Mortgage Rates Mixed for Week of Nov 2

Mortgage rates were mixed for the week of November 2, but incremental increases in average rates for 15 year FRMs (from 4.60 to 4.70 percent) and 5/1 ARM rates (from 4.26 to 4.30 percent) shouldn't cause too many problems for those buying homes or refinancing existing mortgage loans. Average rates for 30 year FRMs moved from 5.16 to 5.13 percent.

Tax Credit Extended, New Terms Include Homeowners

Congress extended the fist time home buyer program on November 6. The new deadline is June 30, 2010, but (and this is an important "but") buyers must sign a purchase contract no later than April 30, 2010. Other highlights include eligibility for current or past homeowners who've owned a home for five consecutive years within the last eight years. Single buyers with incomes of $125,000 and married couples with incomes of $225,000 or less may qualify.

Continuing low mortgage rates and home prices in many areas should spur "fence sitters" to take action; the combined benefits of low home prices, low mortgage rates, and the home buyer tax credit can't be ignored. As with the previous home buyer tax credit program, "first time buyers" include anyone who has not owned a home within the past three years.

FHA and Local Programs Can Help with Mortgage Down Payment Funds

If you're short on cash, don't let opportunity slip away. Check out low down payment FHA mortgage loans, and ask lenders and local real estate professionals about home buyer assistance programs in your area. These programs are designed to help first time buyers with affordable primary mortgage loans and also low cost financing for down payment and closing costs. Qualifying for home loans is easier when mortgage rates are low and home prices affordable. If you've been thinking of buying a home, and are ready, it's time to stop thinking and start looking for a mortgage loan. Likewise, homeowners who are considering a mortgage refinance can find favorable mortgage rates and loan terms.