Scottsdale Mortgage Rates for January 9, 2009
Mortgage News This Week
Lower.
Rates generally were lower this week and as a result many loan officers were busy helping people determine if it “made sense” to refinance. I actually think that rates would have been *even lower* in general if lenders didn’t seem to keep the rates artificially higher than they normally would be to try to slow down the number of people trying to refinance. Remember — there just aren’t as many people working in the mortgage industry as there were 2 years ago – so higher volume is putting stress on a much smaller mortgage industry workforce.
One of the most exciting things that I helped a client with this week wasn’t a refinance though – it was helping them determine if they could buy a home with the new FHA HECM (Home Equity Conversion Mortgage) for Purchase program.
The FHA HECM for Purchase program is brand new as of January 1, 2009 and it is the FHA reverse mortgage program where seniors can buy a house using a reverse mortgage. What are the benefits to seniors of the HECM for Purchase program?
For starters, seniors may actually be able to buy a house with no money down (assuming that they can find a home that appraises for more than the purchase price) and make no payments for as long as they live in the home. Here is an easy-to-use calculator where you can find out exactly how much a house would have to appraise for and what the purchase price would be in order to bring no money down and make no house payments while you live in the home.
If you are over age 62 and currently looking to buy a home, the FHA HECM for Purchase program is one heck of a tough loan program to beat.
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