Homebuyer Opportunities Nearing End
|
Homebuyer Opportunities Nearing End
 For prospective homebuyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts for two reasons.
First, huge tax incentives are about to expire. April 30, 2010 is the last day to enter into a home purchase contract and still potentially qualify for a federal income tax credit of up to $8,000 for first-time homebuyers and up to $6,500 for repeat homebuyers. The credit can be claimed only on contracts that close by June 30, 2010.
Secondly, another form of stimulus will soon disappear, as the Federal Reserve winds down a program that has been keeping home loan rates artificially low. The fact is that the lowest rates of 2009 were driven down to their attractive levels because of the Fed's Mortgage Backed Securities (MBS) purchase program. The Fed has already used over 80% of the allocated funds for MBS, meaning less than 20% remains to be used over four months.
As the Fed's program winds down and ends, we'll likely see two things happen. First, we will probably see higher levels of volatility–with rates sometimes shifting dramatically in the middle of the day. Second, since MBS will have less support from the Fed, rates are likely to rise over time.
|
| Mortgage Interest Rates for Fixed Rate Mortgages* |
| Rates as of Tuesday, 9th February, 2010: |
| | Term | Conforming | APR | Payment per
$1,000 | Jumbo | APR | Payment per
$1,000 | | 30-Yr. fixed | 360 | 4.875% | 4.958% | $5.29 | 5.875% | 5.986% | $5.92 | | 15-Yr. fixed | 180 | 4.25% | 4.392% | $7.52 | 5.5% | 5.684% | $8.17 | | 7-Yr. fixed ARM | 360 | 3.875% | 3.954% | $4.70 | 5.375% | 5.482% | $5.60 | | 5-Yr. fixed ARM | 360 | 3.625% | 3.702% | $4.56 | 4.875% | 4.979% | $5.29 | | 3-Yr. fixed ARM | 360 | 3.5% | 3.577% | $4.49 | 4.625% | 4.728% | $5.14 | | 5-Yr. Interest Only | 360 | 3.75% | 3.828% | $3.13 | 5% | 5.105% | $4.17 | | 7-Yr. Interest Only | 360 | 4% | 4.079% | $3.33 | 5.5% | 5.608% | $4.58 | | 3-Yr. Interest Only | 360 | 3.625% | 3.702% | $3.02 | 4.75% | 4.853% | $3.96 |
|
|
| *Rates are subject to change due to market fluctuations and borrower's eligibility. |
| The above rates are for a primary residence with 1% origination fee, 20% minimum down payment , 740+ credit score and 25 day lock. Additional down payment and loan programs are available. |  |
|
You are receiving this email as a result of your ongoing business relationship with Ted Seidel. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials.
UNSUBSCRIBE. In the unlikely event you decide that you would not like to receive this information, please reply to this email with "Remove" in the subject line.
Ted Seidel
Brazos National Bank
7616 LBJ Freeway Suite 650
Dallas, TX 75251
Phil Hobson, Prudential Texas Properties