As an incentive to home buyers during the holiday season, Peoples Bank is offering $500 off closing costs on applications received by December 20, 2013.
According to their October 30th rate sheet, they are offering a 4.125% mortgage rate on a 30-year-fixed-rate mortgage. When figuring out what that would be in a mortgage payment, the rate sheet states that is $4.85 per $1,000. So if you mortgaged $300,000, that would be figured by calculating $4.85 X 300 for a payment of $1,455. Real estate taxes and insurance would add to your payment amount, as well. This is standard. (Article continues below video.)
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They also offer a 20 year, a 15 year, and a 10 year fixed-rate mortgage with lower interest rates.
This assumes a 20% down payment and the usual other factors like credit history and loan-to-value history and other investor guidelines as loans are sold to the secondary mortgage market. Rates are subject to change. The best thing to do is to call Peoples Bank to learn for which mortgage terms you qualify.
Home buyers would be well-advised to take advantage of this rate and ring in the New Year with a new home. Mortgage rates were on their way up until the Fed announced in September that they decided to extend their purchase of treasury bonds and mortgage-backed-securities. This helped the housing market in light of the hit to consumer confidence caused by the recent government shutdown and the 11th hour debt-ceiling debate in Congress.
According to MortgageNewsDaily.com, “Fannie Mae’s economists expect the Fed to start tapering next year and end its asset purchase program in the second half of 2014.” They also expect interest rates to average 4.4% to 5% during the fourth quarter of next year.
When you call People’s Bank, tell them that Michael Seward of Sawicki Real Estate sent you. Call Beverly Orloski at 413-256-4544 or email her at firstname.lastname@example.org.
If you are planning on buying or selling a home in the Pioneer Valley, make your first call to Michael Seward at 413-531-7129. Michael Seward is a Certified Residential Specialist, a Certified Buyers Agent, a Certified Loss Mitigation Specialist, a Certified New Homes Specialist, and Green designee of the National Association of REALTORS®.