Thursday, October 1, 2009

Mortgage Rates below 5%

In hopes of saving you a little money each month, I wanted you to know that mortgage rates are below five percent in many cases.

National Averages Overnight: 5.16% for 30 year fixed / 4.56% 15 year fixed

A local bank that I checked with today shows even better (zero origination fee, zero discount points): 15 year fixed at 4.25% / 20 year fixed at 4.75% / 30 year fixed at 4.875%

If you currently have an interest rate around 6% or even higher, now might be the time to call your loan officer. If you are not sure of your rate, call me and I’ll help you check your previous closing file to make sure you are getting the best deal possible.

This article suggest that “Not too long from now, it's going to be harder to refinance.”

Need a recommendation for a lender you can trust here locally?

kevin pellatiro (615)714-7918


Todd McCalla said...

I think its going to be a another rough year for homes in Cool Springs Tennessee over $500,000. Ive heard Countrywide/Bank of America is going to start taking back a massive volume of deliquent mortgages in the fourth quarter.

Nashville? said...

Todd, certainly could be true with additional inventory to come. It’s really a tale of two cities (three as you consider how well Cool Springs is performing in many price ranges under $500,000).

We are just under 16 months of inventory from $500,000-$1,000,000, with general prices to decline until that number is cut in half or better. This winter could see the majority of these owner occupied homes come off the market for a few years, perhaps speeding the stabilization of prices up quite a bit for next year.

Above $1,000,000 in Cool Springs is bloody with almost five year of inventory, not accounting for available lots. Next year we may see a 2-4 year rise begin in custom home builds as these lots, and our custom home builders, are ripe for the picking. General home values above $1 million have more than four and a half years of inventory to work through…

This area is already targeted by REITs and other investors picking up properties by the bushel; interesting time to be in a position to improve your location. Are you seeing that in the commercial realm as well Todd?

kevin pellatiro (615)714-7918