Interest Rates On The Rise

Interest Rates are on the rise.  As predicted back in March 2015, interest rates went up this week on all loan products.  Don’t get me wrong, interest rates are still relatively low compared to a few years ago but a little more expensive then they were a couple of months ago.  If you plan on purchasing a new home this summer, you will want to hurry up and jump in on the band wagon before rates rise again.  There are still plenty of great home deals out through the entire state of Arizona.

Jumbo loans:  Jumbo loan products aren’t as difficult to obtain as they were several years ago.  We have a 90% loan to value ratio no mortgage insurance program that will lend up to $1.5 million dollars with a 760 fico score and 38% debt to income ratio.  If you have a 720 fico score they will lend up to 80% loan to value with a maximum loan amount of $1 million.  If you have a fico score of 740, they will lend up to 65% loan to value ratio and a maximum loan amount of $3 million.  Did you originally pay cash for your home and now require cash out?  If you want to obtain cash out within the first six months of buying the home we can do a 80% cash out refinance.  The original purchase price will determine your appraised value.

Jumbo loan versus Conforming loan:  The maximum conforming loan amount is $424,100.  If your loan amount is between $424,102 and $435,000, if you have the money you are better off putting more money down on your loan.  Then you can obtain a conforming loan.  Why?  Because not only are the interest rates lower but the debt to income ratios are higher.

Why purchase a home now versus later?  As interest rates are on the rise that means the higher the interest rate the less of a home you can afford.  Lower interest rates allow borrowers to buy a more expensive home because the payment is much lower.

Bankruptcy, short sale, or foreclosure?

No problem.  Just provide us with the date of the event so we can determine which loan program works best for you.  Do you currently not qualify for a loan because of a bankruptcy, short sale, or foreclosure?  If you can put 20% down, we have a lender that will overlook this in exchange for a higher interest rate.  The interest rate is higher than a conforming loan but lower than a hard money loan. It’s sort of in the middle.

For more information on our loan products, please give our office a call directly at 602-358-8717.






Article 1:  Interest Rates On The Rise