Friday home loan rates
Happy Friday to all! Hopefully a nice sunny weekend at that, wouldn’t that be nice? Well…. this week the rates came up a bit, still great rates though, a customer this week told me he remembered when his home loan was at 17%! The “industry’ in general has had some hard times, recent headlines showing sub-prime losses and many lenders going out of business. The lenders going out of business have been primarily mortgage brokers, these brokers have relied heavily on A- borrowers, when the industry tightens up those loans the the A- minus borrowers go away, therefore no business for the brokers. In my opinion a Bank or Credit Union is the best place to borrow money from. The have a good solid foundation to keep going on. Enough gloom though here are the rates!
30 year fixed 5.875% 1.25pts 6.096% APR or 6.375% 0 pts 6.387% APR
5/1 ARM 5.750% 1.125pts 6.256% APR
30 year fixed jumbo (over $417,000) 6.125% 1.125pts 6.440% APR
APR
Annual Percentage Rate, is the cost of the loan in percentage terms taking into account the various loan charges of which interest is only one such charge. Other charges that are used in the calculation of the APR are Private mortage insurance (if applicable) and prepaid finance charges ( loan discount, origination fee, prepaid interest and other credit costs). The APR is calculated by spreading these charges over thelife of the loan which results in a rate generally higher than the interest rate shown on your mortgage note. if interest was the only finance charge then the APR and interest rate woudl be the same.
Eight Steps to Getting Your Finances in Order
1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses such as car repairs, illnesses, etc., as well as predictable costs such as rent.
2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to a between 8 and 10 percent of your total income.
3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.
Check out the school district. . . . www.ExchangeCA.com Eight Steps to Getting Your Finances in Order
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