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Another opportunity? Rates Decline again

This past week, interest rates declined dramatically to their lowest level since December 2010 as fears that the European debt crisis could get worse with the increased threat of default by Greece and Spain. Investors fled to safety and purchased US Treasury bonds which drove yields lower that ultimately caused mortgage rates to drop.

For those of you who may have missed the opportunity to refinance and/or purchase a home last year, this is a good a time get your paperwork in order and lock in the rates.

To put this in perspective, every .25% drop in rate (Ex: 5% to 4.75% on a $250,000 mortgage) will reduce your payment by $38 per month or $456 annually. Reducing your current rate by 1% point (Ex: 5.75% to 4.75%) will reduce your payment by $154 per month or $1848 annually. Interest savings over the life of the loan is close to $55,000.

Need assistance?

Few months back I mentioned three great programs specifically designed for those who don’t have 20% down for purchasing a house, currently own a house or investment property that you want to refinance but don’t have enough equity, or the house is considered “underwater”(When you owe more than the house is worth). Please click on the link to my email on my blog http://trulending.wordpress.com/2011/01/10/three-new-programs-you-should-consider/

Current Conforming RatesPrimary residences only (Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog

Loan Program

Monthly Pmyt

Rate

APR

Points

30YF

$1248

4.375%

4.54%

0

20YF

$1548

4.25%

4.37%

0

15YF

$1818

3.75%

3.92%

0

5/1 ARM

$1054

3.00%

3.25%

0

7/1 ARM

$1088

 3.25%

 3.37%

0

10/1 ARM

$1175

3.875%

 4.12%

0

FHA-30YF

$1229

4.25%

4.37%

0

FHA-15YF

$1833

3.875%

3.98%

0

Current High Balance Rates – (Pmyts based on a average loan amount of $550,000)

30YF

$2786

4.50%

4.62%

0

15YF

$3999

3.75%

3.87%

0

5/1 ARM

$2356

3.125%

3.25%

0

7/1 ARM

$2469

3.50%

3.62%

0

FHA-30YF

 $2705

4.25%

4.37%

0

We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please pass this along if you think we can help any of your close friends or family.

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