chicago-condos & Chicago Real Estate & Chicago Mortgage pcherry on 27 Mar 2009 02:38 pm

Mortgage Rates Drop To Record Lows

The big news of the week for most Chicago condo buyers wasn’t the stock market drop but the new record low rate for 30 year fixed mortgages. The average mortgage rate dropped to an all time low of 4.85%. The average rate last week was about 4.89%, and the highest rate from last year was in July at 6.63%, according to information gathered in a Sun Times report.

The drop in long term loan rates was in part fueled by the federal government’s continued stimulus and bailout plan. According to calculations by mortgage company Freddie Mac, this low rate to add up to a savings of $226 in monthly loan payments for a $200,000 mortgage.

Unfortunately, some of this savings for Chicago real estate buyers will be undercut by fee hikes on loans and mortgages in general, some of which are targeted specifically for condo loans because those are deemed by lenders to have the highest default rate. Fees are said to be at an 8 year high, according to the Federal Housing Finance Agency. The article states that in 2005, the average total fees for securing a mortgage was $280 per $100,000. It has since increased to $640 per $100,000 and could go higher. Those numbers don’t include refinancing, and applications for home owners looking to refinance make up almost 79% of the total new loan applications as of March 2009. In all mortgage applications for the week ending March 20th are up 32.2% from the previous week.

And if you’re facing financial problems, you may want to pencil in May 2nd on your calendar. On that day you can attend a “Fix Your Mortgage” seminar at the police academy, according to a press release in the Sun Times. Once there, you’ll be able to find out if you qualify for federal foreclosure assistance. It’s estimated that about 8,000 Chicago homeowners should be able to qualify for help. If you own any Condos In Chicago, it would probably be worth your time to attend.

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