We are seeing the lowest fixed rates since October 2005. Loan Toolbox reported, in an e-mail to me:
- Monday saw the lowest 30-year fixed interest rate in over two years.
However, each time this interest rate reached previous low points, both
last year and earlier this year, it began increasing and didn't stop,
climbing over 0.50% in the months that followed!
- Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.
Borrowers could be forced to pay as much as 2.00% in points or an interest rate; that's 1.00% higher than the going rate.
On a $400,000 home loan, a borrower could have to pay up to $8,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $12,000 in just the first three years of the loan.
Choosing to wait could cost you money both in the form of higher market rates and points. This could well be the greatest holiday present you could treat yourself to this year.
Call me today for a FREE loan evaluation to determine what we can do to help you improve your financial situation.