Welcome to 2016, we want to wish everyone a happy new year. Let’s talk about January 2016 interest rates and what new home buyers can expect. First, many economists and mortgage experts have predicted that interest rates are going to start moving higher in the coming months. In fact the Federal Reserve increased overnight interest rates for the first time in seven years just last month. Most feel that the Fed will increase interest rates multiple times in 2016. If this happens, home buyers can be assured that mortgage rates will go up.
If mortgage rates start to move higher it is not going to be overnight. Mortgage rates tend to more slowly, much like the overall economy. Unless there is a huge jump in home prices and a drastic reduction in the unemployment rate, do not expect to see mortgage rates moving very quickly. That said, it never hurts to consider a new home purchase or refinancing while rates are still near all time low levels in January. With the 30 year fixed mortgage rate around 4% now is a great time to purchase or refinance.
Current interest rates as Of January 1, 2016
FHA / VA Loans – 3.75%
100% USDA Rural Housing Loans – 3.75%
Conventional loans (20%+ down payment) 4%
Jumbo Loan Rates – vary based on credit score, down payment and loan amount. For a quick quote please submit the “Request Contact” form at the top right side of your screen. Mobile users can find the short Request Contact Form here.
*Keep in mind a few things – the rates listed are for a 30 year fixed. Lower terms (15 year fixed, etc) will have lower rates. The rates noted assume best credit, over 740+ credit FICO scores. Home buyers with lower credit score will likely take higher adjustments to their final interest rate. Example – a buyer with a 660 credit score will likely see a 3.85% or 4% rate. The rates assume NO loan discount points, but buyers can always pay loan points to buy down their interest rate lower if they choose. The interest rates listed also assume a standard 30 day lock in period. Higher rate lock in periods (60, 90 day, etc) will result in higher rate adjustments – similar to lower credit scores.
For home owners that currently have a USDA, FHA or VA mortgage:
Remember that millions of homeowners that have government backed home loans are eligible to refinancing their loan and possibly save hundreds each month.
USDA 502 Guaranteed – Home owners that currently have a USDA backed home loan can learn about the USDA Pilot Refinance here.
FHA Streamline – Home owners that currently have a FHA mortgage can read about the FHA streamline refinance here.
VA Interest Rate Reduction Refinance (IRRRL) – Home owners that currently have a VA mortgage can learn about the latest 2016 VA guidelines here.
We expect mortgage interest rates to remain stable in January 2016. As the economy moves onward and upward more people will have money to purchase homes. When the economy is stronger banks tend to increase interest rates on home loans and other loan products like credit cards, etc. Before assuming you cannot qualify for a low interest rate reach out to us today. Whether it’s a home purchase or refinance, Five Stars has specialist standing by 7 days a week to help you lock in the lowest interest rates in January 2016. For quick service please submit the “Request Contact” form at the top right side of your screen or call ph: 800-871-2636. Mobile users can find the short Request Contact Form here. We serve borrowers in all 50 states.
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