Mortgage Rate Update!

One of the many ways I strive to serve my clients is by surrounding myself with an outstanding team of professionals with your best interest in mind.  I have the utmost respect for Monica Jones as an expert in her field.  Below is a a mortgage rate update from Monica.

The message to take home here, is that home ownership is affordable, more-so now than ever before!  Take a look at the estimated payment per $1,000 loaned for a 30 year fixed mortgage!  That means if you’re looking for $200,000 loan your payment will only be around $1,028 per month! Or just $514 per month for a $100,000 loan! (There’s a good chance that’s less than your rent)

Even if your credit isn’t great, Monica and I may be able to work with you to improve your Fico scores enough for you to qualify.  Call me today!

From the first time home buyer to the savvy investor – from the seller with equity to the seller underwater and needing options – I am here for you.

Mortgage Interest Rates for Fixed and Variable Rate Mortgages* as of Friday, 28th January, 2011:

Term

Conforming

APR

Payment per $1,000

Jumbo

APR

Payment per $1,000

ARM

Reset Term

30 Year Fixed

360

4.625%

4.663%

$5.14

4.875%

4.892%

$5.29

15 Year Fixed

180

4.375%

4.412%

$4.99

4.500%

4.516%

$5.07

5/1 ARM

360

3.750%

3.786%

$4.63

4.125%

4.141%

$4.52

60

3/1ARM

360

3.250%

3.285%

$4.35

3.625%

3.640%

$4.56

36

*rates are subject to change due to market fluctuation and borrower’s eligibility 

Why have I seen lower rates advertised on TV? Rate Lock Duration

Lock durations can vary from mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted.  As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.

Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations.  This is called ‘short-pricing.’  The lender basically knows the borrower doesn’t have time to meet their conditions and have all the necessary paperwork in order withi that brief time period.  As a result, the lender is not obligated to honor the low rate that was listed in their advertising.

For simple refinance transactions, a 45-day lock-in period is more realistic.  For purchase transactions, which are typically much more complex, you’re much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the internet.

Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan.  Monica prefers to lock all clients as soon as their application is filed, rather that gamble with predicting short-term interest rate movement.  My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure strong  financial future.

 

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