Mortgage rates - currently at below 5% on average for a 30-year mortgage – are creating lots of buzz as they reach record-breaking territory.
The Wall Street Journal, in a comprehensive report about the surprise drop in interest rates, noted that this may help boost the housing market since “lower rates could widen the pool of people who qualify for a mortgage.” Reuters also reported today that “affordability has barely been better,” and noted that mortgage rates “are bumping against record lows.”
Due in part to Europe’s financial troubles, mortgage rates in the U.S. are reaching record-breaking territory. Already, 15-year mortgages have hit their lowest level since 1991 at 4.24% (and the 5-year adjustable-rate mortgage also fell to record lows), according to recent media reports. Refinancing at the 15-year mortgage rate lows would mean significant savings in interest as a way to pay down a mortgage cheaper and faster.
Meanwhile, the average for 30-year mortgages is reportedly the lowest since the end of 2009. A survey last week by Freddie Mac concluded that the average rate for a 30-year-mortgage was 4.84%. That has gone down from being just above 5 percent in April. And that figure is substantially lower when put into a more historical context of interest rates (graph above includes data from Freddie Mac).
The Wall Street Journal reported that a 1 percentage point decline in rates is seen as the same as a $10,000 decrease in the home’s price for buyers. To put those numbers in perspective, this would mean several thousand dollars in savings based on the recent rate developments.
For more information on obtaining a new loan or pursuing refinancing options, consider visiting the LendingTree website to learn more about the process. Additional refinance forms are available or to follow mortgage rates, try this free widget.
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I am looking for someone to do a construction loan for a log cabin that we a planning to build in NC. Any suggestions?
I live in Oregon. 3 or 4 years ago I purchased a home in Cathedral City CA. My intention was to live there 7 months of the year as I was going to work for a CPA firm in Palm Springs. I bought it for 40K under value. My loan is a 80/20. The balance is 311K. However, when the market tumbled, value fell to now 200K. Because I only work in Palm Springs randomly now, as I decided to keep my own business and commute to CA to do support work for the firm, I rented the house out. I am comfortable keeping the house as I feel confident it will gain back in value over the long haul. My questions is if we will ever be able to refinance this house. It is currently an ARM on the 80%. We are financially strong, we own our own Accounting and Tax firm, and we have two other rentals, both of which have strong equity in them. Are we even candidates? It seems that unless we are failing in our payments, we can do anything to stabilize our loan into a fixed. Refinancing would stabilize the loan, and probably reduce the payment. Both of which seem like a win/win. Thanks in advance for letting me know.
Hi, Mark. Thanks for writing us! Your log cabin sounds like a wonderful project. Unfortunately,construction loans aren’t part of our program offerings at this time. For more information on initiating the “construction to permanent financing” process, you can visit: http://www.lendingtree.com/real-estate/advice/new-homes/construction-loans/
The U.S. Department of Housing and Urban Development also has info. at http://www.nls.gov/offices/cpd/affordablehousing/training/web/underwriting/develcosts/calculation.cfm
Just for fun, have you seen this blog about building a log cabin from scratch, and on a tight budget?
Hi, Mary. We have passed your message on to one of our customer representatives, and we will get back soon either here or through an email message. Thanks for writing!
Hi. I was wondering if you refinance manufactured homes?
Thanks,
Joan
Hi, Joan. As a matter of fact, we do offer that option through our network of lenders. It’s in the the LendingTree refinance form. There’s a question that asks what kind of property type and you would simply put down mobile/manufactured home. Here is the link.
want to refi and pay about 40,000 in bills.
Hello m.engstrom. I wasn’t sure if it your message was a comment or a request. Would you like to submit a refinance application?
If so, you can fill out this LendingTree form to be matched with lenders from our network:
http://www.lendingtree.com/jumppages/jumpto-RefinanceMortgage.asp?esourceid=4351290
Please let me know if we can be of further assistance.