Mortgages With 10% Down Are On The Rise


Great news for homebuyers in this market!
More mortgage lenders are offering conventional loans with down payments well below the 20% or higher levels of recent years. In another sign of the housing market’s brightening outlook, more home buyers are discovering conventional loans with down payments well below the 20% or higher levels of recent years. Until recently, many borrowers had to go through a government-guaranteed loan program, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs, to get a mortgage with less than a 10% down payment.
Mortgage rates continued to drop, with the 15-year fixed-rate loan hitting a record low, according to a weekly report from mortgage financier Freddie Mac.
The 15-year fixed-rate fell to 2.61% this week from 2.64%, The previous record low of 2.63% was set the week of Nov. 21, 2012.
An adjustable-rate mortgage, the 5/1 ARM, also bottomed out at 2.58%. The most popular mortgage, the 30-year fixed-rate, came in at 3.4%, 0.09 percentage point above its record low.
“The housing market is getting a boost, with mortgage rates hovering at or near record lows,” said Frank Nothaft, Freddie’s chief economist.
He cited a pick-up in the pace of existing-home sales to nearly 5 million a year during the first quarter of 2013, the most since the fourth quarter of 2009.
The low 15-year rate meant that homeowners could book substantial savings by refinancing from their current 30-year fixed rates. Homeowners with 5% 30-year mortgages who switch to 2.6% loans 15-years would pay $21,000 in interest for every $100,000 borrowed over the course of the loan, compared with $93,000 in interest on the 30-year loan.
About 75% of mortgage applications last week were for refinancing, according to the Mortgage Bankers Association.
The low rates should draw even more buyers into a housing market that has already heated up considerably.
“There’s no better way to welcome the spring home-buying season,” said Keith Gumbinger, vice president at, a mortgage information company. “But [there's] not much inventory available. Some sellers may be holding out for higher prices before putting their homes on the market this spring.”


Arlene is committed to the highest standards of excellence, integrity, and service to faithfully serve her clients. Arlene Rutenberg is a premier luxury real estate broker in Southern California with vast experience in the Los Angeles Westside real estate market and an extensive international network of clients, real estate agents, and partners.

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