Author: ipgocorp

NEW YORK, NY – Mortgage rates increased modestly this week, with the benchmark 30-year fixed mortgage rate ticking up to 3.75 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.19 discount and origination points.

The larger jumbo 30-year fixed stepped lower to 3.67 percent, and the average 15-year fixed mortgage nosed up to the 3 percent mark. Adjustable mortgage rates were higher as well, albeit modestly, with the 5-year ARM increasing to 3.13 percent while the 7-year ARM crept higher to 3.37 percent.   

Mortgage rates reversed last week’s move, posting the first increase since mid-March. But the movement was pretty tame as not much changed in the previous week – we saw more mixed news on the economy against the backdrop of economic weakness and accommodative central banks overseas. Still, mortgage rates are at levels that prior to this month would have been the lowest since 2013, so nobody’s mortgage refinancing is in jeopardy and nobody is being priced out of the market based on mortgage rates.  With the Federal Open Market Committee meeting next week, don’t expect big mortgage rate moves beforehand as markets await the Fed’s thoughts on interest rates and the economy.

At the current average 30-year fixed mortgage rate of 3.75 percent, the monthly payment for a $200,000 loan is $926.23. 

SURVEY RESULTS

30-year fixed: 3.75% — up from 3.72% last week (avg. points: 0.19)

15-year fixed: 3.00% — up from 2.99% last week (avg. points: 0.16)

5/1 ARM: 3.13% — up from 3.11% last week (avg. points: 0.20)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The majority of panelists – 69 percent – predict that mortgage rates will remain more or less unchanged in the coming week. The remaining 31 percent of participants expect further increases in mortgage rates. Interestingly, none of this week’s respondents forecast a decline in mortgage rates over the next seven days.  

With the end of the year comes the likelihood that the SBA Guarantee Fee will not be waived any longer.  We are all waiting for the latest information on what will occur at the end of the year.  Will we be back to 75% Loan Guarantees and full SBA Guarantee Fees or will we stay the same are now.  90% Guarantee and No SBA Fees.

2010 did see one major change,  The SBA 7A loan which was capped at 2,000,0000 (two million dollars) has been raised to 5,000,0000 (five million dollars).

Lastly be aware that now for the first time SBA Loans can be applied to Self Storage Loans as well as Mobile Home Park loans.  What that means is that a qualified buyer can now buy a self storage facility anywhere in the US for as little as 15% down or in some instance may be even as little as 10% down.

With the cost of real estate still plummeting this is a great way to get an increased ROI or IRR by purchasing a cash flowing property with 10%  to 15%  down you are almost guaranteed a positive cash flow from day one.  At the least it is a GREAT DEAL.