Santa Clarita Valley Real Estate

The Federal Reserve this week reduced the federal funds rate to a range of zero to 0.25 percent. The rate cut likely will not impact 30-year, fixed-rate mortgages. The real impact will be on consumer loans tied to the prime rate, such as home-equity lines of credit and credit cards with variable interest rates. Borrowers with loans tied to the prime rate may see an interest rate decrease. To read the full story, please click here: http://www.usnews.com/blogs/the-home-front/2008/12/16/-6-things-to-know-about-the-fed-rate-cut.html

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 conformin g