Mortgage Update

Given many factors, including the seemingly softening economy, mortgage rates are now better. As of today, the sharpest 30 year fixed rate for a conforming loan (at 417k or under) with no points is 5.875% and 5.75% for a 5/1 ARM (regular or interest only).

The sharpest jumbo 30 year fixed rate for a jumbo loan with no points is around 6.875%, down from 7.625% a couple months ago, and the ARMs have also come down nicely, the best jumbo 5/1 ARM rate is 5.875% (regular or interest only).

That means within specific parameters, someone with a strong financial profile could borrow over $1,000,000 getting a 5/1 Interest Only ARM with a 5.875% rate! Of course, all these rates are subject to change on a daily basis, but this is around the lowest mortgage rates have been for the majority of this year.

Just a reminder, that not only are rates low and banks are eager to lend to credit worthy borrowers, but many other buyers are waiting on the sidelines now and it could be a strategically smart time to be negotiating a property.