So, updates on the 4.5% Mortgages?
December 13th, 2008 Categories: For Buyers, Lilburn
Honestly, no. There isn’t even an official plan up for comment. Right now I would rank it with “vaporware”. And the rates might get there themselves… or they might not.
As I glanced at the rates a moment ago, 30 year conventionals were ticking at 5.125%, and FHA was at 5.25%. I had a conversation with Ken Cook at Novation yesterday, and he actually had been able to place a couple of people in the upper 4% realm… with outstanding credit and downpayment cash.
But let’s look for a moment at exactly what this means…
For the example, we are going to use a $500,000 loan, $200,000 loan and an $80,000 loan.
This could give you a better idea of the savings of a 4.5% rate compared to the current 5.125% or 5.25% rates. Keep in mind that it is likely that only the best credit scores are going to pull down the 4.5% rates. Also keep in mind that if the plan is successful, it could push prices up. Prices increasing could wipe out any savings from the low rate…
from my blog at LaneBailey.com
