Jason Bernabei, TriCastle Realty
DEL MAR, June 18 2012 – Gooooooood Monday
morning San Diego!! I’m looking at mortgage rates on this Monday morning and
it is a pretty picture, a pretty picture indeed! Yet again in 2012, we are experiencing RECORD LOW
RATES in the marketplace. And
whatever you are seeing at your Retail corner bank, I assure you, it’s even
prettier on the wholesale side. Couple that with the changes I discussed in
last Monday’s column in regards to lower mortgage insurance premiums and FHA
Streamline mortgage products, and this may just be the time for you to make
your move on a refi, or purchase mortgage.
DEL MAR, June 18 2012 – Gooooooood Monday
morning San Diego!! I’m looking at mortgage rates on this Monday morning and
it is a pretty picture, a pretty picture indeed! Yet again in 2012, we are experiencing RECORD LOW
RATES in the marketplace. And
whatever you are seeing at your Retail corner bank, I assure you, it’s even
prettier on the wholesale side. Couple that with the changes I discussed in
last Monday’s column in regards to lower mortgage insurance premiums and FHA
Streamline mortgage products, and this may just be the time for you to make
your move on a refi, or purchase mortgage.
Historically, mortgage rates
of all types -- conventional, FHA, VA and USDA -- have never been lower. No,
that’s not a deceptive advertisement popping up to the right of your inbox,
it’s really true. And with lower mortgage rates comes lower monthly payments
nationally.
According to Freddie Mac's
weekly mortgage rate survey, the average 30-year fixed rate mortgage rate
dipped to 3.67% last week for borrowers willing to pay 0.7 discount points at
closing, plus a full set of closing costs. 0.7 discount points is a one-time
closing cost equal to 0.7 percent of your loan size, or $700 per $100,000
borrowed.
What a difference a year can
make! In June 2011, the average 30-year fixed rate mortgage nationwide was higher
by 88 basis points (0.88%). If you are among the many U.S. homeowners who
bought or refinanced a home around this time last year, refinancing today could
save you 10% or more on your payment. And THAT is significant savings!
A factor in any refinance is
the “breakeven point” by which the new loan pays for itself. Sometimes this can
take a number of years, sometimes only a number of months. There is no set
number that makes a refinance worthwhile or not, as it is relative to so many
factors. For example, if you are planning to sell your home next year, a 2 year
break-even point on a refinance would not very likely make sense. However, if
it’s the payment relief sought in spreading your payment our over a new 30 year
term, then it still may make sense for you.
No one has a crystal ball as
to how long these rates will hold. I will continue to discuss events across the
pond and here stateside that shape the U.S. Bond market and other key factors that work to determine overall rates made available to the public.
Until next time San Diego, you
can give me a holler at jasonb@tricastle.com and check me out each and every
Monday on www.therealtyinsiders.com for more, and be sure to tune in and see
myself, and other local industry professionals talking real estate on "The
Realty Insiders," the ONLY real estate show in town!
Jay’s outlook: SUNNY!
Jason Bernabei, TriCastle Realty
