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Austin Real Estate Bits

By Jeff Harris | Broker in Austin, TX
  • Austin Mortgage Rates Back at Historic Lows

    Posted Under: General Area in Austin, Home Buying in Austin, Financing in Austin  |  May 16, 2012 7:26 AM  |  334 views  |  No comments
    With all the gyrations in world financial markets, investors have moved back to the relative safety of bonds.  What that means is that Austin mortgage rates have floated back to historic lows.  30 year fixed rates are comfortably below 4% for most borrowers and 15 year terms can be below 3.5%.  The actual rate you get depends on your credit score, down payment and other factors.

    Although few borrowers consider them, 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.  They are most recommended for those who intend to live in their home for less than 10 years.  ARM's can be a good way to save thousands in interest in the years you actually plan to live in the home.  

    Choosing a 5 year fixed/ARM at 2.75% can save $10,000 over 5 years on a $350,000 loan; over 7 years, the savings is $13,000 guaranteed.  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.  I am the Realtor who makes home loans too!  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
    512-917-8142 direct
    Apply on-line at www.myTXhomeloan.com

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