Home Buyers San Diego

 

Rates
Rates for Home Loans

Interest Rates "again" at all time low

September 2011

After all the issues from the housing market crash in 2008, the interest rate for home loan mortgages dropped significantly. Kind of subsidised by the US government - Freddy Mac, Fanny Mae.

The interest part was to get people into "real loans" instead of short term "Micky-Mouse-Loans".

A real home loan mortgage was based on payin git of in 30 years, evey month a little bit. This version keeps the risks for the bank, the home owner and everybody else to a very little minimum, as the home owner, really becomes a "owner", after paying of.

The "Micky-Mouse-Loans" is for most people a short-term drug to keep them happy. Getting a loan on the very maximum what you can afford without paying of anything - and for several loans the loan amount became higher after 1 - 3 years. throw on top of that decrease in home prices and millions of people fall of the cliff within weeks.

Anyway, for the more economic, longterm, intelligent, less extravagant living home owners, having some cash on hand, it became even a better time to refinance:

September 20, 2011: Home Loan Mortgage Rates

ING DIRECT

5 Year Loan - 0% point - approx $3000 to refinance

Product % of Home Value Borrowed Rate APR Bi-Weekly Payment Payment Period
Easy Orange
5-Year
80% or less 2.550% 2.606% $497.16 Year 1-5


September 20, 2011: Home Loan Mortgage Rates

Wellsfargo

1% point - approx $3800 to refinance

Product Interest Rate APR
 
30-Year Fixed 4.250% 4.433%
15-Year Fixed 3.250% 3.565%
5-Year ARM 2.375% 3.035%
Larger Loan Amounts in Eligible Areas – Conforming and FHA.
30-Year Fixed 4.250% 4.382%
30-Year Fixed FHA 4.000% 4.923%
5-Year ARM 2.625% 3.075%
Jumbo Loans – Amounts that exceed conforming loan limits
30-Year Fixed 4.500% 4.634%
5-Year ARM 2.875% 3.162%

Wellsfargo, November 2010:

Conforming Home Loan Rates
Home Loans < $417.000
30-Year Fixed 4.250% - APR 4.433%

Conforming - Larger Amounts

30-Year Fixed 4.375% - APR 4.508%
Larger Loan Amounts in Eligible Areas In federally designated metropolitan areas, conventional and FHA loan limits have been increased to assist home buyers. These loan amounts are higher than the typical conforming limits set by Fannie Mae and Freddie Mac. Because the amount financed is not as high as a jumbo loan, they typically offer lower interest rates than traditional jumbo loans.

Jumbo Home Loan Rates
Loans 625.5000 and up
30-Year Fixed 4.875% - APR 5.012%

ING Direct, November 2010:

  Loan/ Value home   Rate APR
ING 5/1 Orange Mortgage Years 1-5
Fixed Rate - 0 points
80% or less < 500K 3.125% 3.269%
Wellsfargo 5-Year ARM - 1 point 80% or less < 417K 2.875% 3.126%
Wellsfargo 30-Year Fixed - Jumbo 80% or less > 625.500 4.875% 5.012%


Home Loans of 12/17/2008

Conforming Loans    
30-Year Fixed 4.750%  
5-Year ARM 5.500%  
 
Source: Wells Fargo's web site, November 17, 2008.

Larger Loan Amounts in Eligible Areas. In federally designated metropolitan areas, qualified customers may be able to borrow up to $625,500 on conforming1 or FHA loans without paying the typical higher interest rates on jumbo loan amounts.

Jumbo Loans    
30-Year Fixed 7.875%  
5-Year ARM 5.750%  
 
Source: Wells Fargo's web site, November 17, 2008.

 

 

 

 

The interest rate has significant impact on what consumers can afford for a house. Based on the assumption that a large majority of the consumers borrow 80% - 100% of the house price: a low 30 year fixed rate as of December 2008, 4.75% instead of 6.00% several months ago, will give potential home buyers more than 20% more buying power.

In October 2008, the jumbo rate for a 30 year fixed was approx 9%. In San Diego County the conforming Loan Amount was $699,750 (up from $416,000 a year earlier). This amount will be changed as of January 1st, 2009. This will impact potential home buyers in the $450,000 - $700,000 range significantly.

In comparison, in mid December 2008, a loan for $700,000 has a rate of 7.875% instead of the conforming rate of 5.5% (which applied an week earlier).

This means more than 40% increase in (potential) cost which will not motivate potential home buyers in that price bracket!!! However home buyers in $150,000 - $400,000 will see in most cases an attractive rate, which is only offered with 20% + money down and excellent credit.

Conforming Loans:
Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). These agencies generally purchase first mortgages up to loan amounts mandated by Congressional directive.

Home Loan Rates

Wellsfargo

April 2012

Based on 1 point (1% cost to get the loan)

Wellsfargo, Conforming Loans
Below $412,000 (larger amounts slightly higher

    Interest Rate APR
30-Year Fixed 4.000% 4.180%
15-Year Fixed 3.000% 3.308%
5-Year ARM 2.750% 3.308%

December 2011

Based on 1 point (1% cost to get the loan)

Wellsfargo, Conforming Loans
Below $412,000 (larger amounts slightly higher

    Interest Rate APR
30-Year Fixed 4.000% 4.180%
15-Year Fixed 3.250% 3.565%
5-Year ARM 2.375% 3.199%

Note: Good credit and 5%-20% down might be requested.

 

December 17, 2008
U.S. Department of Housing and Urban Development Announces:
New, Permanent FHA Mortgage Loan Limits

New limits range from $271,050 to $625,500

U.S. Department of Housing and Urban Development Secretary Steve Preston today announced the new Federal Housing Administration (FHA) mortgage loan limits for single-family homes as prescribed by the Housing and Economic Recovery Act of 2008.

Beginning January 1, 2009, FHA will insure single-family home mortgages up to $271,050 in low cost areas and up to a maximum of $625,500 in high cost areas.

December 17, 2008
NEW YORK (Reuters) - The Federal Reserve's promise to expand a massive mortgage debt buying program pushed U.S. home loan rates to at least 5-year lows on Wednesday, putting them on track to hit the lowest levels in four decades.

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