Recently our government announced that it will stop purchasing Mortgage Back Securities (MBS) at the end of March of 2010. That means there can be a rise in mortgage rates in our near future, couple that with the $8,000 1st time buyer tax credit and the $6,500 move up tax credit ending at the end of April 30, 2010. We may likely see fewer buyers and higher interest rates in our near future.
Buy Today
Purchase Price $662,000
Down payment 20%
Loan Amount 529,600
Rate 5.00% fully Amortized for 30 years
Mortgage payment $2,843.01
Home Owner Insurance $66.20
Property Tax (L.A County) $ 689.58
Total PITI $3,598.79
Or Buy Tomorrow
Purchase Price $575,000
Down payment 20%
Loan Amount $460,000
Rate 6.50% fully Amortized for 30 years
Mortgage payment $2,907.51
Home Owner Insurance $56.88
Property Tax (L.A County) $598.96
Total PITI $3,563.35
The above scenario is based on net income of $8,000 and 45% overall debt to income ratios with credit scores above 720. It is strictly meant for illustration purposes. Rates are subject to change without notice
Lender Information
Edward Uriarte * Loan Consultant
(626) 8172449 dir. * (626) 4622270 Cell
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Remember, you have until April 30, 2010, to open escrow on your first time buyer purchase or your long-term owner sale/purchase to qualify for the federal housing tax credits. For all the details, go to www.federalhousingtaxcredit.com .
How to navigate today's mortgage environment, Part 2.
First, have you been reading the newspaper lately? Well, stop it.
Let's look at other options for finding out what's going on in the lending markets. For starters, I called Ann Bedrossian at Lockheed Federal Credit Union (818-621-2758). She says they have lots of money to lend right now, their deposits are way up. And if you have decent credit and at least 10% down, you can get under 6% mortgage interest on a 30-year fixed loan up to $1 million. To join the Lockheed Credit Union, you pay a $25 application fee, that's it! Call Ann for the latest rates and programs, you might be pleasantly surprised.
I know there is scary news out there. I know everyone thinks the real estate market is on the biggest slide downward ever. But now is the time to be a contrarian! Do what Warren Buffet says, get greedy when everyone else is afraid.