Cheaper to buy than to rent? Just about...

With interest rates down to 3.85%, it may be cheaper to buy -- yes, including property taxes and insurance -- than it is to rent.  Some clients of mine have made an offer on a $525k home.  They are putting 20% down, and their lender has given them a rate of 3.85% with no points.  Unheard of.  Their lender's estimate showed that their monthly nut, including property taxes and insurance, will be $2500 plus change.  This is for a redone 3+2 with a separate studio! Considering that barely decent 2 bedroom homes are renting for around $2k, could the housing market turn around this spring?

Interest rates are terrific

If you're searching for Studio City homes for sale (and if you are, please check out 4552 Morse), or Burbank real estate, or Toluca Lake real estate, or any other real estate, here's a news flash.  Interest rates have gone down again!  For 30-year fixed mortgages, they are now at 4.5% + 1pt for conforming, 4.625%+1 pt for conforming high limit, 5.5%+1 pt for jumbo (over $729k) and 4.0% + 1 pt. for 15 year mortgages.  We all thought we'd see higher interest rates by this time this year.  What a nice surprise.

I just re-fi'd my own house for 4.375% plus points

Update: Well, maybe it wasn't so easy after all. I received a call on 1/9 saying that our re-finance is not yet approved. No telling if/when it will be. I'll keep you posted.

I walked into my Bank of America branch today to ask about re-financing our home. Twenty minutes later, I walked out with a loan lock. The application was taken via computer. Not to sing BofA's praises, but it couldn't have been easier. And my rate is 4.375% plus 2-1/2 points. Total closing costs, including points, are running at 4%. Okay, that's high. But I'm only re-financing $91,000 (we bought a long time ago), and I'm wrapping the closing costs into the loan. It will add an additional $11 to my loan payment every month.

I was surprised to get a commitment without offering any documentation. This was all done with our credit scores. I'll report more as this processes and closes.