Good News For Home Buyers

30-Year Mortgage Rates Drop
After four weeks in an upward trajectory, Freddie Mac reports that long-term mortgage rates are falling again (Source: Chicago Sun-Times (05/23/08).

The average interest on a 30-year fixed loan settled at 5.98 percent this week, down 0.03 percent from the prior week. Rates on 15-year fixed mortgages, meanwhile, slipped 0.5 percent for the week to an average of 5.55 percent.

Borrowing costs drifted slightly higher, however, on adjustable-rate products. Five-year ARMs bumped up 0.04 percent to 5.61 percent, while one-year ARMs moved up 0.06 percent to 5.24 percent.

Banks Still Want Buyers
Some would-be buyers in today’s market might think that mortgages just aren’t available to them in today’s tighter lending climate, but buyers who are reasonable credit risks have more financing options than they might think.

For starters, Federal Housing Administration loans are back. According to NAR (National Association of Realtors) data, FHA loan originations saw nearly a 60 percent increase in 2007, and in 2008, the program’s loan limits have been increased.

In addition, tax law changes have made private mortgage insurance more attractive. PMI premiums have been deductible on federal taxes since 2006, and last year, Congress enacted a three-year extension on PMI deductibility. This helps buyers who would otherwise be financing with piggyback loans, which are harder to get in today’s market.

All of this is good news for the person who is seeking real estate opportunities in Northern Michigan. At Home Waters, we understand that your dream of owning the ideal “Up North” property is much more than real estate. You’re pursuing a lifestyle that you and your family will enjoy for generations to come. Let us help you realize that dream. With selection at its peak, great financing and our expertise; the time is right to make that dream come true.