Will low interest rates bring buyers back to the table
December 11th, 2008 by Kristian Aasgaarden | no responses
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Conforming 30 year fixed rates mortgage loans have dropped considerably this past week. Locally Citibank and Countrywide are offering a 30 year fixed conforming loan for 4.875% with a cost of 2.250% and 2.000% respectfully.
Will these never before seen interest rates prompt buyers back into buying again or will they sit on the sideline in hopes of obtaining the rumored 4.5% government subsidized rate when the new Obama administration takes office.
Below is a chart obtained from MSN Money detailing available rates, fees & points available in the greater Seattle-Tacoma area.
Loans shown are 30-yr. fixed conforming loans available in Seattle-Tacoma, Washington.
| Financial Institution | Base Rate | APR | Fees($) | Points | Lock | |
| Citibank | 4.875% | 5.111% | 809 | 2.250% | 60 days | |
| Countrywide | 4.875% | 5.114% | 1375 | 2.000% | 30 days | |
| Wells Fargo | 5.125% | 5.325% | 700 | 1.625% | 60 days | |
| Washington Mutual | 5.000% | 5.371% | 929 | 0.875% | 60 days | |
| Chase | 5.125% | 5.383% | 1464 | 2.125% | 60 days | |
| Countrywide | 5.250% | 5.402% | 1375 | 1.000% | 30 days | |
| Citibank | 5.125% | 5.480% | 809 | 1.000% | 60 days | |
| Bank of America | 5.250% | 5.484% | 1400 | 1.875% | 30 days | |
| Wells Fargo | 5.375% | 5.486% | 700 | 0.875% | 60 days | |
| Chase | 5.375% | 5.544% | 1464 | 1.125% | 60 days | |
| National City Mortgage | 5.375% | 5.606% | 1034 | 2.000% | 60 days | |
| Washington Mutual | 4.750% | 5.727% | 929 | 2.125% | 60 days | |
| National City Mortgage | 5.625% | 5.765% | 1034 | 1.000% | 60 days | |
| Wells Fargo | 5.750% | 5.782% | 700 | 0.000% | 60 days | |
| Washington Mutual | 5.500% | 5.793% | 929 | 0.000% | 60 days | |
| Chase | 5.750% | 5.818% | 1464 | 0.000% | 60 days | |
| GMAC Mortgage | 5.625% | 5.868% | 1225 | 2.000% | 60 days | |
| Citibank | 5.750% | 6.038% | 809 | 0.125% | 60 days | |
| National City Mortgage | 6.000% | 6.048% | 1034 | 0.000% | 60 days | |
| Quicken Loans | 6.125% | 6.275% | 1400 | 0.875% | 30 days | |
| Bank of America | 6.125% | 6.287% | 1400 | 1.000% | 30 days | |
| GMAC Mortgage | 6.125% | 6.291% | 1225 | 1.125% | 60 days | |
| Countrywide | 6.250% | 6.315% | 1375 | 0.000% | 30 days | |
| Quicken Loans | 6.500% | 6.568% | 1400 | 0.000% | 30 days | |
| Bank of America | 7.250% | 7.321% | 1400 | 0.000% | 30 days |
With rates this low, anyone looking to purchase a primary residence or investment property definitely needs to look to the foreclosure auction and short sales or REO/bank owned properties to get twice the financial benefits. By buying a distressed property you can pick up a new home at discounts of 20-45% under today’s market value. Combine that with never before seen low interest rates and you can increase your buying power dramatically.
The Author: Kristian Aasgaarden
About: Kristian, one of the co-founders of Real Estate Investment Firm, brings over 16 years of industry experience to REIF. Kristian began his career in the escrow field and was an escrow closer for many years before turning to real estate investing.
This entry was posted by Kristian Aasgaarden, on Thursday, December 11th, 2008 at 1:05 am and is filed under Bank Owned/REO Property, Buy Distressed Real Estate, Featured, Marketplace. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response on the right, or trackback from your own site.
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