With the take over of Fannie Mae and Freddie Mac last week, we are seeing a drop in interest rates.
Interest rates have tumbled down, having homeowner and potential buyers flooding loan offices with their phone calls. However, with this lowered interest rate came a higher down payment requirement set by many of the mortgage companies, making it harder for some people to qualify for loans.
Rates dropped from 6.5%, which they have remained steady at over the summer, to 6% this week.
Lenders scared by the falling home prices and increase in foreclosures have hightened their standards for those applying for new mortagages.
On Wednesday, the typical person with solid credit borrowing $729,750 or less could get a fixed rate of 5.75% if they paid 1% upfront fee.
Unfortunately, these new lowered interest rates do not apply to those of you loaning over the $729,750. Rates for these loans are in the ballpark of 8.125% with a 3.5% of purchase price upfront fee.
Please let me know if you have questions regarding this new loan strategy. I would be happy to put you in touch with a loan consultant who can answer your questions regarding a new mortgage or refinance.
Dani Miller
480-695-2010
home4you@hotmail.com
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