About Government Refinance and Home Purchase Programs

As we have discussed in the past, mortgage interest rates tend to roughly trend with the yield on the 10 year T-Note. In recent days, yields on the 10 year T-Note hit new 12 month lows. That is good news on mortgage interest rates.

As global turmoil continues to spook investors, money has been flowing into safer investments like U.S. treasury bonds. Like all market trends, this one won’t last forever; but in the short run, now is a good time to look into a refinance or a home purchase. Contact us in the form in the sidebar of this page for refinance help. To get info on home purchase programs just fill in the contact for on our home purchase page.

Escalating armed conflicts Israel and Ukraine has been spooking global investors over the last few weeks. When investors get spooked they generally start moving funds into safe investments like U.S. treasuries. That compresses the yields on treasuries which in turn lowers mortgage interest rates. While we haven’t yet seen a big drop in mortgage interest rates, we are seeing the rates staying at 12 month lows and the recent headlines have been creating even more downward pressure on rates.

The upshot is that now is a terrific time to look into buying a home or refinancing to a lower rate. If you are looking into a refinance, contact us in the sidebar. For home purchase inquiries, contact us on our home purchase page.

The USDA rural development program is a popular home purchase program. The primary appeal of the program is that it requires no down payment. In addition, borrowers who get a USDA RD loan avoid the expensive monthly mortgage insurance associated with FHA loans. One of the primary limitations to the program is that only homes that are in designated rural areas are eligible.

On October 1, 2014, the eligibility maps for the USDA rural housing program will change. See the USDA eligibility maps at the USDA RD site. Click on the “Single Family Housing” link in the sidebar and follow the instructions to get to the maps. Densely populated areas are not eligible but a surprisingly high number of suburbs are eligible for USDA RD program.

Contact us at our home purchase page to get more information on the USDA RD program.