Mortgage Loan Rates For Monday, December 24, 2012

Today was the start of a very short week of trading; Monday’s market was only a partial day, markets are closed on Tuesday, so Wednesday is the first “real” day of activity for many. That means no real movement in rates unless there are dramatic headlines or breaking news of interest to the market with respect to mortgage loan rates, mortgage backed securities or Treasuries. Mortgage rates did move slightly higher on Monday but best-execution rates remain where they were on Friday.

Fiscal cliff headlines are unlikely to make a big splash over the holiday--lawmakers will probably start making waves again on the 27th of December. Will there be a last-minute deal as the deadline looms? The markets are watching and waiting, but for now it’s “all quiet on the Western Front” as the old saying goes.

Fiscal cliff issues aren’t the only ones that could worry borrowers. CNN Money’s article, “Clock ticking on mortgage tax break for struggling homeowners” is a sign that it might be wise for some homeowners to consider a mortgage refinance at this point--and making some extra room in your budget for higher income taxes due to changes in the tax code regarding some types of mortgage-related transactions.

According to CNN, “If the Mortgage Forgiveness Debt Relief Act of 2007 does not get extended by Congress by the end of the year, homeowners will have to start paying income taxes on the portion of their mortgage that is forgiven in a foreclosure, short sale or principal reduction.”

Once upon a time, this might not have affected as many current homeowners as it would now. Thanks to the mortgage crisis of 2008, many more people have a foreclosure or short sale on their records. Definitely something to consider when thinking about refinance loan rates and mortgage loan applications.

Here are the mortgage loan rates for Monday December 24, 2012. These are best-execution rates. Your own experience may vary based on your credit qualifications and other variables.


30-year conventional fixed-rate mortgages: 3.375%
FHA/VA mortgage rates: 3.25% (The VA and FHA rates vary more between lenders than conventional mortgages.)
15-year fixed rate mortgages:  2.875% - 2.75%
5-year adjustable rate mortgages:  2.625-3.25% (these rates will vary depending on the lender)

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