Mortgage rates are at a historical low right now. In a recent weekly survey, the Mortgage Bankers Association stated the mortgage and housing industries are improving. Refinancing old loans are down but new-purchase applications are up nearly 10%. In addition to this good news, the origination costs for mortgage have dropped 4.27%. Historically, this is a lowest origination costs have ever been. Backing up this data are the increased numbers of new applications for FHA mortgage insurance. This good news indicates there has never been a better time to buy a home then today. To see how much purchasing power you have there are many tools at your disposal. Free mortgage calculators are easy to use and available on the Internet to assist you in your decision.
In The News
A bill was signed that extends loan limits through year 2011. This allows affordable mortgage rates for anyone seeking a conforming mortgage over $417,000. The extension is geared toward holding home values at their current market rates and will stabilize the housing industry. To see if you qualify for a conforming mortgage, you can use a refinance calculator. This will determine your monthly savings too. If you are planning to step up into a larger home the calculator can establish what your monthly payments will be and give you some indications to affordability.
Mortgage Insurance and Taxes
One of the variables a calculator has is figuring out the yearly mortgage insurance. By filling in this variable, the yearly cost of insurance will be prorated and then added to the monthly payment. The yearly property tax can be added as well. This will give you a total monthly P&I amount with insurance and taxes. When planning a budget and determining how much house you can afford for a home, this can be highly instrumental. It can also arm you with information before going house hunting.
The more you understand about mortgages and today’s mortgage rates the more successful your new home purchase will be. The free tools available online can assist you in understanding things like income to debt ratio, or exactly how much you afford to pay for your new home. The Federal Reserve is initiating action to keep interest rates low thereby encouraging new growth. This means it is now a buyer’s market and some good news for those doing their homework. With today’s mortgage rates low and tools like the free mortgage calculators available, there’s never been a better time to plan buying a new home.
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