Interest Rates

People get spoiled! 6.125% with 30 years conforming and 6.625% with jumbo loan 30 year fixed.  1/5 ARM, conforming 5.875%,  1/5 jumbo 6.125%. These are great rates, and rates have been like these for couple of months now.

It’s still perfect time for first time buyers, investors, and for trade-up or trade-down.

*conforming:$417,000, jumbo: over $417,000 – (rate week of 5/15/07) – rates are subject to change without further notice.
*Please also visit my Mortgage 1-2-3 page regarding rates and terms.

5 year ARM (adjusted rate mortgage) programs are the jewels and “movers” for the market. Truely, the average holding period for first time buyer in a property is about 5-7 years. The ARM program is perfect for it.

After 5-7 year, most people trade-up, take the gain, getting married, having kids, or get a job transfer etc.  For more aggressive people, interest only, 5-year ARM are still in demand. They believe in the Silicon Valley real estate and gaming in the appreciation in the coming years.

And this is the Silicon Valley way!

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