Mortgage Interest Rates Update for 3/16/09

by Karen Goodman on March 16, 2009

by Kerby Claney
Vice President – Stifel Bank & Trust
314-317-6873
email

What’s Happening with Mortgages?

Over the last few months, interest rates were so volatile that publishing them here didn’t make sense. By the time the rates were published they may have already changed. The market seems to have settled down and I plan to publish rates here regularly again.

Some of the standard loan products that were popular in the past dropped off the menu of options since the rates were not competitive. The mortgage industry was not interested in doing ARM loans, so they kept interest rates so unattractive that fixed rate loans would be the best mortgage available. I was able to offer lower rates on the 3 and 5 year ARM loans through several portfolio lenders. But, 30 year fixed loan rates were so much lower than our ARMs, so there was no reason to take on the risk that comes with an ARM rate readjusting in the future.

MHDC loans are available to Missouri buyers that want to get an advance on the $8000 first time buyer tax credit, but getting the advance means that you have to use a MHDC loan and lately their interest rates have been higher than standard conventional rate loans. Buyers who are eligible for the first time buyer credit and want to use a conventional or FHA loan rather than using the MHDC program can file an amended 2008 tax return to get the tax credit shortly after closing rather than waiting to file a 2009 tax return.

As of January 1, buyers purchasing a home will need a minimum of 3.5% of the purchase price for a down payment unless they qualify for a VA or rural USDA loan (100% financing).

If you are in St. Louis, I’m happy to meet you wherever it is most convenient for you to discuss your financing needs.

I also serve clients needing mortgages and refinancing throughout the United States. Give me a call and we can talk about which mortgage product would be best for your individual situation.

Not sure if you should refinance? I’m happy to offer a free no-obligation consultation to help you decide if it makes sense for you to refinance.

The Fine Print:

The interest rate you receive will vary depending on a number of items including the down payment amount, credit scores and the length of time between rate lock-in and closing. To discuss fees and what your interest rate would be for you, feel free to email or call me to discuss your individual situation.

All rates are based on zero point loans.

*** This information is not intended to extend consumer credit as defined Section 226.2 of Regulation Z. Interest rates, program terms and conditions are subject to change without notice.