Mortgage rates remained low as of yesterday following the release of the Labor Department’s latest employment report. According to this report, an additional 146,000 jobs were created in the month of November, a positive sign even if the total jobs created prior to November were adjusted downwards by 49,000. Average hourly earnings, another key metric, went up by 0.2 percent. And instead of increasing to 8.08 percent as forecasted, the nationwide unemployment rate had dropped to 7.7 percent, the lowest since 2008.
Some financial institutions have 30-year fixed mortgage rates as low as 3.125 percent and both 15-year fixed mortgage and 5/1 adjustable rate mortgages (ARMs) at 2.375 percent. These rates are available to qualified borrowers who have a good credit record, and in order to prove this, borrowers will need to provide proof of income and assets and employment among other documents. Additionally, HARP 2.0 refinances are available to those who qualify. This refinancing option would not require that borrowers undergo an appraisal, unlike with conventional mortgages. Borrowers whose loans were purchased by either Fannie Mae or Freddie Mac before June 1, 2009 would typically qualify for HARP 2.0.
For other mortgage rates,30-year and 15-year fixed rate mortgages under FHA guidelines can be qualified for at lowest possible rates of 2.750 percent and 2.375 percent respectively. FHA 5/1 ARMs are a bit higher than 15-year FHA home loans at 2.500 percent. FHA mortgages are usually offered to lower to middle income families as a way to provide them a less expensive means of purchasing a home. The rules governing these loans and the down payments involved are less onerous than typical home loans, which makes FHA loans a wise choice for the first-time home buyer. The drawback of these loans, however, is a higher APR rate and closing costs. Jumbo mortgages, which require the best possible credit record to qualify for, are at 2.99 percent for 30-year loans, 2.70 percent for 15 years and 2.250 percent for 5/1 ARMs.