INTEREST RATE FOR 30-YEAR FIXED RATE MORTGAGE DECLINES
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS
September 1st, 2008
One of the safest and most popular loans saw a rate decrease this past week. Nationwide,
the rate on a 30-year fixed rate loan is 6.4% with an average 0.6 point fee, down from 6.47% a week ago and 6.67% a year ago, as reported by Freddie Mac in its weekly Primary Mortgage Market Survey.
For those that can afford slightly higher payments, the 15-year fixed dropped to 5.93% with a 0.6 point, down from 6% a week ago and 6.12% a year ago. Payments on a 15-year vs. a 30-year loan are usually about 20% higher but save a considerable amount in interest over the term of the loan.
Adjustable rate mortgages or ARM’s saw a slight increase to 6.03% from 5.99% with an average 0.6 point fee but is down from 6.35% a year ago. I advise my clients to use an ARM in limited circumstances, preferring the stability and peace of mind that comes with a payment that remains the same year-in and year-out.
Economists predicted interest rates for a 30-year fixed would reach 7% by the end of this year. My experience with ups and downs in interest rates tells me that could still happen if market activity accelerates. Tough underwriting standards may keep rates in check because many borrowers are being turned down for mortgage loans, lessening the demand for mortgage money. Most real estate agents are insisting buyers get pre-approved for financing before they get in the car to look at homes. If its been a few months since loan approval was granted, it is smart to touch bases with your lender to confirm your ability to borrow. Underwriting rules are in a constant state of flux, so stay informed, and be prepared to jump through additional hoops if necessary to retain your approved status.
If you need a referral to a good loan officer, or have an real estate need, contact me:
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY REAL ESTATE EXPERIENCE
this web site is my intake , real superb design and style and perfect subject matter.
Hello there I know this is kinda off topic but I was wondering if you knew where I could find a captcha plugin for my comment form Im using the same blog platform as yours and Im having problems finding one Thanks a lot
I wanted to visit and let you know how much I loved discovering this blog today. I might consider it a honor to work at my workplace and be able to utilize the tips contributed on your web site and also participate in visitors’ remarks like this. Should a position involving guest author become offered at your end, make sure you let me know.
Oh my goodness! an amazing article dude. Thank you Nonetheless I’m experiencing problem with ur rss . Don’t know why Unable to subscribe to it. Is there anyone getting identical rss downside? Anyone who knows kindly respond. Thnkx