«
»

Friday, December 12th, 2008 at 6:53 PM

LLLLLLLooooww Rates

Countrywide sent over this rate quote today:

Conforming 30-year fixed: 4.625% with one point

FHA 30-year fixed: 5.00% with one point

I still think buyers will wait to find the right house for their primary residence, but how about a rental property?  The non-owner-occupied rate is usually 1/2% higher than O/O.

On a $200,000 purchase with a 20% down payment, the loan amount is $160,000 – and at a 5.125% fixed rate, your P&I payment is $871.18/month! 

PITI = $1,150 and you should be able to rent most detached homes for at least $1,200 per month.  They are renting for $1,500 and up around the back gate!

Today there are 1,033 detached homes for sale under $200,000 in SD County.

Posted on Friday, December 12th, 2008 at 6:53 PM in Interest Rates/Loan Limits | 11 Comments » | Print Print You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Reader Comments: 11 Responses

  1. sssshhhhh…. better deals for me!!

    newbie | December 12th, 2008 at 7:49 pm

  2. $200K gets you a really nice home…

    in the ghetto.

    JAP | December 12th, 2008 at 8:31 pm

  3. What will the conforming cap end up being next Jan? That rate is ridiculously low.

    Chris | December 12th, 2008 at 9:25 pm

  4. My parents bought a house in 1953,their mortgage rate was 3.25

    james swain | December 13th, 2008 at 4:22 am

  5. MLS-remarks-of-the-year candidate:

    Siding completed, Tenants have vacated. Make offer before the value goes up; Choose your carpet or paint

    Jim the Realtor | December 13th, 2008 at 7:08 am

  6. The only catch is you need an 800 credit score, 200K in the bank, and proof of two years 20K/mo income.

    I might be embellishing a bit, but c’mon tell the truth man!

    anonymitus | December 13th, 2008 at 7:46 am

  7. c’mon tell the truth man!

    People wanted tougher underwriting, it’s arrived for conforming.

    Borrowers with min 720 FICO scores should get the best rates, and if you fall short, FHA will take care of you with 3.5% down payment and DTI ratio to 45%.

    Owner-occupier monthly incomes needed to buy $200K with 20% down:

    Conforming: $3,500/mo. gross income
    FHA: $2,500/mo. gross income

    Monthly income needed to buy $200K with 3.5% down:

    FHA: $2,850 per month gross income

    (and you can add as many borrowers as needed to qualify, whether they live there or not.)

    If these rates hold, it’ll be an active spring season for those who are willing.

    Jim the Realtor | December 13th, 2008 at 8:20 am

  8. Cool.

    That info is exactly what I was seeking.

    Thanks!

    anonymitus | December 13th, 2008 at 10:02 am

  9. We’re doing another refi this month, but we’re going the “no-cost” route even though the rate is higher because we think we’ll probably be doing it again in the next 6-12 months.

    GeneK | December 13th, 2008 at 10:12 am

  10. Got an email from Centex yesterday, here is what they are offering:

    Act now for a below-market 3.875% interest rate (5.368% APR).

    Some of our best homes are available for immediate move-in. And when you act by 1/15/09, you get a below-market rate for the life of your loan. Your mortgage interest rate on an inventory home for the first two years is just 3.875% (and just 4.875% for the remaining years). If you choose to build, our commitment to you is still a below-market fixed rate. Let us show you how much this will lower the monthly payment on your new Centex home.

    Annual Percentage Rate calculated from a full-term 30-year standard FHA loan at a 4.875% interest rate and a sales price of $207,000. The first and second year interest rate is 3.875% ($955.76 monthly principal and interest payment) with years 3-30 at 4.875% ($1,075.62 monthly principal and interest payment). Requires 3.5% down payment. Some qualifying restrictions apply. Offer available through CTX Mortgage Company 2728 N. Harwood, Dallas, TX 75201. Buyer is responsible for paying some closing costs and reserves. Program is not available with other promotions or discounts. Offer on quick move-in homes to close by 1/15/2009. See a Centex Homes sales representative for details. This material shall not constitute a valid offer in any state where prior registration is required, or if void by law. ©2008 Centex Homes. All Rights Reserved.

    SMC | December 13th, 2008 at 12:07 pm

  11. The rates are great. However… I called Countrywide to see if I could refi my existing mortgage. They acted like they were doing me a favor. I figured they would be happy to work with me. But they refused because I would not provide my social security number. All I wanted to know was the qualification requirements and fees.

    I think the rate is another Countrywide scam. Has anyone actually gotten a loan at this rate?

    D Max | December 14th, 2008 at 12:52 pm

Post a new comment