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Friday Rates are Improved
This week month continues to be very ugly for the stock market and traders are seeking the safety of bonds. In fact, the DOW is on track for being the worst June since the Great Depression and we have oil closing at a record $140. Mortgage rates continue to be very volatile and odds are, rates quoted in the morning will not be the same as what may be quoted in the afternoon as lenders issuing intraday rate changes is now the norm. So far today, one lender has issued 3 different rate sheets. This afternoon’s rates are about 0.125% better to rate than what I posted earlier this morning.
Next week, watch for the Job’s Report will be on Thursday, July 3 (since Friday is a holiday) which tends to have a significant impact on mortgage backed securities as it indicates inflation.
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 Pts: 6.375% (APR 6.432%) ~ @ 1 Pt: 6.125% (APR 6.275%)
30 Year Fixed with 10 Year Interest Only: @ 0 Pt: 6.625% (APR 6.678%) ~ @ 1 Pt: 6.375% (APR 6.514%)
15 Year Fixed: @ 0 Pt: 6.000% (APR 6.090%) ~ @ 1 Pt: 5.750% (APR 5.996%)
5/1 ARM - LIBOR: @ 0 Pt: 6.000% (APR 7.104%). ~ @ 1 Pt: 5.500% (APR 6.926%).
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: 6.500% (APR 6.%) ~ @ 1 Pt: 6.250% (APR 6.490%)
30 Year Fixed with 10 Year Interest Only: @ 0 Pt: 6.875% (APR 7.072%) ~ @ 1 Pt: 6.750% (APR 6.893%).
5/1 ARM: @ 0 Pt: 6.125% (APR 7.244%) ~ @ 1 Pt: 5.625% (APR 7.036%)
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: 7.500% (APR 7.656%)
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: 6.250% (APR 7.033%)
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: 6.375% (APR 7.133%)
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 27, 2008 at 2:00 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. To see live rate quotes for various scenarios, check out my Twitter page.
Posted: June 27th, 2008 under General Real Estate, Mortgage and Lending.
Tags: conforming, conforming jumbo, FHA, fha jumbo, interest-rate, mortgage-rate, non-conforming, va loans
About the Author: Rhonda Porter
- Author's website: http://www.mortgageporter.com
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Comments
2.
Comment
from Rhonda Porter
Time June 27, 2008 at 4:31 pm
Good question, Sam. I am researching all the lenders that we work with (just about every bank/lender you can think of)–we do not sell loans to credit unions and sometimes they do have very competitive rates that you must qualify for.
There has been a huge spread in rates with Jumbo financing–investors on Wall Street still don’t want them. I just have one lender that’s offering the rate I quoted today–the rest of the lenders are much higher.
It’s simply different sources of money.
3.
Comment
from Rhonda Porter
Time June 27, 2008 at 4:37 pm
BECU’s rate for a true jumbo is very close to what I’m quoting. The rate is 0.125% better but they are charging a small discount and higher fees. As I mentioned in my comment above, there is a huge span with the Jumbo market during these times.
I only see one credit union offering the rate you quoted, the others are a bit higher. No rate means anything unless you have a GFE with the LO guaranteeing closing costs. Even then, unless it’s locked it’s just a rate quote and can (and will) change.
Most of the individuals I’ve worked with opt to structure the mortgage in order to take advantage of the conforming jumbo rates…however if your loan amount is that significant and you can find a better rate with a credit union you trust will perform, I’d have a hard time convincing anyone to not select that option.
4.
Comment
from Roger Ingalls
Time June 30, 2008 at 1:20 pm
Rhonda:
I just got pinged with a survey/vote from WAMB (Washington Association of Mortgage Brokers), and the main question is an approval of the board recommendation to change the name to WAMP, Washington Association of Mortgage Professionals.
Good move, I think.
As they explained, there is a lot of confusion about who is, or is not, a mortgage broker, due to recent changes in state law.
Hopefully, they will continue to take steps to make sure that the members live up to the new name.
5.
Comment
from Rhonda Porter
Time June 30, 2008 at 1:24 pm
Roger, I was pinged too. I think the name change is a smart idea to try to smooth the ruffled feathers of correspondent lenders who were smacked with the new law when WAMB wasn’t watching and trusted DFI.
I’m wondering if it will pass. WAMB consists of far more brokers than correspondent lenders.
They sent out an “atta-boy” email a few weeks ago about how their actions helped to save 95% of the members from CLA…well…they left 5% of us correspondents out. I have a hard time joining them in patting them on the back.
6.
Comment
from Roger Ingalls
Time July 1, 2008 at 8:34 pm
Rhonda:
I think there are more Mortgage Originators than Mortgage Brokers. Maybe they should call it WAMO! 
I crack myself up…
8.
Comment
from Jillayne Schlicke
Time July 1, 2008 at 9:42 pm
I am a former member of WAMB so I did not get pinged. If so, my question would be, is the board of directors at WAMB planning on dropping away from the Nat’l Assoc of Mtg Brokers, and affiliating themselves with another national organization?
I wonder if the name change is because their members are trying to move away from something they are (brokers) because that word now has a negative connotation.
I think it’s wiser to stay with the word Broker because it more clearly defines what it is their target members do. The group could be at the forefront in helping to change the current perception of “brokers.”
Perhaps they wish to include a wider variety of members who are more than just brokers. If that’s the case, my first question still stands.
9.
Comment
from Rhonda Porter
Time July 1, 2008 at 9:57 pm
Good question, Jillayne. I don’t know if this is a national or state movement. I just considered state to CYA for the correspondents being overlooked with the CLA law. I’ll do some snooping.
1. Comment from sam mcneil
Time June 27, 2008 at 4:18 pm
One question I’ve always had - looking at your jumbo rates (true jumbo) - you are 7.875% for 0-points.
Various Credit Unions (https://www.penfed.org/productsAndRates/mortgages/firstMortgageLoans.asp#jumbo for example), are at 6.25% for the same loan (amount, score, points). Granted, you have to be a member, but you can become one for $20 by joining an organization. Searching mortgagemarvel.com shows a bunch of other credit unions in the 6% range for 0-points for the same loan.
If it was a .25% difference, I’d understand, but that difference is huge.
What enables these credit unions to be so far below the non-credit union world for pricing?