Tuesday, May 25, 2010
Mortgage Rates Take a Dive - But Will More Buyers Take Advantage?
Here is some mortgage rate news that is catching a lot of people by surprise – mortgage rates have dropped below the 5 percent level. Now the mortgage companies, and the entire real estate industry, are waiting to see if these historically low mortgage rates will convert into more people buying homes and refinancing their existing mortgages.
The Wall Street Journal is reporting that the low mortgage rates are happening as a result of the financial trouble that is unfolding in Europe. As the European financial markets continue to become more unstable, international investors are pushing their money into the U.S. in an attempt to seek safer grounds for their investments. The international in flow of investors has pushed mortgage rates here in the US to the lowest levels of the year – and back near 50-year lows, according to the Wall Street Journal.
The housing industry had been bracing for a period of rising mortgage rates, triggered by the end of the Federal Reserve’s $1.25 trillion mortgage-securities purchase program.
Instead, the WSJ writes, many in the industry now say rates could drift as low as 4.5 percent this summer from 4.86 percent now, instead of rising to 6 percent as some economists projected. That makes for significantly lower payments for buying homes or refinancing mortgages.
Mortgage Rates prime for refinance
The drop in mortgage rates creates a perfect environment for refinance your existing mortgages. With mortgage rates creeping down to near 50 year lows, you are sure to be able to find some great mortgage rates for your next refinance.
CURRENT RATES from First Savings Mortgage Corp.
Conforming 30 year is 4.75% and 0 total points 4.5% is 1 pt
Conforming 7 year ARM is 4% and 0 pts
Conforming 5 year ARM is 3,625% and 0 pts
Conforming Jumbo (over $417k to 729,750) is 4.875% and 0 total and 4.625% is 1pt
FHA 30 year is 4.625% and 0 pts and 4.375% and 1 pt
FHA Jumbo (over $417k- $729,750) 4.75% and 0 pts and 4.375% and 1.5 pts
The ability to get loans is most flexible in the loan amount cap of $729,750. You can buy a house for $756,000 and go FHA with 3.5% in this area. You can do conventional with PMI with 5% down up to $417,000 and with 10% down up to $729,750 loan. That means if you don't want to go FHA you can still put 10% down on a $800,000 house.
The quickest way to get your loan approved is to Apply Online at www.kenbyrne.net (Free and No Obligation!)