Vanishing Credits and Advantageous Interest Rates!

March 17, 2010 at 2:32 pm · Filed under Uncategorized and tagged: april 30, conforming loan, first time buyer tax credit, home loans, interest rates, jumbo loan, mortgage backed securities

Just a short note to remind all of you regarding the upcoming expiration of the First Time Buyer’s Tax Credit and MBS-Mortgage Backed Securities.

(1) The First Time Buyer’s Tax Credit will still be applicable to your transaction(s) if you have a valid open escrow by no later than April 30, 2010, and that escrow closes by no later than June 30, 2010.

(2) The extremely advantageous interest rates for home loans are expected to remain low until the Feds discontinue their backing of MBS-Mortgage Backed Securities. The Feds are scheduled to cease buying MBSs at the end of this month – March 30, 2010. When that happens it’s projected home loan interest rates will begin to rise and probably go up at least 75 basis points (0.75%) in the near future. If you are already in escrow make sure your lender has locked your loan and, even if your escrow closes April 1st or after, the interest rate of your new loan is protected (for the duration of the lock).

(3) Current Interest Rates for 30-year Fixed Rate Loans as of 3/16/2010:

A) Conforming Loans at $417,000 or under – 4.75% with 1 pt.

B) Conforming Loans under $729,500 – 5.00% with 1 pt.

C) Jumbo Loans between $729,500 to $2,000,000 – 5.25% with 1 pt.

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