Rain City Guide

Mortgage interest rates continue their journey upwards after the release of the PCE (Personal Consumption Expenditure) coming in higher than expected at 2.2%.   The Fed prefers to see this index at no higher than 2%.  As this economic indicator is pointing towards inflation.  At this time, it is likely the Fed will be forced to lower rates when they meet in January.  If you’ve been following the rate posts, you know that inflation is the arch enemy of bonds.  Since mortgage interest rates are based on mortgage backed securities (bonds), mortgage rates are dramatically increasin.  The 30 year fixed conforming is up over 1% in fee in one day (the same rate yesterday cost you an additional 1% of your loan amount) or 0.25% in rate.

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” with minimum credit scores of 680 with an 80% loan to value or lower.  Rates are based on loan amount of $400,000 without having the reserve account (taxes and insurance) waived. Rates quoted are priced based on a 45 day lock with 1 point (discount or origination; 1% of your loan amount cost the same and buys you the same rate). There are no prepayment penalties on any of the rates quoted below.

30 Year Fixed: 5.875% (APR 6.021%). Payment per $1000 = $5.92.

30 Year Fixed with 10 Year Interest Only: 6.250% (APR 6.381%). Payment per $1000 = $5.21.

40 Year Fixed: 6.625% (APR 6.766%). Payment per $1000 = $5.94.

5/1 ARM (2/2/6 caps): 5.750% (APR 5.886%). Payment per $1000 = $5.84.

5/1 ARM 10 Year Interest Only Payments: 5.875% (APR 6.011%). Payment per $1000 = $4.90.

FHA/VA 30 Year Fixed: 6.250% (APR 6.904%). Payment per $1000 = $6.16. (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: 6.750% (APR 6.901%). Payment per $1000 = $6.49.

30 Year Fixed with 10 Year Interest Only Payments: 6.875% (APR 7.027%). Payment per $1000 = $5.73.

5/1 ARM: 6.500% (APR 6.647%). Payment per $1000 = $6.32.

5/1 ARM Interest Only: 6.625% (APR 6.647%). Payment per $1000 = $5.52.

This is just a small sample available of rates and products. Rates are as of Friday, December 21, 2007 at 11:30 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.