Rates REALLY are that low! – Now’s the time to Buy Portland Real Estate

We hear it all the time; now’s the time to buy, rates are historically low, if you’re thinking of buying don’t wait etc.  But truly over the last week rates of hit a record low for an overall across-the-board 15 year mortgage. 2.61% all-time low and the 30 year mortgage rates are 3.4% which are near record low percentages.

So which loan is the best one for your situation?Now’s the time to Buy Portland Real Estate

Factors vary with each and every situation and a 15 year mortgage may make sense to some people and not others. But consider this, making a 15 year mortgage on about $160,000 loan means you’re saving yourself over $60,000 in interest rate versus paying on a 30 year mortgage. That means more money in your pocket at the end of the day. You will be paying however about $400 more in each mortgage payment but that’s much less overall to the banks and lenders and more equity on your end of the deal.

Is having two mortgages cheaper than one?

MSN.com recently compared the cost for jumbo mortgage rates which were a little less than .1% higher than a conventional or conforming rate. The 30 year jumbo rate is currently 3.79% and 30 year fixed conforming rate was 3.59% (according to May 3, 2013).  A piggybacking loan may help buyers avoid higher interest rates and afford a home much higher than they would typically be approved for. These type of loans to do require larger down payments and are approved for homes over $417,000 in most areas of the country and $625,000 in high-cost areas.

Portland has a variety of high-cost areas but most are within the standard rate for jumbo loans. The best way to determine if two sets of loans work better for you is to sit down with a lender that knows the goals you’re trying to achieve. If a 15 year mortgage seems like a more favorable approach, consider the various interest rates, piggybacking loans, and jumbo loans to determine the best plan for your strategy.

For more information on obtaining financing for any types of Portland real estate feel free to give me a call anytime. I have connections with lots of different lenders, mortgage brokers and officers throughout the Washington and Multnomah County areas. Let’s devise a plan to get you into the home of your dreams today.

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