It’s about to get more expensive to buy a home. Fannie Mae is getting rid of the 3% down purchase loan on November 16th. After that date the minimum down payment will be 5%. This will also eliminate our 3% down and NO PMI program. What are you telling your buyers?
From November 16th forward the lowest down payment program will be FHA which is a very expensive alternative. The mortgage insurance is very high and in many cases will last for the lifetime of the loan. FHA requires 3.5% down as their minimum.
Our 5% down NO PMI program is a great alternative to expensive FHA financing. For more information on this great loan please contact Coastlend Mortgage directly at 843-388-5763 (South Carolina) or 619-347-0207 (California)
Rates have dropped or remained the same for 8 trading sessions in a row. This hasn’t happened in a long time. The drop was 0.40%. That’s a significant change in such a short time. Last week a loan with a rate of 4.625% will have a rate of 4.25% today all things equal. Mortgage rates are at the low end of their range and are hitting resistance which is making it difficult to get any lower.
What should you be telling your buyers? Today is a good day to lock in their rates if they are closing in the next 30-45 days since rates are at their lowest point in several months.
According to the U.S. Department of Housing and Urban Development we are in a Bull Market for new homes sales (from a builder). That’s right! A balanced market is represented by a 6 month supply and the current supply is only 5 months. That’s a bull market. What does this mean for buyers of new construction homes?
Feel free to contact Eddie O’Neill at Coastlend Mortgage with any questions related to this article or other mortgage related topics. Make sure you’re a friend on our Facebook page so you get daily updates on all things affecting the Real Estate and Mortgage industries at www.facebook.com/coastlendmortgage