According to recent statistics, mortgage interest rates have reached their lowest level in a long, long time and this goes not only for conventional mortgage loans, but for VA loans (loans guaranteed by the Department of Veterans affairs) and FHA mortgages (insured by the Federal Housing Administration). With a decreasing tendency dominating the market, consumers are right to think that home loans are becoming more and more affordable and refinancing solutions more and more favorable.
The Trend in Figures
Mortgage rates have shown a steady decline since the beginning of the year, allowing Americans to buy as much as 8% more home today than they could afford in January 2014.
The solution that most borrowers go for is the 30-year fixed rate loan. If you are one of these borrowers, your mortgage rate is somewhere around 4.01%. We say “somewhere around” because the figures represented in the statistics are calculated for the category of prime borrowers, that is, borrowers with a verifiable income and a very good credit score (usually around 740) who could complete their mortgage deal with a down payment of at least 20%.
However, the current declining trend will be felt not only by prime borrowers – mortgage rates are dropping for those who do not fit this category as well, though to a different extent. Also, the figures are somewhat different for those looking FHA and VA loans, too (declining, of course, as well).
Though mortgage rates keep decreasing, the same cannot be said about the other fees and costs that enter the composition of a complete mortgage deal. Almost all mortgage loans, even the most favorable ones, come with other costs such as origination fees and closing costs, which vary from one lender to the other and do not necessarily follow the decreasing trends that characterize the monthly rates (there are low-fee loans available, too, but they usually come with a slightly higher rate).
Today’s real estate market offers very favorable conditions for the buyer. This might be the time to take a mortgage loan and get the home of your dreams or to refinance your existing loan and get more favorable conditions, especially in San Diego. Even so, the rules of having the best mortgage loan are still in force: you must not make a hasty decision, you must contact several lenders before you decide and you must get your loan pre-approved before you sign the purchase contract because only this way can you avoid getting in trouble if your application is rejected.
If you consider all these calculations and considerations to be too much of a hassle, turn to professionals. If you live in San Diego, you are very lucky because you have Maureen Martin to help, one of the most reputable and trustworthy real estate and mortgage specialists in the industry. Whichever way you chose, make sure you weigh all your options and you will surely be able to make the most of these favorable market conditions.