Interest Rate Update and Trends in the Stockton Real Estate Market
Successful buyers in today's real estate market are informed buyers. There has not been a better time to buy than today. Interest rates are low, purchase prices for homes in Stockton, Lodi and San Joaquin are at an all time low and with the addition of the 1st time home buyer’s tax credit up to $8,000 and $6,500 for move up buyers the timing could not be better. The mortgage market has several options with low down payments. FHA loans have down payments as low as 3.5% and in some cases close to zero down payment, VA loans qualify for a zero down payment.
Interest rates have remained stable as of November interest rates are averaging:
- FHA 3.5% down 30 year 5,.250%
- VA 0% down 30 year 5.250%
- Conventional 10% down 30 year 5.375%
- Conventional 20% down 30 year 5.000 %
The best interest rates go to those with the best credit scores. Having a lower credit score can not only deny you credit but cost you severely financially. Protecting your credit is paramount to the loan process. Bad credit can be repaired. The following steps can help you improve your credit score:
- Pay all past due accounts
- Get rid of late payments talk with your creditor
- Request your creditor to increase credit limits every 6 months only if they do not need to run a credit check each time
- Do not close old credit accounts, keep them active
It is important to actively use you credit but wisely. Be disciplined when you borrow and pay accounts off immediately. Keep your credit balances to less than 30% of your credit limits. Increasing you credit score by as little as 20 points can save you substantial amounts over a thirty year mortgage.
At the Hugh Lilly Real Estate Group at PMZ Real Estate we can walk you through the process of obtaining a mortgage and help you find that home that fits your needs. Call Hugh today at 209-472-9222 or visit his web site at www.hughlilly.com .