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The 0.65% interest rate spread between comparable 15-year and 30-year fixed rate mortgages is the largest it's been in over 5 years. "Going 15" saves a homeowner $170,000 over the life of a loan, assuming a $300,000 loan size. That's enough cash to send several children to college, among other things.

Life as an FHA borrower is getting tougher. In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority is rolling out sweeping financial changes. FHA borrowers have to look better on paper and be better credit risks. Mortgage insurance premiums are rising, too.

If you've ever wondered why a loan officer can't give you the best "advertised rate", it's not because of a bait-and-switch scheme. Most likely, you're being quoted higher mortgage rates because of a government mandate called Loan-Level Pricing Adjustments. LLPAs make mortgage rates work like auto insurance.

Mortgage rates tend to climb with the mercury. It's been the case in each of the last 3 years. As spring months turn into summer, the average 30-year fixed mortgage rate rises. This year should be no different.

Need a mortgage rate prediction? I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey may help you. I predict mortgage rates to fall in the next 7 days.

Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged, in its target range of 0.000-0.250 percent.

The Federal Reserve doesn't set mortgage rates. Mortgage markets do.

Foreclosure-related filings topped 300,000 last month, according to foreclosure-tracking firm RealtyTrac. Nationwide, 1 in every 418 households was served some form of foreclosure notice but -- as always -- foreclosures are more common in some areas than others. In February 2010, 4 states accounted for more than half of the country's foreclosure-related activity

Purchase activity is up. Talk with your friends in real estate, talk with your friends in mortgage, talk with, really, somewhat involved in the real estate business. Home buyers are out and they're writing contracts. It's good news for the economy and bad news for mortgage rates.

Most lenders prefer homeowners to escrow and, as such, they penalize those that choose not to. The fee to "waive escrows" -- to pay your own taxes -- can be as high as 0.25 percent of the amount you're borrowing. On a $400,000 mortgage, that amounts to a $1,000 fee and it's one reason why homeowners often choose to escrow. Unfortunately, seeding an escrow account can be expensive, depending on the time of year.