Interest rates have been hovering at historic lows for quite a while. It has been several years since I've seen the 30 year fixed rates dip below 5%, though. For qualifying Oregon Vets choosing the Oregon Vet Loan, the Oregon Department of Veterans Affairs says 5% just isn't low enough!

Effective February 6, 2008, the Oregon Veteran Loan for 15 to 30 year fixed rates will drop to 4.875%(5.501% apr) paying 1.5% loan origination fee, or 4.99%(5.573% apr) paying 1% loan origination fee.

So, qualifying Oregon Vets, what does this mean to you? Say you buy a home in Medford, Oregon for $175,000, put 3% down because you have good credit, and you choose the 4.875% rate paying 1.5% loan origination fee, your total monthly principal, interest, tax, insurance and mortgage insurance payments will run you roughly $1,175 per month (depending on how much the homeowners insurance premium and property taxes are for the home you buy) and you will only need to come up with about $6,500 if the seller agrees to contribute the maximum allowed toward your closing costs.

So, Oregon Vets...what are you waiting for?

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com