Today's Mortgage World
Why So Many People Are Refinancing
In this time of recovery after the market hit bottom I like to keep track of even the smallest changes in the market and its activities. Any change on a micro level could easily lead to changes on a larger scale, effecting different sectors of not only the market but also the economy. Today I viewed some statistics provided by Realty Times and found some highly intriguing news about what’s going on in today’s mortgage world. Apparently there has been an increase in mortgage refinances as the mortgage rates hit a new low.
According to this article, all mortgages with the exception of the jumbo 30 year fixed rate mortgages, have dropped an average of .250% and have hit a new all time low. The current 30 year fixed mortgage rates are at around 3.375% while the 15 year fixed mortgage rate is now at 2.750%.
When mortgage rates fall several things happen: Not only are more people applying for mortgages because they have become more affordable but we also find that many homeowners are choosing to refinance their mortgage.
FHA Loan interest rates are quite similar, however a little lower. The current FHA 30 year fixed mortgage rates are about 3.125% while the FHA 15 year fixed mortgage rates are at 2.625%. Despite popular belief, the FHA is still the first major choice for first time home buyers simply because of the low down payments and flexible guidelines.
However, nowadays these guidelines have been tightening on the buyer with bad credit, a foreclosure or a bankruptcy in their past. This is causing many borrowers to seek their financing elsewhere which leads many to hard money/private money loans.
Hard money loans provide you with faster cash and less regulations or “red tape” that conventional loans require. It’s virtually borrowing from an individual investor rather than an institution with stricter eligibility requirements. Here at Sun Pacific Mortgage and Real Estate our Broker, Forest, The Guy in the White Hat, grants loans to people who have had financial trouble in the past but are now ready to purchase a home and have been turned down elsewhere.
If you are one of these people and are looking to purchase real estate in the state of California, give him a call today for a free consultation!
For the article with the raw stats provided by this blog click this link here.
Lynn Tardibuono – Flipper Chick- Real Estate Agent and Co-Owner of Sun Pacific Mortgage and Real Estate. Serving Sonoma County since 1988. Her number is (707)523-2099 and you can also visit our redesigned website at http://www.sunpacmortgage.com Also be sure to like us on facebook! Click this link DRE license #01014873