Rates moved up quickly this week in response to better than expected US Economic Fundamentals, strong US Bank Stress Test results, and Wall Street’s sudden realization that the U.S. economy is improving! Historically interest rates remain low, but this week’s sudden upward movement should serve as a wake-up call to prospective buyers — The time to purchase a home is now!
CURRENT INTEREST RATES | MARCH 16, 2012
($200,000 – $417,000) 0 POINTS
• 30 Year Fixed: 4.125% (4.20% APR)
• 5/1 ARM: 3.250% (3.32% APR)
($625,501 – $2,000,000) 0 POINTS
• 30 Year Fixed: 4.875% (4.93% APR)
• 5/1 ARM: 3.375% (3.44% APR)
|CONFORMING (HIGH-BALANCE) RATES
($417,001 – $625,500 cap by county) 0 POINTS
• 30 Year Fixed: 4.375% (4.44% APR)
• 5/1 ARM: 3.375% (3.44% APR)
Rates are UP compared to last week.
Rates are UP compared to last month.
Rates are DOWN compared to one year ago
Refinancing Fees Are Reduced for Some F.H.A. Borrowers
Beginning June 11, 2012, FHA has announced that it will make refinancing less expensive for certain borrowers with mortgages backed by the Federal Housing Administration.
The fee reductions will apply only to borrowers seeking to refinance through the agency’s “streamline” program, which is typically less burdensome than a traditional refinancing. There are a few requirements, though the biggest drawback is that only borrowers with loans that were originated on or before May 31, 2009, are eligible.
In addition, borrowers must have an existing F.H.A. loan that they are seeking to refinance into another F.H.A. loan. They must also be current on their payments, and no more than $500 can be taken as cash out of the loan. But the refinancing does not require any income verification or an appraisal, which means that borrowers who owe more on their mortgage than their house is worth are also eligible.
The F.H.A. charges two types of fees to borrowers, and they have risen in recent years. That has prevented many borrowers from refinancing into loans with some of the lowest interest rates on record, mortgage brokers said.
Now, under the new initiative, the fee known as the “Upfront Mortgage Insurance” premium will drop to a mere 0.01 percent of the loan balance from 1 percent. Meanwhile, the “Annual Mortgage Insurance Premium” will be cut by about half — to 0.55 percent of the loan balance from 1.15 percent. Taken together, the fee reductions could save the typical F.H.A. borrower about $1,000 a year. That does not include any savings from a lower interest rate.
Contact me today if you would like to discuss refinancing your present home loan.
This article was reprinted courtesy of Gina Kemsley – Copyright © 2011 Gina Kemsley, Terra Mortgage Banking, All rights reserved.
Gina Kemsley – Senior Vice President - Loan Consultant, Terra Mortgage Banking
Office: (415) 464-3144 – Cell: (415) 828-0218 – Email: firstname.lastname@example.org – Website: www.terramortgagebanking.com/loan-officers/gina-kemsley
About the author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I specialize in residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
My goal is to provide you with the best home buying or selling experience possible by combining my business and financial experience with meticulous attention to detail and a warm, personable and caring approach to meeting your needs. I have an excellent track record as a successful, results-oriented negotiator and effective communicator. My analytical skills and understanding of current market conditions, along with my ability to utilize a broad range of cutting edge technological and marketing resources, make me an invaluable real estate resource.
I am a long term Marin County resident and home owner. I strongly believe our quality of life is extraordinary and practically unmatched. I love our community, quaint towns and vast open space and never tire of their breathtaking beauty. I know the neighborhoods, the schools, the amenities; I know where you want to live. I know and love Marin County!