One of the requirements of receiving a VA loan is that you must have an appraisal performed on the property. What does this mean for you? If you are a first-time homebuyer, or if this is your first VA loan, the idea of getting an appraisal can be daunting. But, if you remind yourself that the appraisal process is there to protect you, the buyer, from paying more than fair-market value for your home, then it actually becomes quite painless.
15-year fixed-rate mortgages always seem to get thrown on the back shelf a little bit.
It doesn’t come with the glamour and glitz of a 30-year fixed-rate mortgage, and the news seems to keep their eyes on the average of the 30-year fixed-rate mortgage.
On one side of the coin, it makes sense. Most home buyers seem to flock to the 30-year fixed-rate mortgage, but what about those home buyers who don’t plan on staying in their home for that long?
That’s where the 15-year fixed-rate mortgage comes in to play, and the good news is that according to Freddie Mac’s weekly Primary Mortgage Market Survey, the nationwide average for a 15-year fixed-rate mortgage has never been lower.
After jumping up to 2.70% with 0.6 points last week, 15-year fixed-rate mortgages fell to a new record-low average of 2.66% with 0.6 points this week. This breaks the previous record of 2.69% with 0.5 points set two weeks ago. Last year at this time, 15-year fixed-rate mortgages averaged 3.38%.
30-year fixed-rate mortgages took a dive close to record lows but not quite, falling to 3.37% with 0.7 points from last week’s 3.39% with 0.7 points. The previous record of 3.36% was set back on October 4, 2012, so stay tuned next week to see if another record is broken. 12 months ago, 30-year fixed-rate mortgages averaged 4.11%.
5/1-year ARMs and 1-year ARMs both took a jump this week. 5/1-year ARMS averaged 2.75% with 0.6 points this week after last week’s 2.73% with 0.6 point average, while 1-year ARMs ticked up to 2.60% with 0.4 points from last week’s 2.59% with 0.4 points.
At this time last year, 5/1-year ARMs and 1-year ARMs averaged 3.01% and 2.94%, respectively.
Do you know what Frank Nothaft, vice president and chief economist from Freddie Mac, had to say this week? I didn’t think so, but luckily for you, I have it memorized and I’ll tell it to you verbatim.
“Mortgage rates remained more or less unchanged this week as home construction builds up steam. Construction on single-family homes jumped to an annualized rate of 11 percent in August, the strongest pace since August 2008. Over the first nine months of the year, single-family starts were 23 percent higher than the same period last year. Moreover, homebuilder confidence rose for the sixth consecutive month in October to the highest level since June 2006, according to the NAHB/Wells Fargo Housing Market Index.”
Pretty impressive, eh?
It’s definitely a great time to buy or to refinance your mortgage, so make sure you take advantage of these low rates before they’re just a distant memory, like that Backstreet Boy with the soul patch.