Hello and welcome to this week’s edition of Moorings, you local column for all things Mortgage & Real Estate. It was an incredible weekend with a beautiful snow fall, thankfully when most people are safely at home. In the world of mortgage rates we are still holding steady at around 4.875% with a 1% origination fee or 5.125% with no fee on 30 year fixed rate mortgages under $417,000. On Jumbo loans of say 80% loan to value we are looking at around 5.625% with 1% origination or 5.875% with no fee on 30 yr fixed.
One thing I would like to mention this week is that now is still an excellent time to refinance or purchase a home for those that haven’t already. Looking at historic mortgage rates, say from 20 years ago the average 30 year fixed interest rate was 10.84%. That is nearly DOUBLE the rates we are currently providing to customers today. In terms of monthly dollars and cents on a $200,000 loan you are looking at $1,073 principal and interest at today’s rates or you could be paying $1,755 at the rates being given 20 years ago. Bottom line, do NOT wait until it’s too late and rates begin to climb back to the 6’s or even 7’s. Hopefully that will be a long time from now but no one truly knows how high rates will jump when the Fed stops buying Mortgage Backed Securities at the end of March. Whatever the next rate increase will be, you don’t want to be the person kicking yourself for having missed the ever elusive “bottom.”
In the world of real estate January was a good month with 150 single family homes sold in
Last but definitely not least, I am happy to announce that Alpha Mortgage has grown again with the addition of Bill Horrell, Mary Horrell, and Jeff Gilley as our newest loan officers, each with the experience and dedication that represents my company very well. Until next week, Be Blessed and Numbers 6:24-26 be on you.