Anyone that is watching the real estate market knows that interest
rates have never been as low as they are today. In fact, this is a historical
occurrence that keeps on repeating itself month after month after month. There
is no telling how long the Fed will keep our base rate down but for now, we’re
in great shape. Today, we meet with Ed Lotstein from the Franklin Loan Center to talk about some of the trends we are seeing in
today’s marketplace with respect to mortgage rates and loans.
Record
Setting Historic Lows Present A Phenomenal Opportunity for Buyers
On 30-year fixed rates loans for conforming loans – we are seeing a
typical rate of about 3.125% with a point on loans up to $417,000. Loans with
zero points are coming in at an interest rate of 3.375%. Government-backed
loans such as FHA or VA loans have mortgage rates in the low 3s – once again an
unprecedented historic low. Jumbo loans in the amount of $700,000 to $800,000
are reported at below 4% at the present time.
All these rates are lower than any of us have ever seen in our entire lifetimes
let alone careers.
The take away message is that now is a great time to buy. If you have
been on the fence about whether or not to buy, the low cost of borrowing offers
plenty of motivation. When you combine the relatively low housing values with
low interest rates, it is a great time to get a good deal. In fact, I strongly
suggest meeting with your loan officer to work out the numbers; you will be
surprised at how much the savings add up once you pull an amortization
schedule. When buyers lock in the phenomenal rates available today for 30
years, or even 15 year terms, the savings compound into thousands of dollars.
Refinances Are Allowing Existing Homeowners to Save
Hundreds
In addition to new purchases, the low interest rates are also
benefitting millions of homeowners with some equity in their properties. If
your mortgage is currently at anywhere above 4%, we strongly suggest meeting
with a loan officer to assess your financial situation and discuss refinancing.
Financing Available for Canadian Citizens in the
United States
While on the topic of mortgage financing and phenomenally low rates,
one thing that many people do not realize is that financing is available for
citizens of Canada that choose to purchase properties in the US. In fact, there
are hardly any countries that allow foreign nationals to obtain such financing.
There are a few requirements that are different than the standard finance
process for American citizens. Canadians would require a 30% down payment on
the property and the process would entail a full documentation loan where
detailed documentation of financials and tax returns would be required among
other things.
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Regardless of what your real estate needs are these days, one thing is
certain – the market today is ideal for buyers and investors. We invite you to
contact us today for more information about how we can help you achieve your
real estate goals.
Ed Lotstein 760.413.8866 elotstein@franklinlc.com
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