30-year mortgage rate nears 5%, jumping to 7 -year high Share this:. The 30-year fixed rate exploded, averaging 4.90 percent, up 19 basis points from last week. That’s the highest rate.

The average rate on the 30-year fixed sat just below 4 percent a year ago, after dropping below 3.5 percent in 2016. It just crossed the 5 percent mark, according to Mortgage News Daily. annual.

To get an idea of where 30-year fixed rates will be, use a spread of about 170 basis points, or 1.70% above the current 10-year bond yield. This spread accounts for the increased risk associated with a mortgage vs. a bond. So a 10-yr bond yield of 4.00% plus the 170 basis points would put mortgage rates around 5.70%.

JPM’s mortgage business remained solid despite falling revenue Jpmorgan Chase Co (JPM) SEC Filing 10-K Annual report for the fiscal year ending Monday Each line of business grew revenue and net income for the year Despite a challenging quarter, we grew markets revenue in the Investment Bank for the year with record performance in Equities and solid.

To illustrate, say a borrower purchased a home for 15 years ago using a 30-year fixed rate mortgage with an interest rate of 5.83% (the annual average for a 30-year fixed rate mortgage in 2003). The home is worth $300,000 now, and the mortgage balance is $150,000.

Assuming a $200,000 loan with interest rates of 6% for a 30 year and 5.25% for a 15 year, after just five years a borrower with a 15 year will have $35,000 more equity in their home than a person with a 30-year. After the 15 years, a person with a 30 year will still have $144,000 pinciple balance left.

Studies Show HAMP Promotes Strategic Default on Mortgages The Consequences of Strategic Default. You may have read articles or seen posters or other advertisements that encouraged strategic default. So what exactly is strategic default, and is it something that you should consider? Strategic default is choosing to let your house go into foreclosure even though you have the ability to pay the mortgage.

View current 5/1 ARM mortgage rates from multiple lenders at realtor.com®. Compare the latest rates, loans, payments and fees for 5/1 ARM mortgages.

Homebuyers don’t know mortgage basics: Zillow "The fours are not a terrible place to be," said Skylar Olsen, director of economic research at Zillow. So what does this cost the homebuyer. basics covered: check your credit, know what you can.

Brother Freddie has slightly higher mortgage rate estimates for 2019, though they still appear favorable to all. Early in 2019, they expect the 30-year fixed to average between 4.9% and 5%, before rising slightly to 5.2% in the third quarter and then 5.3% by yearend.

Mortgage Payment Calculations for 3.50%: 3.5% for $100,000 – 30 Years Fixed Mortgage – $449 3.5% for $200,000 – 30 Years Fixed Mortgage – $898 3.5% for $300,000 – 30 Years Fixed Mortgage – $1,347 3.5% for $400,000 – 30 Years Fixed Mortgage -$1,796

YES, 5% is a great rate – for most people, most of the time, especially when you consider historic interest rates going back 20 -30 years. I believe that any rate a half per cent either side of 5% is fantastic. I am so grateful not to be dealing with 10% – 15% rates, as several decades ago, or even 7% – 8% recently.