Adjustable Rate Mortgage Rates Set New Record Low While Fixed Rates Inch Up Slightly Announces

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it's important to remember that it often makes sense to consider an ARM in certain scenarios, and with a solid understanding of the risks and rewards

Mortgage rates for fixed rate programs were up on average this week, rising just a bit following a larger drop one week earlier, but five year adjustable rate mortgage pricing dropped to a new all time low, reports mortgage rate research website, On Thursday, April 19th, 2012 5/1 ARM interest rates as low as 1.875% (APR: 2.100%, Points: 2, Fees: $1995, Lender: were advertised on the website.

30 year fixed rate mortgage pricing posted in the rate tables on went as low as 3.375% (APR: 3.620%, Points: 2, Fees: $1995, Lender:,) and rates for the 30 year fixed FHA loan program were posted as low as 3.250% (APR: 3.556%, Points: 2, Fees: $3500, Lender: Roundpoint Mortgage Company.)

The weekly survey of mortgage rates released by Freddie Mac, a government sponsored enterprise and purchaser of mortgage loans on the secondary market, on Thursday, April 19th, 2012 also showed the small rise in fixed rate home financing pricing. The data revealed that 30 year fixed mortgage rates were up to an average of 3.90% (0.8 points), from 3.88% (0.7 points) the week before. 15 year fixed rates also increased slightly on average to 3.13% (0.7 points) from 3.11% (0.7 points) one week earlier. 5 year adjustable rate pricing dropped to a record setting 2.78% (0.7 points) on average, down from 2.85% (0.7 points.)

"Many homeowners have become fearful of adjustable rate home loans over the past few years while they've lived through a very turbulent time in the housing market. The risk that their mortgage rate can increase several years down the road is unappealing enough to keep the bulk of mortgage applicants opting for fixed rate products, even at higher prices," commented Nat Criss, CEO of

"However, it's important to remember that it often makes sense to consider an ARM in certain scenarios, and with a solid understanding of the risks and rewards. When a home buyer will have a good equity position, and only plans to own a home for 3 to 5 years, choosing a low rate 5 year ARM could mean significant savings during the introductory rate window," he continued.

Adjustable rate mortgages have an introductory interest rate that is fixed for a certain period of time, five years in the case of a 5/1 ARM. This introductory rate is often lower than comparable fixed rate programs, though this is not always true, and can vary according to market conditions. At the end of the initial period the mortgage rate will adjust up or down, generally once a year, depending on current mortgage pricing and the terms of the loan program.

Below is a snapshot of Maryland mortgage interest rates for a variety of programs listed on 4/19/12 on Rates are subject to change. Please visit the site to view the criteria used in the survey.

30 Year Mortgage Rates (0 Points)
Quicken Loans - 4.375% Note Rate, 4.441% APR, $1557 Fees in APR
Roundpoint Mortgage Company - 3.990% Note Rate, 3.990% APR, $0 Fees in APR

15 Year Mortgage Rates (0 Points) - 2.875% Note Rate, 3.019% APR, $1995 Fees in APR
Amerisave Mortgage Corporation - 3.000% Note Rate, 3.144% APR, $1995 Fees in APR

30 Year FHA Mortgage Rates (0 Points)
Roundpoint Mortgage Company - 3.500% Note Rate, 3.643% APR, $3500 Fees in APR

5/1 ARM Mortgage Rates (0 Points)
LenderFi Inc - 2.375% Note Rate, 2.449% APR, $1950 Fees in APR - 2.375% Note Rate, 2.451% APR, $1995 Fees in APR

About is a website that offers information regarding mortgages, insurance, and personal finance. is owned by CMG Equities, LLC based in Wilmington, North Carolina.


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Anna Platz
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