4.5% 30 Year Fixed is Available Again!! But it Probably wont last.

By
Mortgage and Lending with Wholesale Mortgage Services Individual NMLS ID 331194

 Due to the goverment buying Fannie Mae debt (mortgage backed securities), rates have once again come down to the 4.5% range. Provided you have a 740 middle ccredit score and a loan to value of 80% or less. And these are conventional rates, not government (FHA and VA); those rates are a little bit higher.

Market sentiment seems to be improving, and when this happens, yields on govenment debt (bonds and treasuries) begin to rise. And since Fannie Mae has to compete with government debt in the open market, they typically raise their rates as well, which translates into higher mortgage rates. This is usually the case, but because of all the uncertainty and volatility in the market, it is not always the case. in my opinion, i don't see rates getting any lower than they are now, so for those of you who have been waiting to act, now is the time.

To make matters worse, lending criteria continues to get stricter, making it increasingly more difficult for some to obatin a mortgage. Just another reason to act sooner than later, because eventually, rates are going to start going back up.

Comments (5)

Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Yes Joseph available to a few, provided you have a huge downpayment and that you're not buying a condo in Florida.

Apr 07, 2009 07:08 AM
Joseph Mazzei
Wholesale Mortgage Services - Tampa, FL
Why pay retail you you can get it Wholesale?

This is true gabe, some lenders i work with won't even do condo loans in florida. others charge half a point regardless of ltv on a condo loan.

Apr 07, 2009 07:11 AM
Team Honeycutt
Allen Tate - Concord, NC

I'm running into clients that had really good credit scores a year ago but don't have such good scores now with the economy problems.  One has lost a job, one lost hours and another has had to use too much credit.

Kathy

Apr 07, 2009 07:30 AM
Joseph Mazzei
Wholesale Mortgage Services - Tampa, FL
Why pay retail you you can get it Wholesale?

i know what you mean, kathy. if i had my way, everyone would be able to refi to the best rate in the market regardless of credit score and value. basically, it would be like a VA streamline, which allows one to roll in costs regardless of value, and does not require a minimun credit score. in my opinion, the goverment should have done this a long time ago, before the sh*t started hitting the fan. i think it could of helped/saved a lot of people.

Apr 07, 2009 07:35 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Yes, now is the time to get this while it is available -- likely won't last for long.

Apr 07, 2009 04:58 PM

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