Ok, it's almost getting silly how low these rates are. Here is what I am offering that has been lighting the phone lines up last couple days. This offer applies to all my Realtor friends, family, general public etc. I have had several clients compare this to estimates from major retail lenders and they don't even come close. We have made some great relationships with wholesale lenders and a couple are over the top with great rates lately. Here is what I have available as of today:
30 Year Fixed 4.375% 4.379% APR "All Non Recurring Closing Costs Paid"!
15 Year Fixed 3.875% 3.879% APR " All Non Recurring Closing Costs Paid"
This is based on a minimum 260K Loan amount, 720+ FICO score and less than 80% LTV appraised value
Normal Debt to Income ratios also.
This is a complete no cost to you refinance excluding escrows for taxes and insurance. It is a complete Win, Win situation and won't be here forever. If you know anyone in New Jersey, or Pennsylvania you feel is qualified please have them call me and I promise they will be very happy with their results. Thank you in advance for reading this Blog post!
Sincerely,
Phil Gustte
Mortgage Specialist
Walter Financial Inc.
713 Hyde Park
Doylestown PA, 18902
215-888-9915 direct
215-230-4015 fax
NMLS# 134328
Mortgage rates hit a record low this week, but few people will be taking advantage.
Freddie Mac said Thursday the going rate on a 30-year fixed rate mortgage fell to 4.69%, its lowest level since the company started keeping track 38 years ago.
Another housing downer
The news comes as investors have beenshunning stocks in favor of bonds, especially those backed by the federal government. Money has flowed out of stock funds and into bond funds for seven straight weeks, whilesurging demand for U.S. Treasury debt has taken the yield on the 10-year Treasury note down near 3% -- a level last seen in the meltdown of 2008.
Lower mortgage rates, of course, make it cheaper to buy a house. But with unemployment stubbornly high, wages stagnant and tax incentives expiring, few people are taking the plunge.
New home sales tumbled to an all-time low last month (see chart above), and economists at Capital Economics in Toronto say another round of house price declines is waiting in the wings.
"Once home sales fall back to fairly depressed levels, house prices will start declining too," economist Paul Dales wrote in a note to clients this week. "By the end of next year, we think they will be at least 5% lower."
Though lower prices obviously will be good for buyers, a second leg down means our long national housing nightmare -- think foreclosures and bank failures -- is far from over.
Some of you have asked me to update rate information when there is a large drop, and today they plummeted! In PA and NJ I can provide a "No closing cost" refinance on a no cash out refinance with the following basic criteria: Balance of $220000.00 or higher, FICO 780+, less than 60% loan to value and escrowing Taxes and insurance. Here are todays rates
30 year fixed= 4.875% 4.909% APR all closing costs paid
20 year fixed= 4.625% 4.659% APR all closing costs paid
15 year fixed 4.375% 4.409% APR all closing costs paid
(These rates are as of 5/14/2010 and are subject to change)
If you would like to lock up one of these rates, please call me asap as they have been changing as fast as all the other volatile markets lately. We can complete the refinance from start to finish in 30 days or less if we meet all the parameters. The hardest part getting these done lately has been all the weak appraisal reports in both NJ and PA, and all around the country for that matter. Thank you in advance for your future or returning business! If anyone you might know is also interested in a refinance, please feel free to forward this blog message. I also work with many Realtors who feel very comfortable knowing I am always there for them with the most complex purchase challenges.
Best regards,
Phil Gustte
Mortgage Specialist
Walter Financial Inc.
713 Hyde Park
Doylestown, PA 18902
215-888-9915 (Direct)
Fax 215-230-4015
NMLS# 134328
www.activerain/gustte
Doylestown and Bucks County PA Mortgages
Here is what I can offer based on todays rates for a complete "no cost to you" refinance in PA, NJ and Florida. Please keep in mind these rates have been changing daily (sometimes at least 3 times) either up or down. These quotes are for <80% loan to value, 740 or higher FICO score, and owner occupied homes only, loan amounts under $417000.00 and over $230000.00. These quotes are based on a rate just above daily par pricing to cover approximately $2400-$2900 in standard closing costs. I will provide a detailed "Expense Worksheet" for exact details. An online application is required to lock a current rate. I will provide a rate daily for a 30 year fixed and one for a 15 year fixed also. I have many other programs available but this is strictly to provide information for "no cost refinances"
Todays no closing cost Rates: 5.250% (5.340% APR) 30 year fixed 4.625% (4.715 % APR) 15 year fixed (5-10-2010)
Please see article above reference "No closing cost refinance"
The above example is using much higher rates than currently availabe as of today. Please check my blog daily for examples of "No cost Refinances" as it is a complete win win if you have the chance to catch a great rate that works for you and meet nessesary requirements. Please call me with any questions. Thank you in advance for your business! Regards, Phil Gustte Mortgage Specialist Walter Financial Inc. 713 Hyde Park Doylestown PA, 18902 215-888-9915 (direct line Office 215-340-9660 x106
In order to get a No Closing Cost Refinance you will need to accept a slightly higher rate than a normal No Points mortgage. Usually about .250% to .500% higher.
Non-Recurring Closing Costs include the following: Appraisal Fee, Credit Report, Lenders Fees, Broker Fees, Title Insurance, Escrow Fees and Recording Fees.
Items that do not qualify as Non-Recurring Closing Costs are Property Taxes, Interest, and insurance. See the chart below to see if it is right for you. Request A Free Rate Quote.
Is a No Cost Loan Right for You?
If you are planning to own the property less than five years, or if you are short on cash to close on a purchase, then a no cost loan could be right for you. It is easy to calculate your break-even point by simply looking at the difference in your payment for a no cost loan vs. a loan with costs and then dividing that difference into the amount of non-recurring closing costs that you would have to pay at closing. The result of this calculation will tell you how many months it would take to re-coup the expense of the closing costs so you can then compare that time frame to the length of time you anticipate living in the property.
NO POINTS, NO FEES
OPTION B
OPTION C
Loan Amount
Interest Rate
Points
Base NR Closing Costs
Total NRCC's
Monthly Payment
Savings Per Month vs. Option A
Months Required To
Break Even
Years Required To
Break Even
No Cost Loan Comparisons
Let’s look a scenario outlined above comparing a no cost loan with a zero point loan. You are considering two options offered on a $300,000 loan. Option A is a no cost loan with a rate of 6.25% and a payment of $1,847 compared to option B, a zero point loan with base non-recurring closing costs of $2,800 and a rate of 6.00% and a monthly payment of $1,799. The difference in payment would be $49 per month and if you divide this difference into the base closing costs of $2,800, the months to required to break-even (BE) or re-coup the costs is 57.73 months. Divide the number of months by 12 to annualize the equation and it would take 4.81 years to re-coup the costs of the zero point loan vs. the no cost loan. Taking the no cost loan here seems to make the most sense.
Now let’s compare the no cost loan to a loan with base closing costs as well as points. Option A again has a 6.25% rate and is at no cost. Option C has a rate of 5.75% at 1 point plus base closing costs of $2,800. The payment under option C would be $1,751 and the total non-recurring closing costs (NRCCs) with the point would be $5,800. The payment under option A is $1,847 with the non-recurring closing costs (NRCCs) being paid by the lender (or already included in the rate). The difference in payment would be $96 per month and divided into the $5,800 in closing costs would equal 60.15 months, which divided by 12 to annualize, would then take 5.01 years to break-even. Given the time value of money and the fact that a homeowner will likely refinance within 5 years, once again the no cost loan is a make sense option.
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Complete Mortgage services in New Jersey and Pennsylvania. New purchase or refinance, many excellent programs available. I specialize in the Bucks county PA area with many happy repeat clients.
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