Interest Rates in the “Fours!”

December 23, 2008 by Mark Roknich 

  • Share
  • Sharebar
  • Share

Four-Something has arrived! When we last wrote this column, we predicted the arrival of a mortgage interest rate BELOW five percent. It happened, and it happened quickly!

Just this past Friday, for the first time, I received an announcement via email for a mortgage, with the interest rate quoted at 4.375% with a typical 1-point origination fee (4.5% APR). That rate applies to a conforming loan under $417,000; higher rates apply to larger mortgage amounts.

Four-something for a 30-year fixed? That is a benchmark of historic proportion! It could be the beginning of the much needed bottom in Orange County housing prices, if the opportunity for rates like those lasts awhile, and if lenders regain their footing in the market.

It’s condo time! Investors, first-time buyers, and parents who want their kids to be nearby after graduating high school or college (but not THAT nearby…), now might be a great time to make an investment in the future.

Owner-occupied (think: the kids) purchases can be made with very little downpayment. VA and FHA-insured loans are available with only a small investment, but are accompanied by higher monthly payments, of course.

But with a larger downpayment and a conventional mortgage, break-even cash flow is closer to reality than any time in a decade.

Here’s another thought, for those of you who are inclined towards single family homes rather than condos: 20 percent downpayment will buy a single family residence in Orange County, and still get under the magic conforming figure of $417,000 to get those great 4.x% loans. And rates are still extremely low for loans above $417,000….lower than any time in the past few years.

Have we piqued your “interest?” Rates in the “fours” won’t last forever. What an opportunity! Call us at (949) 240-5892, or send us an email, and let’s start strategizing and building a real estate portfolio!

Share and Enjoy:
  • Print
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • email
  • LinkedIn
  • PDF
  • RSS
  • Slashdot
  • StumbleUpon
  • Twitter
  • Yahoo! Bookmarks

Filed under: Market Update

Comments

For additional information about featured properties, contact us via email, or call (949) 240-5892.
If you would like to make a comment about one of our blog posts, please do so below.