Rate and Market Update

Even though the market has been somewhat crazy this week, and there have been bad auctions in the market, believe it or not, rates are still super low. 30 year conventional is under 5%, and FHA loans are also under 5%. Jumbo loans for conventional and FHA financing are at 5% or a little above it. These rates are still very super low!! There is alt of talk in the market place that FHA may increase the down payment from 3.5% to 5%, and the tougher guidelines, and additional requirements. A lot of it, so far, is talk. I try to update the actual changes. Even though it may be tougher to get loans approved, it is hard to pass up on these rates, especially if you are betting they get lower. If you are wrong, you cold pass the opportunity to saves thousands of dollars in the coming years. We are still waiting to hear if the temporary loan limits will be extended for 2010. Also, the tax Credit for 8k First Time Home Buyers has been extended until 04/30/2010. In addition there is a $6500 tax credit for home owners who have been in there house for 5 years and are upgrading.

I know this is a dreaded term, but ARMs are actually record lows! I not saying they are for everyone, but in certain situations, they can be a real benefit for borrowers. 5 year ARMs are a little under 4%! If someone is a first time home buyer, and is not expecting to live in the home for too long for either personal or job related reasons, taking advantage of that super low payment, can be a huge savings or allow him to borrow more money to find his dream home. I am not telling people to over extend themselves, because that is what happen a few years ago. Again, on certain situations, that can really provide a true benefit to the borrower, ARMs can be a helpful program.

DC Metro Sr Mortgage Broker
VA specialist