Cincinnati Mortgage Market update

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to postion yourself to be successful in today's market!

A big cut in the federal funds rate pushed mortgage interest rates to their lowest levels in four years. The Federal Reserve, in a move to stimulate the economy, has reduced their federal funds rate to 3 percent.

Refinancing activity has been strong and has accounted for a rise in lending activity across the nation, reaching its highest levels since March 2004, despite the fact that home purchase applications actually declined by more than 17 percent.

Thirty year fixed mortgage rates rose during the last week of January and remain in the high five to low six percent level. The average jumbo thirty year fixed is hovering in the low 7 percent range. As economists monitor inflation and its effects on long term US Treasury yields, Fannie Mae and Freddie Mac are both proposing new fees for mortgages they guarantee. According to these companies, these fees are in direct response to the inherent risks associated with guaranteeing loans.

Finance Q and A:
Q: What is the benefit of a bi-weekly payment schedule?
A: Some borrowers choose to pay back their mortgages over 26 bi-weekly payments per year. The bi-weekly payment schedule speeds up amortization and reduces total interest costs. It typically shortens the loan term from 30 years to approximately 22 years. These smaller bi-weekly payments amount to an extra monthly payment per year.
Payments are deducted automatically from your savings or checking accounts. The same objectives can be accomplished by making an extra payment each year, or by applying an additional amount to principal each month when you send in your payment.

Tip of the Month:

Given the recent activity in today's mortgage markets, homeowners everywhere are taking advantage of these historic low interest rates to refinance their homes. This is one of the best times in recent history to finance real estate. Contact your mortgage professional today to take advantage today.

Kim Schieldknecht - LO.002028.000, MB.802245.000Clermont Financial LLC726 Mohawk Trail & 5720 gateway blvd #204Milford & Mason, OH 45150(513)587-3599http://www.clermontfinancial.com