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Princeton, NJ Real Estate Announcement
Mortgage Rates Drop! The Latest from Arlington Capital Mortgage
Against all odds, rates of interest on residential mortgage loans (both big and small) are either at, or below, their historic lows!
Next month, the government's program to buy mortgage bonds and Treasury bonds will be significantly curtailed. Many market watchers had assumed interest rates would therefore be heading up right about now.
Many economists that measure macro trends have called for higher rates based on the inflation occurring around the world, and inflationary policies here at home.
Cheap money is the fuel the housing market needs. Prices of homes have moved universally lower in the last 12 months, and about a month ago (when rates had moved up) the volume of transactions (year over year) were starting to fall...that was "not good." This was the so-called start of the "second dip." That meant that even with seller's marking their homes down 30% from 2007, there were fewer buyers, not more buyers.
However against this backdrop, rates have dropped like a stone.
Mortgage applications and purchases are now spiking and here's an example of some of the nutty rates out there, consider some of these actual rates (all with no points) and loan amounts below:
5/1 Amortizing ARM, 3.25% (APR 3.375%), to a loan amount of $850,000
5/1 Interest Only ARM, 3.875% (APR 4%), to a loan amount of $1,000,000
7/1 Amortizing ARM, 3.75% (APR 3.875%), to a loan amount of $850,000
7/1 Interest Only ARM, 4.25% (APR 4.375), to a loan amount of $1,000,000
30-year fixed rate, 4.625% (APR 4.75%) to $417,000
30-year fixed rate to $729,750 (certain counties), 4.75% (APR 4.875%)
30-year fixed rate up to $1,000,000, 5% (APR 5.125%)
15-year fixed rate, 3.875% (APR 4%), to a loan amount of $417,000
15-year fixed rate to $729,750 (certain counties), 3.875% (APR 4%)
15-year fixed rate up to $1,000,000, 4.125% (APR 4.25%)
Equity Lines to 80% LTV, 3.74% (APR 3.75%)
Equity Lines to 90% LTV, 5.25% (APR 5.26%)
We are financing loans with scores as low as 640. We offer the Fannie Mae program allowing a refinance at 100% LTV. We are doing jumbo financing at 80% LTV and 90% CLTV to $3,000,000. If you put down 25% on your purchase and have not sold your home, we will not count the your current payments against you. If you do not have US credit, we can make a loan to you. If you do not qualify for a loan, we can generally accept a co-signor to help you qualify. We finance construction, and we finance modularly built homes. We offer reverse mortgages that can eliminate a monthly mortgage payment.
Appraisals are taking about 5 business days, and processing times have dropped sharply. 30 days from start to finish for a motivated borrower is absolutely possible.
This spring we have introduced a free one-year home warranty for anyone buying a home and borrowing $417,000 or less. Free is good!
If there were ever a time to buy or refinance, it would be right now.
We are happy to help you think through mortgage financing.
Let us know how we can help make things happen for you, and/or your clients.
Kevin R. Kenyon
Branch Manager
NMLS #8677
Gateway Funding Diversified Mortgage Services, LP
D/B/A Arlington Capital Mortgage
33 Witherspoon Street
Princeton, NJ 08542
Direct 609.945.7513
E-Fax 215.793.8201
Licensing information at www.gateway-funding.com
Company NMLS #1071
