Sonoma County Home Mortgage Rates – October 09, 2009
October 9th, 2009 categories: Mortgage Rates
Sonoma County Home Mortgage Rates - October 09, 2009
Qualifying for a loan today!
Saving up or finding enough cash for the down payment is often the most difficult problem in becoming a first-time homeowners. Luckily, today there are lending programs available that require as little as 3-5 percent of the purchase price as a down payment.
Example: $150,000 house requires putting $4,500 down. The challenge is low down payment loans do require borrowers to meet certain guidelines. Usually, home buyers will need a good credit history that demonstrates a history of successful repayment of borrowed money.
Loans today are also fully documented which means you will need proof of sufficient income for the home’s payment. You must meet “ratio” guidelines for your income to convince a lender that you will be able to meet the payments without a problem.
Then once you are past those hurdles you will need to show enough money for closing costs. The cash required to pay for closing costs, property taxes and insurance can be as much as an additional 3-4% of the sale price.
Keep in mind that when you make a minimal down payment on a home loan, you will be required to pay mortgage insurance (MIP). This insurance allows you to buy and avoid the traditional 20% down payment. Low down payment loans present a risk to a lender and they off set that risk by insuring the loans theoretic risk. If the bad thing happens and you do not make the payment for some reason the lender will take back the property. Should the lender not get back enough money to pay off the loan and the Realtor costs, the mortgage insurance will make up the difference so that the lender is made whole on their loan.
Not enough money for the down Payment?
Keep in mind you can get a gift for your 3.5% down payment. I know this can be tough to come up with, but a small gift maybe all you need. With home prices so low, downs are also much smaller. If you can save a couple thousand and receive a couple thousand for one or more relatives you just might have enough!
Sure it can be tough to ask for a gift of a family member. But what I have seen time and time again many family members want to help. They may not offer and are just waiting for you to ask. Give it a chance…you never know until you try!
Rates stable at low levels
Rates continue to stay low and will for the near future. But eventually economists expect the rates to move up in relation to the dreaded inflationary cycle that is almost inevitable. So don’t get lulled into thinking they will be down forever.
$8,000 tax credit countdown!
The clock is ticking! Would you like to receive $8,000 from the government for buying a home?
You have until November 30th to close a loan for a personal residence! Then bye-bye $8,000!
Don’t miss out on this great opportunity.
These are the Good ‘Ol days!!
The following rates were quoted for a sample conforming loan with the following criteria: $300,000 Loan Amount | 80% LTV (Loan To Value) | 680+ FICO Score
15 Year Fixed Rate Mortgage – 4.375% (4.83% APR)
30 Year Fixed Rate Mortgage – 4.875% (5.13% APR)
1 Year Adjustable Rate Mortgage (1 Year ARM) – 4.50% (3.74% APR)
5/1 Adjustable Rate Mortgage (5/1 ARM) – 4.625% (4.23%APR)
7/1 Adjustable Rate Mortgage (7/1 ARM) – 5.00% (4.63% APR)
Article Contributed by: Dave Raffi, Regional Manager at Mission Hills Mortgage: 707-303-2933
Make sure you tell Dave that the Sonoma County Grapevine sent you!
* DISCLAIMER: These mortgage interest rates are quoted at a specific time, 10.09.2009. Interest rates are subject to change upon changes in market conditions and borrower qualifications.
Now that you are caught up on the latest mortgage rate news, check out the latest prices of Sonoma County Homes by clicking the appropriate link below:
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