December 19th, 2008 by admin

Mortgage rates drop to lowest level since January

Mortgage finance giant Freddie Mac reported Thursday that average rates on 30-year fixed-rate mortgages dropped to 5.53 percent in the largest one-week drop in 27 years. That was down from 5.97 percent last week, and the lowest since the week of Jan. 24, when it was at 5.48 percent.
Further drops could be on the way if the government launches an industry-backed plan to lower the rate on a 30-year mortgage to 4.5 percent by spending hundreds of billions to buy mortgage-backed securities issued by Fannie Mae and Freddie Mac.

That would follow an effort announced last week by the Federal Reserve, which is planning to purchase up to $600 billion of mortgage-backed securities and other debt issued by Fannie and Freddie and the Federal Home Loan Banks. Those institutions don’t make loans directly to consumers, but provide money to the mortgage market by packaging loans into investments.

The Fed’s move caused rates to immediately drop by about a half-point, and many in the real estate industry hope rates will keep dropping as the government increases efforts to battle the credit crisis.

December 3rd, 2008 by admin

Today I want to share to you all about some more technique in avoiding mortgages mistake to happend to your self in the future . So, just continue reading with the tips as follow :

1. The first step should be fixing your own credit. This will allow you to qualify for a lower interest rate. Obtain copies of your credit report and clean up any discrepancies.
2. Prequalification is where a lender tells you how much money you probably can borrow based on how much money you make, how much debt you already have and how much cash you have for the down payment. The lender verifies the information and checks your credit. If all goes well, the lender agrees in writing to make the loan.This is an important step you should take first as not only will you know what you can afford, you will be taken more seriously when you make an offer on a house.
3. Most states and even cities offer first time home buyer programs and it is up to you to find them. Don’t expect your Realtor or lender to do it for you. Also, if you are a Veteran, the Dept. of Veterans Affairs will send you information on buying a house and help you get a guaranty loan that will save you money and for no down payment.