Thursday, December 18, 2008

Mortgage rates fall below 5%

From Cefcu's website - a conventional 15 year fixed rate mortgage loan is now 4.675% and NO points! I never thought we'd see the day.

So although the message "now is a good time to buy" can be overly simplistic and in my opinion should not be advised without caveats, from a mortgage standpoint, it most certainly IS a good time to buy.

6 comments:

dewayne said...

Happy holidays to you and yours.

Anonymous said...

4.875% unless I can not read their tables.

Close, anyway. So how come if the Fed rate is .5 or .25%, banks rape the consumer for nearly 10 times the interest they pay for the same money?

Diane Vespa said...

I would imagine it is because they have salaries to pay and morgage payments to make on those huge fancy buildings they build. ;)

marty said...

You say it is a good time buy. Is it a good time to build? We are going to self build a house in the rural (glasford) area and getting a loan is hard. we have almost perfect credit but banks are iffy about loans for a log cabin home i will build.We own the land free and clear, own our current home in the East Bluff (1700 block)All We want to build our small dream home.If it is a good time to buy then our home in the east bluff should sell fast but there many empty homes and no one is willing to invest in this part of the East Bluff. I have invested in this home heavy and will not get what we have invested but we want our dream home. I have been an neighborhood leader and have worked long and hard to see improvements in the East Bluff one victory we had was the Glen Oak school issue but there is manny falures slumlords,vacant homes,fires,lack of long term city support,schools closed, sucky schools,crime, litter,gangs,and some people that just don't give a dam.It sucks to own a home in this part of Peoria.Could you even sell this home for what we have invested?

Diane Vespa said...

Hi Marty, the best option for you is to get a market analysis on your current residence. Only rely on comps that are less than 3 - 6 months old. Do not start construction on the new property if your East Bluff home is not sold and you cannot concievably make payments on both properties comfortably for a year. I can also refer you to a lender who will pre-qualify you, estimate your payments and explain options, including bridge financing. Do proceed with caution. We all look forward to our dream-house but proceeding on emotion as opposed to sound financial judgement can turn your dream house into a nightmare. Give me a call at 645-8608 and I will be happy to do a no cost or obligation CMA on the current market value and market conditions relating to your individual property.

Diane Vespa said...

By the way, I looooove log cabins. Have always dreamed of having one. Actually, I have found they have great resale value if they are quality built!