Thursday, July 3, 2008

Interest rate update

Here is the weekly update on loan rates, courtesy of Troy Chambers, Arboretum Mortgage:

Rates Remain Stable …
As this holiday shortened week ends, we are seeing rates approximately an 1/8th higher than where they were last week. On Monday and Tuesday, we could have locked in about a quarter lower than last week, but unfortunately the last two days, we have seen them rise back to last week’s level, and now a bit higher.

I have said it many times this summer, and I will continue to do so … now is the time to purchase! Rates are respectable and prices are extremely reasonable. Please let me know if there is anything I can do to make purchasing a home a little bit easier for you. Please call me on my cell at 425-418-5103 if you need anything over the weekend.

Troy Chambers
Loan Officer
Arboretum Mortgage
Phone: 206-720-6628
Fax: 206-860-9340

Click here to see a table of loan rates.

Tuesday, July 1, 2008

FHA funding regains popularity

When I bought my first home 10 years ago, it was an FHA (Federal Housing Administration) loan that made the dream possible. Among other advantages, it allowed me to purchase with just 3% down, instead of the usual (at that time) 10%. In the past few years, lenders loosened their purse strings such that FHA loans became unnecessary. Now the pendulum has swung back the other way and FHA loans are once again providing intended relief to new buyers.

By way of a refresher, the FHA is not a lender itself. It is a government program which guarantees conventional loans, thereby removing some of the risk for the actual lender. This encourages banks to loan money to individuals who might not otherwise qualify to borrow.

Currently, FHA loans allow many homebuyers to purchase a home up to $585,000 with zero down by taking advantage of down payment assistance programs such as Nehemiah and Ameridream.

Contact the lender of your choice for complete details and to find out if an FHA loan is a good option for you. If you need recommendations regarding lenders, give me a call and I will give you the names and phone numbers of several local, reputable loan officers.