July
2010
Qualified mortgage loaners are in a great position right now as it is a great time to receive one. Last week, rates for 30-year fixed rate loans fell to 4.57%, which reaches the lowest average since 1971. With rates this low, this enables home buyers to get a lot more value in the long term. There are many variables that play into finding a loan, for instance, your credit score must be at least 620 and the amount of cash you’re willing to put down also plays a serious part in getting a good mortgage. Here are some scenarios provided to us by boston.com:
You pay 20% down and expect to retire in the house
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Take out a 30 year fixed rate loan. The interest rate stays the same (historic lows)
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You have 20% down paid, but plan on moving again in a few years
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Take out an adjustable rate loan of five. seven or 10 years. These lows carry a lower initial rate than the 30-year fixed do.
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You have at least 20% down on a house that is worth over $729,500
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You will need a jumbo loan which is not going to be backed by Fannie Mae or Freddie Mac.
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If you put more than 20% down
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Consider a 20 year fixed rate mortgage. Rates are sometimes lower than for a 30-year-fixed-rate by about a quarter point. But because the loan term is shorter, the monthly payment will be higher.
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You don’t have a down payment
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Your options are limited. If you’re a veteran or the surviving spouse of one, consider a mortgage backed by the Department of Veteran Affairs. These loans offer 100% financing without private mortgage insurance at competitive rates. Also if the home you’re buying is in a rural area (as defined by the Agriculture Department), you may qualify for a loan that offer 100% financing.
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Does anyone know if there are still renovation loans being given?