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Long Beach Housing Market

Mortgage Rates for your Long Beach home
December 2nd, 2009 7:41 AM
I think we all know that mortgage rates have been low for several years now but are you really aware how low?  I was shocked on the weekend when I wrote an offer on a single family residence, for a single buyer and attached a copy of his qualifying letter to the offer.  I followed up on Monday morning with his lender and told her we had written the offer for a 30 year fixed rate loan with a rate no higher than 5.5.  I have 6% on my home I've lived in for 7 years and I have always thought that was a steal.  I was hopeful she would say you are well within what we can do today, but no she said oh that's way over what we need.  In fact, she was able to lock him in to a 30 year fixed rate loan at 4.785%.  I was shocked.  It had significant affect on his monthly payment.  Let me show you what I mean.  If he was financing $100,000 and the rate was 5.5%, his payment would be $568/mo, principal and interest.  If he finances the same amount at 4.875%, his monthly payment drops to $528/mo, that's $40/month or $500/year!  If you are purchasing a home that is 3 or 4 times that amount your savings will be significantly higher.  I did some research after my conversation with the lender and I found an article by one of the banks that said the rates last week and this week are the lowest they have been since 1971!  I know inventory is low and it's especially difficult at the lower price point, but if you are thinking about purchasing, between these rates, and the government tax credits, you really need to get into high gear and get it done.  There are still some really nice single family homes and condos in the Long Beach area.  Let me know if I can help you with your search.  What a great time to be looking to buy.

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Posted by Heather Burke & Sarah Ireland on December 2nd, 2009 7:41 AMPost a Comment

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