Here’s another great financial update from Narbik Karamian of BeneGroup, Inc. His contact information is located at the end if you’d like to speak with him about your financial needs.

“A lot going on nowadays; especially after the Fed pulled out of buying U.S. Treasury’s on April 1, 2010. We have noticed many new lenders are participating in lending with new loan products. This is creating a new environment in lending with these new investment firms from overseas as well as domestic private investment groups which have been sitting and observing from the side line until now.

Some of the highlights of new loan programs and rates are:

  • Interest rates on 30 year fix loans are hovering under 5% again
  • Short term loan are back. These are 3, 5, 7 year fix products primarily for people who do not plan on keeping their home for a long period. These programs range from 3.5% for a 3 year to 4.5% for the 10 year fix loan. The loan amount for these rates cannot exceed $417.750. Interest only payment options are available for theses products.
  • For loan amounts greater than $417,750, up to $729,750, the same are available with rates ranging from 3.75% to 4.75%. These programs are also available with interest only payment options.
  • Now it is possible to finance up to $2,000,000. This was not possible until a few months ago. Super Jumbo loans (higher than $729.750) are available in 3,5,7,10,15, and 30 year fix programs range from 4.25% on a 3 year fix all the way to 5.375 for a 30 year fix loan. These programs subject to good credit score and some other underwriting guideline requirements.
  • As we talked about earlier, the 5% down payment programs for conforming loans (up to $417,000) and 10% down payment programs for Jumbo conforming loans (between $417,750 – $729,750) is becoming more and more popular among the public instead of FHA. Though, the credit score requirement for this loan is a minimum of 680 now. FHA is still the better option for borrowers with less than this credit score requirement.
  • One of my favorite is a new loan program which is currently being used in England and Australia. This is a great loan for people who would prefer to pay off a 30 year mortgage between 9 and 13 years. At the beginning I thought it was too good to be true but when I studied it in detail I noticed that it is a really good program. There are a lot of requirements for qualification for this program. Let me know if you would be interested in more info about this program.

There is a very interesting article I posted on my blog about why interest rates are still at historic lows without the government interference. The more U.S. bonds sold, the lower the rates will stay for now.

Also, a part of my interview on housing will most probably be published in tomorrow’s San Jose Mercury Newspaper. Feel free to check it out if you have access to the newspaper.

Best Regards,

Narbik Karamian

BeneGroup, Inc.
A Premier Mortgage Consulting and Brokerage Firm
Cell: (408) 315-2834
DRE# 01372576
Director- California Association of Mortgage Professionals (CAMP), Silicon Valley Chapter”