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Mortgage Rates Hit 20 Month Low

2015 off to a great start for home buyer in many ways.

It appears that the news continues to be positive for the Santa Clarita real estate market as we already near the middle of the first month of 2015. First up, interest rates have dropped…again, hitting a 20 month low by hovering in the low 3.70 percent range.

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We’ll reiterate how incredible this news is for qualified home buyers looking to maximize their purchasing power. Homeowners considering selling their home soon should also take heed, as there is even more good news that will affect buyers in a positive way.

So, we once again have nearly historically low interest rates. In other home buyer news, Fannie Mae and Freddie Mac have made changes to their guidelines for lenders by backing loans with as little as 3% down.

But wait…there’s more!

As you probably know, purchasing a home using a zero down payment loan requires Private Mortgage Insurance (PMI). Typically, the cost of PMI was 1.35% of the value of the loan at or above 80% of the loan-to-value ratio of the property. The Federal Housing Administration (FHA) recently announced that they will cut the cost of PMI from 1.35% to .85%, which will typically save the homeowner with a zero down mortgage up to $900 per year.

Is there any reason you haven’t bought a home yet?

We’re expecting an incredible year for real estate in 2015. If you’re on the fence about buying, here are some items you should keep in mind:

Interest rates are once again incredibly low
Lending institutions have created some incredible and flexible options for buyers
Home prices are on the rise, but you’ll be able to take advantage of growing equity in your investment

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