November 24, 2017

Seattle Real Estate Mortgage Rates Today 5/24/11 + “Tip of the Day”

Seattle Real Estate Mortgage Rates Today 5/24/11 + “Tip of the Day”: Bonds receive a B+ grade after auctions of $35 Billion in 2 year notes.  This is helping to pressure interest rates lower gaining ground lost in yesterdays trading.  New Home Sales reported better than market expectations, but still facing headwind of the never ending Foreclosure talk that is consuming media.  The classic “Here is some good news BUT” bad news sells and they love to sell the bad.

“Tip of the Day” FHA loans too expensive and pricing out of the market?  Once again HUD is meeting to potentially raise the down payment requirement from 3.5% to 5.00%.  They have successfully increased the monthly Mortgage Insurance twice in the last 18 months.  Even though they did lower the funding fee from 2.25% to 1.00% the monthly cost of Mortgage Insurance is heavily impacting the budget of many buyers.  So what to do as a buyer.  WAIT don’t be discouraged.  Conventional Loans have made a resurgence into the market this week re-introducing the 97% loan.  Yes a 3% down payment requirement that can be gifted.  Less than the 3.5% down payment of FHA.  ALSO the monthly Mortgage Insurance is LESS than FHA.  FHA is 1.15% compared to .88% of conventional loan.  Not only is the down payment requirement less than FHA but the Conventional loan saves money MONTHLY!  There is one draw back, the credit score requirement on the Conventional loan is 720 opposed to the FHA loan at 620.  FHA is not going away but many are interpreting that HUD is strategically making changes to reduce the amount of new market share that they are financing.  Luckily the Conventional loan lenders see this as an opportunity to pick up market share and HELP the market.  Strategically as a new home buyer you will want to research all of your options.  BUT if you are not working with a lender who is listening and thinking of all opportunities you may be missing out on savings that could be HUNDREDS of DOLLARS, in both monthly and up front costs.

Transparency is our commitment.  Looking after the best interest of each and everyone of our clients.

Timing is everything just as location of the home is critical. Timing in securing an interest rate, BEST rate, is working with a mortgage professional who has their pulse on the market and when best to advise and educate their clients when timing is right. Along with this key knowledge is to be on top of all of the lending and underwriting changes which seem to almost happen daily. We at the Mortgage Reel are Licensed Washington Loan Originators, serving clients with transparency, knowledge and most importantly keeping your goals in mind. How can we assist you today?

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