Connecticut Financing Update and Today's Mortgage Rates 9/1/12

 Mortgage rates have been on the rise in the past two weeks, but it still is a perfect time to purchase a home and/or refinance your existing mortgages.  Treasuries are flat to open the morning, as investors wait to see what Bernanke will hint at during his speech from Jackson Hole.  No one expects him to announce the plans for QE3, however investors are hoping for clues as to the potential release of the easing, some hoping for as soon as the Fed’s next meeting in a couple weeks.  Today’s data has taken a back seat to the speech, but the calendar was busy nonetheless. The University of Michigan's consumer sentiment index rose to 74.3 in August, compared with initial reading of 73.6, showing an improved view of consumers about the U.S. economy.  New orders for U.S. factory goods rose 2.8% in July, posting the biggest increase since July 2011 and rising for the second time in three months.  The markets are closed on Monday in observation of Labor Day, however will be very busy with the shortened week.  The ECBs meeting takes place on Thursday, Nonfarm Payrolls will be released on Friday, and another round of auctions will take place.  Currently the 10 year note is at 1.634% and mortgages are roughly unchanged from yesterday morning.

Today's Mortgage Rates

Conventional 30 year fixed          3.625%                  APR 3.671%

Conventional 15 year fixed          3.00%                    APR 3.081%

Conventional 5/1 ARM                  2.5%                      APR 3.036%

Conventional 7/1 ARM                  2.75%                    APR 3.065%

The above rates are based on a loan amount of $417,000 for a single family home, a borrower’s middle credit score of 740 and a 20% down payment.

This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under any applicable law.

 

As a lending professional, Nima Rezvan meets a wide range of real estate lending needs, whether it be a first time purchase, second home purchase, or refinance. He welcomes the opportunity to serve your needs with quick and accurate real estate financing advice. With his expertise and knowledge, he will make sure you understand the features associated with the loan program you choose and that it meets your unique financial situation.

With more than 10 years of mortgage lending experience, Nima specializes in  Conventional Mortgages,  Jumbo Loan Financing, Refinance, First Time Home Buyers and Federal Housing Administration/Veterans' Administration (FHA/VA)

 NMLS #110681

send Nima an email

Mobile: 203-913-6016
Fax: 877-804-5752

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

The Featured Home of the Week is at 125 Norton Road in Easton  for $1.4M. See the virtual tour HERE

Buying or Selling a Home in Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like:

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Which is Better, 15-Year or 30-Year Mortgage?

The home loan or mortgage represents for most people the highest cost purchase they will make in their life, unless they buy a second house for even more. The reason being is because the financing involves a large amount of money being paid back slowly over a very long period of time. Even at a low interest charge level, mortgages are still going to produce a profit twice or three times over the original amount provided by a lender.

The most common mortgages involve fixed loans where the interest doesn’t fluctuate. These home loans come in either 15-year or 30-year formats. This of course eventually raises the question of which loan is better for a buyer, and it depends on the buyer’s individual situation.

Monetary Cost Difference

Clearly, paying a large home loan back in 15 years rather than over 30 years will be far cheaper. The shorter time period allows less compounding of interest and more money goes to the principal loan outstanding. As a result, the loan is paid off faster with less borrowing cost for the buyer.

For example, a $160,000 mortgage at 5% over 30 years versus the same amount over 15 years at 4.5%. The 30-year mortgage will cost $859/month, the buyer will lose $149,211 to interest charges, and the total cost will aggregate to $309,211 over the life of the loan. In comparison, the 15-year mortgage will result in a billing of $1,224/month, a lost cost of $60,318 in interest charges and a total loan expense of $220,318 over the life of the loan. The 15-year loan ends up being $88,893 cheaper.

Cash Flow Difference

On the flip side, the 30-year mortgage makes buying a home far more affordable on a monthly cash flow basis. Because the 30-year loan is paid over a much longer period, the monthly payment is far less. This makes the borrowing more affordable for those who can’t afford to pay out a couple thousand dollars of their income every thirty days. Using the same loan comparison example from above, the 30-year mortgage costs $365/month less.

Taxes

While there’s a lot of debate regarding the matter these days, the fact is a home mortgage provides a very helpful tax deduction on federal tax filing. The interest a homebuyer pays annually can be written against taxes owed, reducing that bite the IRS and federal tax law demands out of one’s income every April 15th. So the 30-year loan benefits a buyer on tax basis far more than a 15-year loan.

Alternatives

There is also an option of having both worlds. A buyer could start his home purchase off with a 30-year fixed loan, enjoying the lower payment per month but then work towards paying it off in a 15-year early push. This would produce a similar, high monthly cost at the 15-year level, but it would likely shave off close to $80,000 in expenses, depending on the details involved. This approach offers a valuable safety net as well. For instance, if the buyer ends up in hard, financial situation after the loan is started, he can always scale back the payment to a 30-year value without any penalty. This, of course, assumes the lender didn’t include any kind of an early payment penalty in the loan agreement.

Conclusion

As a result, the best home loan depends on the buyer's needs, wants and what he can afford to pay. The optimum loan is one with the most flexibility for the buyer, both cost-wise as well as on a cash flow basis. This ensures the probability of paying the loan without running into default problems.

Provided by: www.refinancemortgagerates.org

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The Featured Home of the Week is at 125 Norton Road in Easton  for $1.4M. See the virtual tour HERE

Buying or Selling a Home in Fairfield County, CT?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like:

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Connecticut Financing Update and Today's Mortgage Rates 8/24/12

Mortgage rates  have been on the rise in the past two weeks,  but still look good, and it is  still a perfect time to purchase a home and/or refinance your existing mortgages.  Entering this week, investor hopes were high that significant progress would be made to stem the European crisis but optimism is fading fast.  The latest reports are that the ECB will not finalize its bond plan until Germen courts weight in on the legality of the bailout fund.  Here is the  US, Durable Goods jumped 4.2% in July, better than the expected 2.5% increase. Currently, the 10yr yield is at 1.639% and mortgages are roughly unchanged from yesterday morning.

Today's Mortgage Rates

Conventional 30 year fixed          3.625%                  APR 3.671%

Conventional 15 year fixed          3.00%                    APR 3.081%

Conventional 5/1 ARM                  2.5%                      APR 3.036%

Conventional 7/1 ARM                  2.75%                    APR 3.065%

The above rates are based on a loan amount of $417,000 for a single family home, a borrower’s middle credit score of 740 and a 20% down payment.

This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under any applicable law.

 

As a lending professional, Nima Rezvan meets a wide range of real estate lending needs, whether it be a first time purchase, second home purchase, or refinance. He welcomes the opportunity to serve your needs with quick and accurate real estate financing advice. With his expertise and knowledge, he will make sure you understand the features associated with the loan program you choose and that it meets your unique financial situation.

With more than 10 years of mortgage lending experience, Nima specializes in  Conventional Mortgages,  Jumbo Loan Financing, Refinance, First Time Home Buyers and Federal Housing Administration/Veterans' Administration (FHA/VA)

 NMLS #110681

send Nima an email

Mobile: 203-913-6016
Fax: 877-804-5752

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Buying or Selling a Home in Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like:

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Connecticut Financing Update and Today's Mortgage Rates 8/17/12

The rates are still looking good even though they have been on the rise in the past two weeks and it looks like a perfect time to purchase a home and/or refinance your existing mortgages.  Treasuries are headed for a fourth straight weekly decline, the longest streak since December 2010, as reports this week on building permits, industrial production, retail sales and jobs all showed improvement.  And now this morning the Consumer Sentiment came in better than expected with an index reading of 73.6, rising from last month’s 72.3.  Yesterday, treasuries sold off after German Chancellor Angela Merkel was quoted supporting the ECB and their approach to defend the Euro by helping reduce borrowing costs for indebted countries.  Yesterday the 10 year yield hit the 200 day moving average of 1.86% and has since moved back down.  Currently, the 10 year yield is at 1.82% and mortgages are slightly better than yesterday afternoon’s re-price.

Today's Mortgage Rates

Conventional 30 year fixed          3.875%                  APR 3.922%

Conventional 15 year fixed          3.125%                  APR 3.207%

Conventional 5/1 ARM                  2.625%                  APR 3.078%

Conventional 7/1 ARM                  2.875%                  APR 3.122%

The above rates are based on a loan amount of $417,000 for a single family home, a borrower’s middle credit score of 740 and a 20% down payment.

This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under any applicable law.

 

As a lending professional, Nima Rezvan meets a wide range of real estate lending needs, whether it be a first time purchase, second home purchase, or refinance. He welcomes the opportunity to serve your needs with quick and accurate real estate financing advice. With his expertise and knowledge, he will make sure you understand the features associated with the loan program you choose and that it meets your unique financial situation.

With more than 10 years of mortgage lending experience, Nima specializes in  Conventional Mortgages,  Jumbo Loan Financing, Refinance, First Time Home Buyers and Federal Housing Administration/Veterans' Administration (FHA/VA)

 NMLS #110681

send Nima an email

Mobile: 203-913-6016
Fax: 877-804-5752

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Buying or Selling a Home in Fairfield County?  Contact us!

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

Search for properties on any of our sites, or get the very best visibility available for your home. Visit us online wherever you like:

www.CThomesAndRealEstate.com      www.TheCTrealtyBlog.com     www.TheCTRB.com    and   www.CTfeaturedHomes.com 

 Email us or  call Toll Free (855) GET-JUDY

Connecticut Financing Update and Today's Mortgage Rates 8/12/12

The rates are still looking good and it looks like a perfect time to purchase a home and/or refinance your existing mortgages.  Treasuries yields reach their highest levels in several weeks as the latest initial claims comes in better than expected.  Initial claims for unemployment benefits slipped by 6,000 to a seasonally adjusted 361,000, below the expected rise to 370,000. And the Commerce Department said the U.S. trade deficit narrowed by 10.7 % in June to $42.9 billion, the smallest gap since December 2010.  Later today is the last auction of the week; a $16 billion offering of 30 year notes. 

Today's Mortgage Rates

Conventional 30 year fixed          3.625%                  APR 3.671%

Conventional 15 year fixed          2.875%                  APR 2.956%

Conventional 5/1 ARM                  2.625%                  APR 3.078%

Conventional 7/1 ARM                  2.75%                    APR 3.065%

The above rates are based on a loan amount of $417,000 for a single family home, a borrower’s middle credit score of 740 and a 20% down payment.

This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under any applicable law.

 

As a lending professional, Nima Rezvan meets a wide range of real estate lending needs, whether it be a first time purchase, second home purchase, or refinance. He welcomes the opportunity to serve your needs with quick and accurate real estate financing advice. With his expertise and knowledge, he will make sure you understand the features associated with the loan program you choose and that it meets your unique financial situation.

With more than 10 years of mortgage lending experience, Nima specializes in  Conventional Mortgages,  Jumbo Loan Financing, Refinance, First Time Home Buyers and Federal Housing Administration/Veterans' Administration (FHA/VA)

 NMLS #110681

send Nima an email

Mobile: 203-913-6016
Fax: 877-804-5752

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Buying or Selling a Home in Fairfield County? We'd love to represent you.

Feel free to email us here or visit our main  site at

www.CThomesAndRealEstate.com

If you have a question about buying or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy