25 June 2009 ? Mortgage backed bonds opened up 19 this morning and continued to trend up to a positive 41! Mortgage Bonds may be rallying as the unemployment continues to rise with 15,000 more jobs lost than forecasted. Yesterday?s announcement by the FED that they will keep the Prime Rate close to zero (0) for the entire year and also continue to buy mortgage backed bonds came as no surprise. The government continues to buy mortgage backed bonds to help keep the mortgage rates at a consistent low level to attract first time buyers with low home prices and low mortgage rates. If you are considering buying and you currently own, meet with a seasoned mortgage consultant who can explain the rent versus own benefits. Right now many renters would be surprised that they can actually have the same payment if they buy a home as what they are paying rent! Mortgage interest and real estate taxes are deductible and if you are purchasing in Chicago there are other incentives.
The 30-year rate continues to trend down and is currently at 5.125%. Today?s tip of the day if you are going to take a 30-year mortgage with an average loan amount of $200,000 and you apply $95.00 extra per month to your mortgage payment this will save $40,000 of interest over the life of the loan and your mortgage will be paid off in 25 years!Email This Post To a Friend.