The bottom line is - Home Loans are Still Affordable!
Despite all the national media reports, home loans, especially in NC, are still affordable and attainable. The majority of buyers who are obtaining loans today are paying similar rates and fees to what we saw last fall.
Interest.com reports:
"Our most recent survey of major lenders found the average cost of a 30-year, fixed-rate loan -- the most popular way to finance a home -- is still under 6.5%. Our extensive database of the best mortgage rates from across the country lists lots of lenders offering 30-year loans for 6.125%, or even 6.0%, with fees of $1,000 or less. "
That means that compared to mortgage rates over the past 20 years - home loans are still affordable and obtainable. In 1995-1999, homebuyers were paying an average interest rate of 7-8%, prior to that it was not uncommon to see interest rates in the double digits!
There has been trouble in the mortgage industry lately - the main result of borrowers seeking a large amount of cash, 100% financing, or those with bad credit.
On Oct. 3 - a survey conducted by interest.com found the following:
- 30-year loan costs 6.42%, a tenth-of-a-point higher than early October 2006, but considerably lower than the summer peak of 6.82% in mid-July.
- 15-year mortgage costs 6.10%, very similar to last winter and spring and down from a summer high of 6.5%.
- 30-year jumbo loan costs 7.28%, down from 7.5% this summer, but three-quarters of a point higher than earlier this year.
Overall, a home loan is currently very affordable for the average person. If you would like more information please feel to contact Yvonne Beal or visit our website at www.DiscoverChapelRidge.com. While we specialize in Chatham County Homes and Land, we are able to put you in touch with the mortgage professionals that can make your dream home a reality, contact Yvonne Beal at 919-542-0471 today for more information and to take your first steps toward home ownership!
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