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The Low Down On the Record Low Rates

The Low Down On the Record Low Rates – Good afternoon everyone, I wanted to briefly reach out to all of you regarding interest rates. For those of you that watch the market you already know we are seeing the LOWEST Mortgage rates we have ever seen – period.

Today the 10 year Treasury bond is at 1.57%.  That is a record low. Why this is important is the 10 Treasury specifically is what Mortgage Securities are based against. When the Treasuries drop in yield Mortgage rates typically follow in lock step.  Two months the 10 Year Bond was pushing 2.40% – that meant rates were above 4.125%, more so closer to 4.25%.  Today the average for a 30 year fixed conforming loan is 3.6%. That means if you had a $300,000.00 mortgage @ 4.25% your payment on that would be $1476.00.  If the rate was reduced to 3.625% your payment would be $ 1364.00, a difference of $ 112.00 monthly (7.62%) or $1344.00 annually. That’s a great deal of money for doing nothing.  Factor that over 30 years and you then save $ 40,320.00 – now why would you not want to refinance!

Here in San Diego we have been fortunate of recent as it relates to home values.  Many areas here in North San Diego County have seen a solid recovery in values.  Del Mar, Cardiff and Encinitas to name a few have been very fortunate in that they for the most part have “dodged the value bullet”.  Many of those communities have seen little to no drop in price allowing homeowners the opportunity to refinance with ease.  Buyers as well are able to secure financing without having to address a “soft” appraisal that comes back from the buyer’s lender.  There is nothing worse than having to renegotiate with a seller after an appraisal comes in short – it’s just not fun.

If you or anyone you may know is interested in refinancing or if you are a new home buyer looking to secure a new mortgage, please contact my office.  My backyard of course is here in San Diego, but also service Riverside (Temecula, Murrieta, Hemet, etc. ), Orange County as well as Los Angeles and Ventura County.

You can reach me directly at 858-525-2525 or greg@gmosergroup.com

 

 

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