I’ve posted a similar chart in the recent past, however the chart below does an even better job of illustrating the purchase power of low mortgage rates.
And, the chart below is even more graphic.
Mahalo For Reading.
Home Mortgage Interest Rates and Buying Power
With interest rates remaning at historic lows and the Feds promising to keep them there, the illustration below shows clearly how buying power is increased with lower interest rates.
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According to “RealtorMag”, found online at www.Realtor.org, “More people are applying for mortgages: Applications for home mortgages had their largest increase in three months due to falling record-low interest rates, the Mortgage Bankers Association reports.
MBA’s seasonally adjusted index of mortgage application activity increased 13 percent for the week ended June 10. That marks the index’s biggest gain since March. The index measures applications for refinancing and purchase demand.”
Read, the rest of the article, “Mortgage Applications Surge Amid Falling Rates“.
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I received an email from one of my friendly Loan Officers last week who stated: “I came across this article regarding the inevitable rise in cost of loans with Fannie & Freddie eventually pulling out of the market. Any Buyer ‘holding out’ should really re-think that idea.”
Read the article, “Getting a Mortgage Before the Door Shuts”.
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A prominent hedge-fund manager said in a speech last fall: “If you don’t own a home, buy one. If you own a home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” He believes that interest rates and home prices will rise this year, so real estate bargains won’t last much longer.
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Every week, I receive newsletters from some of my favorite lenders and loan officers. Yesterday, I received one that discussed mortgage trends for 2011. Since the abilty to borrow money cheaply plays a huge role in the sale and pruchase of real estate, I think it is worthwhile look at some of the positive chanes and trends experts predict for 2011.
The article sent by my lender associate was posted on www.msnbc.msnc.om. You can read the entire article, “Seven Mortgage Trends To Expect in 2011″ here.
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According to an online article at REALTORMag: “Money Magazine is urging people a few years from retirement who plan to move when they quit work to consider buying now while home prices and mortgage rates are low.”
“Buyers who intend to use the place as a second home will pay the same rate as they would pay for a primary residence. If they intend to rent the property out until they retire and they need the rental income to qualify for the mortgage, lenders will consider that an investment property and charge a half to a full percentage point more.”
Read the rest of the “Money Magazine” article online at REALTORMag.
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Every week I receive emailed updates from my favorite local lenders stating the current inteest rates. One I received yesterday really caught my attention. Look at these low rates!!
15 year fixed 3.375% at 1.000 points – loan amount to $417,000
30 year fixed 3.875% at 1.375 points-loan amount to $417,000
4.000% at 1.000 point -loan amount to $417,000
4.250% at 0.000 points-loan amount to $417,000
4.250% at 1.000 point – loan amount to $500,000 (Conforming Jumbo)
5/1 interest only 3.125% at 1.000 point – loan amount to $417,000
7/1 interest only 3.375% at 1.000 point – loan amount to $417,000
10/1 interest only 3.875% at 1.000 point – loan amount to $417,000
CALL FOR JUMBO LOAN QUOTES
FHA 4.250% at 1.000 point – loan amount to $417,000
Now couldn’t be a better time to purchase a condo in Honolulu. Please visit our website regarding the best Honolulu condos for sale at www.HNLCondos.com.
Mahalo For Reading.
Every week, I receive an interest rate report from one of my local lenders. A few weeks ago, he included some information that was not only interestng, but also a little disturbing. It has to do with how long a person’s credit is damaged after a foreclosure or short sale. In other words, when can they qualify for a home mortgage again?
Here’s some details:
Tim O’leary, with Wells Fargo Home Mortgage of Hawaii, is someone I consider a friend, as well as someone who I believe offers a high quality level of service and loan product. He has graciously offered to contribute an article from time to time about, of all things, mortgages, lending and related subjects. Please enjoy his first contribution:
In 1965, the Department of Housing & Urban Development, HUD was formed. Under HUD operated & operates today as the Federal Housing Authority, known as the FHA. HUD’s goal, through the FHA, was to increase homeownership across America. It was a major breakthrough in lending allowing potential home buyers to put as little as 5% down payment and lenders would be willing to lend money with the assurance that the federal government would ‘insure’ the loan to difference in the event a borrower would default on a loan.
With today’s financial uncertainties, FHA has been the ‘darling’ of mortgage lending. Conventional lending woes created through the many problems at Fannie Mae & Freddie Mac, has made traditional lending much more restrictive. Below is a comparison of FHA and Conventional mortgages.
