Global Upheaval Equals Low Mortgage Rates

The upheaval of the global financial market has produced one positive side effect: historically low mortgage interest rates. For the past year or so we have been hearing about historically low interest rates, repeatedly being told that the rates are the lowest that they have been in 30 years, since the tracking of interest rates began. This week the headlines have been blaring the same news again, with interest rates even lower than they were the last time that they were at 30 year lows just a few months ago.

Currently a 30 year fixed rate mortgage can be locked in for a 4.87% interest rate. Even jumbo loans have fallen, with an interest rate of 4.5%. While there is much hype about the tightening of the financial market and the hoops a borrower has to jump through to secure a loan, there couldn’t be a better time to refinance or purchase a new home.

It’s a great time to either own a home or buy a home. Low interest rates can shave a great deal of money off of the cost of a home over the lifetime of a loan. If you have good credit, a steady source of income and have been thinking about purchasing real estate then you owe it to yourself to get out there and start looking, unless of course you can afford to wait another 30 years or so.

On the real estate investment side, we have seen fast changing and more liberal criteria for both debt and equity (including some for development) in the last 30 days. The focus for capital continues to be on both ends of a “barbell” i.e. top tier product, sponsor, and location which justifies reasonable pricing and terms OR very discounted distressed assets which make sense to capitalize at a high cost of funds.

If you would like a source of various lending products and sources, go to our wholesale real estate investment website and click on the “Refinance” or “Hard Money” pages.