Mortgage Rates Tumble

Over the last couple of weeks 30-year fixed mortgage rates fell substantially… I’ve seen some recent quotes for 5.5%!

Taking 1/2% off the interest rate (which is what has happened in the last few weeks) on a $300,000 loan saves you $1500 per year in interest charges, which would be a savings of $125 per month or is like taking nearly $21,000 off the purchase price of the house, as compared to the higher interest rate.

With record high inventory and affordability at 3 year highs, this is a great time to be a buyer!

Here are a couple loan officers that I recommend if you are looking for information on what you can afford, how mortgages work, or want to get a pre-approval.  Please feel free to contact them or myself if there’s anything we can do for you!

Nicci Brown – Edina Realty Mortgage

Cheryl Stuntebeck – Bell Mortgage

No consideration has been received for these recommendations.

Should Banks Convert ARMs into Fixed Rate Loans?

CNBC has a great aricle titled: “Loan Modification Anyone?

The article does bring up a good point… while saving buyers that are in danger of losing their homes is a good policy, going too far is not fair for everyone else and can potentially lead to more fraud in the market.  It’s amazing to see the differences in opinion and direction this market seems to be taking.

All I know is that they better come up with something… the foreclosure market continues to grow as a percentage of listings for sale on the MLS and that isn’t good for the long-term health of our housing market.