Prices are almost 60% lower than at the peak and mortgage rates are excellent!!
It’s a Great Time to get a Mortgage!!
Mixed economic news that continues to lead the headlines has helped to keep low mortgage rates stable. Financial troubles in Europe has left investors busy each day waiting to see if Greece will default or a rescue plan will be implemented. Here in the U.S., even a negative report that is not considered terribly bad is spreading optimism to the markets making any predictions unreliable.
Current 30 year fixed mortgage rates are at 3.875%, 15 year fixed mortgage rates are at 3.250% and 5/1 adjustable mortgage rates are at 2.625%.Mortgage rates have reached historic lows.
With good credit, borrowers can obtain these low mortgage rates with 0.7 to 1% origination fee. Of course, income will need to be verified and other documentation will need to be checked to receive lender approval. Whether you are buying a home or refinancing an existing mortgage, there has never been a better opportunity to receive the lowest mortgage rates available.
FHA has been keeping busy especially with first time home buyers. First time home buyers turn to FHA because no other mortgage loans offer a down payment of 3.5%. Even with credit as low as 500, FHA will accept a down payment of 10%. Then there are the low FHA mortgage rates that are offered and are not based on credit scores. Current FHA 30 year fixed mortgage rates are at 3.750%, 15 year fixed mortgage rates are at 3.500% and FHA 5/1 adjustable mortgage rates are at 2.750%. FHA does have higher closing costs (APR) because of the upfront mortgage insurance premium and other FHA fees. To help with this issue, FHA mortgages allow seller concessions, gifts and housing grants to be part of the mortgage transaction. FHA mortgages have been leading in mortgage applications even when overall mortgage application activity has decreased.
After almost two weeks into the decreased conforming loan limit, low jumbo mortgage rates are doing just fine and have been somewhat stable, along with other mortgage rates. Jumbo 30 year fixed mortgage rates continue to fluctuate and are currently at 4.750%. Jumbo 15 year fixed mortgage rates are at 4.375% and jumbo 5/1 adjustable mortgage rates are at 3.250%. With more properties now falling back into the jumbo mortgage market, it is important that borrowers have these low jumbo mortgage rates still available. Borrowers will need to have excellent credit to obtain these lowest jumbo mortgage rates with 0.7 to 1% origination point. Jumbo mortgages are not government insured so lenders want to be sure that borrowers are well qualified.
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It all depends on your goals, income and credit history—and thus your ability to secure the lowest available rates.
Many homebuyers may be willing to accept a more modest long-term return in exchange for the inflation hedge that physical real estate provides. (By owning your own home with a fixed rate loan, you eliminate any vulnerability to rent increases and hold the inflation line on one of your biggest personal expenditures.)
Michael Dougherty, GRI , e-PRO, CNE is the Past President (2008) for the Prescott Area Association of Realtors with approximately 1000 members and a State Director for the Arizona Association of Realtors with over 53,000 members.
Prescott is a rapidly growing mountain town with old western mining roots. With its pleasant mild climate, it is a popular weekend destination for those escaping the desert heat of the Phoenix area. Built around a traditional courthouse square with many of the original building still standing, Prescott offers a look into the past with the popular Whiskey Row and other local attractions. Outdoor recreation is plentiful in the Prescott National Forest with mountain biking, hiking, camping and scenic drives. Prescott is located 100 miles north of Phoenix in the clean fresh air of the Central Arizona Mountains. It is 90 miles southwest of Flagstaff. Highways 89, 89a and 69 will all bring you right to town.
Looking for Homes or Land in or around Prescott, Prescott Valley, Chino Valley or Dewey
We are dedicated to providing the finest service available while breaking new ground. Our unique market knowledge of Prescott AZ homes (including Prescott Valley, Chino Valley & Dewey) can save you countless hours, frustrations and possibly thousands of dollars if you make the wrong choice on your own!
Call or e-mail us with any questions you may have about buying or selling homes or land in beautiful Prescott, Arizona.
Rated 3# as best place to retire!!
What Prescott is like for active adults
Located at an elevation of 5400 feet in the mountains of north central Arizona, the City of Prescott (population almost 43,000 in 2008) was the original territorial capital of the Arizona Territory. This old mining town and now popular active adult retirement community borders the Prescott National Forest to the south and west. Prescott and the nearby towns of Chino Valley and Prescott Valley form what is known locally as the Tri-City area.
Carrying the nickname, “Everybody’s Hometown,” Prescott is home to the downtown Courthouse Plaza, famous Whiskey Row, World's Oldest Rodeo, Prescott Fine Arts Association, Sharlot Hall Museum, and the Phippen Art Museum. The State of Arizona has been officially designated Prescott as “Arizona’s Christmas City”. Prescott is home to several colleges including Yavapai, Prescott College, Emory-Riddle Aeronautical University, plus other specialty campuses.
The downtown’s Courthouse Plaza, framed by towering elms, is the focal point for much of what goes on in this active tourist and retirement community. Activities include crafts fairs, antique shows and art shows.
