Should parents of college-bound kids buy an investment property instead of paying for dorm?; St. Louis Mortgage Interest Rate Update

Over the last few months, I have had a few inquiries from parents of college-bound children about investment properties.  The combination of low home prices, low interest rates, and a large inventory of foreclosure and short-sale homes have made buying much more attractive for parents of college-bound children.

Looking at the cost of a dorm room, some parents have realized they can now buy an investment property and make mortgage payments for about the same amount of money they would spend for their child’s dorm room, if not less.   Call your mortgage banker and check out the numbers…

And who knows, there is the possibility having a chance of selling the home in the future for a profit.

St. Louis MORTGAGE INTEREST RATES for July 21, 2011:

  • Conventional 30-Year Fixed 4.625%/ 5.105% APR
  • Conventional 15-Year Fixed 3.875%/ 4.10% APR
  • Conventional 5/1 ARM 3.375%/ 3.270% APR
  • FHA/VA 30 Year Fixed 4.500%/ 5.00% APR
  • Jumbo 5/1 ARM 3.125%/ 3.000% APR
  • Jumbo 15 yr Fixed 3.750%/ 4.125% APR
  • Jumbo 30 yr Fixed 5.000%/ 5.325% APR

*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.

Paramount Mortgage is a locally owned Mortgage Banker; we just celebrated our 40th anniversary. Great rates and programs are secondary to what is most desired in a lender relationship. The most sought-after aspects in this industry cannot be easily translated onto paper…learn more about us here.

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at or you can visit our company website at

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