Mortgage interest rates as January 11, 2023!

Mortgage interest rates today reflect the steadiness of the market throughout the holidays. Mortgage interest rates have stayed in a narrow range for the last three to four weeks, with today’s looking at about 6.125%, 30 year fixed and no points for 20% down payment on a conforming loan amount (up to $726,200) and 5.99% for the same scenario but 30% down payment. 30 year fixed mortgage rates seem to be the way to go right now, as shorter term fixed rates with 30 year amortizations, ( 5 year, 7 year and 10 year that roll over to adjustable rates) are slightly higher and have more points attached.  This isn’t always the case, but as long as mortgage interest rates remain this way, it is an added bonus to get 30 years of the same interest rate and take out the risk of shorter term mortgage instruments.  My advice, if you are capable, is to home shop now, before you run into a purchase market that will place you up against multiple other buyers who bid up the home price. If rates go down after you purchase, you can refinance. If rates go up, you can be satisfied that you were smart enough to hit the interest rates at their low point. Either way is a win! To obtain current mortgage  interest rates and get pre-qualified to buy that special home, call Michael Mitchell 530-406-2200 or 707-337-5970 cell.

With fewer buyers vying for the same home, you are likely to be the only one making an offer on the home your prefer.  So with this lack of competition, comes, in most cases, the ability to negotiate concessions from the seller, or even your real estate agent!  For instance, if you were to purchase a home in Woodland for $650,000.00 and put 20% down, your loan amount would be $520,000.00.  Today’s 30 year fixed rate at no points would be in the mid sixes, but lets use 6.5% for the sample.  If the seller agrees to concessions of $11,835.00 that would buy down your rate to 4.50% for the first year and 5.50% for the second year, then fix at 6.5% for the remaining 28 years.  If rates go down in that first two year period, or shortly after the two year period is over, then you can always refinance to the lower rate!  If rates go higher, you at least know you will never be higher than 6.50%!  The first two year period will see you making $11,835.00 less in payments – that is quite the savings!  If you have questions for yourself or a friend regarding the use of concessions in a real estate purchase transaction, give Michael Mitchell a call at 503-406-2200, 707-259-1117, or 707-337-5970 Cell!

If you have found that dream home, make an offer now!  When rates have risen, like they have recently, it takes a lot of your competition for that perfect home out of the picture.  So in a lot of cases, you will be the only one negotiating with the seller!  That is a lot better than having five other potential buyers bidding for your dream house!  If rates go down, after you have claimed your new home, then you can refinance.  If rates go up, you can be satisfied that you received the lowest rate when you purchased your home.  So go for it!  Claim that dream home today!  Your realtor will still want to see that you are pre-qualified to buy that home, so call Michael Mitchell at 530-406-2200, 707-259-1117 or 707-337-5970 cell, mornings evenings, after hours and weekends!