Phenomenal Interest Rates
May 24, 2010
In the volatile loan morket that we have been experiencing for almost the past 2 years, the present interest rates for real estate loans are certainly phenomenal. A 30 year fixed rate mortgage can be obtained at a 4.750% interest rate from most lenders. There may be lenders offering an even lower rate, but the general going rate is the 4.75%. Even more phenomenal is the fact that an FHA insured loaned is also being quoted at the same rate as the 30 year fixed rate conventional loan. Conforming conventional loans are those in amounts up to $417,000. FHA insured loans are available up to amounts of $355,350.
Yet another remarkable phenomenon is that some lenders are quoting an interest rate of 5.62% for a jumbo loan. Jumbo loans are loans over the $500,000 amount.
Prospective buyers have been sad that they missed the $8000 tax credit or the $10,000 California tax credit, but hopefully these low interest rates will cheer them up. The difference in a monthly principal and interest payment on a $300,000, 30 year fixed rate loan at 4.75% versus 5.5% is $200 per month. This amount can be the difference between a borrower being able to qualify or not being able to qualify.
My message is "Buy now". Home prices are at the low point and combined with the current interest rates, buyers are in a win-win market.
In the volatile loan morket that we have been experiencing for almost the past 2 years, the present interest rates for real estate loans are certainly phenomenal. A 30 year fixed rate mortgage can be obtained at a 4.750% interest rate from most lenders. There may be lenders offering an even lower rate, but the general going rate is the 4.75%. Even more phenomenal is the fact that an FHA insured loaned is also being quoted at the same rate as the 30 year fixed rate conventional loan. Conforming conventional loans are those in amounts up to $417,000. FHA insured loans are available up to amounts of $355,350.
Yet another remarkable phenomenon is that some lenders are quoting an interest rate of 5.62% for a jumbo loan. Jumbo loans are loans over the $500,000 amount.
Prospective buyers have been sad that they missed the $8000 tax credit or the $10,000 California tax credit, but hopefully these low interest rates will cheer them up. The difference in a monthly principal and interest payment on a $300,000, 30 year fixed rate loan at 4.75% versus 5.5% is $200 per month. This amount can be the difference between a borrower being able to qualify or not being able to qualify.
My message is "Buy now". Home prices are at the low point and combined with the current interest rates, buyers are in a win-win market.
posted by shirley harry at 8:42 AM
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