With all the gyrations in world financial markets
, investors have moved back to the relative safety of bonds. Â What that means is that AustinÂ mortgage rates
have floated back to historic lows
. Â 30 year fixed rates are comfortably below 4%
for most borrowers and 15 year terms can be below 3.5%
. Â The actual rate you get depends on your credit score, down payment and other factors.
Although few borrowers consider them,Â adjustable rate mortgages
are an interesting alternative. They offer fixed interest rates for 5 or 7 year terms
, and have caps in place to limit increases
in the years after that. Â They are most recommended for those who intend to live in their home for less than 10 years. Â ARM's can be a good way to save thousands in interest
in the years you actually plan to live in the home. Â
Choosing a 5 year fixed/ARM at 2.75%
can save $10,000 over 5 years
on a $350,000 loan;Â over 7 years, the savings is $13,000 guaranteed.
Â For someone who anticipates moving after that, it's extra money for down payment
on the next home or to help pay the closing costs associated with selling the home in the future. Jumbo
borrowers can see an even bigger savings. Although the rates on jumbo ARM's are slightly higher, the savings on a $650,000 loan tops $24,000
in 5 years, $32,000
in 7 years. That's real cash towards property taxes or home improvements or college tuition.
If it's time to refinance or get preapproved
for a home loan, contact me anytime to analyze your situation and see what's best for you. Â I am the Realtor who makes home loans too!
Â I have over 20+ years experience
lending and selling homes in Texas and offer turn key solutions to buy, sell or refinance.Jeff Harris, Realtor & Mortgage Banker
Apply on-line at www.myTXhomeloan.com
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