WWII Vets come home to rates higher than today!!

It was the mid 1940's and returning warriors from WWII were coming home.  Home ownership was just beginning to explode and a special program became available to returning heroes.  They could get special financing as low a 4% to buy a home.

This week mortgage interest rates dropped as low as 3.75% for a 30 year fixed rate!!  As I have tweeted and written about, the world economy, the down grading of our credit rating and the situation here at home have created an effect that cause interest rates to fall to the lowest point in your life!!

The Wall Street Journal stated that "60% of all borrowers with a 30 year fixed rate mortgage could reduce their mortgage rate by one percentage point, up from 42% at the beginning of August."

If you are buying or know someone who is, now is a great time.  If you are in a home and are planning on staying, you may never again see mortgage interest rates this low.  To show you the affects of such a low rate; someone with a $400,000 mortgage at 6% has a P/I payment of $2398.20 a month.  If that same person had a 3.5% rate, their payment would plummet to $1,796.18 per month.  Tell me in today's economy an average family could not use that extra $500 per month?

Whether you end up with 3.5% or 4.0% like that veterans of our greatest generation, you will putting yourself in a better situation.  If you have any questions, or know of anyone who may benefit from this blimp in financial history, please feel free to contact me.

Wishing you and your family the best!!

Bonds Crash to ALL TIME Low!

I sit in amazement wondering when the bond crash will stop?  It is exciting for the fact that I do anticipate mortgage interest rates to fall into the high 3% range in the near future.  What you need to realize is not always do rates follow the 10 year treasury, mortgage rates are more tied to (MBS) mortgage back securities.

With that said, if you do have an interest rate above 5.0%, it may make sense to take a few moments, contact me or your favorite mortgage banker and see if now, maybe the best time to refinance or purchase your home.