Myrtle Beach Mortgage Rates for August 12, 2013

Mortgage Rates for August 12, 2013 by one Grand Strand Lender:

30 yr fixed 4.50% purchase;   4.50% refinance

20 yr fixed 4.125% purchase; 4.25% refinance

15 yr fixed 3.50% purchase;   3.625% refinance

10 yr fixed 3.375% purchase; 3.50% refinance  

While up a little from months past, they still represent a historic opportunity to lock in a low rate.

Current Mortgage Interest Rates

Current interest rates for Grand Strand mortgages:

30 yr fixed 4.125% purchase; 4.375% refinance

20 yr fixed 3.875% purchase; 4.125% refinance

15 yr fixed 3.25% purchase; 3.50% refinance

10 yr fixed 3.125% purchase; 3.50% refinance

Current Mortgage Rates for Grand Strand Borrowers

Here's what one local lender is offering, but always shop around:

30yr fixed 4.125% purchase; 4.375% refinance

20 yr fixed 3.875% purchase; 4.125% refinance

15 yr fixed 3.25% purchase; 3.50% refinance

10 yr fixed 3.00% purchase; 3.25% refinance

Good bye to Adjustable Rate Mortgages?

The Feds have changed the rules for adjustable rate mortgages making it harder for buyers to qualify and probably forecasting the end of ARMs.

They've instituted an ability to repay rule, effective January 2014, requiring lenders to evaluate whether a borrower can repay if the loan adjusts upwards.  Unlike fixed rate mortgages which have the same interest rate and payment over the life of the loan, ARMs fluctuate with interest rates, usually being pegged to LIBOR, a world wide reference rate computed in London.

Instead of qualifying buyers with an ARM's low introductory rate, the lender will be required to use the loans loan's "fully indexed rate" or LIBOR plus the lender's margin.  This will make it harder for some buyers to qualify,  but once they do it's less likely they'll be forced out of their home if (really when) interest rates rise.

One thing for sure, interest rates will eventually go up,  it's just a matter of when and how far--how can I be so sure, easy, they can't go much lower unless we start paying banks to hold our money....

So why bother with an ARM?  An ARM with a low introductory rate might make sense if you know you will be moving around the end of the introductory period; otherwise a fixed rate mortgage is likely to be a better deal for the long term.

Forecosures Take Big Jump in 1st Quarter

In the first quarter of 2012, Horry County foreclosure filings were up 95% compared to last year with about 1460, most of which were lis pendens, the papers lenders file to start the foreclosure process.  About 1 out of every 127 properties in the state has a foreclosure filing, the 3rd highest in the state and the 10th highest in the nation.

What brought about the jump?  The economy is still weak and some of increase is those folks who were struggling to keep ahead and now they've had to let go.  Also federal and state lawsuits against 5 of the largest lenders has been settled, so a lot of pending foreclosures moved to foreclosure. 

The foreclosures continue to push down prices, in March the median price of a home or condo along the Grand Strand was $130,000 down 10.3 % from the same month last year.  With the tough financing environment, it's investors who are keeping the market going, paying cash--51 % of 1st quarter sales were cash.