Just wanted to post a quick update as to how interest rates are doing this new year. Everyone is out looking.... is it time for you to buy now? Well, I have sure seem a great amount of "deals" out there in the past few weeks, if you are quick enough. I have run into many situations where by the time you see the home your client is interested in, since it is very low in price, there are multiple offers and it can be anywhere from 10,000 dollars to 50,000 dollars higher than what the agent has it listed at. Is this a good strategy or is it creating another waive of buyers bidding on the good homes and the homes priced slightly higher loosing the advantage? I think that if you take a 3 bedroom 2 bath home in the Queen Creek area that is in decent condition and you place it on the market for say 69,000 dollars you are definitely going to get more lookers than the same floorplan 2 streets over listed for 85,000 dollars, but is that 69,000 dollar deal really selling for 69,000 when it closes escrow? This is not likely. So I recommend buyers to try and look at everything as a whole and not just the cheap "deals" that don't really prove to be "deals" when it is all said and done anyway and you could have saved yourself the trouble by going to look at the 85,000 dollar house and putting in an offer that gets accepted without all the multiple offer senarios and over bidding. Set a price for yourself and take a look at everything in between your high and low so that you get the best possible picture and overall choices that are out there. Avoid only seeing homes that sound good and are the cheapest. Chances are by the time your agent sends them to you, or you find them online, if they truly are a good "deal" they will have multiple offers already or you will be competing against several buyers and may even be priced out of the range by the time they accept an offer. This is not only disappointing but frustrating.
I will post last weeks interest rates below courtesy of Quicken Loans.
Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.
Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Friday, February 6, 2009 (as of 1pm) are as follows:
30-Year Fixed
Monthly Mortgage Payment (includes taxes and insurance) - $1,528
Mortgage Rate - 4.875%
APR - 5.10%
Points - 2
30-Year VA Loan
Monthly Mortgage Payment (includes taxes and insurance) - $1,638
Mortgage Rate - 5.50%
APR - 5.651%
Points - 1.125
FHA Express
Monthly Mortgage Payment (includes taxes and insurance) - $1,743
Mortgage Rate - 5.50%
APR - 5.639%
Points - 1
15-Year Fixed
Monthly Mortgage Payment (includes taxes and insurance) - $2,094
Mortgage Rate - 4.50%
APR - 4.846%
Points - 1.75
Rates will vary based on your specific situation
2 comments:
It's very interesting to read how the market is adjusting in different areas. With bidding wars, are you having issues with homes appraising out?
I have not seen to many yet. I think it is because the homes are being priced so much lower than the last homes sold over a 3 month period that they the bidding is really raising them to the current market value. However a lot of people go after these properties to get a deal instead of looking at the ones that are at current market value and therefore are in actuality not getting the deal they thought when it was all said and done and could have probably avoided the bidding or the disappointment of loosing that particular house to someone who bid more by looking at everything in their price range, not just the really cheaply priced one.
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