Rain City Guide

The Fed surprised everyone by lowering the discount rate by 0.50% to 5.75%.  This is not the same as the Fed Funds rate which the prime rate (home equity loans) is based on.   This impacts what banks will pay when borrowing funds from the Fed.  This more attractive rate will help add much needed liquidity to the markets.   Markets are reacting favorably to the Fed showing support during these historic times.   

Pricing rates has become very interesting.  I use to rely on a couple of lenders that I work the most often with.  With lenders pulling out of ARMs and non-conforming products, I’m using a resource that we have available at Mortgage Master which is a “pricing engine”.  This allows me to shop many lenders at once to see not only who has the most competitive rates, but more importantly these days: who still is offering the product?

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties).  Conforming rate quote below based on owner occupied, “full doc” with minimum credit scores of 680 with an 80% loan to value or lower and a loan amount of $400,000.   Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below. 

30 Year Fixed: 6.375% (APR 6.518%).  Payment per $1000 = $6.24.

30 Year Fixed with 10 Year Interest Only:  6.500% (APR 6.653%).  Payment per $1000 = $5.42.

40 Year Fixed:  6.750% (APR 6.906%).  Payment per $1000 = $6.03.

5/1 ARM:  6.125%  (APR 6.281%).  Payment per $1000 = $6.08.

5/1 ARM with 10 Year Interest Only:  6.250%  (APR 6.392%).  Payment per $1000 = $5.17.

FHA 30 Year Fixed:  6.500% (APR 7.119%) Payment per $1000 = $6.32 (not including MI).

JUMBO (Non-Conforming) Rates.   Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).    

30 Year Fixed: 7.000% (APR 7.798%).  Payment per $1000 = $6.74.   

5/1 ARM:  6.625%  (APR 6.770%).  Payment per $1000 = $6.40.

5/1 ARM with 10 Year Interest Only:  6.750%  (APR 6.906%).  Payment per $1000 = $5.63.

This is just a small sample available of rates and products.  Rates are as of 11:00 a.m. and may change at any time.  Available programs may change at anytime as well.    This is not a guarantee nor is it a commitment of interest rate.  For your personal rate quote or for loan amounts over $650,000, please contact me.