Skip to comments.Rate on 30-year mortgage falls to record 4.01%
Posted on 09/30/2011 6:32:13 AM PDT by Graybeard58Edited on 09/30/2011 6:34:23 AM PDT by Admin Moderator. [history]
WASHINGTON — Fixed mortgage rates have fallen to historic new lows for a fourth straight week and are likely to fall further.
The average on a 30-year fixed mortgage fell to 4.01 percent this week, Freddie Mac said Thursday. That's the lowest rate since the mortgage buyer began keeping records in 1971. The last time long-term rates were lower was in 1951, when most long-term home loans lasted just 20 or 25.
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No shortage of credit for people who don’t need it.
However, banks are bending over backwards right now not to provide any loans, so what good this does in reality is anyone's guess.
Of course, these are the same banks that were throwing money up into the air at random just a few years ago. Funny, that.
Not much help either for people who want to sell an existing home and buy a new one. I'm considering trying to rent out my current home that's paid for and go ahead and buy another one in a different state. One of the problems I foresee is being too far from the home to take care of it. Finding responsible renters being another one.
You are wise to be concerned, having been through many years of every experience you can imagine.
The only things that saved us were having a trusted friend who acted as our property manager (and enforcer to collect the rent and post eviction notices on the door) and finally, doing a lease-purchase to a renter willing to buy the dam place. And this was for an “executive” home in an “executive” neighborhood with “executive” tenants.
If you can buy another home - then let the other go by whatever means- - good for you.
Go where you want and rent until you figure out what to buy at what price.
I guarantee you won't enjoy being an absentee landlord and having tenants trash the place or use it all up as major components wear out. And when a home is rented, things wear out a lot faster. Plus the tax requirements are nasty. You have to depreciate it and then recapture that as ordinary income. and obama has special tax on rents in mind for evil landlords. Not to mention your local property tax authorities when you give up any resident tax credit or homestead exemption.
Just sell it.
Not much help if you want to refinance. My home just appraised at 53% of what it did 3 years ago.
Actually getting a mortgage at these rates is near impossible.
If you're changing to a similar house, it's a wash. The hit you take on your current house is offset by the discount on the new house. If you're trading up you gain, but if trading down you lose some so might rent it out. Some real estate businesses do a good job managing your rental for you for a fee of 6% of rent. They find good renters, have maintenance staff, and a lawyer ready if the renters don't pay.
Not from what I've seen, as long as the borrower meets traditional underwriting criteria: 10 or 20% down, good credit.
The problem is the housing market is lousy with underwater mortgages and foreclosures, which makes it difficult to connect a buyer and seller.
I just got mine at 4.35, closed yesterday
now I’m a home owner, can’t wait to start building
Are you compliant?
Deuteronomy 22:8 (KJV)
When thou buildest a new house, then thou shalt make a battlement for thy roof, that thou bring not blood upon thine house, if any man fall from thence.