A Window of Opportunity
September 10, 2008
As I was listening to a mortgage rep speak on current interest rates yesterday, it occured to me that we have entered into a window of opportunity for home purchasers who are needing loan amounts up to $500,000. On Monday, rates dropped below 6% after the Sunday announcement that the government had put both Fannie Mae and Freddie Mac into conservatorships. Rates have moved up slightly today, but convention is hovering around 5.75% and FHA around 6.25%.
The past several months have seen a surge in FHA loans, probably because the conventional 100% financing disappeared. Presently FHA only requires a 3% down payment. I believe the down payment amount is scheduled to go to 3.5% after October 1, 2008.
The lending marketplace has been so volatile that when rates and loan amounts are favorable, it is wise to act in the present time frame. One of the largest factors in the real estate slowdown has been the tightening of credit and the rise in the interest rates. Jumbo loans are still scarce, but since much of the housing in the Inland Empire is priced under $500,000, this loan limit and the present interest rates make a decision to buy now a wise decision.
If you want more detailed information about loans, give us a call (909) 748-7000) and we will put you in touch with a professional mortgage rep.
As I was listening to a mortgage rep speak on current interest rates yesterday, it occured to me that we have entered into a window of opportunity for home purchasers who are needing loan amounts up to $500,000. On Monday, rates dropped below 6% after the Sunday announcement that the government had put both Fannie Mae and Freddie Mac into conservatorships. Rates have moved up slightly today, but convention is hovering around 5.75% and FHA around 6.25%.
The past several months have seen a surge in FHA loans, probably because the conventional 100% financing disappeared. Presently FHA only requires a 3% down payment. I believe the down payment amount is scheduled to go to 3.5% after October 1, 2008.
The lending marketplace has been so volatile that when rates and loan amounts are favorable, it is wise to act in the present time frame. One of the largest factors in the real estate slowdown has been the tightening of credit and the rise in the interest rates. Jumbo loans are still scarce, but since much of the housing in the Inland Empire is priced under $500,000, this loan limit and the present interest rates make a decision to buy now a wise decision.
If you want more detailed information about loans, give us a call (909) 748-7000) and we will put you in touch with a professional mortgage rep.
posted by shirley harry at 9:20 AM
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