Mortgage Rates Are Back Below 5%

Long-term mortgage rates are back below 5 percent, according to Freddie Mac’s weekly rate report.  The average rate on a 30-year fixed-rate mortgage fell to 4.97 percent in the week ending Feb. 11, down from 5.01 percent last week. A year ago, 30-year mortgages were averaging 5.16 percent, said Freddie Mac, which has a regional office in Atlanta.  It is the third week this year that long-term mortgage rates have dropped below 5 percent.  The lower interest rate calculates to thousands of dollars in interest savings over the term of your loan.

Mortgage Loans that Help with Renovations

Home renovations can be a little daunting, but financing them doesn’t need to be.  Homebuyers considering a fixer-upper and homeowners thinking about doing major rehab work might want to consider an FHA 203K loan.

Often called rehab or renovation loans, 203K loans differ from traditional mortgage loans.  Buyers who want to purchase a home in need of repair usually have to secure a loan to buy the property, get additional financing to complete the renovation and then get a permanent mortgage to pay off the interim loans.  FHA 203K loans are made based on the ‘after-repair’ value and include an escrow account, in which the money is dispersed in draws as the necessary renovations are being completed.

Too Close for Comfort? Uncle Sam’s Bailout of Fannie Mae and Freddie Mac

Adapted from The National Association of Realtors Statement on the Government Takeover of Fannie Mae and Freddie Mac as published at www.Realtor.com

What the Government Takeover of Fannie Mae and Freddie Mac Means to the Housing Industry
Washington, D.C. (September 8, 2008) - The federal government’s takeover of secondary mortgage giants Fannie Mae and Freddie Mac should cause a drop in mortgage rates in the short term that benefits home buyers, but the long-term outlook is too early to call. NAR fully supports the action of the U.S. Treasury and the Federal Housing Finance Agency.