mortgage is 6.49%, up 0.09% from the previous week.

If you’re considering refinancing for a lower rate, compare your current mortgage rate with current market rates to make sure the cost of refinancing is worth it.

Related: Compare current mortgage rates

Mortgage rates as of October 26, 2022

30-year fixed mortgage interest rate

Borrowers will pay more interest this week, with the average 30-year fixed-rate mortgage rate at 7.22%, up from 7.20% a week ago. The lowest rate was 5.50% over the past 52 weeks and the highest was 7.38% over the same period.

The annual percentage rate (APR), which includes interest and all lender fees, on a 30-year fixed rate mortgage is 7.23%. The APR was 7.21% last week.

If your mortgage is $100,000 and you have a 30-year fixed rate mortgage with the current rate of 7.22%, you will pay approximately $680 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator says. This represents approximately $144,851 in total interest over the life of the loan.

15-year fixed mortgage rates

The average interest rate on the 15-year fixed mortgage is 6.49%. At this time last week, the 15-year fixed rate mortgage was at 6.40%. Today’s rate is above the 52-week low of 4.94%.

On a 15-year fixed term, the APR is 6.52%. Last week it was 6.44%.

At the current interest rate of 6.49%, a 15-year fixed rate mortgage would cost approximately $871 per month in principal and interest per $100,000. You would pay approximately $56,700 in total interest over the life of the loan.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate stands at 7.24%, higher than it was at this time last week. The average rate was 7.21% at the same time last week. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 5.51%.

Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 7.24% will pay $682 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $5,116, and you would pay approximately $1,090,045 in total interest over the life of the loan.

5/1 Adjustable Rate Mortgage Rates

Today’s average interest rate on a 5/1 ARM is 5.51%, up 0.06% from the previous week. In the past 52 weeks, the lowest ARM 5:1 rate was 4.24% and the highest was 5.51%.

Borrowers with the current rate of 5.51% will spend $568 in principal and interest per month on a $100,000 loan.

Where are mortgage rates going this year?

Home loan rates have soared this year, from 3.22% in early January to 7.22% this week for the most popular 30-year fixed rate mortgage. What happens next is anyone’s guess: a Forbes Advisor survey of experts predicts the year-end average between 5% and nearly 7%. If you’re looking for a mortgage right now, check out several lenders and lock in a rate as soon as a competitive offer comes along.

How to calculate mortgage payments

Before looking for a house, you need to know your budget. This will give you an idea of ​​the type of home you can afford. Start by using a mortgage calculator to get a rough estimate.

Simply enter the following information:

  • house price
  • Deposit amount
  • Interest rate
  • term of the loan
  • Taxes, insurance and all HOA fees

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Can my daughter waive a fixed mortgage rate as the lender exits the market? – The Irish Times https://www.sznurki.net/can-my-daughter-waive-a-fixed-mortgage-rate-as-the-lender-exits-the-market-the-irish-times/ Mon, 24 Oct 2022 11:53:42 +0000 https://www.sznurki.net/can-my-daughter-waive-a-fixed-mortgage-rate-as-the-lender-exits-the-market-the-irish-times/

I am writing on behalf of my daughter who currently has a 5 year fixed rate mortgage with KBC. The current fixed rate is due to expire in April 2024.

My question is, are they obliged under their current fixed rate agreement to transfer to the Bank of Ireland or can they choose another provider?

She has the option of switching to another provider who offers her a 5-year fixed rate at a very competitive rate.

I have the impression that KBC is not keeping its part of the agreement because it no longer continues to provide him with a mortgage.

Should she also hire a lawyer? She has been in contact with Bank of Ireland and they seem to want to treat the transfer as a new mortgage and want appraisals etc. which entail costs.

Mr M.O’S.

When is a fixed rate mortgage not a fixed rate? It really is the question of the day for thousands of homeowners who have fixed rate mortgages with KBC or Ulster Bank. With ultra-low rates over an extended period, locking in fixed rates was a no-brainer for anyone who hasn’t already enjoyed a trailing mortgage rate in the Irish market over the past few years.

The market was simple. You were tied to a fixed rate and had the security of knowing exactly what you would pay over the duration of the fix – from one to 30 years depending on the mortgage provider and the term chosen by the customer.

But while there was certainty for the customer, there was also certainty for the bank who could count on a steady stream of income from mortgage rates which, although cheap by Irish historical standards, were well above the margin they could earn on average on euro zone markets.

The only downside to fixed rates is the threat of a substantial “break fee” if you choose not to honor the full term for which you have fixed.

And that is the conundrum in which many KBC and Ulster Bank customers now find themselves leaving. And, as you say, the general feeling is that since the bank hasn’t honored its end of the bargain, it’s a bit rich of them to wait for the borrowers to do so. Of course, that’s not entirely true. All fixed-rate clients will see these contracts fully honored if moved by default as part of the Belgian bank’s liquidation of its Irish operation.

The only real issue is the rate customers can expect to receive at the end of their current fixed rate period. People had many reasons for choosing KBC as their mortgage lender, but in recent years one reason was that the lender was very competitive on mortgage rates. The same cannot necessarily be said for Bank of Ireland, where KBC mortgage customers are likely to end up once the dust settles.

The good news is that, as I understand it, KBC does not impose the breaking deductibles allowed in its standard mortgage contract at the moment.

When this issue last appeared on this page, several readers who are KBC mortgage customers got in touch. That’s what one of them had to say.

“It just so happens that I, along with my family members and colleagues, all have fixed rate mortgages with KBC. It looks like they don’t currently charge any breakage fees regardless of how much time is left. I have six years to run and it’s zero. A colleague who was quoted €14k about a year ago to get out of his fixed rate, has also been quoted zero recently, as has my brother.

“We are currently in the process of re-mortgaging and our broker has confirmed that no KBC clients they deal with are currently facing breakage fees.”

Now, that’s not something I’ve heard KBC officially announce, but it sure sounds like if your daughter goes near the bank, she’ll probably be able to break her fixed rate and move to the “very competitive” rate on five year. you say it’s available elsewhere.

I’m a bit confused by your reference to the Bank of Ireland and whether it’s the lender offering your daughter this competitive rate or just some confusion about what will happen under the mass transfer of KBC loans to the rival bank.

Most KBC mortgages will default to Bank of Ireland. No appraisal or other costs will be incurred by the borrower as part of this process. The loan is simply transferred as part of a multi-million dollar mortgage portfolio and the mortgage is treated exactly the same as it is now, at least until the end of the term. of the fixed rate.

She is not obliged to transfer to Bank of Ireland but, if she chooses not to, she will need to act before the transfer takes place. Once his account is transferred to the Bank of Ireland, the latter will most likely apply any severance pay clause on a subsequent early exit from the fixed rate before April 2024.

If it changes other than via this “bulk transfer” – including to Bank of Ireland – you may incur a charge. It would be common practice in the change of mortgage for the new provider to require an updated appraisal and there would also be legal issues in the change which would require the modest involvement of a solicitor.

The figures involved are not significant in the context of a mortgage but they will amount to a four figure sum. This is true no matter which lender she turns to apart from the bulk transfer of policies – including any decision she makes to break her fixed rate and take advantage of any other Bank of Ireland rates.

So if she is talking about breaking the KBC contract to proactively move to Bank of Ireland or elsewhere, then yes there will be the above costs.

Please send queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street Dublin 2, or email dominic.coyle@irishtimes.com. This column is a reading service and is not intended to replace professional advice

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Mortgage rates at 15-year high are cooling Lehigh Valley market, realtors say https://www.sznurki.net/mortgage-rates-at-15-year-high-are-cooling-lehigh-valley-market-realtors-say/ Fri, 21 Oct 2022 11:00:00 +0000 https://www.sznurki.net/mortgage-rates-at-15-year-high-are-cooling-lehigh-valley-market-realtors-say/

Rising mortgage rates — the highest in 15 years — are squeezing homebuyer budgets and slowing activity in the Lehigh Valley real estate market, area agents say.

Mortgage interest rates in September topped 6% for the first time since 2008, driving existing home sales down nationally for the seventh consecutive month, according to data from Greater Lehigh Valley Realtors. The Federal Reserve announced earlier this year that it would make sporadic changes to mortgage rates to curb rising inflation. The reserve raised another 75 basis points in September, marking the third such rate hike this year.

The average 30-year fixed mortgage interest rate was even higher on October 13, at almost 7%, and a 15-year loan carried an interest rate of 6.09%, reports Freddie Mac.

Justin Porembo, CEO of Greater Lehigh Valley Realtors, said realtors are seeing the cost of borrowing hit multi-year highs on everything from credit cards to auto loans to rising mortgage rates. The median home price in September rose to $384,800 nationally, up 8.4% from a year ago. He scored 127 consecutive months of year-over-year increases, which was the longest streak on record, according to the National Association of Realtors (NAR).

September was also the third month in a row that the median sale price faded nationwide after hitting a record high of $413,800 in June, as the usual seasonal price pattern faded from an early peak. of the summer, NAR said.

The Lehigh Valley is seeing the same activity, Porembo noted, coupled with the usual seasonal slowdown in the real estate market. In Northampton and Lehigh counties, the median sale price rose 13.4% to $298,250 in September from a year earlier. In June, the median sale price in the Lehigh Valley rose about 15% to $316,000, breaking records set in May.

“Inventory remains below normal, and as the market continues to move, experts expect homes to start spending more days on the market and price growth to slow in the coming months,” he said. said Porembo.

Nationally, inventory of unsold existing homes fell for the second straight month to about 1.3 million at the end of September, the equivalent of 3.2 months of supply at the current rate of monthly sales. Regionally, inventory levels fell about 16% to 790 units in September.

Howard Schaeffer, president of Greater Lehigh Valley Realtors, said there’s no denying the real estate market is changing. Sales completed in September also fell about 16% to 722 listings.

“Potential buyers are facing higher-than-expected home prices and interest rates, and sellers are struggling to find new properties to move into before closing their current residences,” he said. . “It got a lot of people wondering if they should just wait or risk a loss by engaging in a volatile market.”

There is good news, however, at least for sellers.

National Association of Realtors Chief Economist Lawrence Yun said despite the drop in sales, several offers are still up with more than a quarter of homes selling above list price due to from a limited inventory. Nationally, properties in September generally remained on the market for 19 days, compared to 16 days in August and 17 days in September 2021. About 70% of homes sold last September had been on the market for less than a year. month.

In September, homes in the Lehigh Valley sold in an average of 17 days, just one day more than the previous year, the local group of real estate agents said.

“The current lack of supply underscores the vast contrast to the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today,” Yun said.

Here are some other notable housing statistics for Lehigh and Northampton counties for September vs. September 2021, according to Greater Lehigh Valley Realtors:

  • New registrations fell 21% to 696.
  • Pending sales fell about 21% to 611.
  • The monthly inventory supply fell about 8% to 1.2 months. This figure measures the number of months it would take to sell the current number of homes on the market.
  • The percentage of list price received went beyond that, but dropped 0.3% to 101.3%.

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Pamela Sroka-Holzmann can be contacted at pholzmann@lehighvalleylive.com.

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