A .25% reduction in interest rate can save a homeowner $21,000 in mortgage payments over 30 years for a $400,000 home loan.
San Jose, CA (PRWEB) June 03, 2011
California Mortgage Rates continue their free fall. According to Freddie Mac average 30 Year Fixed Mortgage rates peaked this year at 5.05% in early February. Since then rates have been consistently going down. Last week's average rates released by Freddie Mac reported the 30 Year Fixed rate at 4.60%, 15 year Fixed rate at 3.78% and 5 Year ARM at 3.41%.
Arcus Lending, a Mortgage Broker and Direct Lender based in San Jose, CA was quoting the rates even lower than the average rates released by Freddie Mac to its clients. When contacted, Shashank Shekhar who is the author of "First Time Home Buying 101" and "Real Estate Unleashed" pointed out that a .25% decrease in interest rate can save a homeowner $21,000 in mortgage payment for a $400,000 loan amount on a 30 year fixed loan.
Shashank Shekhar, on one of his posts written on his widely acclaimed mortgage blog commented that mortgage rates have been going down primarily because of weaker economic data. Some of the recent news contributing to rate decline are:
- ADP May Private jobs up only 38k, against an estimate of 175k
- Index of Leading Indicators falling 0.3% in April, first fall since June 2010
The interest rate will most likely not remain at this level for a long time. It offers currently, a small window of opportunity for Home Buyers and Home Owners to get these historically low rates while they are available. In fact there are some loan programs that can help even home-owners who are underwater to refinance their homes at a very low ineterst rate without paying any Mortgage Insurance.
If you are a California resident and would like to avail these lowest mortgage rates of the year, you can contact Shashank Shekhar at Arcus Lending directly at 408.615.0655 or apply online at http://lendingexpertblog.com/apply-online/.