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Refi Rates Hit Rock Bottom

 

With little economic activity released last week, the long lasting financial troubles in Greece have continued to be a major factor in worldwide markets, including ours. In times of trouble, investors prefer safe assets such as bonds which affect mortgage rate pricing. Because of this, low mortgage rates have remained consistent which has refinances on the increase.

Current 30 year fixed mortgage rates are at 3.500%, 15 year fixed mortgage rates are at 2.875% and 5/1 adjustable mortgage rates are at 2.250%, all available with 0.7 to 1% origination fee for borrowers who have good credit. Borrowers have been taking advantage of refinancing of these all time low mortgage rates. FHA rates now are at 3.250%, FHA 15 year fixed mortgage rates are at 2.750% and FHA 5/1 adjustable mortgage rates are at 2.750%. FHA still remains popular with first time home buyers because of the multiple mortgage programs and down payment assistance options.

Since FHA mortgage rates are not affected by credit scores, they are perfect for home buyers who do not have perfect credit. While FHA closing costs (APR) are higher because of various FHA fees and the upfront mortgage insurance premium, these costs can be included into the mortgage under certain circumstances. Jumbo Loans are at 4.250%.

Remaining the same, jumbo 15 year fixed mortgage rates are at 3.375% and jumbo 5/1 adjustable mortgage rates are at 2.500%. Although jumbo mortgages are not as popular as other mortgage types, there is still a need for them for mortgage financing above the conforming and FHA loan limit. Because of the large amount of funds involved, jumbo mortgages usually have stricter guidelines that are set by lenders. Full documentation is required for income, assets and debts that will be verified by the lender. Substantial funds are also required for larger down payments and additional months of reserves which is determined by individual lender guidelines. Still considering a refi? The time is now.