Mortgage Rate Update 11/21/08

Mortgage rates stayed the same this week, but there wasn’t much choice. If the Fed raises rates, economic growth will be retarded, good mortgages will be hard to find, businesses won’t be able to borrow funds needed to carry on daily operations, and a long, painful recession could rear its ugly head. On the flip side, with the rate near zero, and the dollar getting weaker by the minute, they won’t soon be lowering rates, either. Status quo is the way to go…for now.

A couple of side notes: On January 1st, 2009, the down payment required on an FHA loan will be increased from 3% to 3.5%. This means that, on a $250,000 home, the buyer would need to put down $8,750 instead of $7,500, an increase of $1,250.

Also, this week Fannie Mae and Freddie announced that they would be postponing foreclosures on homes between November 26, 2008 and January 9, 2009. The suspension will help implement the Streamlined Modification Program recently announced by Freddie Mac, Fannie Mae, the Federal Housing Finance Agency (FHFA), HOPE Now and 27 mortgage servicers. The temporary suspension is also expected to give servicers more time to help borrowers avoid foreclosure.

Here are this week’s rates:

Friday, November 21st, 2008

All rate quotes are for a 60-day lock with 0 points

Conforming limits are up to a $417,000 loan limit*

30 yr conforming fixed: rate = 6.000% APR = 6.228%

15 yr conforming fixed: rate = 5.625% APR = 5.974%

7/1 yr conforming ARM: rate = 5.875% APR = 6.046%

5/1 yr conforming ARM: rate = 5.625% APR = 5.885%

30 yr FHA Fixed : rate = 6.000% APR = 6.290%

30 yr CHFA w/ 1 pt : rate = 5.875% APR = 6.325%


Jumbo loan limits range from $417,001 to $1,000,000*

30 yr jumbo fixed: rate = 6.500% APR = 6.773%

15 yr jumbo fixed: rate = 6.000% APR = 6.310%

7/1 yr jumbo ARM: rate = **** APR = ****


CHFA (Connecticut Housing Finance Authority) rates for the week of October 30 – November 5, 2008:

Homebuyer Mortgage Plan:
Interest rate: 5.875 % (APR range 5.975 – 6.375 %)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term – 30 years, fixed rate

Downpayment Assistance Program (DAP)
(Rate listed is for DAP loans with Homebuyer Mortgage Program financing.)

Interest rate: 5.875 % (APR range 5.975 – 6.375 %)
Fees: Up to $200 Application Fee * Payable to Lender
Term – 30 years, fixed rate

(NOTE: If at any time the interest rate for the Homebuyer Mortgage Program exceeds 6%, the DAP interest rate will be capped at 6%.)

* Additional fees may apply

*Conforming loan limits listed above are for a single-family owner occupied residence.
Courtesy of
The Harriman Team and William Raveis Mortgage

*All rates are subject to change. Minimum down payment and credit score requirements may apply.

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