Skip to main content

Interest Rates are Near 45 Year Lows

Hope you had a nice Thanksgiving weekend, rates are almost at 45 year lows, not seen since August of 2003, when 30 year fixed rates were below 5.0%.

I want to give you an update on rates and a couple of changes that are taking place regarding the conforming limits. As to rates, they are still on the downswing…but as we all know…subject to rise quickly should any positive economic news is broadcasted! One thing we must remember when talking rates is that there are some nice savings on loan fees and your interest rate is improved when your FICO credit score is over 700. These rates today are for borrowers who are A+ rated.

30 year conforming fixed rates (up to $417,000). Currently at 5.25% - 5.375%, although for a couple points, you can have 4.875% (haven’t seen these rates for nearly 5 years!)

30 year conforming/jumbo ($417,001 to $729,750…only until the end of the year). Currently at 5.5% - 5.625%.

15 year fixed rates (up to $417,000). Currently at 4.875% to 5.0%

15 year conforming/jumbo ($417,000 to $729,750…only until the end of the year). Currently at 5.25% to 5.375%

One major change is currently under way. As of January 1st, 2009. Extension of higher conforming loan limits into 2009. The $729,750 for high cost areas ends January 1, 2009, modifications due to take effect will increase conforming loan limits to $417,000 for all homes nationwide and up to $625,500 in high cost areas such as LA, Ventura and Orange counties.

If you have additional questions or needs please feel free to call or email me.

Labels:

Comments

Post a Comment

Popular posts from this blog

What to look for in a real estate agent

There's a common saying in the real estate industry regarding the vast number of agents in the business: "If you don't have any friends who are agents, then you probably don't have any friends at all." With so many agent out there, how can you make an intelligent decision? Do you choose a friend, neighbor or coworker? Should you work with an agent at a large firm, a small firm, a franchise or an independent? While there's an exception to every rule, and every marketplace has its own nuances, here are some solid rules to apply when you want the best representation to protect your interests. Demand Experience Always look for an agent with at least two years of experience. Anyone still in the business after two years has probably learned at least the fundamentals of real estate. Look for Commitment Another problem we have in the industry is a large number of part-time and recreational salespeople. No matter how long they have been in real estate, their lack of f...
Post a Comment
Read more

Getting the Best Tax Break When Selling Your Primary Residence

Getting the Best Tax Break When Selling Your Primary Residence When you sell your primary residence, you may be able to save thousands of dollars by taking advantage of one of the best available tax breaks.  Provided that you have lived in the home as your primary residence and owned it for at least two of the past five years, when you sell your home, you can exclude from income up to $250,000 of gain ($500,000 for married couples filing jointly).  This tax benefit can be used once every two years.  Did you know that a married couple can qualify for the entire $500,000 exclusion even if only one spouse has owned the property for two years?  Or that you don’t need to own the home and use it as your primary residence the same two years?  Read on for a few pointers that may help you take advantage of this tax benefit when you sell your primary residence.  Pointer One - $500,000 Exclusion for Married Couples Available Even if Only One Spouse Owns Home for...
Post a Comment
Read more

A Down Payment Anomaly

Despite home buyers being advised to issue down payments of at least 20 percent, many home buyers are finding that smaller down payments result in better interest rates—but also higher payments. Rules put in place in late 2008 by Fannie Mae and similar rules adopted by Freddie Mac are less favorable to borrowers who put down 20 percent to 25 percent--partially because the GSEs consider these borrowers to be more of a credit risk since they are not required to purchase private mortgage insurance. According to Fannie Mae, borrowers benefit from this industry practice because they are able to leave themselves a financial cushion by not issuing larger down payments, and can instead save the extra money for emergencies. It is important to note though that smaller down payments mean higher monthly payments because the loan itself will be larger. To read the full story, please click here Message David Hoshaw Broker, CRS, GRI, e-PRO Weichert, Realtors - Hos...
Post a Comment
Read more