Greetings! What a day for the bond market. The Fed keeps Fed Funds Rate unchanged and follows that up with some very strong statements about the future of interest rates. The one I particularly like is how the Fed will continue to purchase mortgage bonds and will keep rates low through 2014!!! That’s a lofty goal. For now, we are enjoying record-breaking lows.
30 yr fixed (Conforming) –3.625 @ 1/2 point
30 yr fixed (FHA) –3.500 @ 1/2 point
15 yr fixed (Conforming) -3.125% @ 1 point
30 yr fixed (Super Conforming) –3.750 @ 1 point
Prime Rate—3.250%
***The rates above are for purchases and no cash-out refinances with good credit-standing borrowers on owner occupied residences. Increased rates may apply for other loan transactions or for borrowers with a bruised credit history.***
TIP OF THE WEEK:
What great fortune to have family members who are willing and able to “gift” funds toward the down payment of a new home! In these situations, keep in mind that your fortunate buyers must be able to show 5% of the down payment coming from their own funds. These funds must be seasoned….menaing money sitting in an account for over 60 days. The exception to this rule is when the donors of the gifted funds are putting down at least 20% or more or of the sales price. In those cases, the borrowers do not need to show any of the down payment coming from their own funds.
Rates and information provided by Kim Williams!
http://www.smithlendinggroup.com/
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