The Mortgage Bankers Association application survey covers over 50% of all US residential mortgage loan applications. This data gives economists a look into consumer demand for home loans. In a low rate environment the trend the economists look for is that of refinances. The idea is that people are looking to save money. With everything that has happened in the lending industry, the banks that are willing to still lend given the despair of the economy have once again put out record breaking rates. Single family properties seeking 30 year term loans may be eligible for rates as low as 4.75%. These historically low rates have become available to borrowers as the lending restrictions become tighter, bringing relief to those who are in need.

All across America it’s no secret that the cost of living increases daily. That every day expenses such food, gas, clothing and even the not so essential day trip to the movies increase beyond the affordable threshold for most Americans. A gallon of milk in this economy can be as much as $5.00 in some places. Economists understand that as people lose their jobs or income becomes tight due to the cost of living increasing they must provide ways for people to save money and offset these costs. The more money a person has that’s expandable income the more they can purchase and the quicker we can rebound out of this horrible recession. As you buy goods whether it is a home, car, TV or just a pair of khakis; it creates jobs, financial security and opportunity. All of these things build our economy

With that said they have lowered rates on home loans. The housing market is of course in great despair. If you are a qualified borrower there has never been a better time to purchase a home. Realistically the prices of homes today are 20% less then just a few short years ago. This could mean hundreds of dollars less in payments, thousands of dollars less in interest payments. Best of all, if you want to stay in your current home it’s even better. Refinancing may extend the opportunity for one to take advantage of these same low. Lending wise they are practically identical and in some cases even better for refinancing.

On Friday, June 11th NJ law makers approved a new bill which is waiting on Governor Chris Christie’s signature. The new bill which was just approved is intended to jumpstart the New Jersey housing market by granting $100 million dollars for home purchase tax credits. When Chris Christie signs the bill, home buyers will be eligible to receive a $15,000 or 5% of the home purchase price (whichever is less) in tax credits distributed in equal increments throughout the first three years. Home buyers will get $5,000 dollars in the first year, $5,000 dollars in the second year, and $5,000 dollars in the third year.

This is an amazing opportunity to make the American dream much more affordable in the state of NJ. If you purchase a $300,000 home with a 30 year, fixed rate of interest at 4.75%, your monthly principal and interest payment will be $1,565 a month. Now if you add in the $5,000 dollars you will be receiving for the next three years it will be like making only 9 mortgage payments for the year or only paying $1,148 a month.

With home prices at their lowest levels is years, interest rates at historical Lowes and a $15,000 tax credit, there is just no better time to purchase a home. If you have any questions about the new tax credit or would like to learn more about it, do not hesitate to call me at 732-650-8696 extension 2005. We will be sure to educate you on all the programs that are available for you as well as take the time to closely analyze your financial situation and make sure that we put you in a much more comfortable and safe place so that you can secure your financial future.

Mortgage rates ride stocks to new record lows for 2010. Par rates on 30 year fixed rate mortgages have fallen to 4.5% to 4.75% for qualified borrowers. Although it is tempting to float your interest rate during these current market conditions, it would be wise to lock in at these attractive rates before banks further tighten their lending policies.

Many consumers are riding out the low interest only option ARMs they currently have. Some of these rates are as low as 3.875%. Why increase my monthly payment while I have 2 years remaining on my current 5/1 ARM loan? The answer is simple. Don’t get locked out on current fixed rates while gambling on the future. Any rally in the stock market over the next few weeks or months will push interest rates higher.

There are many other economic factors to consider before locking in on fixed mortgage rates. Indications are that a favorable report on unemployment figures is due. Any increase in employment will push interest rates higher. Lending activities by banks are becoming more restrictive and will leave only a few very highly qualified borrowers with an option to refinance their current loans. The majority of home owners will be locked out of the ability to reduce their monthly mortgage payments. Borrowers should be proactive in obtaining the best financing that meets their current and future financial needs, while the market place is still open to them.

For the past year the Federal Reserve’s huge $1.25 trillion purchase program of mortgage backed securities has pushed rates to all time lows. The 30 year conventional fixed rate on a jumbo mortgage for instance is only 25 basis points higher than on a normal conventional loan. As of Nov. 10th the difference was almost a complete percentage point 6.24% vs. 5.19%.
Federal Reserve has signaled its intentions to wind down its purchase program as of the first quarter of 2010. As this news spreads rates surely will rise, even today by looking at the current rate sheets a 30yr fixed can be seen at 6% or higher. There is still some good news. First Time Home Buyers are still receiving the $8,000 tax credit, thanks to an extension on the act by congress and the creation of a $6,500 current homeowner’s relief credit.
As rates rise, your opportunity declines. This is one of the greatest times to secure a financially stable future for you and your family. Right now, with rates rising there are still opportunities to take advantage of today’s market. Lock yourself into a proper refinance or home loan with reasonable terms. Don’t wait for them to surpass the 6’s and ultimately lead on even higher.
At Aequor we will work hand and hand with you and our lenders to ensure you get the proper loan. We will find a loan that is going to have a true financial benefit to you as our client. Analyze all the different scenarios. We will take a hard look not only into your home loan but also your other finances to ensure you and your family has a prosperous future. Our ultimate goal is make sure American families are educated not only about their home loans but also about their finances to ensure they have stable futures. Reach out to me today, let my expertise and the team surrounding me help you and your family get on the right financial path.

With so many different loan programs that exist now, saving money has never been easier. One common misconception is that a 30 year fixed is the best and only way to go. This is certainly not the case.

Adjustable-rate mortgages, or ARMs, constitute one-third of home loans these days. Yet rates on 15- and 30-year fixed-rate mortgages are very low by historical standards. ARM rates are even lower, but they could rise when it's time for them to adjust. You're going to hear a lot of financial journalists who say these ARMs are dangerous, you're putting your house at risk, and you’re crazy to take an ARM at this time of historic lows. Unquestionably, there is a lot of emotion involved. After all, this is one of the biggest financial decisions of your life, and as with any argument, there is some truth in it.
It's true, that a long-term, fixed-rate mortgage is the right loan. If somebody says, I'm going to be in that house forever. That's an automatic 30-year fixed, but the average homeowner stays in the house about five to seven years. First-time home buyers, who usually are young and have expanding families and growing incomes, are likely to remain in their starter homes for just a few years before moving on and to a bigger house. Adjustable rates, especially the popular hybrid adjustable rates that carry an introductory rate that lasts three, five, or seven years, are appropriate for those whom a payment increase wouldn't be the end of the world. It depends simply on your current economic situation.
In conclusion, which loan program you choose should be a reflection of your long term goals. Call me so we can discuss which program is right for you. At Aequor Funding saving you money is our only objective.