Lieutenant Governor Gregory R. Francis is encouraging Virgin Islanders to explore opportunities to take advantage of the favorable mortgage rates being offered by lenders. Francis, who serves as the chairman of the Virgin Islands Banking Board, reminds residents that local mortgage rate information and six-month rate history data is updated monthly on the Office of the Lt. Governor’s Web site, www.ltg.gov.vi.
According to a press release issued Wednesday by the Office of the Lieutenant. Governor, lower interest rates give consumers more options in their financial decisions. “These rates that we are seeing may enable residents to achieve their goals of homeownership or to refinance their existing mortgages,” Francis said. He encourages consumers who are considering purchasing or refinancing their homes to obtain information from several lenders, compare rates and negotiate for the best deal.
Presently, the territory’s mortgage lending rate is 5 percent. The mortgage rate is the maximum that can be charged by lenders pursuant to Virgin Islands law. The territory’s mortgage lending rate applies to mortgages up to $100,000, after which point rates become negotiable. This rate is the combined total of the base rate, as established by the Federal Home Loan Mortgage Corporation (Freddie Mac), plus a 1.50 percent allowable rate based on the Virgin Islands Code.