Virginia mortgage rates and industry news

If you're not familiar with the term Conforming "Plus", let me bring you up to speed quickly.  For those of us who live in high cost areas like Northern Virginia, HUD temporarily increased the conforming loan limit to as much as $729,750.  HUD approved this as part of the economic stimulus package and it's intent was to allow home owners to refinance out of traditional Jumbo rates, or purchase a new home at lower rates. 

Up until last Friday, the Conforming "Plus" rate wasn't exactly an attractive rate.  These programs were priced at least .500% to .75% higher than traditional conforming rates.  Not so today!  Banks and lenders have drastically reduced these rates and are now MUCH more favorable.

How much more favorable are they?

• Rates as of 5/9/08 were as follows:
• 30 year fixed:  5.75% zero points
• 5/1 ARM interest only:  5.25% with 1 point

What are the general guidelines for the Conforming "Plus" program?

• Excellent credit
• Purchases up to 90%
• Refinances up to 75% (and will allow a second mortgage up to 90%)

How much lower will rates get?  Most analysts don't expect rates to go much lower than they are currently, and many analysts believe we've pretty much hit rock bottom on interest rates, and that they will be going up soon. 

If you've got a adjustable rate mortgage (ARM) and want to get a fixed rate under 6%, now is truly the time to take advantage while you can.  Conforming "Plus" programs are scheduled to disappear in 12/08 so you don't have much time!  Couple that with declining home values, and your ability to refinance is slipping away too.  Without the proper equity in your home, you cannot refinance no matter how great your credit is!

Call or email me today and let me take a free, no obligation look at your mortgage profile.  Waiting any longer will certainly lead to massive regret!