Are you in a loan just above 6% or higher? Many people are. When the mortgage rates were being sold as fixed a few years ago, they were all at or around 6%. If you had an adjustable rate, your were looking at a rate below 5% at times. Now, with the fed's new action to stimulate the economy and help spur housing re-sales, nice rate cuts have been made. In response to the many questions I have heard this past week, I have compiled a few stories from The California Association of REALTORS (R) below.
U.S. banks offer mortgages below 5% after Fed action
After the government started purchasing mortgage-backed securities, interest rates at some of the nation’s top banks started falling below 5 percent. On Jan. 8, JPMorgan Chase & Co. was offering 30-year mortgages as low as 4.75 percent on its Web site; Wells Fargo & Co. was advertising rates of 4.875 percent; and Bank of America Corp. at 5 percent. All posted offers were for borrowers with excellent credit – FICO scores of 720 and higher – and with a 20 percent down payment.
To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601213&sid=aQvKPt2cYGBs&refer=home
Fixed-mortgage rates fall below 5%
The average interest rate on 30-year, fixed-rate mortgages for the week ending Jan. 9, decreased to 4.89 percent from 5.07 percent, according to the most-recent survey from the Mortgage Bankers Association.
Credit restrictions, negative or minimal amounts of home equity, and high levels of outstanding debt have resulted in the denial of nearly 70 percent of borrowers’ applications to refinance.
To read the full story, please click here:
http://www.chicagotribune.com/business/chi-biz-mortgage-rates-below-5-percent-jan15,0,7714045.story
Lenders backlogged by refinancing rush
Lower mortgage rates have led to a flurry of homeowners seeking to refinance, but limited staff at many banks has resulted in processing and approval delays. Due to the large number of applications to refinance, Wells Fargo no longer is allowing its loan offers to lock in rates for less than 90 days. The 90-day lock is designed to allow enough time to close the loans.
The record-low rates that have led many homeowners to refinance are typically for 30-year, fixed-rate mortgages that meet the purchase requirements of Fannie Mae and Freddie Mac. Because so many factors determine the interest rate a borrower is actually offered, some banks may not post rates on their Web sites.
It is important to note that a lower rate accompanied by higher points and/or fees may not be the best option. Many times, a slightly higher rate with no points and/or fees is the better choice.
To read the full story, please click here:
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/08/AR2009010803493.html
If you are looking to re-finance, I can put you into contact with an experienced, professional lender that will help you determine what you are qualified for. If you have an adjustable rate, the lender may advise for you to wait, as your ARM is related to prime, and prime has been cut (depending on your points, etc).
If you are a first-time buyer, conditions have NEVER been more FAVORABLE for you! Rates this low, combined with these severely discounted homes equal a wealth of opportunity for you!! BUY NOW AND LOOK SMART LATER!!!
As always, please contact me with any questions!!!
Stacy Dover
626-429-7361 CELL
626-963-9878 OFFICE
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