Great Mortgage Rate News As We Near End of 2011

For home buyers in Folsom and around the nation, we get some good real estate news as we near the end of 2011: A new Freddie Mac survey of mortage rates shows that rates hit a new low this week.

Freddie Mac's "Primary Mortgage Market Survey" showed that rates on 30-year fixed-rate mortgages averaged 3.91 percent with an average 0.7 point for the week ending Dec. 22, down slightly from the previous week.

Meanwhile rates on 15-year fixed-rate mortgages averaged 3.21 percent with an average 0.8 point, unchanged from last week's record low but down from 4.15 percent a year ago.

In the end, rates on 30-year fixed mortgages have been at, or below, 4 percent for the last eight weeks. That translates into $1,200 in annual savings for a homebuyer taking out a $200,000 mortgage, according to Freddie Mac's chief economist. Not bad! all4now

Good news for home buyers from Wells Fargo

Just read about some good news for home buyers (especially first-time home buyers)  in my latest Realtor magazine. Anyone who has bought a home recently knows how challenging it can be to secure that mortgage--even with a good credit score. Well finally, there is a new policy from Wells Fargo that they are now providing FHA mortgages to borrowers with credit as low as 500. Under the new policy, Wells Fargo will accept borrowers with credit scores of 500 to 599 if the buyers can make a down payment of at least 10 percent (note that gifted funds or other down payment assistance is not allowed). If, as a buyer, your credit score is between 580 and 599, you must put down 5 percent (same gifted funds/down payment assistance restriction as above applies). And, if your credit score is 600 or higher, you can make a 3.5 percent down payment. For more, just contact Wells Fargo directly. all4now