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!


Mortgage Market Update:

In a move to stimulate the economy, the Federal Reserve continues to lower interest rates. In February the Fed cut the Fed Funds rate to 3% percent, amid speculation that it could go even lower. Mortgage rates dropped early, only to come back up later in the month.

The number of resulting refinance loans has been strong across the nation, but activity has been tempered by increased fees charged by Fannie Mae and Freddie Mac. Starting in 2008, both companies are charging a quarter point for each loan they process. This fee is being called a "Delivery Charge" and is designed to offset some of the losses accrued from the recent increase in foreclosures.

Thirty year fixed mortgage rates rose remain in the low six percent range. The average jumbo thirty year fixed is hovering in the low 7 percent range. The National Association of Realtors reported decreased market activity in the Existing Housing Market, down 23 percent from the same time a year ago. As it stands, NAR is anticipating an annual sales volume of 4.89 million homes for 2008.

Finance Q and A:

Q: Why do some buyers opt for 15 year fixed rate mortgage when they can get lower payments spread out over 30 years?

A: The 15 year fixed rate loan permits you to own your home, debt free, in half the time and for less than half the total interest cost of a 30 year fixed rate mortgage. Because interest rates are often lower than these loans and you are paying as much total interest cost over the course of the loan, the monthly repayment is only about 25% higher than a comparable 30 year loan.

The 15 year mortgage can be a great financial planning tool for many investors. Ask your mortgage planner if this type of loan is right for you!

Tip of the Month:

Home owners with Adjustable Rate Mortgages (ARMs) should discuss their financial goals with a qualified mortgage planner. FHA and VA programs exist for many borrowers and maybe useful in transitioning out of an ARM and into a 30 year fixed loan. To see what loan programs might be available for you, contact your mortgage professional 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