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Friday’s Rates featuring Jumbo September 21, 2007

A welcomed site for many home owners and potential homebuyers: jumbo mortgages and ARMs are returning to the market with better pricing.  Prior to August, there was about a 0.25% difference between conforming and jumbo mortgage rates.   Last week, the gap between conforming and non-conforming 30 year mortgages was 1.25% in rate.

Conforming fixed rates are slightly higher over last week’s rate quote.   This following the Fed’s move on Tuesday and yesterday’s testimony to the House by Ben Bernanke and group topped off with a huge rally in the stock market.  There was plenty of talk from the panel supporting a temporary raise of conforming loan limits to help ease the jumbo markets.  

Rates and products change constantly during these volatile times in the mortgage industry.  Just yesterday, many lenders issued four rate sheets (a ”normal day” would be one).   I highly recommend locking your mortgage rate and program as well as getting preapproved as soon as possible when considering obtaining a mortgage.

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: 6.250% (APR 6.392%).  Payment per $1000 = $6.16.

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

40 Year Fixed:  6.625% (APR 6.771%).  Payment per $1000 = $5.68.

5/1 ARM (2/2/6 caps):  6.000% (APR 6.139%).  Payment per $1000 = $6.00.

5/1 ARM 10 Year Interest Only Payments:  6.125% (APR 6.281%).  Payment per $1000 = $5.10.

FHA/VA 30 Year Fixed:  6.500% (APR 7.118%).  Payment per $1000 = $6.32 (not including MI for FHA).

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: 7.125% (APR 7.798%).  Payment per $1000 = $6.74.

30 Year Fixed with interest only:  7.250% (APR 7.929%).  Payment per $1000 = $6.04.

5/1 ARM:  6.500% (APR 6.644%).  Payment per $1000 =  $6.32.

5/1 ARM Interest Only:  6.500% (APR 6.644%).  Payment per $1000 = $5.42.

Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR.    This is just a small sample available of rates and products.  Rates are as of Friday, September 21, 2007 at 8:15 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.

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