Who could ever have imagined that Greece’s financial difficulties and the resulting financial turmoil in Europe would affect home loan interest rates in the United States? Strange but true, the European Union’s reluctant bail-out of the Greek economy sent worldwide investors running to purchase “safer” United States bonds, which pushed down yields on Treasury bonds. Mortgage rates are closely pegged to ten-year Treasury bonds, resulting in lower interest rates on home loans, in some cases, the lowest in 50 years. Current estimates are that the lower rates would save a $400,000 home buyer approximately $200.00/month over the old rates. On a 30 year note, that could be a lot of savings.
This surprise windfall could, at least in part, alleviate the negative effects of the expiration of the Federal Government’s $8,000.00 credit.
Check with your Mortgage professional to see how you can benefit from this windfall, either in a new home loan or in refinancing an older loan.
West Hollywood Guide 