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Mortgage Rates on the First Day of Summer
While I’m still trying to figure out how to please everyone with pricing rates used in the Friday rate posts (with or without any points), since we have not had major rate changes today and because it’s the first day of summer…I’m going to give you a little treat and price rates both ways today: with a point and with out a point. I received a few questions from readers as to exactly what I mean about “with and without” points…it’s really simple. When I say “0 points” it means just that, there are no origination or discount points–nada, zip, nothing is in lines 801, 802 or 808 on the Good Faith Estimate. When I say the rate is priced with “1 point” (which equals 1% of the loan amount), this means that there is 1% total of origination/discount fees (if you were to add up the points shown in lines 801, 802 and 808, it would equal 1%).
Mortgage rates are slightly improved over last week as traders are seeking the safety of bonds (like mortgage backed securities) over stocks. We are just a few minutes from the markets closing with DOW down just over 200. Next week promises to continue to deliver drama with the FOMC meeting on Tuesday and Wednesday.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied with a minimum credit score of 720, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 30 day lock with no prepayment penalties on any of the rates quoted below.
30 Year Fixed: @ 0 Pt: 6.500% (APR 6.566%) ~ @ 1 Pt: 6.250% (APR 6.410%)
30 Year Fixed with 10 Year Interest Only: @ 0 Pt: 6.75% (APR 6.932%) ~ @ 1 Pt: 6.500% (APR 6.648%)
15 Year Fixed: @ 0 Pt: 6.250% (APR 6.345%) ~ @ 1 Pt: 5.875% (APR 6.135%)
5/1 ARM - LIBOR: @ 0 Pt: 6.000% (APR 7.104%). ~ @ 1 Pt: 5.625% (APR 7.051%).
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: @ 0 Pt: 6.625% (APR 6.681%) ~ @ 1 Pt: 6.375% (APR 6.527%)
30 Year Fixed with 10 Year Interest Only: @ 0 Pt: 7.000% (APR 7.197%) ~ @ 1 Pt: 6.750% (APR 6.893%).
5/1 ARM: @ 0 Pt: 6.250% (APR 7.244%) ~ @ 1 Pt: 5.875% (APR 7.141%)
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). The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.
30 Year Fixed: @ 0 Pt: 7.875% (APR 7.963%) ~ @ 1 Pt: 7.250% (APR 7.409%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 6.375% (APR 7.158%)
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties. For other loan limits in Washington State, click here.
30 Year Fixed @ 1 Pt: 6.500% (APR 7.258%)
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000. VA loan amounts over $417,000 are also available. Contact your local Mortgage Professional for more information.
30 Year Fixed @ 1 Pt: 6.375% (APR 6.700%)
Prime Rate (what HELOCs are based on): 5.000%
This is just a small sample available of rates and products. Rates are as of Friday, June 20, 2008 at 1:00 p.m. and may change at any time. So far for the month of June, we’re averaging 2.5 intraday rate changes (based on a lender who does not change rates as often as others). Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. To see live rate quotes for various scenarios, check out my Twitter page.
Just for fun, I’m keeping track of the weekly 30 year fixed rate quote on Fridays. I’m posting it here. The rates go back to when ARDELL first requested me to quote rates at RCG. A year ago this week, I quoted 6.75% @ 0 Pts.
Posted: June 20th, 2008 under Mortgage and Lending.
Tags: conforming, FHA, interest-rate, jumbo, Mortgage and Lending, non-conforming, va
About the Author: Rhonda Porter
- Author's website: http://www.mortgageporter.com
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Comments
2.
Comment
from Rhonda Porter
Time June 20, 2008 at 7:31 pm
Thank YOU, ARDELL…posting rates was a great idea for showing market trends. 
We just finished dinner on the deck which included some watermelon and kalbi ribs–it’s SUMMER!
Tomorrow’s the Fremont Solstice Parade–I was just thinking about how we (you, me, Kim and Deborah) went there for the first time–what an eyefull!
3.
Comment
from ARDELL
Time June 20, 2008 at 10:02 pm
LOL, Rhonda, that eyefull may last me a lifetime. Once may be enough. But I do highly recommend that everyone go to see it at least once. The bicycle parade, that is.
4.
Comment
from Rhonda Porter
Time June 20, 2008 at 10:09 pm
It’s my youngest sister’s birthday today and I suggested we girls (there’s three of us and I’m the wisest i.e. oldest) go…but I don’t think we’re going. Just lots of talk at this point.
Something else that would be fun to do that I’ve never done before…not quite the Fremont Solstice Parade–but close: The Rat City Roller Derby!
5.
Comment
from Sam Chapman
Time June 21, 2008 at 9:01 am
With jumbo loans now becoming investments for big banks as they look to keep them on the books for 5-7 years, rates are up for those buyers.
6.
Comment
from Rhonda Porter
Time June 25, 2008 at 11:26 am
FOMC has voted to keep the Fed Funds rate unchanged…home owners with HELOCs are safe from having their rate increased…for now! The next meeting is in September (and they can always adjust prior to a scheduled meeting, although it’s unlikely).
There was “concerns of inflation” and mortgage bonds are reacting as expected (for the worse)…LOCK YOUR LOANS–DON’T FLOAT.
Rates will be posted on Friday.
7.
Comment
from Roger Ingalls
Time June 25, 2008 at 1:50 pm
Thanks for the double helping of generosity.
I’d like to add to the definition of points to include line 808 form the GFE “Mortgage Broker Fee”. This is the line that mortgage brokers are required to use, and can be considered the equivalent of an Origination Fee (that term is exclusively reserved for banks, and correspondent lenders).
A Discount point, by law, MUST only be used as a payment to the lender/bank to reduce the rate. Putting origination fees in the discount points place was one of the violations found in HUD’s audit of Aplus Mortgage.
Honestly, they really should come up with a better GFE. I just upgraded to Point 6.1 and there are a few changes in the GFE, I think related to the coming mandated changes.
Oy!
8.
Comment
from Rhonda Porter
Time June 25, 2008 at 2:08 pm
Roger, you’re going to get me on a soap box! I think line 808 is plain stupid! Just how confusing are we going to make things for consumers? A point is a point. And does it really matter where it’s at? Line 801, 802, or 808–bottom line the consumer is or is not paying points.
The very definition of discount point should mean that all points are discount points, wouldn’t it? Consider the following example (rates are examples and not quotes):
A loan priced with zero points (nothing in lines 801, 802 or 808) with the rate of 6.500%.
A loan priced with 1 point providing a rate of 6.25%. The 1% lowers the rate (regardless of what line we’re suppose to put the point on).
By the way, it’s been well over a year since I’ve brokered a loan, so I never have to use line 808…but just think of the consumer… they’re all ready confused when they call in saying “so and so lender down the street just quoted me 6.375%..”
Me: Did you pay any points for that?
Them: No discount points
Me: How about an origination fee? How about line 808…
And then…what if they’re working with a lender who does not provide a GFE?
I’m going for a walk to vent…argh!
9.
Comment
from Roger Ingalls
Time July 1, 2008 at 8:53 pm
Rhonda:
To begin with, the government thinks it is pretty important for the borrower to know WHO gets paid WHAT. The WHO may or may not matter to the borrower, but it certainly does to the broker (you and me) and the lender.
The discount point discussion gets pretty serious if you have some doofus broker/originator charging a mortgage broker fee, a discount point, AND earning a YSP, like the idiots that got caught doing exactly that at A-plus mortgage.
Let me read this REAL SLOW, for anyone that doesn’t know yet.
YOU CANNOT HAVE BOTH A DISCOUNT POINT FEE AND A YSP FEE!
If your GFE has both, grab your wallet, and run like hell for the exit!!!
You and I both lose deals to liars and deceivers, and it will probably always be that way, no matter what the regulations are.
But you and I will be around long after they are gone, with far more friends worth having.
10.
Comment
from Rhonda Porter
Time July 1, 2008 at 8:57 pm
Bottom line, Roger, I would not depend on the Gov to find me the best rate or mortgage advice. I’m heading out to catch the last of the sunset and making raspberry sorbet for the kids (we had 5 teens–including our 3 over for dinner tonight). I’m going to take a much deserved break on the deck!
1. Comment from ARDELL
Time June 20, 2008 at 6:32 pm
“The rates go back to when ARDELL first requested me to quote rates at RCG.”
And I really, really appreciate it! Thanks Rhonda! Have a great weekend.