Contact MargaretSome Crofton Residents Wait Too Long to Refinance
June 27th, 2009 Categories: Crofton Real Estate 3
Sorry, Crofton residents and home buyers. You missed the boat.
While you were waiting for rates to bottom out, gambling that rates would go even lower than they were a few weeks ago to re-finance or buy a home, they started back up. In the flyer dated 6/26/09 that I received today from one local lender, the current rates are:
- 5.25% for Conventional 30–year Fixed Rate financing
- 5.375% for VA and FHA financing
- 6% for Jumbo financing
According to MarketWatch, the average rate on a national level is slightly higher: 5.47% for Conventional 30–year Fixed Rate financing. 5/1–year arms are priced at 4.87% – not much of a break, considering the risk of a higher rate at the time of each future adjustment (but this is a good loan for someone who doesn’t expect to stay in a property more than 5 years).
You can follow the interest rate trends right here at Focus On Crofton any time by clicking on Mortgage Interest Rates in the left navigation bar. That takes you straight to MarketWatch 101 where you will see the interest rate for this week, last week, and last month as well as an arrow up or down to indicate the current trend.
But, just because you missed the bottom, rates are still lower than they’ve been in recent years. You can get a loan in the 5’s now, so don’t wait ‘til rates are back up to 6% or more.
I have terrible memories of selling real estate (or not) when interest rates were
16% and 17% in the Carter years… could it happen again?
Thinking of buying a home?
Nobody can predict when home prices will hit bottom. In fact, we won’t know what the bottom is until it disappears and prices show signs of increasing. Even if prices drop a little more, any savings in your payment has probably been swallowed up by the higher interest rate. So don’t get caught twice with your pants down. You missed the best interest rate… don’t risk an increase in housing prices too!
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