Current Mortgage Rates Remain Low: Home Buyers Lock Now

The time on the clock says lock! He who hesitates is lost. Ok, maybe you may not be lost but you may lose if you wait too long to lock your interest rate in, if you wait too long to buy that house you’ve been searching for, if you want to refinance into a lower rate and you are trying to hit the lowest of the low rates, lock now!

Current Mortgage Interest Rates for a Conforming Agency 30 year fixed rate mortgage is @ 4.875% with zero points. The zero point should put your APR (annual Percentage rate) below 4.99%

Current mortgage interest rates for a conforming 5/1 adjustable rate mortgage is still @ 3.875%. with zero points. If you are buying a home and the seller is giving you some closing cost assistance, you may have the possibility of getting a conforming 5/1 adjustable rate mortgage at @ 3% with 2 pts. No that is not a misprint, and there is not any negative amortization. The conforming 5/1 Arm interest rate of 3% would be fixed for the first 5 years and that rate is fully amortized over a 30 year term.

Why are current mortgage rates so low?

I cannot honestly say what is keeping rates so attractively low beside the Federal Government’s actions to purchase over a trillion dollars worth of mortgage backed securities. This purchasing program was supposed to cease at the end of October 2009. The Fed also knows once they stop purchasing all of these mortgage backed bonds , the interest rates will rise and may rise sharply. Since we are still in a recovery (hopefully) a sharp and sudden rise in interest rates will circumvent most of the good all of the stimulus program has accomplished so far. The Fed has announced they will be continuing this buying frenzy thru the 1^st quarter of 2010 so when rates rise the will (hopefully) rise slowly.

Why wouldn’t you purchase your first home now?

If these unbelievably low current mortgage interest rates are not incentive enough for you to purchase your first home, I am sure the Fed’s $8,000 tax credit may be the extra push you need to pull the trigger and put a contract offer in on that home you have been seriously thinking about buying. While there are many rumors the fed may extend and possible even expand on the tax credit program, nothing permanent has been announce nor do we know if they will announce anything concerning an extension of this program.

$8,000 Tax Credit Deadline

The tax credit is closing in very quickly on it’s expiration date of November 30^th, 2009. Since current mortgage interest rates are at historically low levels and there are quite a few number of people out there taking advantage of these low mortage interest rates and the $8,000 tax credit incentive, a mortgage can take up to 60 days to close. The window, considering the 60 day to close time frame, would mean a contract would have to be submitted to purchase by October 1^st. This 60 day window is a rule of thumb in the current environment. A 45 day time frame may also be doable with a little luck and a 30 day window would be the very the best case, everything goes without a hitch, current mortgage rates stay approximately where they are now so mortgage companies do not get overwhelmed with new applications leading up to the extinction of the tax credit program. If you are purchasing a home, please call one of our experience mortgage professionals here at Total Mortgage, we are a direct lender and have our own underwriting staff on board so a 30 day closing on a purchase transaction may be a strong possibility.

The clock on the wall says lock.

If you have any question that you would like to get answered by our expert mortgage brokers, please email us or call us at 1-877-868-2503.