Historically low interest rates

[fisherdog19]

As most of you may know, rates have really dropped in the recent weeks. Now is a great time to move ahead with a purchase of a new home or a refinance of an existing home. Current rates find the 30 year conventional at 4.25% and the 15 year conventional at 3.75%, on approved credit. I honestly don't ever remember seeing rates this low. There are still programs available for those of you in declining markets where your loan to value may be greater than 100%. Please call or email me with any question you have or any scenario's you may want me to run.

[blue_healer_guy]

fisherdog, currently at 5.125 on a 20 borrowing around 100,000. worth a look to refi?

[fisherdog19]

Mudpuppy, you're at 4.5% with low closing costs cause they're making thier money on the higher rate which isn't in your best interest unless you won't be in the house more than 5 years. 30 year today is at 4.25% and last week they were at 4.125%. I'll need some more info to accurately quote you a rate so call or email me with some loan and credit score particulars. I could give you 4.5% and have the same closing costs (depending on loan amount) but if you're going to be in the home long term, the lower rate and paying the closing costs with loan proceeds by increasing the loan amount slightly is a better option. People get so caught up in the closing costs, increasing a loan by 2-3K doesn't change your payment much but long term your rate will always be higher along with your payment. At some point the payment difference between rates covers those costs paid with loan proceeds. To be honest, Wells is my least favorite competitor, their rates are always higher cause they don't think they will get shopped and they want all your other business while making no bones about bugging you for it; how much money do they really need to make? Leave some for the little guy.

Nick, you can purchase a home with 0% down if you're in a rural area, 3.5% down with an FHA program anywhere in the US, or 5% with a conventional loan. The FHA product has mortgage insurance as does the conventional with less than 20% down. So, it is possible to buy with less dow; my advice is to put less down if it is going to be a short term deal, more down if you may be there a while. Since this will be your first home and I assume you're not to far out of college, you should get in soon with little down but while rates are low and the market is near the bottom. You can stay in it for a while and build equity and you can sell when you need to and have some more cash for down payment on your next home. Permanent employment is good but we look more at the fact that you've been in the same line of employment for at least 1 year out of college and in the field of your study/degree. So being at a job for a certain amount time isn't the most important thing, just that you have a job. Open ended contract employment won't work, you'll need a permanent job before you can qualify. Call me if you have any other questions or need some more advice.

mjgrose, at 5.125 and 100k left, the only thing that would make sense would be to lower your rate and term. You may be able to go to a 15 or even a 10 year without changing your payment much. Refinancing at a lower rate to another 20 year wouldn't make sense cause you wouldn't save enough and I don't think it would get approved by underwriting due to the lack of net tangible benefit.

[fisherdog19]

Another update on rates: Conventional 30 year and 15 year rates are at 4% and 3.375% respectively. The FHA 30 year and 15 year rates are at 4% and 3.5% respectively.

It is a great time to refinance or purchase a home. As always, if any of you have questions, just shoot me an email or give me a call.