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Friday’s Rates are in Limbo March 7, 2008

We are in “limbo” while we wait for Fannie/Freddie and the lenders to figure out what the pricing will be for the temporary limboconforming loan limits.

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” purchase 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: 6.00%. (APR 6.149%)

30 Year Fixed with 10 Year Interest Only: 6.375%. (APR 6.514%)

10/1 ARM: (is currently higher than the 30 year fixed).

5/1 ARM: 5.250% (APR 6.895%)

5/1 ARM 10 Year Interest Only: 5.625% (APR 7.081%)

FHA/VA 30 Year Fixed: 6.000%% (APR 6.529%). Payment per $1000 = $5.92. (not including FHA mortgage insurance).

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 7.161%)

7/1 ARM: 6.125% (APR 7.051%).

Prime Rate (what HELOCs are based on): 6.00%

Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool. If you were considering a conforming product that offered a 10 year fixed period with interest only payments and relied solely on APR, you would wind up choosing the mortgage with a higher note rate by 0.75%! This is $250 more per month on a $400,000 mortgage.

This is just a small sample available of rates and products. Rates are as of Friday, March 7, 2008 at 3:15 p.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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