Hello and best wishes for the New Year!
I am grateful and honored to be part of so many lives. Thank you for giving me the opportunity to be of service! Once again I want to say how fortunate I am to help neighborhoods with their plans, help people sell their homes so they can continue with their dreams and help people buy homes so they to can live their dreams! Thank you!
Mortgage News: Mortgage Matters!
By Ed Arriola - Long Mortgage Company
Interest Rates are on the rise.…With the Federal funds rate being near 0% since 2009, and the 10-year treasury hitting a low of 1.367 in July 2015, the target range for the Federal Funds Rate is now 2.00–2.25%. This represents the eighth increase in the target rate since tightening began in December 2015. The 10-year Treasury recently more than doubled reaching 3.24%. Mortgage rates have also increased significantly and are expected to rise further. Currently, 30-year rates have breached the 5% level not seen in years.
5-year and 7-year Adjustable Rate Mortgages (ARM), and 15 year mortgages are running about .50% to .75% less and are a good option to keep the interest rate down especially when the circumstance exist that the loan could be paid off in that time frame. The strong economic growth, low unemployment, increasing stock prices are the contributing factors to the increase in rates. Fortunately, inflation remains in check where high inflation can be a significant factor leading to even higher rates.
Mortgage Loan Limits Increase! Due to rising home prices nationally, The Federal Housing Financing Agency announced a nearly 7% jump in the 2019 Conventional Loan Limits. The new limit for Conventional FNMA/FHMLC is $484,350 up from 453,500.
This also sets the limit up to 484,350 for the maximum VA Loan with no money down! VA loans allow higher loan amounts-but require a 25% down payment on the difference between the sales price and the new loan limit.
The FHA Loan limit for 2019 has not been announced but is expected to rise to approximately to 314,825.
Ed has helped thousands of Tucson home owners purchase or refinance their homes over the last 30 years. He is a University of Arizona Business/Accounting graduate and was All American track star running the mile under 4 Minutes while at the U of A.