Executive Home Loan Rates Lowest Ever
Mortgage rates lowest in history.
The news is everywhere today that home loan rates have dropped to an all time low – even lower than the historic lows we have been seeing for the last several months. While this may be a reflection on the poor state of the economy it is also an opportunity for those who are ready, qualified and able to refinance or purchase to save a tremendous amount over the lifetime of their home mortgage.
Today I just priced a fifteen year fixed mortgage at 3.25% with an APR of 3.78% on a $180,000 refinance and low closing costs (point in yield). This is an incredibly low rate and most certainly cannot be sustained.
Why are rates so low? The 10 Year Treasury yield is low. That’s the main reason.
Ti qualify for these low rates you need a good credit score, at least 20% equity in your home (or a 20% down payment), steady income and a few minutes to complete an application.
Even though you may have heard and read “mortgage rates can’t stay this low for ever” and they seem to have been hanging pretty low for the last few months the statement is still correct. Here’s what it looks like on a few different loans at low rates:
| 15y 3.25 | 30y 3.875 | Required Value | |
|---|---|---|---|
| 180k | $1,265 | $846 | $225,000 |
| 240k | $1,686 | $1,129 | $300,000 |
| 360k | $2,530 | $1,693 | $450,000 |
*This does not constitute and offer to lend. Applicant must qualify by applying for the loan and providing the necessary information and documentation to prove eligibility. These are conventional rates and the APR may vary based on how closing costs are paid: the borrower may pay them in cash, they may be “rolled in” to the loan amount or they may be paid from rate yield.
Image: photostock / FreeDigitalPhotos.net
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
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Glimmer of hope in new home sales report March 2011
New home sales report March 2011
Is there hope for a recovery cycle to begin in 2011?
Industry insiders and prognosticators alike have been making guesses at exactly when we would hit bottom and when recovery would begin since we entered the market downtrend. While many were well educated guesses and other hunches based on theories created on the barstools of America they have all been simply guesses. Whether or not they are accurate will only be born out in the coming days, weeks, months, and years.
According to the Census Bureau report (see graphic) there were over 300,000 new homes sold in March of this year (2011). The more encouraging number for this southeastern based mortgage marketer is that 162,000 – well over half – were sold in the south. Click the graphic for a larger representation.
March 2011 housing numbers may hold promise
Although modest and somewhat an island of positive in a vast ocean of negative the March 2011 new home sales numbers as tabulated by the US Census Bureau proved an increase.
On the other hand there are variables in the equation
“We’ve gotten spoiled by the idea that
Mortgage Calculator
interest rates will stay in the low single-digits forever,” said Jim Caron, an interest rate strategist with Morgan Stanley. “We’ve also had a generation of consumers and investors get used to low rates.” (NYT)
$ % yrs % $
We are not certain when mortgage interest rates will begin to rise, nor are we sure how high they will trend. The cyclical nature of the economy indicates a strong likelihood rates will rise, possibly sharply, and could easily see double digits in a short time. This, however, is an unknown although it is predicted by some professional economists who have a track record of prediction such changes.
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Home Loan Mortgage Rates Lowest Since May
Georgia FHA Mortgage Rates
We constantly keep our eyes on the rates wondering if and when they will move and which direction they will go. As a Georgia FHA home loan expert I am most interested in FHA but we offer VA, Fannie Mae and Freddie Mac loans as well. Of course any move higher invokes one response and any move lower another. It is amazing to me how a slight move higher gets people to call and a slight move lower gets people to hope the rate will go even lower.
Forbes is a great source for stories and news about mortgage interest rates and I can almost tell where my customers get their information when they get it from Forbes. Their article this morning titled “Mortgage Rates Lowest Since May” sparked a few emails and a couple of calls from people saying they saw rates had dropped to 4.57 – sure, on a 5 year adjustable!
It’s easy to skim articles and come up with a number like that so I don’t blame people for doing so. The reality is mortgage rates are lower today than they have been since May but chances of them going any lower or even hovering that low are very slim. Rates have been more volatile this year than they have in many years although the fluctuations, fortunately, have been small. My advice? If you are a first time home buyer and want to take advantage of the first time home buyer’s tax credit or even if you’re just looking to purchase or refinance an existing Georgia FHA home loan this is a great time to do so.
Call me directly at 678-946-0101
What the New PMI Tax Deduction Can Do For Real Estate
It can mean more sales. It will most certainly mean more refinances at higher LTV’s. If you are a real estate agent you can use this as a tool for people who were hesitant to get into that dream home (because of PMI) to do so and enjoy this deduction and they can choose ONE LOAN and not a PIGGY BACK – although your mortgage professional should be the one to demonstrate the numbers for the CLIENT to make the choice. Generally speaking piggy backs have a higher blended interest rate than a single higher LTV loan but people choose them to avoid PMI. But if PMI is tax deductible that cures the need for a piggy back.
Here is something to keep in mind: The current version HR5970 only allows for the deduction on NEW LOANS and evidently terminates on 12/31/2007. In other words the deduction apparently is good for only ONE YEAR.
Live Desk
Daily Rates for Qualified Buyers
Today |
Last Week |
|
| 30 Year Fixed | 3.50% | 3.61% |
| 15 Year Fixed | 2.88% | 2.92% |
| 5/1 ARM | 2.31% | 2.51% |
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