Mortage Rates Below 4%? They May Be Coming Soon!
Check out this story in the San Francisco Chronical’s online service - the SFGate. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/11/BUOA14LOEK.DTL A mortgage industry official predicts that fixed rate mortgages could go “well below 4 percent” as the federal government continues to lower key indices and takes other actions to help the housing market recover. Rates are in the low-5% range right now (the lowest in 50 years). Rates in the 4% range are unprecedented and should do a lot to help cautious buyers make that decision to buy.
Check out the difference in monthly mortgage payments (principal and interest) at 6, 5 and 4% interest rates with a loan amount of $500,000:
6% = $2,998 | 5% = $2,684 | 4% = $2,387
A difference of 2% points means a lower monthly payment of $612! And this is without beating up a seller by offering a lower price for a home. This is a built-in price-reduction that buyers should take advantage of; and for homeowners who have equity and are planning to stay for a while, they should contact a mortgage broker or loan officer about refinancing their current loan. This is a smart move and the savings speak for themselves. Act now before rates rise again because you can not predict what will happen tomorrow.
Here is a great link showing the rest of this week’s inportant real estate articles.
http://www.car.org/media/pdf/Beyondtheheadlines_121808.pdf
Contact me with any questions. I wish you all a Merry Christmas, Happy Holidays and a Happy new Year!
Kevin P. Cummins
Realtor / Broker / Attorney
Coldwell Banker – Carmel Valley
Cell: 858-750-9577
Search the MLS on my new website at kevincumminshomes.com.
