Connecticut Financing Update and Mortgage Rates January 13, 2012

Today's BEST-EXECUTION Rates  - Best-Execution is the "most efficient combination."  This akin to the colloquialism "most bang for your buck," in the sense that we're looking for the shortest amount of time to recapture any applicable borrowing costs.  In some cases, lenders won't only NOT be charging those costs, but can actually pay a few of the other ones as well.  Either way, we look at the difference in cost between each rate.  

Until recently, that has been clearly at 3.875% with no threat of competition from lower rates, but they are gradually getting closer and closer, constituting less of a "diminishing return" to take a look at paying more in closing costs in exchange for a lower rate.  This is why we say 3.875% is still the best candidate for a Best-Execution rate, but 3.75% is getting close--because the gap in costs between 3.875% and the next few lower rates has not only narrowed, but also become more linear.  

Today set records thanks to Europe, both in terms of the broader economic landscape and specific events today.  Threats of a French credit rating downgrade by S&P flooded the Treasury complex with demand, lower the benchmark rates against which MBS (the "Mortgage-Backed-Securities" that most closely govern mortgage rates) are measured and valued.  When Treasuries rally (move lower in yield, higher in price) significantly, MBS tend to be rallying as well, though usually not as significantly.  Still, it was enough of a rally for MBS, and consequently mortgage rates, to improve. 

Today's Mortgage Rates

30 year fixed - 3.850% + 0% cost points for rate
20 year fixed - 3.750% + 0 % points for rate
15 year fixed - 3.250% +  0% points for rate
10 year fixed - 2.875%  + 0%  points for rate
5/1 ARM - 2.375%  +0 points for rate
7/1 ARM - 2.750 %  + 0 points for rate
10/1 ARM 3.250% + 0 points for rate

FHA/VA
30 year fixed - 3.750% with +0 % points for rate
5/1 ARM - 2.750%  with + 0 points for rate
7/1 ARM - 3.25 with +  .625 % CREDIT  point for rate

Jumbo - over 576,000 (in Fairfield County, CT)   to 2,000,000
30 year fixed - 4.625  % with 0 points  for rate
15 year fixed - 4.125% with 0  points for rate
5/1 ARM - 3.375% - 0 points for rate
7/1 ARM - 3.750 % - 0 points for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

Jennifer Buchanan- Your certified expert
 on mortgages offering Free Unbiased
recommendations based on your needs.

A note from Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

Comments

[Omni Chaparala]

Good details about mortgage interest rates. With the Eurozone facing problems, interest rates might fall to an all time low here in the domestic markets. Thank you for the post. Dallas real estate