Exciting Developments in Lending for Southern California Real Estate

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So far in 2016, we’ve seen the U.S. stock market’s worst start ever and an extreme decline in oil prices. The silver lining is we’ve seen some exciting developments on the lending side. Today, Brandon Moss from PrimeLending is here to give us the details. 

The good news is interest rates are the best we’ve seen them since 2012. For a 30-year-fixed loan, you can get an interest rate under 4%, and rates for 15-year-fixed loans are under 3%. Just last December we were at 4.25%, and now we’ve seen full or half-point decreases. It’s an amazing time for buyers, sellers, and homeowners who want to refinance.

In December, we anticipated that rates would increase. Since rates have actually decreased, buyers have a lot more purchasing power. If you got pre-approved in 2015, get that updated. You probably qualify for a much larger purchase price than last year. Even though home prices have increased, you can probably afford that house right now. 

We’d also like to remind buyers of a great program that allows you to pay 3% or 5% down with a conventional loan. This program is great for condominiums and townhomes. You can make a small loan payment and avoid the mortgage insurance that comes with the FHA. You can get a $625,000 loan and put 5% down. This is perfect for first-time and move-up buyers.

If you have any lending questions, feel free to contact Brandon directly at BMoss@PrimeLending.com or (818) 256-4330. As always, if you have any real estate questions, please don’t hesitate to give us a call or send us an email. We would be happy to help you!