HOMEFINDERS.COM BUYERS AGENTS WILL HELP YOU PREPARE FOR YOUR MORTGAGE LOAN IN A MARKET WITH RISING INTEREST RATES
Interest rates have risen in the past year and may continue to rise in the next several months. HOWEVER, mortgage interest rates are still at a historically low rate for long term fixed rate home loans.
One of the tools that can be used to alleviate the expense of rising interest rates is to use mortgage instruments with shorter terms. See the below for rates end 2005.
Compare the monthly payment for different loan types for a loan of $780,000
Interest Only 5/1 - 5.75%
Monthly Payment - $4,512.50
Interest only 10/1 - 6.125
Monthly Payment - $4,756.25
5/1 Non-Conforming - 5.625%
Monthly Payment - $5,265.12
7/1 Non-Conforming - 5.875%
Monthly Payment - $5,389
The above monthly mortgage payment includes Principal & Interest, Homeowner's Insurance and Property Tax, for a home priced at $975,000 with 10% down.
AMERICANS HAVE GOTTEN USED TO LOW INTEREST RATES
Mortgage rates are still low compared to the years between 1995 and 2003.
With the popularity 80/10/10 loans representing 10% down payment, 80% first
trust and 10% second trust,
home buyers can maximize their borrowing strength dramatically. Further,
since Private Mortgage Insurance
is based on the amount of the first trust, there is no PMI with the
To inquire about the above described financing for homes in Maryland and Northern Virginia, contact us.
We can help.
Fannie Mae's 2007 Conforming Loan Limit Remains at $417,000
SOURCE: FANNIE MAE
Average Interest Rates for week of December 7, 2006
Contact Lenn Harley for an analysis of your borrowing needs and we can recommend local lenders who offer they type of loan you need. We are not affiliated with any mortgage company, lender, loan office and make no money nor receive any referral fees for recommending qualified lenders. Homefinders.com believes that recommending quality mortgage companies, home inspection companies, title companies is a part of our responsibility to our buyers.