Playing the mortgage game.Homeowners still in it despite higher rates The Federal Reserve may be trying to cool down a torrid economy by raising short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. , but someone forgot to tell home buyers, as well as bankers pushing a host of mortgage loan products. Since last June June: see month. , the Fed has hiked rates 125 basis points, or 1.25%--and will likely raise rates at least another 25 basis points on May 16--in an effort to head off inflation. Despite the Fed's actions, mortgage rates have gone up only fractionally frac·tion·al adj. 1. Of, relating to, or constituting a fraction. 2. Very small; insignificant: a minor candidate's fractional share of the vote. 3. Being in fractions or pieces. since last year, although currently, they are at the highest level since June 1996 when the average 30-year fixed rate mortgage was 8.03%. They're they're Contraction of they are. they're be expected to shoot even higher later this year, to 8.09%. Historically, today's rates don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. even compare to the double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. levels last seen in the early 1980s, says Keith Keith may refer to: People with the given name Keith:
abbr. Her (or His) Serene Highness Associates, a provider of consumer loan information in Butler, New Jersey Butler is a Borough in Morris County, New Jersey, United States. As of the United States 2000 Census, the borough population was 7,420. Butler was incorporated as a borough by an Act of the New Jersey Legislature on March 13, 1901, from portions of Pequannock Township. . The flip side Flip side In the context of general equities, opposite side to a proposition or position (buy, if sell is the proposition and vice versa). of the coin: today's 8%-plus mortgage rates are substantially above 31-year low of 6.68%, last seen in October October: see month. 1998, making some folks nervous. But despite this rising-rate environment, the number of first-time homeowners has soared from 1996 to 1999, setting new records each year. That number leveled off at 40% in 1999. Mortgage analysts say some realtors, in an effort to gain more customers, are encouraging first-time home buyers to look at other loan products aside from fixed-rate mortgages (see "The Most Home for Your Money," this issue). One popular choice is the less expensive adjustable rate mortgage This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. (ARM). Bankers are pitching ARMs to the single home buyer who may marry at a later date and wish to sell his or her home. In addition, hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). ARMs, which initially offer a fixed rate, then later adjust to a variable rate, are now available in three-, five-, seven- or 10-year increments. Home buying is also on the rise because of the opportunity to purchase a home with little or no money down, says Gumbinger. Twenty-five years ago, a 20% down payment was a common practice when buying a home. Nowadays, the average "real-world down payment" is between 3%-5%, says Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter Molony, a spokesman for the National Association of Realtors The National Association of Realtors (NAR) is made up of residential and commercial realtors who are brokers, salespeople, property managers, appraisers, and counselors, and others working in the real estate industry. in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. In many instances, mortgage companies will finance closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, , allowing many first-time buyers first-time buyer n → persona que compra su primera vivienda first-time buyer n → personne achetant une maison ou un appartement pour la première fois first-time buyer to walk into a brand new home having paid close to nothing. So in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite Alan Greenspan Alan Greenspan Dr. Greenspan is Chairman of the Board of Governors of the Federal Reserve System. Dr. Greenspan also serves as Chairman of the Federal Open Market Committee (FOMC), the Fed's principal monetary policymaking body. & Co. jacking up interest rates now and in the future, the mortgage market should remain robust. The Best 30-Year Fixed-Rate Mortgages in the Top Metros
Down
City Lender Name Rate Payment
New York Brooklyn Federal 8% 5%
Savings Bank
Los Angeles American Commerce 8 5
Mortgage
Chicago Countrywide Home 8.375 5
Loans Inc.
Philadelphia Fox Chase Federal 8.375 5
Savings Bank
Detroit Dearborn Federal 8.125 10
Savings Bank
Washington, D.C. Market Street 8 5
Mortgage Corp.
Dallas Wells Fargo Home 8.375 5
Mortgage
San Francisco California Bank & Trust 8.375 20
Houston Summit Mortgage 8.125 5
Miami Sun Trust Bank 8.5 5
Boston Home Financing 8 3
Centers Inc.
Atlanta Premier Lending 8.125 5
Minneapolis Countrywide Home 8.5 5
Loans Inc.
St. Louis Cornerstone Mortgage 8.625 5
Inc.
Baltimore Baltimore County Savings 8.25 5
Phoenix Hart West Financial Inc. 8.5 5
Seattle First Horizon Home Loan 8.5 5
Corp.
Cleveland The Leader Mortgage Co. 8.25 10
Denver Westamerica Mortgage Co. 8.50 5
Portland Mortgage Market Inc. 8.375 5
City Lender Name Points Telephone
New York Brooklyn Federal 2 718-855-8500
Savings Bank
Los Angeles American Commerce 1.75 714-970-9700
Mortgage
Chicago Countrywide Home 2 630-510-7753
Loans Inc.
Philadelphia Fox Chase Federal 0 215-342-3700
Savings Bank
Detroit Dearborn Federal 2 313-565-3100
Savings Bank
Washington, D.C. Market Street 2 703-359-0100
Mortgage Corp.
Dallas Wells Fargo Home 1 817-263-0023
Mortgage
San Francisco California Bank & Trust 1 415-923-0800
Houston Summit Mortgage 1 713-871-8371
Miami Sun Trust Bank 1.125 305-592-0800
Boston Home Financing 2 800-844-1992
Centers Inc.
Atlanta Premier Lending 2 770-939-1060
Minneapolis Countrywide Home 1 651-631-0046
Loans Inc.
St. Louis Cornerstone Mortgage 0 314-965-9910
Inc.
Baltimore Baltimore County Savings 0 410-256-5000
Phoenix Hart West Financial Inc. 0 602-263-1212
Seattle First Horizon Home Loan 1 425-670-9191
Corp.
Cleveland The Leader Mortgage Co. 2 216-696-8000
Denver Westamerica Mortgage Co. 1 303-694-3660
Portland Mortgage Market Inc. 1 503-968-9257
Source: HSH Associates (www.hsh.com) Data as of 5/12/00. Rates are subject to change without notice. The Best One-Year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants ARMs in the Top Metros
Down
Rate Payment
New York The Mortgage Gallery 5.125% 20%
Los Angeles American Commerce 6.5 5
Mortgage
Chicago St. Paul Fed/Div 6.25 10
Charter One
Philadelphia Countrywide Home 6.25 10
Loans Inc.
Detroit First Federal of 5.55 5
Michigan
Washington, D.C. Crestar Mortgage Corp. 5.375 5
Dallas Bank of America Mortgage 6.625 20
San Francisco Union Bank 6.625 5
Houston Countrywide Home 6.25 10
Loans Inc.
Miami Sun Trust Bank 7.125 10
Boston Baron Mortgage Corp. 5.125 5
Atlanta South Trust Mortgage 6.625 5
Minneapolis Countrywide Home 6.5 10
Loans Inc.
St. Louis South Side National Bank 7 10
Baltimore Crestar Bank 5.375 5
Phoenix Hart West Financial Inc. 6.625 5
Seattle First Horizon Home 6.5 20
Loan Corp.
Cleveland Countrywide Home 6.75 15
Loans Inc.
Denver Crestar Mortgage Corp. 6.375 5
Portland Bank of the West 6.25 5
Points Telephone
New York The Mortgage Gallery 1.875 516-873-9200
Los Angeles American Commerce 1 714-970-9700
Mortgage
Chicago St. Paul Fed/Div 0 847-398-0090
Charter One
Philadelphia Countrywide Home 2 610-296-5550
Loans Inc.
Detroit First Federal of 2 313-965-1400
Michigan
Washington, D.C. Crestar Mortgage Corp. 2 703-813-4000
Dallas Bank of America Mortgage 0 214-948-2346
San Francisco Union Bank 1 415-288-9042
Houston Countrywide Home 1.875 713-660-6977
Loans Inc.
Miami Sun Trust Bank 1.125 305-592-0800
Boston Baron Mortgage Corp. 2 800-696-7283
Atlanta South Trust Mortgage 1 770-640-2220
Minneapolis Countrywide Home 1 651-631-0046
Loans Inc.
St. Louis South Side National Bank 0 314-776-7000
Baltimore Crestar Bank 2 410-224-6250
Phoenix Hart West Financial Inc. 0 602-263-1212
Seattle First Horizon Home 1.5 425-356-2636
Loan Corp.
Cleveland Countrywide Home 0 216-441-6000
Loans Inc.
Denver Crestar Mortgage Corp. 1 720-489-3600
Portland Bank of the West 1 503-225-1766
Source: HSH Associates (www.hsh.com) Data as of 5/12/00. Rates are subject to change without notice. |
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