Mortgage rates continue to plummet, making this an excellent time to purchase the Destin, Florida home or South Walton vacation property you’ve had your eye on. According to information just released by federal mortgage giant Freddie Mac, interest rates for 15-year mortgages have reached an all-time low. Nationally, the interest rate on a 15-year fixed-rate mortgage dropped to 3.5% this week. Interest rates on fixed-rate 30-year loans have also dropped, falling to a new 2011 low of 4.32% nationally. Mortgage rates for home loans in Destin, the Beaches of South Walton, Panama City Beach and other Gulf Coast communities have never been lower. With economists beginning to report the first glimmers of U.S. economic recovery, home buyers and Destin real estate investors are urged to take advantage of these historically low mortgage rates now before interest rates start to nudge upward again.
In other news of interest to Destin Realtors, home buyers and real estate investors, the new Consumer Financial Protection Bureau is in the final stages of creating a program that would encourage banks to offer straight-forward mortgage loans. If adopted by the banking industry, this new type of mortgage loan would favor consumers by eliminating interest-only payments and excessive mortgage fees. The elimination of high mortgage fees would decrease the initial cost of purchasing a home and protect consumers from onerous fees over the life of their mortgage. Allowing a portion of each mortgage payment to draw down the principal loan balance would decrease interest assessments over time and could it possible for many Destin home buyers to pay off their mortgage loans more quickly.
To entice banks into offering straight-forward loans, the federal consumer agency is proposing to provide banks with “safe harbor,” a legal shield that would protect banks from a future mortgage meltdown.