Mortgage rates dropped to the lowest level on record for the fifth time in six weeks, making homebuying and refinancing the most attractive in decades for those who can get loans.

The average rate for 30-year fixed loans this week was 4.54 percent, down from 4.56 last week, mortgage company Freddie Mac said Thursday. That's the lowest since Freddie Mac began tracking rates in 1971.

The last time rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

The rate on the 15-year fixed loan dropped to 4 percent, down from 4.03 percent last week and the lowest on record.

Rates have fallen since the spring. Yields on U.S. Treasury bonds have dropped as jittery investors seek safer investments. Mortgage rates tend to track the yields on Treasurys.

Low rates helped spark a little activity in the weak housing market. Applications to purchase homes rose 2 percent last week from the previous week, the Mortgage Bankers Association said Wednesday. Still, the housing market has been struggling and overall applications for loans were down last week as fewer people applied to refinance.

High unemployment, slow job growth and tight credit have made it difficult for many to purchase homes. The housing industry received a boost this spring when the government offered homebuying tax credits, but since those expired in April housing activity has fizzled.

Sales of previously occupied homes fell 5.1 percent in June. New home sales jumped last month, but it was the second-weakest month on record and it came after sales tumbled in May.

Refinance activity has increased over the last month as homeowners seek more affordable monthly payments. But many don't qualify for a loan or don't have the cash to pay for closing costs. And rates have been low for so long that many have already refinanced.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on five-year adjustable-rate mortgages averaged 3.76 percent, down from 3.79 percent a week earlier. Rates on one-year adjustable-rate mortgages fell to an average of 3.64 percent from 3.70 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 a point for all loans.

 

NEW YORK AP REPORT  7-29-2010

 

Mortgage Information

 

If you're like most buyers, a home is the most expensive purchase you'll ever make, and you'll probably need some form of financing.

There are many lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get the mortgage that best meets your needs at the best price.

Whether you are a first time home buyer, looking for that luxury home that is just right for you, seeking a retirement home, looking for vacation property or a good investment property for your portfolio, a good lender is critical.

As your REALTOR, I would be happy to refer you to some very good mortgage contacts I have in Brentwood, Franklin and Nashville, or to help you in any other way I can to secure the best possible rate for your home purchase.  The links on this page will put you in contact with professionals that can help you with this process.  I would be glad to provide additional contacts for your mortgage and real estate needs if required.  If you decide to contact the folks on this page I would just ask that you let them know you got their contact info from me, thanks.

One area of real estate investing or purchasing that we are seeing a rapid increase in is the utilization of your IRA.  This is allowing people to withdraw from the turbulent stock market and make timely investments in our buyers market of today.  Please call me or email me and we can discuss your situation and I would be glad to put you in contact with professionals in the fields of law, tax and estate planning to help you with this exciting facet of real estate ownership.  There are lots of properties in Brentwood, Franklin, Nashville, Williamson county and Davidson county that could be right for your real estate needs.

 

HOME LOAN OPTIONS

All Cash
Alternative (A,B,C,D) Loans
Assumable Loans
Easy-Qualifier Loans
15, 30 & 40 Year Loans
Lease Options
Low-Cost Loans
Low-Down Loans
No Money Down
Reverse Annuity Mortgages (RAMs)
Seller Financing
Whom to Contact


QUALIFYING

Bankruptcies & Foreclosures
Credit
Parent Gifts & Loans
Prequalifying & Preapproval
Private Mortgage Insurance (PMI)
Whom to Contact


OTHER MORTGAGE CONSIDERATIONS

Appraisals & Market Value
Fannie Mae
Interest Rates
Lock-ins
Negative Amortization
Prepayment
Refinancing
Whom to Contact


GOVERNMENT LOAN PROGRAMS

Federal Housing Administration (FHA)
Mortgage Credit Certificates
State Programs
Veterans Administration
Whom to Contact

 

CALCULATORS 

 

Use the mortgage calculators below to assist you in making some decisions around financing your new home.

Mortgage Qualification Calculator

This calculator will help you determine how much money you qualify to borrow. The results are informal. You will be subject to a credit approval from your financial institution taking into consideration existing debt load, amount of down payment, income and other variables.

Mortgage Payment Calculator & Amortization Table

This calculator will help you determine what your mortgage payments will be based on purchase price, interest rate and mortgage term, as well as other factors. The amortization table shows what the interest and principal payments will be over the term of the mortgage.