All Interest Rates But 1-Year ARM Hit Record Lows. McLean, VA — Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.69 percent with an average 0.7 point for the week ending June 24, 2010, down from last week when it averaged 4.75 percent. Last year at this time, the 30-year FRM averaged 5.42 percent.

The 15-year FRM this week averaged 4.13 percent with an average 0.6 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 4.87 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.84 percent this week, with an average 0.7 point, down from last week when it averaged 3.89 percent. A year ago, the 5-year ARM averaged 4.99 percent.

The 1-year Treasury-indexed ARM averaged 3.77 percent this week with an average 0.7 point, down from last week when it averaged 3.82 percent. At this time last year, the 1-year ARM averaged 4.93 percent. This is the lowest the 1-year ARM has been since the week ending May 6, 2004 when it averaged 3.76 percent.

This is good news, because low interest rates encourage buyers of Sequim and Port Angeles homes.  With interest rates at historical lows and prices also hitting resistance bottoms, this spring is the right time to buy.  Interest rates will start to go up at some point in the not-to-distant future.

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Interest rates are beginning their assent.  One benefit of the recession has been low interest rates for the 30-year fixed rate mortgage.  In fact, we have had historically low rates not seen in 30 years, so for home buyers who have wanted to buy a home, this has presented a rare opportunity to get the lowest monthly mortgage payments possible in three decades. 

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 5.14 percent for the week ended Dec. 31, the highest since the week ending Aug. 27 and up from the previous week’s 5.05 percent, according to a survey released by Freddie Mac, the second-largest U.S. mortgage finance company.

My argument recently for home buyers is that they should buy in these winter months if they have been intending to buy a home in Sequim or Port Angeles this coming spring or summer, because they have more negotiating power with sellers right now when there are fewer buyers.  Wait until spring and as a buyer you will be competing against a lot of other buyers. 

But if you wait until spring or summer, how much higher will your monthly mortgage payment be with interest rates on the rise?  Interest rates are beginning a long slow assent.  If you look at the bigger picture of what is happening in the economy, what the federal reserve is doing to stimulate the economy, and what the Obama administration is doing with respect to fiscal policy, interest rates have nowhere to go but up.

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Ever wonder what credit issues reduce your FICO score?  We have some of the answers here with a new revelation by FICO itself.  If you’re applying for a home loan or you will be making an offer on a home in Sequim or Port Angeles, you may want to get pre-qualified.  I strongly recommend it, but here are the mistakes that reduce credit scores and by how much.  It’s interesting to note that the impact of these mistakes is different depending on your score to begin with.

Here is a convenient Credit Score Calculator, which will estimate your current credit score:

FICO Credit Score Estimator

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The Veterans Administration provides an array of opportunities for America’s veterans and their families to achieve their dreams of home ownership.

The VA does not issue home loans. Instead, it guarantees them, which provides lenders with a significant degree of protection. In turn, prospective home buyers can obtain competitive rates and loan terms, among a host of other benefits.

The VA offers several types of loans, from home construction and home loans to energy improvement. Veterans considering a VA loan must first obtain a Certificate of Eligibility (COE), a document that certifies they meet the loan program’s basic requirements.

Any military member who has served 181 days on active duty during peace time or 90 days during war time may be eligible, along with those who have served at least six years in the Reserves or National Guard. Spouses of service members killed in the line of duty may also be eligible.

Not everyone who is eligible will ultimately qualify for a loan. The VA will ultimately look at a veteran’s credit and financial history, along with several other key indicators. But veterans with poor or even no credit history can obtain a VA home loan. So can those with bankruptcy or foreclosure in their past.

VA loans offer qualified veterans a host of low-cost and even no-cost benefits. Borrowers do not have to provide a down payment on their home or make monthly payments for private mortgage insurance. Interest rates are generally lower on VA loans than on conventional loans.

For active-duty members, the interest rate cannot exceed 6 percent. Many can ultimately switch to interest-only payments, guaranteeing that lenders cannot foreclose on the mortgage. These benefits end three months after the completion of active military service.

Loan values can be up to 100 percent of a home’s value. But the VA has strict VA loan limits throughout the country. The agency recently increased the loan limit in high-cost parts of the country to $729,000.

[We thank VA Loan Expert Jay Buerck for this contribution.   Jay can be reached at jbuerck@vamcenter.com]

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Guessing what you could afford to purchase or want to know the monthly payments, or what would happen if you made extra payments?   Right now interest rates at at all time historical lows and prices are also below normal FMV in Sequim and Port Angeles.   Take advantage of four very powerful and simple online loan payment calculators on my website at:

http://www.freerealestatelaw.com/mortgage_payments_pop.html or click on this image.

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