According to a recent article in the Los Angeles Times, mortgage interest rates are at their lowest levels in five weeks, and not surprisingly more people are seeking home loans. However, the increases had been driven by the refinance market and not necessarily by new purchases.
This is both a positive and a negative for some homeowners. On the positive side, this means they are able to refinance their homes at a lower rate and take advantage of equity in their homes. But on the negative side, this assumes that the borrowers who are purchasing new homes still have good credit, can make at least a 20% down payment on residences with value of no more than $417,000.
Having indicated the above, it should be noted that there are loan programs available to the consumer whether refinancing or purchasing a new residence. An example of a lower down payment program is the FHA financing.
FHA loans are guaranteed by the government and offer more flexible guidelines than traditional mortgages.
Two important keys to this type of program:
• Loan amount available up to the maximum JUMBO FHA limit in your area
• FHA financing is for Everyone and not limited to first time homebuyers
When considering to refinance or purchase, a new property, the consumer must be prepared to present a complete financial package to their lender.
