Real estate (like much of life) is both emotional and financial. I strongly believe that you need to establish your financial capabilities for a home purchase early in the process. Rates are at an historical low, you may be surprised at what you can afford. Conversely, I would hate to have you fall in love with a property and then find out that you can’t afford it.
Mortgage rates change daily and sometimes even more than once a day. Your rate will be determined by a number of factors including your credit score, type and amount of the loan, length of the loan, and the appraised value of your property. Oftentimes the quoted rate is not the complete story. There are other costs to obtaining a loan such as points (each point costs 1% of the loan amount), pre-payment penalties (penalties of up to 6 months interest if you refinance or sell the property within a specific timeframe) and other hidden fees.
Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.
l "Mortgage rates were nearly unchanged this holiday week in lieu of a mixed bag of economic data reports. On the consumer front, retail sales edged up only 0.1 percent in December, but the Reuters/University of Michigan sentiment index continued to climb in January to the highest reading since February 2011. On the business side, industrial production rose 0.4 percent in December, slightly below the market consensus forecast, and the core producer price index rose faster than market expectations. Finally, on the home construction front, builder confidence rose for the fourth consecutive month in January to the highest level since June 2007."
Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter: @FreddieMac.
SUMMARY OF SURVEY RESULTS
|
30-Year Fixed Rate Mortgages |
US |
West |
|
Average |
3.88 |
3.83 |
|
Fees & Points |
0.8 |
0.8 |
|
15-Year Fixed Rate Mortgages |
US |
West |
|
Average |
3.17 |
3.12 |
|
Fees & Points |
0.8 |
0.8 |
|
5/1-Year Adjustable Rate Mortgages |
US |
West |
|
Average |
2.82 |
2.69 |
|
Fees & Points |
0.7 |
0.6 |
|
Margin |
2.74 |
2.74 |
|
1-Year Adjustable Rate Mortgages |
US |
West |
|
Average |
2.74 |
2.70 |
|
Fees & Points |
0.6 |
0.5 |
|
Margin |
2.76 |
2.75 |
|
|
|
|
||||||
|
The National Mortgage Rate Snapshot |
One Year Ago |
One Week Ago |
||||||
|
|
30-YR |
15-YR |
5/1-YR |
1-YR ARM |
30-YR |
15-YR |
5/1-YR |
1-YR ARM |
|
Average |
4.74 |
4.05 |
3.69 |
3.25 |
3.89 |
3.16 |
2.82 |
2.76 |
|
Fees & Points |
0.8 |
0.8 |
0.7 |
0.6 |
0.7 |
0.8 |
0.7 |
0.6 |
|
Margin |
N/A |
N/A |
2.75 |
2.76 |
N/A |
N/A |
2.74 |
2.76 |
Jan. 19, 2012
Source: Freddie Mac
Contact me when you are ready to “shop” for a loan. I will put you in contact with one or more great, local loan agents who will help you find the right financial “fit.”