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Mortgage Rates for Friday: ARMs and Jumbo’s MUCH Lower! January 11, 2008

Mortgage guidelines continue to tighten.   Most recently, I’m seeing some lenders extend credit score-risk based pricing to FHA and VA mortgages.  Second mortgages have increased credit score requirements and have pulled back the total loan to value they will lend.   If you are putting less than 30% down and are considering obtaining a mortgage in the next year, I encourage you to contact your Mortgage Professional sooner than later.   Mortgage rates continue to be volatile.   Although the rates I’m posting today appear close to last week’s posted rates, they’ve been bumping around all week.  I favor locking over floating.  And why not?  Rates are great! 

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, a loan amount of $400,000, and with reserves (taxes & insurance) not being waived.   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: 5.500% (APR 5.649%).  Payment per $1000 = $5.68.

30 Year Fixed with 10 Year Interest Only:  5.875% (APR 6.029%).  Payment per $1000 = $4.90.

40 Year Fixed:  6.125% (APR 6.252%).  Payment per $1000 = $5.56.

5/1 ARM (5/2/5 caps - 2.25 margin):  5.125% (APR 6.853%).  Payment per $1000 = $5.44.

5/1 ARM 10 Year Interest Only Payments (5/2/5 caps - 2.25 margin):  5.125% (APR 6.903%).  Payment per $1000 = $4.48. 

FHA/VA 30 Year Fixed:  5.750% (APR 6.279%).  Payment per $1000 = $5.84. (not factoring upfront or monthly 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).  Since jumbo 7 year ARMs are right in there with the 5 year ARM, I’ve swapped the programs to buy you 2 more years of the fixed period.

30 Year Fixed: 6.250% (APR 6.403%).  Payment per $1000 = $6.16. 

30 Year Fixed with 10 Year Interest Only Payments: 6.375% (APR 6.515%).  Payment per $1000 = $5.31. 

7/1 ARM - 5/2/5 caps - 2.25 margin:  5.375% (APR 6.670%).  Payment per $1000 = $5.60.

7/1 ARM Interest Only - 5/2/5 caps - 2.25 margin:  5.500% (APR 6.781%).  Payment per $1000 = $4.58.

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, January 11, 2008 at 10:00 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.

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