How Low Can Rates Go?

If you are in the market to buy a new home or refinance your current mortgage, you probably have noticed interest rates dropping considerably over the past week.  Many expected rates to increase after the Federal Reserve stopped purchasing mortgage backed securities (MBS) at the end of March, but recent global events have played a heavy role in driving mortgage interest rates down temporarily. 

 These economic conditions can change in an instant.  We are strongly encouraging all of our clients to lock in these low rates as soon as possible.  One good piece of positive economic news can cause interest rates to increase again, and it can happen quickly.  Nobody knows for sure, but we believe there is a small window of opportunity here – do your research and make your move.  Low rates = lower monthly payments, higher rates = higher payments. 

• Average 30 Year Fixed:  Rates for 30-year fixed {conforming mortgages} are around 4.75% this week (down from 5.125% last week).
• Average 15 Year Fixed:  The average 15-year fixed mortgage rate is around 4.09% (down from 4.25% last week).
• ARM Rates: Rates for 5/1 adjustable-rate mortgages (ARMs with a 5 year initial fixed rate), are around 3.44% (down from 3.42% last week).

 For our clients in California, don’t forget about the California tax credit of up to $10,000 for newly built homes, and up to a $10,000 tax credit for first-time homebuyer of existing homes.  These credits were available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first.  

 SERVICE GUARENTEE 

WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $400 OF YOUR CLOSING COSTS

HomePath & HomeStyle are here!

Fannie Mae recently announced the addition of the HomePath Loan Program. HomePath is a program offered by Fannie Mae specifically designed to move REO (Real Estate Owned/Foreclosure) homes in Fannie’s portfolio. If you are in the market to purchase a home (primary, second, or investment) there are plenty of REO properties to choose from. Find HomePath eligible properties by visiting www.homepath.com.  You can combine HomePath with HomeStyle the Fannie Mae renovation Mortgage program. The HomeStyle Renovation mortgage program allows borrowers to combine the cost of the home with the costs for renovation or remodeling.

 Get pre-approved with us today so you can be better positioned to compete in this “buyers” market. Most Banks and Realtors will not work with you unless you are pre-approved.

• NO MORTGAGE INSURANCE REQUIRED
• NO APPRAISAL REQUIRED
• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate)
• Borrowers may qualify even if their credit is less than perfect
• Available for primary residences, second homes and investment properties
• FICOs down to 640

Reminders:

• California tax credit of up to $10,000 for a newly built home, and up to a $10,000 tax credit for first-time purchasers of existing homes in California. The credit will be available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first.  
• First Time HomeBuyer Credit:  $8000 tax credit expires on July 1st, 2010 (contract must be signed by 4/30/10).  The best part – if you have already filed your taxes, you can amend your 2009 tax return and get your $8,000 credit this year! 
• Move Up HomeBuyer Credit:  $6,500 tax credit for current homeowners purchasing another home – expires on July 1st, 2010 (contract must be signed by 4/30/10)

 And don’t forget – if you can benefit from more flexible qualification and income guidelines, we continue to offer great FHA program options that require as little as 3.50% down on new home purchase loans!  If you currently have a FHA loan, there is a FHA streamline refinance option available to you.