Two Strategies for Getting Buyers into Homes
1. In many areas homes selling for under $417,000 after a buyers down payment should be much easier to finance with lower interest rates. Concentrating on buyers for homes around $500,000 may see less deals dissolve
2. If you do have a buyer for homes above $500,00 you should split the loan into one for $417,000, the maximum Freddie Mac will insure. This will get you the lowest rate available as a Govt insured loan. Then take a piggy back loan for the difference at a higher rate. You can then average the two loans for an overall lower rate and provide a litle more safety to the lender because the bulk of the laon can have a Govt backed assurance.
* This is why jumbo rates were rising and a conforming 30-year fixed-rate loan is the lowest it has been since June today.
As of 08/29/07
30-Year Fixed 6.08% 6.25%
15-Year Fixed 5.76% 6.02%
Jumbo 30-Yr Fixed 7.16% 7.27%
Thanks for Reading
Howard Bell for yourpropertypath.com