Each Thursday at noon, CHFA publishes the mortgage interest rate for its Homebuyer Mortgage Program for the upcoming week. CHFA interest rates are subject to change weekly but are “fixed” for the term of the mortgage once a buyer goes to contract on a property and the lender locks the interest rate (120 day rate lock).
The State of Connecticut offers excellent programs for first time home buyers purchasing their dream home. Several special mortgage programs are available in addition to the Homebuyer Mortgage Program, including Down Payment and Closing Cost Assistance (known as “DAP”) for eligible buyers requiring 100%+ financing to purchase their first home. More information about all of CHFA’s mortgage programs, the applicable interest rates, and other eligibility guidelines is available at www.chfa.org.
This Week’s CHFA Homebuyer Mortgage Program Rate Remains Unchanged!
For three consecutive weeks the CHFA Homebuyer Mortgage Program rate has increased. Since there are been much speculation that interest rates would continue to increase, I was pleased to see that the interest rate for the 30-year, fixed rate under the Homebuyer Mortgage Program remained at 4.125% (APR range 4.225% – 4.625%) this week. Under the CHFA Homebuyer Mortgage Program a 1% origination fee is payable to the lender.
The rates that CHFA published at noon today are in effect until noon, Thursday, December 30,2010. Will rates remain flat, decrease or increase on December 30?
A Year In Review
25% of the buyers that I serve obtain CHFA mortgages so I pay careful attention to changes in CHFA’s Homebuyer Mortgage Program interest rates. As we approach the end of the year let’s look back at how the interest rate for CHFA’s Homebuyer Mortgage Program fluctuated during 2010.
The CHFA Homebuyer Mortgage Program Rate began to slowly decline in mid-May (5/13/2010) and was at its lowest, 3.625%, between 10/21/2010 and 11/17/2010. In addition, the Homebuyer Mortgage Program Rate is reduced by .25% for eligible buyers purchasing homes in a “targeted” area, like Hartford CT. “Targeted” areas are areas recognized as likely to benefit from an increase in homeownership.
Wow! When rates were at their lowest, eligible buyers purchasing a home in a “targeted area” could get a mortgage with a 3.375% interest rate! When was the last time buyers could get 3.375% with 1% point for the purchase of their first home?