Salem, Oregon Mortgage Changes

Good Monday morning to you all. I can't believe it's August already! every Monday, I'll post Mortgage Rates for the Salem, Willamette Valley area.



Homebuyer Protection Alert!
Recent Federal legislation can impact your closing date. When completing your Purchase Agreement, even if you are prepared to move forward and close quickly, a more conservative timeframe of at least 30-45 days from the time of the contract acceptance would be a more realistic expectation at this time.Listed below is information on legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.


HERA: Housing and Economic Recovery ActHERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.



Under HERA:
No fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days.
Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.


In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.


Mortgage Interest Rates*
Rates as of Monday, 3rd August, 2009:


30-Yr. Fixed 5.125% Rate (5.297% APR)

15-Yr. Fixed 4.625% Rate (4.789% APR)

VA -Zero Down 5.375% Rate (5.588% APR)


FHA 30 year-3.5% Down 5.125% Rate (5.299% APR)


USDA-Zero Down 5.50% Rate (5.710% APR)








*Rates are subject to change due to market fluctuations and borrower's eligibility.
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